Submission of applications under the Antivirus Programme

In the manual, the MLSA notes that it is desirable to compensate employers for all kinds of impediments to work that arose due to COVID-19 pandemic and emergency measures of the public health protection authorities and governmental emergency resolutions. Compensation includes a contribution to the partial payment of wage compensation belonging to an employee for the period of impediment to work and the corresponding amount of social security premiums, as well as a contribution to the statutory unemployment and health insurance premiums for both employees and employers. Employers should be entitled to the partial compensation of these expenditures in the amount of 80% or 60% depending on whether the employee falls under Regime A (compulsory restriction of business based on the emergency measure and quarantine) or Regime B (related economic difficulties) of the Antivirus Programme. Multiple types of impediments to work can be combined by one employer. 

An application for the compensation of the above described expenditures may be submitted by all employers who have at least one of their workers employed within an employment relationship, participate in sickness and pension insurance and also fall under requirements of the Antivirus Programme regimes A or B. For the time being, the Labour Office of the Czech Republic (LO CR), as the implementer of the programme, will grant entitlements arising for the period starting the day of declaration of the emergency, i.e. from 12 March 2020 to the end of April 2020. LO CR will grant the contribution only provided that the employer has actually paid the wage compensations to the employees and duly paid all mandatory levies.

Another condition for granting the contribution is that the employees concerned are neither laid-off, (excepting lay-off notices for breaches of the employee's obligations under Section 52 (g) and (h) of the Labour Code), nor in a notice period when the employer submits the respective application. For agency workers, their employment relationship must have been agreed before the date of the declaration of emergency, i.e. before 12 March 2020, and must continue for the entire duration of the Antivirus programme. At the same time, the manual specifies that the compensation does not apply to employees working under any of the agreements on work performed outside employment law relationship.

The ministry’s manual also provides a list of circumstances under which compensation will not be granted. This involves, e.g., situations where the employer-applicant is in liquidation or in bankruptcy proceedings, has received another contribution from the LO CR or has been levied a fine for allowing the performance of illegal work in accordance with Section 5 (e), Article 3 of the Employment Act (i.e. allowing foreigners to work without a residence permit) within three years before the date of the application’s submission.

Applications will be submitted through a web application created specifically for this contribution. To submit the application, the employer will need a data-box or an email account with an advanced electronic signature. Once the application has been filled-in, a contribution agreement will automatically be generated. This will be considered concluded once the agreement has been signed by the LO CR and delivered back to the employer. After the payroll closing date for the relevant calendar month, the employer shall submit to the Labour Office a statement of the paid wage compensations, including mandatory levies. The LO CR in turn will electronically send a question to the Czech Social Security Administration to determine whether the workers to which the employer is claiming the contribution are indeed the entity’s employees. After verification, the Labour Office will pay the contribution to the employer's account. Employers are liable to provide true and accurate data. Any incorrectly completed applications will be cancelled and returned to the submitter for correction.

The ministry’s manual points out that compliance with labour law regulations and requirements for payment of the contribution will be subject to widespread inspections by the Labour Office in cooperation with the State Labour Inspection Office (SUIP). Intentional misuse of contributions may be classified as a criminal offense. Breaches of the written agreement’s terms and conditions may result in the obligation to repay the contribution and may be referred to the financial authority for the suspected infringement of budgetary discipline. At the same time, it may also be subject to inspection and possible sanctions imposed by the SUIP. However, the manual also specifies that a possible misstatement of an impediment to work does not constitute a breach of the contribution agreement and will therefore not necessarily require repayment should such wage compensation have already been paid to the employee. The web application for the submission of applications will be launched as of 6 April 2020.

Finally, please note that the manual has been drawn up for informative purposes only and is continuously being updated by the Ministry of Labour and Social Affairs. We are continuing to monitor the situation and will inform you about any changes.