Changes in employment of persons with disabilities underway

Allowance for people with disabilities

One of the fundamental changes proposed is the abolition of the allowance provided to employers for the employment of disabled persons on the sheltered labour market. Currently, an employer can receive up to CZK 6,000 for actually incurred wage and insurance expenses for these employees. The ministry justifies the abolition of the allowance mainly by arguing that such (potential) expenses are already covered by the 5% discount from social insurance if the affected employees work part-time. Such workers will nonetheless still be included in the calculation of the mandatory share of employees with disabilities for the purposes of recognising the employer as an employer on the sheltered labour market.

Increase in allowance to support employment of people with disabilities

The amendment also introduces a cap on the maximum amount of the increase in the allowance for an employer's other operating costs incurred in connection with the employment of such persons. These include in particular the costs of providing an assistant, transport, or adaptations to the premises. The reason for this is that the practical experience of the ministry shows that employers often try to get the maximum increase even if it does not correspond to the funds spent. Therefore, the maximum amount will be set at 0.8 times the quarterly amount of the wage allowance.

The proposed legislation also specifies other costs eligible for the increase in the allowance. In the past, individual labour offices have treated the costs differently because of the absence of a specification of such costs.  Under the amendment, only extra costs on top of costs of employing non-disabled workers will be considered as costs for adapting the premises. Also, costs for transport or assistance incurred between entities related by property will not be eligible.

Debt-free status

Changes will also to be made to the debt-free condition that employers must meet to be eligible for the allowance to support the employment of persons with disabilities. Under current legislation, employers are only considered debt-free if their arrears on tax and statutory insurance did not exceed CZK 10 thousand and if they settle them by the 15th day of the calendar month following the calendar quarter for which the allowance is claimed, or within five working days of becoming aware of the arrears on the basis of a notification from the labour office.

 
The amendment should remove the CZK 10 thousand limit; the condition of being debt-free will thus be met as long as the employer pays the arrears in full, regardless of their amount. At the same time, the amendment proposes to extend the period within which an employer must pay the arrears.

The draft amendment to the Employment Act is currently undergoing an inter-ministerial comment procedure. The effective date is proposed for 1 January 2025.