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News

Covid-19: Antivirus Employment Retention Program for March

2.04.2020
Company: Eversheds Sutherland

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

 

Mode A - Forced closure and quarantine 

  • Employee is in quarantine -> receives 'sickness benefit' for the first 14 days from the employer of 60% of the average reduced earnings. 

  • Employee cannot work due to ordered closure of the establishment-> wage compensation of 100% of average 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). 

Mode B - Economic difficulties related to coronavirus  

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

  • Absence of at least 30% of employees (e.gquarantine or childcare) -> wage compensation of 100% of average earnings. 

  • Supply chain issues -> wage compensation of 80% of average earnings. 

  • 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). 

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. 

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 contractzero-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. 

How we can help? 

  • 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. 

Tags: Law | Economics | Human Resources |

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