On 31 March 2020 the Czech government published further details on the financial support to employers called “Antivirus”. The program “Antivirus” is aimed at employers whose economic activity will be jeopardized by the spread of the COVID-19 disease.
Participation in the program “Antivirus” is subject to the following conditions:
- the employer strictly follows the Labor Code;
- an employee cannot be in a notice period and he/she cannot be given a termination notice;
- concerning companies in the private (business) sector, employees must be in an employment relationship and must participate in the health and social security insurance; and
- the employer must pay a salary to employees and must pay health and social security charges.
Employers meeting the above conditions will receive a contribution from the state in the below specified situations.
Quarantine of an Employee
In case an employee is ordered into quarantine in connection with COVID-19, the employer has the obligation to pay him/her a salary reimbursement in the amount of 60 % of reduced average earnings (the same calculation as in the case of sickness) for the first 14 calendar days of the quarantine.
The employer will receive a contribution from the state equal to 80 % of the paid salary reimbursement including health and social security charges, capped at CZK 39,000 per employee.
Temporary Closure of Operations Ordered by the Government
In a situation where an establishment has been closed due to a governmental shut-down order and the employer was not able to assign any other work to its employees, the employees are entitled to a salary reimbursement in the amount of 100 % of average earnings.
The employer will receive a contribution from the state equal to 80 % of the paid salary reimbursement including health and social security charges, capped at CZK 39,000 per employee.
Obstacles to Work on the Side of the Employer as a Result of Related Economic Difficulties due to the Spread of Coronavirus
This situation covers different scenarios in which the employer will be obliged to pay to its employees a salary reimbursement in the amount of 60 – 100 % of average earnings depending on the particular case.
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The employer cannot assign work to its employees due to the absence of a significant portion of employees
If an employer is unable to assign work to its employees because a significant portion of its employees (over 30%) are absent due to quarantine or are on care leave with their children, the remaining employees who cannot perform work are entitled to a salary reimbursement in the amount of 100 % of average earnings.
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Limited availability of inputs
If an employer is unable to assign work to its employees because it may not perform its business activities due to limited availability of inputs from suppliers (e.g. raw materials, capital assets, services), including foreign suppliers, such situation is classified as “idle time” (in Czech: prostoj) and employees are entitled to a salary reimbursement in the amount of 80 % of average earnings.
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Decrease in demand for goods and services
If an employer is unable to assign work to its employees due to a temporary decrease in demand for the employer’s services or due to a temporary decrease of the employer’s sales, such situation is classified as “partial unemployment” (in Czech: částečná nezaměstnanost) and employees are generally entitled to a salary reimbursement in the amount of 100 % of average earnings. However, an agreement between the employer and a trade union, or an internal policy (adopted unilaterally by the employer), may stipulate a lower amount of salary reimbursement (at least 60 % of average earnings).
In all of the three above-mentioned situations the employer will receive a contribution from the state equal to 60 % of the paid salary reimbursement including health and social security charges, capped at CZK 29,000 per employee.
Summary
The below table provides an overview of the situations in which the state will compensate an employer for the amounts paid by the employer to its employees:
| Situation | Salary Reimbursement paid by the Employer | Contribution paid by the State (in % of paid salary reimbursement including health and social security charges |
Maximum Amount of contribution per Employee |
| Quarantine of an employee | 60 % of reduced average earnings | 80 % | CZK 39,000 |
| Temporary closure of operations by government shut-down order | 100 % of average earnings | 80 % | CZK 39,000 |
| Inability to assign work due to absences of employees | 100 % of average earnings paid to non-absent employees | 60 % | CZK 29,000 |
| Lack of work due to limited availability of inputs | 80 % of average earnings | 60 % | CZK 29,000 |
| Lack of work due to decrease in demands for goods and services | 60 % – 100 % of average earnings | 60 % | CZK 29,000 |
The state contribution will be paid through the Labor Office, and the entitlement to it will be assessed individually, on a case-by-case basis. Detailed conditions and processes will be further specified and published on the website of the Ministry of Work and Social Affairs in the course of this week. In any case, employers will need to prove the existence of one of the above situations, and the fact that such situation is related to the COVID-19 pandemic outbreak.
Employers should be able to file their applications for state contribution as of 6 April 2020. As mentioned above, one of the conditions for eligibility is the payment of salary reimbursement to employees, therefore employers will be able to file the application only after their payday for March salaries.
The Ministry of Work and Social Affairs currently expects that there will be a delay of only several days between the date of filing the application and the date when the Labor Office will start to pay the contributions. However, it is possible that the delay will be longer.
We will be happy to assist you with preparation of the application for compensation, or to answer any questions you may have with respect to the measures relating to COVID-19.