Due to the worsening epidemiological situation, on 29 November 2021, the Government of the Czech Republic has approved the extension of Regime A of the Antivirus Programme until 28 February 2022, while recovering Regime B for the period from 1 November 2021 to 28 February 2022. Companies with production and service reductions will therefore again be granted wage replacement contributions.
Regime A applies primarily to cases where employees were ordered quarantine due to COVID-19. Under regime A, the employer receives a state contribution to cover the costs incurred by paying wage replacement at 80%, up to a maximum of CZK 39,000 per employee per month. These employees then receive wage compensation at 60% of their average earnings. Regime A of the Antivirus programme was originally due to expire at the end of this year, but the government has decided to extend it until 28 February 2022.
The government has reactivated Regime B of the Antivirus programme, which will be available from 1 November 2021 until 28 February 2022. This regime is intended for cases caused by the economic difficulties that the current situation has brought. This regime shall apply to cases when obstacles to work on the part of the employer exist, particularly if:
- a significant proportion of employees are absent from work (Section 208 of the Labour Code), in which case the employer has the duty to pay the employee a compensatory wage equal to 100% of his average earnings;
- companies lack incoming supplies of raw materials, products, services necessary for the activity (Section 207(a) of the Labour Code), where the employer has the duty to pay the employee a compensatory wage of at least 80% of his average earnings;
- there is a decrease in demand for the company’s services or products (Section 209 of the Labour Code), where the employer has the duty to pay the employee a compensatory wage of at least 60% of his average earnings on the basis of an agreement with the trade union or an internal regulation.
The contribution is provided at the amount of 60% of the paid wage compensation, including insurance premium. The maximum amount of the contribution per employee is CZK 29.000 per month.
Conditions for drawing
To qualify for the compensation (i) the employer must strictly comply with the Labour Code, (ii) the company must be in the corporate sector, whereby employees must be employed and participate in sickness and pension insurance, and (iii) the employee has not been given notice by the employer on the date of submission of the statement (except for notice given pursuant to Section 52(g) and (h) of the Labour Code), and (iv) the employer pays the wage compensation and pays levies.
Applications are submitted electronically on the website of the Ministry of Labour and Social Affairs, and the procedure varies depending on whether the company has already signed an agreement with the Labour Office on the provision of the targeted Antivirus contribution.
For more information on this issue please do not hesitate to contact us.
Mgr. Jakub Málek, partner – firstname.lastname@example.org
Kristýna Nguyenová, legal assistant – email@example.com
13. 12. 2021