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.
- quarantine of employees
- 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.
- absence of significant number of employees
- “dead” time (fall of availability of inputs)
- 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)