EMPLOYERS AND EMPLOYMENT RELATIONS

LAST UPDATE ON September 28 11 a.m.

NEWS: The Government discussed and sent to the Chamber of Deputies its bill on introduction of the so-called “kurzarbeit” (i.e. partial unemployment) institute into the Czech legal system.

Antivirus Program – regime A

• concerns the previously proposed regimes A and B, i.e.
  1. quarantine of employees
  2. ordered (by emergency measures) restriction or shutdown of employer’s operation
• the employer shall receive 80% of employees’ average earnings including the health and social security insurance contributions (from the super gross salary)
  • but no more than CZK 39,000 per one employee/month

Antivirus Program – regime B

• concerns the previously proposed regimes C, D and E, i.e.
  1. absence of significant number of employees
  2. “dead” time (fall of availability of inputs)
  3. partial unemployment (decrease in demand for employer’s good/services)
• the employer shall receive 60% of employees’ average earnings including the health and social security insurance contributions (from the super gross salary)
  • but no more than CZK 29,000 per one employee/month

Program Antivirus – general conditions

• an electronic request (via the electronic application)
• full compliance with the Labour Code by the employer
• only for non-dismissed employees based on the employment contract
• an agreement with the Labour Office
• paid after the payment of salary compensation and health and social contributions
• the employer shall prove its entitlement in case of control
• strict follow-up controls (possibility of refund of contribution)
• specific conditions for work agencies

Deferral and pardon of social security contributions (so called Antivirus C regime)

• pardon of social security contributions = possibility to decrease the assessment base for social security contributions paid for the employer; basic conditions:
  • employer with maximum of 50 employees
  • no more than 10% employees dismissed since March 31, 2020
  • no more than 10% decrease of wages in comparison to March 2020
  • employer duly and timely deducted the contributions for its employees
  • no concurrence with Antivirus A and/or B regime
• compliance with the above conditions is assessed separately for each month
• deferral of social security contributions = possibility to pay the social security contributions for the period between May and July 2020 until October 20, 2020
  • in case the employer decides to use the deferral → penalty from the outstanding amount is decreased by 80% (the rate is 4% p.a., i.e. 1% per quarter)
  • does not concern social security contributions for employees

Carer’s allowance

• allowance shall be provided during the period of closure of schools and other children’s facilities, but also some social services for the disabled
• following persons are entitled
  • parents of children under 13 years
  • persons caring for older handicapped children attending school
  • persons who, due to the closure of some social services facilities (day care centers, etc.), take care of the elderly handicapped who live with them in their common household
• two carers can now take care of the children/handicapped more than once and without limits
• will be paid retroactively at the date of the emergency measures
• increased to 80% of the reduced daily assessment base starting from April 1
• nursing for self-employed
  • during the period the schools are closed
  • applications are accepted from April 1 to April 30
  • CZK 424 per day in quarantine / family member care, CZK 500 per day starting from April 1
  • application form submitted to the Ministry of Industry and Trade
  • further conditions are specified here

Reliefs for self-employed

• pardon of the pension insurance payments
  • state shall pay for self-employed persons the advance payments for pension insurance contributions and state employment policy contributions for the calendar months from March to August 2020
• pardon of the public health insurance payments
  • state shall pay for self-employed persons the advance payments for public health insurance for the calendar months from March to August 2020 
• nursing for self-employed
  • for the period from March 12 to March 31 (may be extended)
  • applications are accepted from April 1 to April 30
  • CZK 424 per day in quarantine / family member care
  • application form submitted to the Ministry of Industry and Trade
  • further conditions are specified here
• compensation bonus for self-employed
  • one-time tax bonus in the amount up to CZK 25,000 (CZK 500 per day)
  • further information is here

Compensatory bonus for workers outside of employment contract

• employees performing work under other than employment contract, who contribute to the health insurance system, whose performance of work was restrained or impossible due to the coronavirus crisis
• CZK 350 per day
• for the period from 12 March 2020 to 8 June 2020
• the applicant must have worked for at least 4 out of 6 months prior to the crisis (from 1 October 2019 to 31 March 2020)
• people with more sources of income than agreement on working activity or performance of work will are ineligible for this bonus
• will be distributed by tax offices on the basis of an application (a simple form will have to be filled in)

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