Below is an update of the latest development in the Czech Republic. Our previous alerts can be found here, here and here

Compensation for Employers

The government has offered compensation to employers for losses incurred in connection with the COVID-19 pandemic, in particular in the two situations described below.
In case an employee is ordered into quarantine in connection with COVID-19, the employer has the obligation to pay a salary reimbursement for the first 14 calendar days of the quarantine. The employer will receive a contribution equal to the entire amount of the paid salary reimbursement.

In a situation where an establishment has been closed due to a government shut-down order (see details in our previous alert here), and the employer was not able to assign any other work to its employees, the employees are entitled to a 100% salary reimbursement. The employer will receive a contribution equal to 80% of the paid salary reimbursement.

The contribution will be paid through the Labour Office, and the entitlement to it will be assessed individually, on a case-by-case basis. The employer will need to prove that the employee was unable to work due to the COVID-19 outbreak.

We will be happy to assist you with the application for the contribution.


Additional Limitation of Movement

As of 19 March 2020, every individual must cover his/her mouth and nose by any means (mask, respirator, scarf, shawl, or anything similar) at all times when anywhere outside their homes. The cover of the mouth and nose must be worn for the entire time, i.e. including time spent at work.

As of 21 March 2020, cross-border workers will need a confirmation of their status and a special book, whereby the police will record border crossings. This measure has been implemented in order to prevent abuse of the cross-border worker status.

Increased Benefit on Care Leave

Currently, employees that stay at home taking care of their children under 10 years of age due to the closure of schools are entitled to care leave, and a benefit paid by the social security for 9 working days (16 in case of a single parent). Under the proposal of a new law, the benefit will be paid during the entire period schools are closed due to the COVID-19 outbreak, to parents of children under 13 years of age. Independent contractors will also be allowed a payment if they have to stay at home to take care of children under 13 years of age. The parliament should discuss the proposal of new legislation next Tuesday, 24 March 2020.

Medical Checks & Immigration Permits

During the state of emergency, employees do not have to undergo an entry medical check. It can be replaced by a sworn statement, a form of which can be found here. Furthermore, periodical medical checks have been postponed until the end of the state of emergency.

All valid work permits, residence permits and visas issued before 19 March 2020, that will expire during the state of emergency and within 60 days after the termination thereof, will automatically be prolonged and will expire on the 60th day following the termination of the state of emergency.

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Should you have any questions, do not hesitate to contact us. We will keep you informed about the situation in the Czech Republic. Please also visit our Coronavirus Resource Center for further guidance for multinational employers.

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