In today’s issue of our newsletter you will find information on how to draw subsidies from the Antivirus programme, which was launched in the first week of April with the aim of protecting jobs. Employers may apply at the Employment Office for a contribution to the wage compensation paid to employees from 12 March to 30 April 2020, using either of the two schemes below. The contribution shall be requested for each month separately and the respective application shall be submitted by the end of the following month i.e.
- For the month of March, the application shall be submitted by the end of April
- For the month of April, the application shall be submitted by the end of May
In terms of subsidy applications, you are required to assess correctly whether your company qualifies for the subsidies or not. There are two schemes: A and B; see below.
It is also necessary for the company to process wages according to the “rules” of the Labour Code. You can find out more about the conditions for obtaining Antivirus subsidies in our COVID-19 Centre.
Once the subsidies have been paid, inspections will be conducted by the Employment Office of the Czech Republic to determine whether the wage compensation was correctly paid and whether the employer had met the criteria for its being awarded. Intentional misuse of the contribution may be classified as a crime.
Employers should also comply with the following points, which the inspectors from the Employment Office may focus on
- Correct registration of working hours
- Medical examination of employees
- Calculation of wage claims of employees according to the rules of the respective health insurer
- No debt
- Illegal schemes of employment designated as “švarcsystém” and others
1. Subsidy schemes
- In the event of quarantine, employees receive compensation of 60% of their average reduced earnings
- If a business is closed by a government regulation, employees receive compensation of 100% of their wage
Amount of contribution under scheme A
- The amount of the contribution is 80% of the wage compensation, including statutory levies, paid by the employer to the employee for the duration of the obstacles to work.
- The employer shall therefore provide in the statement the amount of wage compensation paid and the part of the statutory levies that corresponds to the amount of the compensation paid. The contribution of the Employment Office then equals 80% of the sum of these amounts.
- The maximum monthly amount of the contribution per employee is CZK 39,000.
- Obstacles to work on the employer’s side as a result of an ordered quarantine or child care for a significant proportion of employees (30% and more) – employees receive compensation of 100% of their average earnings
- Limited availability of inputs (raw materials, products, services) required for the business activity – employees receive compensation of 80% of their average earnings
- Reduced demand for the company’s services or products – employees receive compensation of 60% of their average earnings
Amount of contribution under scheme B
- The amount of the contribution is 60% of the wage compensation, including statutory levies, paid by the employer to the employee for the duration of the obstacles to work.
- The employer shall therefore provide in the statement the amount of wage compensation paid and the part of the statutory levies that corresponds to the amount of the compensation paid. The contribution by the Employment Office then equals 60% of the sum of these amounts.
- The maximum monthly amount of the contribution per employee is CZK 29,000.
2. Submission of application
- The employer shall submit the application for a contribution via the Antivirus website of the Ministry of Labour and Social Affairs HERE (in Czech)
- The employer shall send the application to the respective Employment Office according to the registered office of the company
- Obligatory documents accompanying the application:
- proof of opening an applicant’s account to which the Employment Office shall be sending the funds and proof of the employer’s representation (by an authorized individual)
- power of attorney granted by the employer where the individual authorized to process the application is different from the individual authorized to act on behalf of the applicant, unless previously submitted to the Employment Office
- If all the requirements are fulfilled, an agreement may be entered into.
- Applications shall be submitted via
- the web application;
- a data box;
- an email with an advanced electronic signature
3. Entering into an agreement
- The agreement is generated automatically after the application is filled in and is submitted to the Employment Office together with the application. An agreement delivered in this manner is deemed to have been signed by the applicant.
- If the Employment Office finds any error after the application was delivered, the applicant will be informed accordingly.
- The agreement shall be deemed entered into if signed by the Employment Office and sent back to the applicant via a data box or by an email with an advanced electronic signature
4. Wage compensation statement
- After the wage closing date, the employer shall submit to the Employment Office (via the web application) a statement of the wage compensation paid, including statutory levies, which shall include a list of employees and their birth numbers or the registration numbers of insured individuals (unless a birth number is specified) for whom a contribution is being claimed
- The statement shall be submitted no later than by the end of the calendar month following the end of the reported monthly period, e.g. for the month of March it shall be submitted by the end of April!
- Only the gross wage expense for the amount paid in compensation shall be shown in the statement of costs. If, for example, an employee worked part of the month and then obstacles arose, the statement shall only show the part paid for the duration of the obstacles, i.e. the time not worked
- The relevant forms for both Scheme A and Scheme B may be found on the website of the Ministry of Labour and Social Affairs HERE (in Czech)
5. Provision of contribution
- The contribution shall only be granted for the staff proved to be employed by the applicant, as evidenced by an inspection
- The Employment Office shall pay the contribution into the employer’s account
Please do not hesitate to contact us if you need help in any of these areas.