We would like to inform you that on 9^th June, the Czech Senate has approved a new set of rules for the so-called “kurzarbeit” (novelisation of act no. 465/2004 Sb.). As the last step, the signature of the president of the Czech Republic is needed for the novelisation to come into effect.

Kurzarbeit or part-time work with state contribution could then in future be set into effect be the government during a period of jeopardy to employment. Such endangerment could be deemed to arise due to a pandemic, natural disaster, economic depression or a cyber-attack. The government would then specify for which area, industry or group of employers kurzarbeit would be applied.

Employees would in such case be paid 80% of their average wages for the unworked hours and state contribution will be 80% of this amount and along with taxes and levies overall support would be up to 1,5 times of the countrywide average wages. The obstacle to work could concern 20% to 80% of the working hours (one to four working days out of a five-day working week).

State support could be granted to companies only for employees, who have been employed for at least three months, excluding employees with work time accounts. Furthermore, during the last month before kurzarbeit is applied as well as during its application and for one year after its termination, the employer may not pay out dividends, profit shares or repay its loans early.

In case of any questions, do not hesitate to contact us.