21.4.2020
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The purpose of this Newsletter is to clarify selected instruments to support employers in the fight against COVID-19 , in particular:
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Ministry of Labor and Social Affairs of the Czech Republic - ANTIVIRUS Program
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Czech-Moravian Guarantee and Development Bank - Loans COVID I, COVID II
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Czech Chamber of Commerce - temporary assignment of an employee - project "save work"
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Czech Chamber of Commerce - certificate of force majeure
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Increase in nursing care
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Self-employed - Act No. 159/2020 Coll. on the compensation bonus
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Other business support instruments in the fight against COVID-19
COVID Technology Program 19
Czech Rise Up Program - Smart measures against COVID-19
The Country For Future (CFF) Program
CzechTrade - free individual export consultancy
CEB banking products
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ANTIVIRUS program
The ANTIVIRUS program approved by the Government of the Czech Republic by Resolution No. 353/2020 of 31 March 2020 pursuant to Section 120 of Act No. 435/2004 Coll., On Employment, as amended (hereinafter referred to as the “Employment Act”).
It has been operating since 6.4.2020. Employers' applications are accepted by the Labor Office of the Czech Republic (locally competent according to the employer's registered office) via a web application available at www.uradprace.cz , communication takes place exclusively electronically.
Exceptions to the ANTIVIRUS contribution:
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employers in state administration
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agreements on the performance of work or work activities
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in the event that the employer terminated the employee's employment or the employment relationship was terminated at the time the statement was submitted
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if the employer received another contribution for the employee from the Labor Office of the Czech Republic
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if the wage compensation is covered by other public budgets
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the employer is in liquidation or bankruptcy proceedings
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In the period of 3 years before the date of submission of the application, the employer was fined for allowing the performance of illegal work (according to § 5 letter e) point 3 of Act No. 435/2004 Coll., on Employment, as amended).
The allowance is intended to cover the employer's wage costs consisting in the payment of wages and salaries, including levies, and only for employees . The contribution can be obtained by all employers - the condition is at least one of the employees in an employment relationship who participates in sickness and pension insurance according to Czech legislation and which falls under the conditions of regime A or B of the Antivirus program. In the case of foreign employees, it is therefore decisive whether they are employed under Czech law and participate in the Czech pension and sickness insurance.
The allowance is provided exclusively to employees who are still employees at the time the employer submits the statement and have not been dismissed on the date of submission of the statement, nor are they on notice (with the exception of the notice defined by the Labor Code pursuant to § 52 letter g) - therefore the reasons for the immediate termination of employment and letter. h) - breach of duty by the employee in a particularly gross manner).
The condition for the payment of the allowance is that the employer has actually paid wages or compensation of wages to the employees and duly paid the compulsory insurance premiums for public health insurance and social security and the contribution to the state employment policy for the employees and the employer.
Wage compensation is divided into two regimes
Mode A
Ad 1) § 191 LC- an obstacle to work on the part of the employee
The hygienic station or doctor ordered the employee to quarantine or isolate (according to § 2 par. 6 of Act No. 258/2000 Coll., On the protection of public health, as amended, on the basis of § 191, or § 347 par. 4 LC ), it may also be a quarantine ordered abroad.
Employees are entitled to wage compensation for the first 14 calendar days of the quarantine period in accordance with Section 192 of the Labor Code. This is the same case as in the case of temporary incapacity for work.
An e-incapacity is sent from the CSSA (the quarantine column states "quarantine")
Wage compensation is due in the amount of 60% of the reduced average earnings . This compensation is not subject to social and health insurance contributions (neither by the employee nor by the employer) or income tax from dependent activity. After the first 14 days, it is then provided through the CSSA and the employer proceeds with it as a temporary incapacity for work lasting more than 14 days.
Source: http://delfy.cz/ucetni-podpora/mzdy/vypocty/pumerny-vydelek-redukovany/
Ad 2) Section 208 of the Labor Code - another obstacle on the part of the employer (closure of the operation by a government resolution within the state of emergency, or by a measure of the Ministry of Health and a regional hygienic station)
The measures in force at the time when the obstacle at work arises, ie at the time during which the employer will apply for a contribution, are decisive.
In accordance with § 208 ZP, the employer is obliged to pay employees compensation of wages in the amount of 100% of the average earnings of the employee, this compensation is subject to levies (social and health for employees and employers) and income tax from dependent activities.
The employer shall state in the application / statement the amount of the paid wage compensation and the part of the statutory levies that corresponds to the amount of the paid compensation.
The amount of the contribution in Mode A: 80% of the wage compensation, including contributions, but a maximum of CZK 39,000 per employee per month.
Mode B
(related economic difficulties)
Ad 1) § 208 ZP other obstacle on the part of the employer (at least 30% of employees are ill, quarantined, or caring for a child, etc.)
A substantial part of the employees is missing, and therefore the employer cannot assign work to the remaining employees.
In accordance with § 208 ZP, the employer is obliged to pay employees compensation of wages in the amount of 100% of the average earnings of the employee, this compensation is subject to levies (social and health for employees and employers) and income tax from dependent activities.
Ad 2) § 207 a) LC - downtime (raw materials missing)
The employer is obliged to pay the employee compensation of 80% of his average earnings
Ad 3) § 209 LC - partial unemployment (lack of demand)
The employer is obliged to pay the employee compensation of at least 60% of his average earnings (it can be adjusted otherwise according to the agreement with the trade union or according to internal regulations).
Rules common to the situation ad 2) and ad 3)
In both cases, wage compensation is subject to levies (social and health for employees and employers) and income tax from dependent activity.
In both cases, it is possible that employees work part-time, eg one day a week, or only part of the working time each day (depending on the type of operation and specific conditions). In such a case, for the actual time worked, employees receive a salary corresponding to the actual time worked and they are reimbursed for the part of the working time that they could not work due to obstacles.
Facts proving the link between the emergence of a specific obstacle at work and the epidemiological situation both in the Czech Republic and abroad will not be required of the employer to assess the justification for the provision of the allowance.
The employer shall state in the application / statement the amount of the paid wage compensation and the part of the statutory levies that corresponds to the amount of the paid compensation.
Amount of the SCHEME B contribution: 60% of the wage compensation, including contributions, but a maximum of CZK 29,000 per employee per month.
2. COVID I, COVID II loans (ČMZRB)
The program of the Czech-Moravian Guarantee and Development Bank, specifically COVID I, COVID II loans, will be presented briefly by VARGA Legal in this Newsletter with regard to the following facts:
On 16 March 2020, ČMZRB launched an interest-free loan for COVID I entrepreneurs in the range of CZK 500 thousand. CZK to CZK 15 million. Receipt of applications was temporarily suspended as of March 20, 2020.
On March 30, 2020, ČMZRB, together with the Ministry of Industry and Trade , announced the COVID II program. Receipt of applications for this program was started on 2 April 2020. The first round of receipt of applications was closed on 3 April 2020. The next round will be announced according to the decision of the Ministry of Industry and Trade.
Source: https://www.cmzrb.cz/podnikatele/zaruky/zaruka-covid-ii/
3. Chamber of Commerce of the Czech Republic - Temporary assignment of an employee - project "save work"
Up-date to 20.4.2020
One of the strongest accompanying features of COVID-19 from the point of view of the labor market is the volatility (fluctuation) of the possibilities of employment of employees with regard to their job content and specialization.
In this context, one of the solutions is § 43a ZP, ie the institute of the so-called temporary assignment of an employee. The temporarily assigned employee remains an employee of the original employer, but the work tasks are assigned to him by the company to which he is assigned under the conditions stipulated by law.
The Czech Chamber of Commerce has integrated and created a concept that offers companies "sharing" of work capacities.
More information can be found at
https://www.komora.cz/zachranpraci/
https://www.worklinks.com/#intro
4. Chamber of Commerce of the Czech Republic - Certificate of force majeure
The Chamber of Commerce of the Czech Republic issues a Certificate of Force Majeure (as of 20 April 2020, with a 50% discount ). The discounted price should apply until the end of the emergency .
The purpose of this certificate is to release the entrepreneur from compensation for damage , if it is proven on the basis of the submitted contractual documentation that this is an extraordinary unforeseeable and insurmountable obstacle .
The certificate can be issued to an applicant who is registered in the statutory register (eg a Czech company, a branch of a foreign company) who has a contractual relationship with a foreign entity.
The certificate is in principle issued for the purpose of use in legal relations in international trade.
Source: https://www.komora.cz/koronavirus/
5. Increase in nursing care
Up-date 17.4.2020
The nursing allowance was increased from 60% to the current 80% of the daily income base of employees (approved by the Czech government).
At the moment, it is not clear whether this change will also apply to self-employed persons who take care of their loved ones.
The Ministry of Labor (Jana Maláčová) assumes this, however, it has not yet confirmed the comparison of the conditions of assistance with the fact that the MIT (Karel Havlíček) must come up with a proposal to increase the nursing allowance. The resort should announce the call for applications for support for April 1.5.2020.
6. Act on Compensation Bonus No. 159/2020 Coll. - help for self-employed persons
The subject of the compensatory bonus is a self-employed person according to the law regulating pension insurance, unless it is a person performing an activity as a result of which this person participates in health insurance as an employee or a person whose self-employed activity is interrupted from 31 August 2019.
The Compensation Bonus Act grants this to the self-employed if the subject of the compensation bonus could not perform this activity in whole or in part above the usual due to health threats or crisis measures, listing these circumstances in § 3 paragraph 1 letter a) ze) therefore, there may be other reasons).
The compensatory bonus entity is not entitled to
a) unemployment benefits under the Employment Act for the calendar day for which he received the compensation bonus,
(b) a compensatory bonus for the calendar day for which he received unemployment benefit under the Employment Act.
The amount of the compensation bonus is CZK 500 for each calendar day of the bonus period. The bonus period is the period from 12.03.2020 to 30.04.2020.
An application for a compensation bonus can be submitted no later than 60 days after the end of the bonus period. If this application is not submitted within this period, the right to the compensation bonus expires.
The compensation bonus is a refund of personal income tax from dependent activity. In 2020, income from subsidies within the subsidy program of the Ministry of Industry and Trade "NURSING" FOR SELF-EMPLOYED PEOPLE is exempt from personal income tax.
With regard to sanctions, VARGA Legal points out that, pursuant to Section 8 (2) of the Compensation Bonus Act, if the bonus administrator (ie the relevant FI) finds, on the basis of a procedure to remove doubts or a tax audit, that the conditions for entitlement to the compensation bonus and the compensation bonus have not been assessed in the correct amount, the tax is assessed in the amount of the difference between the assessed compensation bonus and the amount newly determined.
7. Other instruments of business support in the fight against COVID-19
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COVID 19 Technology and Czech Rise Up Programs - Smart measures against COVID-19 . They support the production of medical devices and the development and deployment of new technologies to combat coronavirus infection.
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The Country For Future (CFF) program for innovative projects. It focuses on the areas of national start-up and spin-off environments, digitization and smart investments and, among other things, supports the facilitation of robotics, automation and innovation in companies with an emphasis on SMEs in accordance with defined Industry 4.0 standards and key trends in promising industries .
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Free individual export advice. It provides 58 experts on territories around the world from the CzechTrade agency. Both through the Czech headquarters in Prague and in foreign offices.
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CEB banking products. Pre-export financing, loans, repurchase of receivables or guarantee products to release cash flow. Services to Czech companies from the Czech Export Bank (ČEB) in cooperation with the Export and Guarantee Insurance Company (EGAP).
Details at https://www.ceb.cz/novinky/tiskove-zpravy/ceb-nabizi-exporterum-pomoc-a-zvyhodnene-podminky/ .
Conclusion:
VARGA Legal points out that the above-mentioned instruments to support employers in the fight against COVID-19 are valid on the date of writing this Newsletter or on the date specified in this Newsletter for a specific instrument.
