All of us, whether employees, employers, entrepreneurs or self-employed persons, are now dealing with the problem caused by the COVID-19 epidemic and probably will be for some time to come. The government has introduced a Targeted Employment Protection Programme [1] aptly named Antivirus, targeting employers and employees. What amount of wage compensation are employees entitled to during work interruptions, to what extent and under what conditions will the state participate in these wage compensations, and where can one apply for the state contribution?
Employers whose economic activity is threatened as a result of the spread of the disease are to be provided with a partial wage compensation allowance through the Labour Office of the Czech Republic. This is a wage compensation allowance that employees are entitled to both because of an obstacle on the part of the employee and because of an obstacle on the part of the employer.
Employers will be able to apply for the allowance at the Labour Office of the Czech Republic as of 6 April 2020, in electronic form. They will be able to submit their application via data box or email or via the web interface, but only with a valid electronic signature. The allowance will be paid from 12 March 2020 to and including 30 April 2020, with the expectation that this period will be extended to May 2020 depending on the current evolution of the COVID-19 disease.
Employers will be able to claim the allowance under the following two schemes:
Scheme A
In the event of ordered quarantine, the employer is obliged to pay 60% of the employee’s average reduced earnings for 14 days. [2]
If the employer closes down its operations as a result of a government regulation, the employer is obliged to compensate the employee for 100% of his or her wages. [3]
If the obstacles listed in Scheme A have occurred, the state will provide the employer with a contribution of 80% of the wage compensation paid, up to a maximum of CZK 39,000 per employee. [4]
Scheme B
If more than 30% of the employees are quarantined or have to take care of their children, the employer is obliged to pay the employee a wage compensation equal to 100% of average earnings. [5]
In the event of an impediment on the part of the employer caused by a restriction in the availability of inputs (raw materials, products and services) necessary for the employer’s activities, the employer is obliged to pay the employee a wage compensation equal to 80% of average earnings. [6]
In the event of a reduction in demand for the employer’s services, products and other outputs, the employer is obliged to pay the employee a wage compensation equal to 60% of average earnings. [7]
If the obstacles listed in Scheme B have occurred, the state will provide the employer with a contribution of 60% of the wage compensation paid, up to a maximum of CZK 29,000 per employee. [8]
Conditions for entitlement to the contribution
The employee must not be on notice;
The employee must be in an employment relationship with the employer and must be covered by sickness and pension insurance;
The employer must pay the employee a wage compensation and pay compulsory contributions on his/her behalf;
The employer must strictly comply with the Labour Code.
The Antivirus Programme is beneficial for both employees and employers. As a preventive measure, it will contribute to improving the position of employees in the labour market by supporting the retention of existing employment. At the same time, it reimburses employers for a large part of the wage compensation paid out, which ensures that they get back a certain amount of funds that they can use to ensure their continued operation.
Frequently asked questions
If a business has ordered an employee to take a leave of absence, can they also take advantage of the Antivirus Programme?
Answer:
Yes, they can, but only after the leave is over and while the Antivirus Programme is valid.
Where can I apply for a wage compensation allowance?
Answer:
You can submit the application on a form that will be published on the website of the Labour Office of the Czech Republic in the coming days. The application can be submitted via data box or email or via the web interface, but only with a valid electronic signature. Along with the application, you will enter into an agreement not to dismiss the employee for whom you are receiving the allowance while the state is providing the allowance.
What about schemes regarding compulsory health insurance and social security contributions?
Answer:
The employer is obliged to pay these contributions as usual; there are no changes.
[1] Government Resolution of 31 March 2020 on the Targeted Employment Support Programme and repeal of Government Resolution of 19 March 2020 No. 257, Government Resolution of 23 March 2020 No. 293, available at https://apps.odok.cz/attachment/-/down/IHOABN8N8BT2
[2] Pursuant to Section 192 of Act No. 262/2006 Coll., the Labour Code, as amended (hereinafter the “Labour Code”)
[3] Pursuant to Section 208 of the Labour Code
[4] See information published on the website of the Ministry of Labour and Social Affairs, available at https://www.mpsv.cz/web/cz/antivirus
[5] See information published on the website of the Ministry of Labour and Social Affairs, available at https://www.mpsv.cz/web/cz/antivirus
[6] See Section 207 of the Labour Code
7] See information published on the website of the Ministry of Labour and Social Affairs, available at https://www.mpsv.cz/web/cz/antivirus
[8] See information published on the website of the Ministry of Labour and Social Affairs, available at https://www.mpsv.cz/web/cz/antivirus
