16th July 2021

Kurzarbeit (short-time working) will be available to employers in the Czech Republic

The state relief will be provided to private sector employers:

  • for each employee in an employment relationship based on a standard employment contract in force for at least 3 months as at the date of applying for state relief, and such an employee is affected by the extraordinary event
  • monthly for up to a maximum of 12 months
  • as 80% of each affected employee’s salary compensation (in Czech náhrada mzdy) and statutory payments, up to the maximum of 1.5 times the gross average salary in the Czech Republic
  • within 8 days from filing a monthly report.

If applying for the support, employers must:

  • notify the employees in advance in writing of any obstacle to work on the employer’s part pursuant to the Labour Code and connected with an economic crisis caused by the extraordinary event
  • file the request, including all necessary details and documents
  • pay the affected employees salary compensation (in Czech náhrada mzdy) of at least 80% of their average salary
  • assign work to employees in the extent of 20% to 80% of their usual monthly working hours
  • file a monthly report.

The government is empowered to decide on an ad hoc basis on the details of the state relief following on from on a tripartite consultation.

More information here.

Members of the American Chamber of Commerce in the Czech Republic