On 31 March 2020, the government of the Czech Republic approved (for a second and hopefully the last time) a proposal for amendment of the targeted Antivirus Programme for Support of Employment. What do we know about the Antivirus programme as of 1 April 2020?
For whom is the Antivirus intended?
The Antivirus programme is intended for employers in the wage area. Wage costs, for which the employer will be reimbursed by the Antivirus programme, incur for the period of time, when work is not performed for the employer.
What are the conditions?
- The employer strictly complies with the Labour Code;
- The employee, for whom the support is drawn, must not be in the notice period and must not be given notice (except for infringement of obligations);
- Employees are in an employment relation and participating in sickness and pension insurance;
- The employer must pay wage/reimbursement of wages and pay the levies.
What is the level of support?
Regime A – Forced limitation of operation and quarantine
- This applies to obstacles in work due to closure or limitation of operation as a result of emergency measures issued by the government, ministry of healthcare (hereinafter “MoH”) or a regional hygiene station, and to cases, when the employee was not able to perform work due to imposed quarantine according to the respective legislation.
- Depending on the type of obstacle, the employee is entitled to a certain percentage of wage:
- quarantine – reimbursement of wages reaching 60 % of average reduced earnings;
- closure of operation due to emergency measures – reimbursement of wages reaching 100 % of average earnings.
- The contribution reaches 80 % of paid reimbursement of wage, including levies, but no more than CZK 39,000 per one employee per one month.
Regime B – Related economic difficulties
- This applies to the case of obstacles in work on the side of the employer arising as a result of related economic difficulties caused by COVID-19 (other than in regime A).
- Depending on the type of obstacle, the employee is entitled to a certain percentage of reimbursement of wage:
- obstacles in work on the side of the employer due to imposed quarantine or looking for a minor involving a significant percentage of employees (30 % and more) – reimbursement of wages reaching 100 % of average earnings;
- limitation of availability of inputs (raw materials, products, services) necessary for the activity – reimbursement of wages reaching a minimum of 80 % of average earnings;
- limitation of demand for services, commodities and other products of the company and an issued internal guideline/approval from trade unions – reimbursement of wages reaching a minimum of 60 % of average earnings.
- The contribution reaches 60 % of paid reimbursement of wage, including levies, but no more than CZK 29,000 per one employee per one month.
When can payment of reimbursements be requested?
Antivirus will be launched on 6 April. From that time will it be possible to submit requests. Their processing will take several days. It preliminarily applies until 30 April 2020; the Ministry of Labour and Social Affairs expects prolongation to May.
How can a request be submitted?
- Requests are submitted and received electronically only. The applicant must either have a data box or a recognized electronic signature.
- The applicant will fill in the request for entering into an agreement by means of an Internet application created especially for the purposes of this contribution. The link will be published on the website www.uradprace.cz
- The request must be directed at the respective local Labour Office of the Czech Republic depending on the location of registered office of the applicant.
- There will be only minimal review of the applications and compliance with the rules will be examined subsequently.
Further conditions will be set by the methodology, which is being prepared and which the Ministry of Labour and social Affairs will publish within days. Further changes are not ruled out. The actual application of the individual options will always depend on the regime according to the specific situation of the entrepreneur and his business and operation. We will be happy to discuss your options with you.