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Coronavirus - Antivirus Employment Retention Program – Czech Republic

  • Czech Republic
  • Coronavirus - Country overview
  • Coronavirus - Workforce issues

16-04-2020

The government has approved the Antivirus Employment Retention Program to compensate employers’ salary costs from March 12 until the end of April (for now).

Mode A: forced closure and quarantine

  • employee cannot work due to ordered closure of the establishment-> wage compensation of 100% of average earnings
  • employee is in quarantine -> receives 'sickness benefit' for the first 14 days from the employer of 60% of the average reduced earnings
  • contribution under scheme A will amount to 80% of the paid wage compensation, including insurance contributions (max. CZK 39,000 per employee and month)

 

Employer pays

Government contribution

1. Forced closure / restriction of business operations

100%

80%

(max. 39.000 CZK / month)

2. Forced employee’s quarantine

60% (only first 14 days)

 Mode B: economic difficulties related to coronavirus

  • due to the Covid-19 outbreak, the employer cannot assign work to the employee because of:

o absence of at least 30% of employees (e.g. quarantine or childcare) -> wage compensation of 100% of average earnings

o supply chain issues -> wage compensation of 80% of average earnings

o reduced demand for employer’s services/products -> wage compensation of 60% - 100% of average earnings (reduction is possible by agreement with the trade union or by issuing an internal regulation)

  • contribution under scheme B will amount to 60% of the paid wage compensation, including insurance contributions (max. CZK 29,000 per employee and month)

 

Employer pays

Government contribution

1. Substantial staff absence

100%

60%

(max. 29.000 CZK / month)

2. Supply shortage

80%

3. Reduction in demand (partial unemployment)

60% - 100%

Compensation for functioning companies

The government also plans an incentive support for companies that have seen a 30% decline in revenue or production but continue to pay 100% of their wages to employees. A wage compensation of 20% is provisionally foreseen. Specific conditions should be published by 6 April.

Antivirus Retention Program: how to apply

Applications can be electronically filed with the Labor Office from 6 April. The employer will apply for the allowance after the end of the calendar month for which it is applying, i.e. for March, the employer will submit the application at the beginning of April. There should be only a delay of a few days between the submission of an application and the payment of contributions. It is expected that compliance with the subsidy rules will be subsequently strictly audited. More detailed conditions of the programme will be published in the coming days.

Basic subsidy conditions

  • only employees with employment contract; zero-hour contracts are excluded (in Czech “DPP” and “DPČ”)
  • terminated employees and employees in notice period are excluded (probably with exception for breach of duties)
  • salaries and insurance contributions were paid
  • the employer complies with the Labour Code and does not have overdue debts towards the state

Legal advice on the Antivirus Retention Program

We are happy do discuss the specific conditions of the Antivirus measures. At the same time, we will help you to set up the most beneficial structure for compensation of employees in case of reduction or stopping of business operations.