After studying the relevant Government Resolutions and Government draft laws we are bringing you more detailed information about their contents.
The conditions in the frame of the „Antivirus“-Programme of the Czech Government were today (31.3.20) changed and now contain the following:
Generally the conditions to qualify for the financial support depend on a fulfillment of these parameters as listed below
- strict compliance with the Labour Code on the side of the employer;
- employee is not on notice and must not be dismissed,
- employees are validly employed and participate in sickness and pension insurance schemes,
- employer pays the salary to the employee and pays statutory deductions.
The amount of the contribution will depend on the reason for the obstacle:
- Scheme A – forced operation restriction
- the employer was forced to close or restrict operations on the basis of the crisis measures or the quarantine orders by the competent authority,
- the amount of the contribution for the employer is 80 % of the paid salary compensation, including statutory deductions, up to a maximum of CZK 39,000.
- Scheme B – related economic difficulties
- obstacles to work on the employer´s side in consequence of related economic difficulties due to the spread of COVID-19 infection (e.g. partial unemployment),
- the amount of the contribution for the employer is 60 % of the paid salary compensation, including statutory deductions, up to a maximum of CZK 29,000.
Please note that only a reimbursement of costs already incurred is possible – it is necessary to first pay out the salary and the statutory deductions for the particular period (calendar month). The applications for contributions for March are expected to being received from April 6th, 2020.
The government has also instructed the Ministry of Labour and Social Affairs and the Ministry of Industry and Trade to process an extension of the Antivirus Program to include a Scheme C, which would support a compensation for businesses that are continuing to operate but dropped in turnover due to crisis measures.
We will keep you informed about further development.
In addition to clarifying the terms for waiving the time limitations in all court proceedings, the Government draft law, which shall be discussed on 7 April 2020 in the Chamber of Deputies, potentially brings the following:
Changes in the functioning of legal persons:
- The bodies of legal persons can act outside of their sessions for the duration of the epidemic emergency measures, even though the Articles of incorporation do not allow it.
- The term of office of an elected member of a legal person body, which expired within 1 month of termination of the epidemic emergency measures, shall be automatically extended, unless the respective member expresses his disagreement with the extension.
- For the duration of the epidemic emergency measures members may be co-opted into an elected body of a legal person, even though the Articles of incorporation do not allow it.
- Depending on the end of financial year, the time limitation for approval of the final accounts shall be extended.
Changes in the insolvency proceedings:
- The debtor has no obligation to file a bankruptcy petition on himself within 6 months of termination or cancellation of the emergency measures, if the bankruptcy was caused in connection to the emergency measures.
- The creditor’s bankruptcy petitions are not taken into account until 31 August 2020.
- Possibility of the debtor to apply for an extraordinary moratorium on 31 August 2020.
Automatic termination of unsuccessful distraints (no assets discovered to cover distraint costs), unless a further advance payment for distraint costs is made.
Blanket deferral of rents due for affected businesses
The Ministry of Industry and Trade is processing a draft law, following the example of German legislation, which should enable the businesses affected by emergency measures to defer rents for the period of 6 months with a following payment of the rent in instalments within the period of the following 24 months.
Do not hesitate to contact us at any time if you have any further questions or need an assistance with applying for the contribution.