[et_pb_section fb_built=”1″ _builder_version=”4.0.4″ custom_margin=”0px||||false|false” custom_padding=”0px||||false|false”][et_pb_row _builder_version=”4.0.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”0px||||false|false” custom_padding=”0px||||false|false”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.4.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”40px||||false|false”]<\/p>\n
UPDATED AS OF 17\/04\/20<\/p>\n
<\/p>\n
At its meeting on 31 March 2020, the Czech government approved a new form of the programme proposed by the Ministry of Labour and Social Affairs of the Czech Republic (\u201cMoLSA\u201d) \u2013 what compensations and how high can employers expect? And what is the procedure for applying for these compensations? These and other questions are answered in this article.<\/p>\n
[\/et_pb_text][et_pb_image src=”https:\/\/www.boroveclegal.cz\/wp-content\/uploads\/2020\/03\/projekt_antivirus.jpg” _builder_version=”4.0.4″ width=”50%”][\/et_pb_image][et_pb_text _builder_version=”4.4.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”40px||||false|false”]<\/p>\n
This programme consists of financial support for employers to prevent redundancies as a result of emergency measures in response to the coronavirus pandemic.<\/p>\n
Put simply, this programme includes support for employers concerning various types of obstacles to work, including downtime \u2013 along with the introduction of the so-called kurzarbeit \u2013 i.e. short-time working (which, under Czech law, means a contribution provided to employers during periods of partial unemployment).<\/p>\n
At the government meeting on 31 March 2020, the following measures were approved under the targeted \u201cAntivirus\u201d Support Programme for March and April 2020<\/a>\u00a0(in the English language version, reviewed as of 8 April 2020) \u2013 i.e. for the period from 12 March to 30 April 2020<\/strong> (with the possibility of further extension, which is subject to government\u2019s repeated approval).<\/p>\n Under the \u201cA\u201d scheme, a measure has been approved to compensate the employer for the wage compensation<\/strong> incurred as a result of the<\/p>\n This is to compensate for cases where<\/strong> an employee has been quarantined, either as a precautionary emergency measure, or individually with respect to the risk \/ confirmed coronavirus infection (by their respective GP, or the locally competent regional public health authority) during which the employer provides<\/strong> the employee with wage compensation in the amount of 60% of the reduced average pay<\/strong> for the first 14 days of quarantine (which is also the period for which preventive quarantine is declared under the relevant government measure).<\/p>\n Compensation will thus be provided for the first 14 days of quarantine<\/strong>, since if extended, the employee is entitled to a sickness insurance benefit of 60% of the reduced daily basis of assessment from the 15th day, but which is paid by the relevant DSSA.<\/p>\n These are compensations intended for the so-called primary employers<\/strong> who were directly affected by the declaration of the state of emergency and the related government resolutions on emergency measures, or extraordinary measures declared by the Ministry of Health of the Czech Republic \/ regional public health authorities, which resulted in closure or limitation of operation of the employer.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”sede pozadi” _builder_version=”4.4.2″ background_color=”#f7f7f7″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”10px|20px|20px|20px|false|false”]<\/p>\n But who is the primary employer?<\/strong> The so-called primary employers are employers operating facilities that have been closed by a government resolution (now as a result of an emergency measure by the Ministry of Health), typically hotels and other accommodation facilities (with exceptions), bars and restaurants (although allowed to deliver and sell via takeaway windows), retail and sale of services in establishments (fitness centres, sports grounds, music and social clubs, entertainment facilities, libraries, etc.), but also theatres, cinemas or operators of other art\/sports and other similar events, whether public or private (where there is a limit of 30 persons, but it is irrelevant at the moment with regard to the prohibition of free movement of people).<\/p>\n As there is a list of exceptions to the above ban, which is gradually expanding, we recommend that you follow the development of extraordinary measures on the website of the Ministry of Health \u2013 with the extraordinary measure of the Ministry of Health of 15 April 2020<\/a>\u00a0(in the Czech language) currently in force.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.4.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”40px||||false|false”]<\/p>\n Therefore, if a particular employer is unable to assign work to employees due to the closure\/limitation of their operation (that is, there will not even be work that employees could perform outside the employer\u2019s workplace under the home-office agreement and no agreement on vacation \/ unpaid leave with them, or shorter working hours or even a mix of specific instruments), then there will be other obstacles to work on the part of the employer<\/strong> pursuant to Section 208 of the Labour Code, for which the employee is entitled to 100% of the average pay<\/strong>.<\/p>\n ATTENTION: Only an employer who will award and pay<\/strong> 100% of the average wage compensation<\/strong> to the affected employees will be entitled to the compensation of wage compensation costs under the \u201cA\u201d scheme (i.e. they will not apply any other type of obstacles to work associated with a lower entitlement to wage compensations).<\/p>\n However, it cannot be ruled out that the so-called primary employer would apply partial unemployment (with an employee\u2019s wage compensation of at least 60% of the average pay) and, in such case, such employer would apply for compensation under the \u201cB\u201d scheme, as follows from the previously issued labour-law top ten in the fight against the coronavirus<\/a>\u00a0(in the Czech language).<\/p>\n In both of the above cases under the \u201cA\u201d scheme, employers will receive a contribution corresponding to 80% of wage compensations, including social security and health insurance contributions, up to a maximum of 39,000 CZK per employee per month<\/strong>.<\/p>\n ATTENTION: However, this entitlement will not be applicable to employees who<\/strong>, by the date of the employer\u2019s monthly statement for the purpose of compensation from the \u201cAntivirus\u201d programme, will be dismissed<\/strong> from their employment relationship pursuant to Section 52 (a)\u2013(f) of the Labour Code<\/strong>.<\/p>\n Under the \u201cB\u201d scheme, a measure has been approved to compensate employer\u2019s costs of compensating employees\u2019 wages due to work-related obstacles on the part of the employer due to the spread of the coronavirus infection<\/strong>, consisting mainly of (i) the absence of a significant proportion of employees in the workplace due to the obstacles to work on their part, (ii) downtimes or (iii) partial unemployment.<\/p>\n For the sake of clarity, we will summarize the application of this compensation in cases explicitly confirmed by the MoLSA as a reason for compensation more specifically below, namely:<\/p>\n If, due to the absence of a significant proportion of employees<\/strong>, the employer has no work for other employees to assign to them, this will be so-called other obstacles to work<\/strong> associated with the employee\u2019s entitlement to wage compensation of 100% of the average pay<\/strong>.<\/p>\n Although the \u201cAntivirus\u201d programme does not explicitly regulate what is meant by a \u201csignificant\u201d proportion of employees, in my view one can proceed (at least as a guideline) from an earlier interpretation of the MoLSA that at least 30% of employees should be absent<\/strong> \u2013 this condition should not be assessed for the employer as a whole, but could relate to the employer\u2019s individual establishments<\/strong> (plants) or organizational units<\/strong> (individual cost centres).<\/p>\n In my opinion, the reasons of absence not currently regulated should also be possible to relate to the interpretation of the MoLSA where, according to a press release of the MoLSA<\/a>, the reasons of absence<\/strong> may be considered justifiable in relation to quarantine or attendance allowance due to the care of a child up to 13 years of age (no age limit in case of handicapped children from the 1st degree of dependence) due to the closure of the school \/ school facility. If there is an interruption\/limitation of the availability of supplies of raw materials, products, services or other inputs<\/strong> necessary for the employer\u2019s business as a result of emergency measures<\/strong> (adopted not only in the Czech Republic, but also abroad), or more precisely as a result of the spread of the coronavirus infection (for example, due to ordered interruption of the supplier\u2019s operation, insufficient supply due to the closure of national borders), these will be obstacles to work on the part of the employer.<\/p>\n This type of specific obstacles is referred to as downtimes<\/strong> during which employees are entitled to wage compensation of at least 80% of their average pay<\/strong>.<\/p>\n If there is a temporary decrease in the sale of the employer\u2019s products \/ demand for the employer\u2019s services<\/strong> as a result of emergency measures<\/strong> (adopted not only in the Czech Republic, but also abroad), or more precisely as a result of the spread of the coronavirus infection, and the employer will not be able to assign work to employees \u2013 these will be obstacles to work during which employees are entitled to wage compensation of at least 60% of their average pay<\/strong>.<\/p>\n ATTENTION: However, unlike downtimes, the employer\u2019s internal consideration is not enough for the purpose of applying partial unemployment, but this must be agreed with a trade union<\/strong>; only if the employer does not have a trade union is it possible to adjust the conditions of partial unemployment in the employer\u2019s internal regulations<\/strong>.<\/p>\n In the cases under the \u201cB\u201d scheme, employers will receive a contribution corresponding to 60% of wage compensations, including social security and health insurance contributions, up to a maximum of 29,000 CZK per employee per month<\/strong>.<\/p>\n ATTENTION: However, this entitlement will not be applicable to employees who<\/strong>, by the date of the employer\u2019s monthly statement for the purpose of compensation from the \u201cAntivirus\u201d programme, will be dismissed<\/strong> from their employment relationship pursuant to Section 52 (a)\u2013(f) of the Labour Code<\/strong>.<\/p>\n According to the available rules of the \u201cAntivirus\u201d programme, the employer will be able to apply for inclusion in this programme<\/strong>, probably starting 6 April 2020, through a web application<\/strong>, which should be available at antivirus.mpsv.cz<\/a>\u2013 provided that the employer will send the application by data box \/ signed by a recognized electronic signature to the locally relevant branch of the Labour Office (according to the employer\u2019s registered office), which will also be accompanied by (i) a bank account document and possibly (ii) a power of attorney for representation.<\/p>\n After the Labour Office registers the application and carries out a formal inspection of all the requisites, it will send an approved application, which will be in the form of a concluded contribution agreement.<\/p>\n Subsequently, it will be necessary to send a statement<\/strong> of the paid wage compensations to the Labour Office, including compulsory contributions, together with a list of employees stating their national ID numbers \/ insured persons\u2019 registration numbers (if there is no national ID number) \u2013 this statement will also be accompanied by affidavits<\/strong> concerning facts required under the \u201cAntivirus\u201d programme, in particular the paid wage compensations, the existence and duration of obstacles to work, and a specific government resolution \/ extraordinary measure on the basis of which the operation has been closed\/limited (in relation to the \u201cA\u201d scheme).<\/p>\n After an automatic check<\/strong> by the Labour Office (which will verify the records of employees and the fulfilment of social insurance contributions with the Czech Social Security Administration), the contribution from the Labour Office should be provided<\/strong>, probably in the period from about 10 April 2020.<\/p>\n ATTENTION: Although there will be no general check<\/strong> of the fulfilment of all prerequisites for obtaining the contribution before it is awarded, the Labour Office is entitled to initiate an inspection by the State Labour Inspection Office in case of doubt<\/strong>, which is entitled to impose sanctions in case of violation of labour-law regulations regarding the granting of the contribution \u2013 in such a case, there would probably be a reason to return the contribution subject to the conditions agreed in the contribution agreement.<\/p>\n It is also necessary to take into account that the State Labour Inspection Office will also carry out follow-up inspections, focusing on whether all obligations of the employer have been respected in connection with the granting of the contribution \u2013 again with the possibility of both imposing a sanction<\/strong> and returning the contribution<\/strong> (in relation to the specific found violation and conditions for granting the contribution).<\/p>\n More details on the application process and its subsequent administration, including specific documents, are available HERE<\/a>.<\/p>\n According to the statement of the Minister of Industry and Trade, Mr. Havl\u00ed\u010dek, at the government press conference on 31 March 2020, we can expect the announcement of the \u201cC\u201d scheme, which should consist in supporting employers who still carry out their business, assign work to employees and provide them with normal wage.<\/p>\n Whether or not this scheme will ultimately be announced should be communicated next week, possibly with the details under which the scheme would be implemented.<\/p>\n We keep an eye on the updates concerning the impacts of the current coronavirus crisis on employers for you. If you want to keep track of current developments, you can follow us on our company profile on LinkedIn<\/a><\/strong> or subscribe to our newsletter<\/strong>.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ disabled_on=”off|off|off” _builder_version=”4.0.4″ custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” border_width_top=”1px” border_color_top=”#e4e4e4″][et_pb_row _builder_version=”4.0.4″ custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Newsletter Subscription MailerLite” _builder_version=”4.0.4″]<\/p>\n A) Quarantine compensation + closure\/limitation of operation<\/h3>\n
\n
\n
Amount of compensation under the \u201cA\u201d scheme<\/h4>\n
B) Compensation of obstacles on the part of the employer due to the coronavirus<\/h3>\n
\n
However, the question is whether these reasons will also include temporary incapacity for work, which has already been referred to in the MoLSA\u2019s top ten in the fight against the coronavirus<\/a>\u00a0(in the Czech language).<\/p>\n\n
\n
Amount of compensation under the \u201cB\u201d scheme<\/h4>\n
What is the procedure for exercising the right to compensations?<\/h2>\n
Can further measures be expected?<\/h2>\n