Applying for support under the Antivirus programme – practical experience
The Ministry of Labour and Social Affairs has launched the Antivirus programme through which employers may apply for a contribution for wage compensations paid to their employees. Applications can be submitted remotely through the Czech Labour Office’s web application. Below we summarise the challenges faced by both employers and the Labour Office in the first weeks of the programme period.
Since launching the Antivirus programme, the Labour Office has received more than 32 thousand applications. In many cases, application forms were not completed correctly. Applications that were returned to employers may still be corrected – the application being returned does not mean that it has been dismissed with final effect. According to the Labour Office, employers most frequently fail to fill in all required essentials in the application form. This we see as the first weakness of the application process: the current version of the web application allows for the submission of incomplete application forms.
Employees also often fail to send all required files at once. Please note that with a properly completed application form, employers must also send:
- a system-generated agreement on the provision of a contribution
- a document proving the opening of a bank account – a recent account statement does not suffice
- a power of attorney, if the application is filed by proxy, i.e. when the employer has authorised another entity to execute and administer the agreement, or when employers are sending the application form from another entity’s data box. The power of attorney must contain all legally stipulated essentials, including specifications of the act or set of acts for which the power of attorney is granted and of the parties to the power of attorney, and an acceptance confirmation. Please note that the Labour Office’s web application does not allow the identification of a corporate entity as an authorised representative. Therefore, according to information provided by the Labour Office, if a corporate entity is being authorised, it is necessary to provide the identification data of the statutory representative of the corporate entity being authorised and state an appointed employee as the corporate entity’s contact person. Subsequently, it is necessary to provide the Labour Office with documents proving both the authorisation of the corporate entity, and the appointment of the corporate entity’s employee.
Documents generated by the system must not be renamed, as each generated document name is linked to the specific applicant in the system.
Another question we have come across in our practice concerns the entitlement to the contribution from the Antivirus programme of foreign employers based in another EU member state employing Czech workers in that EU member state, or of Czech companies employing workers abroad. While the manual to the Antivirus programme generally states that the aim of the programme is to mitigate the negative effect of the pandemic on employment in the Czech Republic, according to the detailed conditions given in the manual, the only criterion relevant for the entitlement to the contribution is that the employees be employed under Czech law and covered by Czech pension and sickness insurance. In our opinion, if these conditions are met, the contribution should also be available to foreign employers, or to Czech employers with workers abroad. This interpretation has also been confirmed to us by the Labour Office.
As for the wording of the agreement on the provision of a contribution which the employer concludes with the Labour Office, attention should be paid in particular to its settlement provisions: by executing the agreement, the employer represents that all their claims against the Czech Republic arising from the compensation of damage caused by emergency and extraordinary measures are hereby settled, and waives the right to claim damages in court. A more detailed article on these agreements is now being prepared.
The Labour Office has also published a list of employers’ FAQ on the Antivirus programme, and a list of applicants’ most frequent errors.
Please note in particular the following:
- The Antivirus programme compensates employers for wage compensation paid to employees; a contribution cannot be provided for employees who are paid wages, carer’s allowances, or vacation compensation; applications for contributions to cover these expenses will thus be denied.
- With a properly filled-in application, it is possible to apply for the contribution under the Antivirus programme even before the closing of the monthly payroll process. If conditions are met, an agreement on the provision of a contribution will be executed, while the contribution itself will be provided once the monthly statement has been sent.
- The Labour Office has confirmed that the maximum amount of contribution per one employee for the month of March, when the impediments to work only occurred after the declaration of a state of emergency on 12 March 2020, shall not be proportionately reduced.