With effect from 1 July, there are changes in the area of labour law and the employment of foreigners resulting from the amendment to the Act on Social Security Contributions and the Employment Act. The changes regarding the agreements to complete a job (in Czech: “dohody o provedení práce”; “DPP”) have so far settled on the notification and record-keeping obligations of employers. As for the employment of foreigners, the adopted amendments have the potential to speed up and slightly simplify the procedure for obtaining the employment card.

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Please find below the brief summary of the changes in employment law in the Czech Republic affecting employers as of 1 July 2024:

Employers’ obligations in relation to agreements to complete a job (”DPP“ in Czech)

The effectiveness of the much discussed and somewhat controversial regulation of the aggregation of chained DPPs has been postponed to January 2025. Thus, there are no changes in regard to insurance premiums for the time being (i.e. no contributions to remuneration of up to CZK 10,000 for a single employer) and it is questionable whether and in what form they will eventually apply in 2025. We will of course monitor the situation.

However, as of this July employers must already comply with the newly regulated administrative obligations in relation to the DPPs, as follows:

a) Registration obligations

From 1 July 2024, employers are required to keep records of all DPPs, regardless of whether they are subject to insurance premiums or not.

The records must contain information that is subsequently reported to the Czech Social Security Authority (”CSSA“) (see (Error! Reference source not found. below), i.e.:

b) Notification obligation

Employers will be required to report a list of all employees employed on a DPP (insured and uninsured) on a monthly basis on the “DPP Statement” form.

The reporting obligation must be met electronically by the 20th of the following month, i.e. for the first time for July by 20 August 2024, to the locally competent SSA. The notification will apply to both DPPs concluded from 1 July 2024 onwards and DPPs concluded before 1 July 2024, if the DPP continues into July 2024

Non-registered employers who have so far employed employees only on DPPs which are not subject to insurance premiums must register with the Employer Registry by 30 July 2024. The SSA will assign them a variable symbol and they too will send their first DPP Statement by 20 August 2024.

Entry into and termination of employment of persons working under a DPP will also be reported through the DPP Statement. Therefore, DPPs subject to insurance premiums will no longer need to be separately notified via the “Notification of entry into or termination of employment”.

The statement will then be sent for each calendar month until the last employee on a agreement to complete a job has left the employment. When the decisive amount is reached (when the employee becomes insured), the employer also completes and files the Statement of Assessment and Premium Amount.

The purpose of the registration and reporting is to enable the authorities to collect the data needed to administer the new system of insurance of the DPP (as planned from next year), while the CSSA should also communicate the data found to the health insurance companies.

Changes in the employment of foreigners

Relatively significant changes are also expected in the area of employment of foreigners as of 1 July 2024. In particular, the system for reporting the commencement and termination of employment of foreigners will change. And the establishment of free access to the labour market for employees from selected countries will help the labour market.

a) Notification of the entry/termination of a foreigner

The Labour Office is introducing a new system of reporting the entry/termination of a foreign employee in employment by means of so-called notices and information cards, compulsorily from 1 July 2024. However, it is already possible to use the system at this time.

There will no longer be the option to complete using the paper forms previously used, but employers will be required to use one of the following methods:

For the information cards, only one form will be used from now on, through which employers will report both the entry and the departure of an alien employee. If, on joining, the employer also specifies a termination date (e.g. for fixed-term employment relationships) which will be met, there is no need to send an additional card.

Please note: The report must always be sent either by the direct employer or by a third party through a proxy report. If a third party sends the report instead of the employer (or an entity authorized by the employer), this third party would automatically be registered as the employer of the foreigner. Thus, the third party must first obtain authorization the CSSA system and then select the “file proxy” option for the submission or send the submission through their mailbox.

It is always possible to submit only one XML file per data message. If the employer has multiple reports (XML files), each must be sent separately.

b) A new reason for free access to the labour market

A new reason for free access to the labour market has been added to Section 98(u) of the Employment Act for persons whose performance of work in the territory of the Czech Republic is in the interest of the Czech Republic.

This provides that, across the board, foreigners from certain countries will have free access to the labour market. The countries concerned will be determined by the government by regulation, currently the following countries:

The inclusion of Taiwan is envisaged in the future.

Please note that this is not a reciprocal regime, i.e. in the case of posting an employee to these countries from the Czech Republic, it is still necessary to verify whether a work permit is required in addition to a residence permit. These persons then still need some type of residence permit (e.g. a short-term visa; cannot be used for visa-free entry), but do not need any work permit.

c) Abolition of the labour market test

Given the current labour market situation, the labour market test for employment cards will be “abolished” as of 1 July 2024. Employers will still have to notify the Labour Office of a vacancy for foreigners without free access to the labour market via a vacancy notification form. However, there will no longer be a labour market test.

Thus, foreigners will be able to apply for an employment card immediately after the vacancy has been published in the central register of vacancies to be filled by employment card holders. This will level the playing field with Blue Card applicants, who will not be subject to the labour market test from 1 July 2023.

The labour market test will not disappear completely, but it will no longer be automatic, however, it may be set in certain specific cases (e.g. in case of high unemployment or if the local regional branch of the Labour Office of the Czech Republic has enough suitable applicants or job seekers for a given job position). Especially in Prague, where the unemployment rate is very low, it can be expected that a labour market test will not be set.

In practice, this means that while the employer is obliged to report the vacancy, it will be able to do so just before the potential employee applies for an employment (blue) card

d) Removal from the vacancy register

The above changes will particularly affect employers who report vacancies to the Labour Office in advance as a precautionary measure, for which they have not yet found a foreign employee.

From 1 July 2024, the Labour Office will be able to remove a job from the vacancy register after 6 months from the date of its notification by the employer. This does not apply to a job for which there is a pending application for an employee card or blue card or a work permit for a foreigner, until the administrative proceedings are completed.

In addition, another – less obvious – reason for removing a job from the register has been introduced. This is the employer’s failure to provide cooperation. This rule was only inserted into the Act by amendment and is intended to allow for the removal from the register of those employers who are not at the specified contact address or otherwise reachable.

We can therefore only recommend that employers provide valid contact addresses in their reports and do not report vacancies too far in advance lest they expire in the meantime.

e) Changes to the notification of posting to the Czech Republic

From 1 July 2024, new rules apply to the obligation to notify the posting of workers to the Czech Republic.

After 1 July 2024, it will no longer be possible to send notifications of the commencement of posting to the Czech Labour Office, such notifications will not be registered by the Czech Labour Office. Newly, foreign employers will have to notify the State Labour Inspection Office via the information system, according to the specifications, format and structure published by the State Labour Inspection Office.

More information can be found here.

We will be happy to help you with any obligations related to changes in employment law in the Czech Republic, please do not hesitate to contact our team.

Updated on 9th of January, 2024

On 21 March 2022, Law No. 65/2022 Coll. and Law No. and 66/2022 Coll. were promulgated in the Collection of Laws, granting free entry to the Czech labour market to Ukrainian citizens who have fled to the Czech Republic in connection with the conflict in Ukraine. These regulations have been amended again and the temporary protection of Ukrainian refugees is extended until 31 March 2025, subject to the conditions described below.

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Types of residence permit

Persons who have fled from Ukraine before the armed conflict can currently reside in the Czech Republic on the basis of different types of residence permits. In addition to ordinary residence permits, such as an employment card, a large number of Ukrainian citizens reside in the Czech Republic on the basis of:

Please note that, with few exceptions, it is not possible to apply for another residence permit. The only exceptions are applications covered by Government Regulation No. 308/2022 Sb. According to this regulation, it is possible to apply to the embassy in Ukraine for, for example, a blue card or a study permit.

Embassies in Ukraine are also now accepting applications for employment cards, but only for government-approved programmes (e.g. Skilled Worker Programme, Key and Scientific Personnel Programme, etc.).

For more information on the conditions for inclusion in the economic migration programme, please click here.

Extension of temporary protection

Temporary protection will be extended again by affixing a new visa. As it is not technically possible to extend temporary protection in one single day, the process will be carried out in two steps, first by registration and then by a visit to the Asylum and Migration Policy Department of the Ministry of the Interior (OAMP).

If the holder of temporary protection fails to register by the deadline or fails to present the visa after registration by the end of September 2024, the temporary protection will expire.

Electronic registration

Online registration will be open until 15 March 2024. The registration portal will be available on the following website: www.frs.gov.cz/docasna-ochrana/#3.

The registration itself extends the temporary protection until 30 September 2024. However, it is necessary to complete the registration by booking a date to visit the Ministry of the Interior.

If the registration is not done in time and the temporary protection expires, the foreigner has the possibility to reapply for temporary protection. However, there is a risk of not being found to meet the conditions for its granting.

Visit to the Ministry of the Interior of the Czech Republic

After registering online, it is necessary to arrive at the OAMP on the scheduled date and have a new visa marked. The visit to the OAMP must

be completed by 30 September 2024. The foreigner should submit following documents:

New visa will be valid until 31 March 2025.

Visa for the purpose of toleration

For holders of a visa for the purpose of tolerance in connection with the conflict in Ukraine, the visa will be extended again automatically until 31 March 2025. There is no need to take any further steps to do so. The visa for the purpose of tolerating the conflict in Ukraine is coded D/SD/91.

However, to avoid inconsistencies and uncertainty when dealing with the authorities, we recommend applying for a new visa with an updated validity date. This requires an appointment at OAMP.

Obligations of employers

We would like to kindly remind that the employer of a foreigner is obliged to keep a copy of the documents proving the employee’s right to stay. Therefore, the employer should be concerned with whether employees who hold temporary protection have properly and timely applied for its extension.

Employers are advised to ensure that their employees register on time and then attend the appointment for the visa to be affixed. The registration will be supported by a pdf certificate which can be downloaded from the OAMP portal.

Temporary protection holders have free access to the labour market, so they do not have to deal with work permits (unlike, for example, holders of a tolerance visa).

Change reporting and other obligations

In addition to matters related to the extension of residence titles, please note that the foreigner is obliged to report to the OAMP any significant changes concerning him/her, e.g. change of residence address, change of surname, change of marital status or change of travel document. Find the form on the OAMP’s website for this purpose. The form shall be delivered along with the necessary documents in person, sent by post or by data box.

Foreigners should also note that they may be subject to obligations such as paying utilities or health insurance.

We are ready to help you with the employment of refugees from Ukraine, do not hesitate to contact us.

Employment of Ukrainian refugees – changes 2023

Types of residence permit

Persons who have fled from Ukraine before the armed conflict can currently reside in the Czech Republic on the basis of different types of residence permits. In addition to ordinary residence permits, such as an employment card, a large number of Ukrainian citizens reside in the Czech Republic on the basis of:

  • temporary protection – codes: D/VS/U or D/DO/667, D/DO/668, D/DO/669, D/DO/767, D/DO/768, D/DO/769, D/DO/867, D/DO/868, D/DO/869
  • long-term visa for the purpose of toleration – codes: D/VS/91, D/VC/91, D/SD/91.

This type of residence will generally be given to those who fled Ukraine after the invasion by the Russian Federation. Alternatively, those whose residence permits have expired but cannot return for the time being due to the situation in Ukraine.

Please note that persons who have obtained temporary protection in another Member State cannot obtain temporary protection in the Czech Republic. At present, it is not even possible for persons with temporary protection or a visa for the purpose of toleration to switch to the employment card regime.

The most significant change is the possibility for persons with temporary protection granted in another country to apply for a blue card at the embassy in Ukraine.

We would like to remind you that holders of temporary protection issued by the Czech Republic can only stay in the Schengen area countries in a limited regime according to the so-called 90/180 rule. Thus, within any 180 days they can stay outside the territory of the Czech Republic in another Schengen area country only for 90 days.

Extension of temporary protection

Temporary protection was granted until March 31, 2023. Those who wished to continue to reside in the Czech Republic had to register online by March 31, 2023.

If the registration was not carried out, the temporary protection expired. In this case, the person can reapply for temporary protection. If he or she continues to meet the conditions, temporary protection will be granted.

If the registration has been duly and timely carried out, this extends the validity of the temporary protection until September 30, 2023. Until then, the holder of temporary protection is obliged to appear in person at the Asylum and Migration Policy Department of the Ministry of the Interior (OAMP) and have a new visa affixed. This will be valid until March 31, 2024. The date at the OAMP is assigned during online registration.

As part of the in-person visit to OAMP to mark the new visa, you must also provide the necessary documents. These are:

  • passport,
  • proof of accommodation – this can be presented either as a rental agreement or as a written confirmation from the property owner.

New application

If the deadline for extending temporary protection has been missed, any entitlement to benefits (e.g. humanitarian benefits, housing assistance, free access to the labour market, access to health insurance) has also been lost.

The foreigner has the possibility to reapply for temporary protection if the circumstances that led to the first application continue to exist.

More information can also be found on the website of the Ministry of the Interior of the Czech Republic.

Visa for the purpose of toleration

If you do not meet the conditions for temporary protection, you can apply for a tolerance visa. In this case, the person does not automatically have free access to the labour market and must obtain permission from the Labour Office.

Those who already have a tolerance visa in connection with the conflict in Ukraine have their visa extended automatically until 31 March 2024 and do not need to take any further steps. However, in order to avoid inconsistencies and uncertainty when dealing with the authorities, it is recommended to request a new sticker with an updated validity date. This label is marked with the code D/SD/91. A prior order is required for its marking.

There is also an exception for visas issued in connection with the armed conflict in Ukraine in relation to exit from the territory. Persons holding this type of visa for the purpose of toleration do not lose their visa by leaving the territory.

Employer obligations – new and existing

Since the employer is obliged to keep a copy of the documents proving the alien employee’s eligibility to stay, the employer should take a proactive interest in whether employees who hold temporary protection have applied for its extension in a proper and timely manner.

By March 31, 2023, temporary protection holders should have completed online registration. By doing so, they extended their temporary protection until September 30, 2023. They must then appear in person at an OAMP office to have their visa affixed by that date. The visa will be valid until March 31, 2024.

The employer can then verify the validity of the authorisation with the newly affixed visa. Between the online registration of the person with temporary protection and the affixing of the visa, the employer should request a confirmation of registration from the person with temporary protection in order to check his/her residence (see image). The registration number can be read from this confirmation. The employer can use the registration number to check the validity of the registration online.

As of April 1, 2023, employers are obliged to register all employees who have temporary protection with the CSSA. This obligation now also applies to employers who have a work performance agreement or a work activity agreement with a holder of temporary protection. The deadline for registering a person is normally 8 days.

Otherwise, the same rules apply to the employment of persons with temporary protection as to the employment of other foreigners with free access to the labour market, e.g. the employer’s obligation to report the start of employment of the foreigner and other changes to the Labour Office or to keep a register of foreign employees.

Employment of Ukrainian refugees in questions and answers

Which Ukrainian refugees may be employed?

It’s possible to only employ Ukrainian refugees with free entry to the Czech labour market.

What does free entry to the labour market mean?

Free entry to the labour market means, that Ukrainian citizens and their family members which comply with conditions further described may work in the Czech Republic without any formal restrictions, i.e. without having to obtain a work permit in advance or the employer having to submit a job position vacancy form beforehand.

The Ukrainian citizen and his family members may work in an employment relationship, as well as on the basis of some of the agreements of performing work outside the employment relationship. Of course, the standard legal conditions must be adhered to, in particular minimal and guaranteed wage, length and schedule of worktime etc.

What conditions must be met for the Ukrainian refugee to have free entry to the Czech labour market?

The Ukrainian refugee must be granted the temporary protection (or perhaps the special long-term visa, which was issued at the begging of the war conflict).

Temporary protection (special long-term visa) is marked with a sticker or stamp in the passport.

What is the difference between temporary protection and special long-term visa?

Until the above-mentioned law came into effect, Ukrainian refugees were granted a so-called special long-term visa. Since the effective date of the law, only the so-called visa for the purpose of temporary protection has been granted. According to information from the Ministry of the Interior, however, persons who obtained a special long-term visa before the effective date of the law will be automatically transferred to the temporary protection system, i.e. without having to take any action.

Who may be granted the temporary protection?

Temporary protection may be granted:

  • To the citizens of Ukraine who travelled to the Czech Republic after 24 February 2022.
  • To third-country nationals and stateless persons who were granted international protection or corresponding national protection in Ukraine before 24 February 2022.
  • To family members of persons referred to in points 1-2 who stayed together in Ukraine and came to the Czech Republic after 24 February 2022. (Family member means a spouse, registered partner, unmarried minor child of a person referred to in points 1-2 or unmarried minor child of a spouse of such person, and adult dependent relative living with the family of such person.)
  • To foreigners who were holders of a permanent residence permit in the territory of Ukraine by 24 February 2022 and travelling to their country of origin isn’t possible due to the threat of actual danger according to the Act on the Residence of Foreigners.

How to apply for temporary protection?

For the grant of temporary protection it’s necessary to file the submission personally at one of the District assistance centres for helping Ukraine – the list of these centres according to individual districts may be found HERE.

It’s advised that the Ukrainian citizens who don’t comply with the above-mentioned conditions to sort out their situation individually at the Department of Asylum and Migration Policy of the Ministry of Interior (contact points HERE).

Necessary documents to submit for the application:

  • completed form;
  • a valid travel document, if the applicant is a holder;
  • a document certifying that at least until 24 February 2022 the applicant resided in Ukraine and left the country in consequence of its invasion by Russian Federation’s armed forces (for example information in the applicant’s passport, confirmation of humanitarian entry or any other document in the name of the applicant proving his/her residence in Ukraine);
  • a confirmation of accommodation if not arranged by a crisis management authority
  • if the applicant’s accommodation is provided by a natural person, form available here,
  • if the applicant’s accommodation is provided by a legal entity, form available here.
  • photograph in the format 45 x 35 mm – not necessary but recommended.

What are the obligations of the employer when hiring Ukrainian refugees?

The employer has the following administrative obligations:

Information obligation

  • At the latest on the day of commencement of employment inform the appropriate Labour office via the form which is available here, territorial jurisdiction according to place of performance of work about this fact.
  • When certain data of the employee change (identification data of the foreign national, the number of his/her travel document and the name of the authority that issued it, the reason for the stay, the duration of employment, the categorisation according to CZ-ISCO and CZ-NACE, the address of the place of work).
  • Form available here,
  • Within 10 calendar days when the change occurred.
  • The employment is terminated;
  • Form available here,
  • Within 10 calendar days from termination of employment.

Registration obligation

The employer must have a record of information regarding the foreign employee in the extent:

  • foreigner’s identification data (forename(s), surname, date of birth);
  • address in the country of permanent residence and postal delivery address;
  • travel document number and name of the authority that has issued the document;
  • type and place of work, and the period for which the employment should be pursued;
  • gender of foreigner;
  • category according to the Branch Classification of Economic Activities;
  • highest educational achievement; education required to perform the occupation;
  • period for which the persons have obtained the employment permit (in this case temporary protection), employee card or blue card, an internally transferred employee card for which they have obtained a residence permit;
  • dates of the commencement and termination of employment.

Retention of documents

  • Retaining the copies of the documents proving the legitimacy of the foreigner’s stay in the Czech Republic.
  • For the duration of the employment.
  • + 3 years after the termination of employment.

Other frequently asked questions in connection to employing Ukrainian refugees

In what language should the employment contract/agreements on work performed outside of the employment be?

In the language that the Ukrainian refugee understands, i.e. ideally a bilingual CZ/UA document.

The same rule applies to any other labour law documents of the employer which the Ukrainian refugee should be acquainted with.

Does the employer have the obligation to retrieve the extract from the Criminal Records for the purpose of employing Ukrainian refugees?

The law nor any other legal regulation doesn’t impose this obligation upon the employer to retrieve the extract from the Criminal Records for this purpose and Ukrainian refugees are perceived as citizens of the EU.

May the Ukrainian refugee go on business trips in connection to his employment?

In principle the temporary protection which as well means free entry to the labour market is only applicable in the Czech Republic, i.e. the holder of the temporary protection may not use this permit to work abroad.

Nevertheless, if the foreigner is posted within the framework of the Directive regarding posting of workers by his employer to a different entity for the purpose of performance of provision of services, the necessity to have a permit to perform work doesn’t apply to him in the Czech Republic. Nevertheless, it’s necessary to comply with other conditions according to the Directive regarding posting employees (e.g. information obligation, obligation to ensure certain equal working conditions etc.).

A similar regulation should also be applicable within harmonisation in the whole EU. However, it’s not excluded that some EU countries have made use of the possibility to apply an exception to this rule. Therefore, we recommend that you check the local regulation before sending the holder of the temporary protection to another EU country.

On the territory of the Czech Republic there are no limitations to performing business trips.  However, on business trips foreigners should always have the necessary documents (mainly copy of the employment contract and travel document with the sticker/stamp proving temporary protection with them).

Does the Ukrainian refugee have any further registration obligations in the Czech Republic?

Yes, it’s necessary to comply with the registration obligation upon arrival and when the place of residence in the territory of the Czech Republic is changed.

For both cases the deadline is 3 days.

The registration upon arrival is done in person at one of the offices of the Foreign police.

The change of place of residence may be announced via post or at the appropriate office of the Department of the Asylum and Immigration Policy of the Ministry of Interior (territorial jurisdiction according to the new place of residence), when announcing this change the document confirming accommodation at the new address (see the forms above) must be submitted together with the form which is available here.

May the Ukrainian refugee work in another EU state based on the Czech temporary protection?

No, every EU Member State states its own rules for the performance of work of Ukrainian refugees. The temporary protection granted in the Czech Republic applies exclusively to the performance of work in the Czech Republic.

Must the Ukrainian refugee perform an entrance medical examination before commencement of work?

Yes, the entrance medical examination shall be performed before commencement of performance of work. In case there is not a chance to obtain the extract from medical records an extended medical examination must be performed.

Is free entry to the labour market somehow further restricted?

Free entry is granted by law only temporarily, currently it’s valid till 31 March 2023. In case Ukrainian citizens will want to reside and work in the Czech Republic even after this date they will have to obtain the necessary permit in due time.

Of course, it can’t be ruled out that the effectiveness of the exemption will be extended as the situation evolves.

The limitation of the validity of the law doesn’t mean that the employment contract / agreements on work performed outside of employment must be concluded for a definite period. In our opinion, they may also be concluded for an indefinite period.

What should the employer pay attention to or what are the most common violations of legal conditions when employing Ukrainian refugees?

Firstly, it’s the failure to fulfil the duty to inform the Labour office when an employee commences performance of work, when the employee’s reported data changes or when the employee’s employment terminates (for more details, please see the question What are the obligations of the employer when hiring Ukrainian refugees?).

Secondly violation of the condition regarding retention of copies of documents proving the existence of employment relationship at the workplace, i.e. employment contract or agreements on work outside employment. An exception to this obligation is the situation when the employer has fulfilled the obligation to notify the District Social Security Administration of the date of the employee’s commencement of employment, which established the employee’s participation in sickness insurance under the Sickness Insurance Act (and therefore only from the moment of fulfilling this obligation) – the supervisory authority is entitled to obtain the relevant information from the Social Security Administration.

Another frequent violation of conditions which occurs during employment of Ukrainian refugees is enabling illegal work which primarily is

  • dependent work performed by a natural person outside the employment relationship,
  • work performed by the foreigner in violation of the issued permit for employment (or any kind of permit) or without such a permit, or
  • work performed by the foreigner without a valid residence permit to reside in the Czech Republic (which most likely is the case of Ukrainian citizens, which haven’t complied with the conditions for being granted the temporary protection).

Lastly, the most frequently violated legal condition is the disguised employment placement of holders of temporary protection from Ukraine, when most likely the signs of job placement were fulfilled, but without the appropriate license of the employment agency or without the necessary documentation, typically disguised under a contract for work or a contract for the provision of services.

Updated on 28 January 2022

From 17 January 2022, according to the Extraordinary Measure of the Ministry of Health MZDR 461/2022-1/MIN/KAN (the “MoH Measure“), employers are once again obliged to testing employees for COVID-19 in the Czech Republic. The current testing conditions differ only in certain details compared to the last testing, with mandatory bodies being all employers (whose circle is not limited by a minimum number of employed persons), together with self-employed persons as well as bodies and members of the bodies of legal persons (if they are not also employees of such persons).

Based on the questions of clients and our past experience in the area of testing employees we have prepared answers to most frequent questions in the form of Q&A that also include our recommendations regarding some practical aspects of testing of employees.

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From when and how often should the employer test employees?

Which employees do not need to be tested?

The following employees are exempt from testing employees for COVID-19 in the Czech Republic:

How does the employee prove to the employer that he/she is exempt from testing?

Proof of being tested elsewhere is demonstrated by:

What if an employee refuses to undergo testing?

If an employee refuses to undergo testing:

Is the employer obliged to keep records of testing?

Employers who ensure testing for their employees must keep a record of the tests carried out for record-keeping purposes. This is expressly required by the MoH Measure and may be subject to control by the public health protection authority. The employer is obliged to keep the records for 90 days.

Extent of the record:

Furthermore, the employer must send in an electronical form a list of employees who tested positive to the locally competent public health authority (according to the district) at the latest on the day after the testing occurred. The list must be sent together with the records in the extent of the evidence as mentioned above together with the phone number of the employee who tested positive via an electronical form, which is filled out in an online application here. For logging into the online application, the data box of the employer is used or if appropriate NIA is used.

What should be done if the test is positive?

If the result of the employee’s rapid antigen test is positive, the following procedure must be followed:

Who bears the costs of testing?

As was the case with the last compulsory testing of employees, contributions from health insurance companies towards the testing costs shall be announced online on this website. The entitlement to contribution is applicable to self-employed persons as well members of the bodies of legal persons. We believe that since the company is responsible for testing members of bodies of legal persons and these members have health insurance, the entitlement to this contribution shall be claimed by the company nevertheless, this information wasn’t yet confirmed in any official sources. The employer shall apply for the contribution as previously that is via the app on the above-mentioned linked website.

The maximum amount of the contribution shall be CZK 60 incl. VAT per one test. The contribution entitlement shall be provided according to the test frequency as stated in the MoH Measure, i.e., for two tests per week per employee. It may be only applied for those antigen tests approved by State Institute for Drug Control, which were purchased from 1 January 2021. Their list may be found here.

Tests from approved suppliers may be purchased via standard distribution networks, i.e., directly from a distributor (which is the most cost-efficient way for large orders), or in pharmacies.

Does the testing obligation also apply to self-employed persons?

Yes, self-employed persons performing their main self-employed activity in the Czech Republic are also obliged to undergo a rapid antigen test for self-testing twice a week. Testing is carried out by the self-employed persons themselves, and they also bear the costs of this testing. Exemptions from the testing obligation are the same as for employees, as well as the obligation to start testing from 17 January 2022.

Self- employed persons must as well keep records of testing in the same extent as employers. In case of a positive result the self- employed person must:

When is it possible for the employee to return to the work?

After being quarantined:

After undergoing a confirmative PCR test:

We shall gladly assist you in case you are unsure of any of the questions regarding testing of employees or in case you would have any further questions or comments.

Updated on 12.4.2021

Beginning on 3 March 2021, employers must deal with “self-testing” for COVID-19, i.e., mandatory testing of all employees without assistance from medical personnel. The category of employers is constantly expanding – of the original large employers, employing at least 50 employees, the newly obliged entities are now even employers with a single employee.

Since employee testing is a completely new duty with which employers have no prior experience, we have created this practical Q&A guide on how to tackle employee testing at the workplace.

Download our step-by-step guide, or read more below

Who must test?

The duty to test employees for COVID-19 applies to all employers with at least 1 employee as follows:

  • Phase 1: Employers located in the Czech Republic with 250+ employees
  • Phase 2: Employers located in the Czech Republic with 50–249 employees
  • Phase 3: Employers located in the Czech Republic with 10-49 employees
  • Phase 4: Employers located in the Czech Republic with 1-9 employees

When do employers need to start testing?

Mandatory testing is being introduced in the following phases, the first one applying to large-scale employers (with over 250 employees) and the second one to smaller employers to completely small ones.

  • Phase 1 – Employers located in the Czech Republic with 250+ employees must:
    • At the latest on 3 March ensure that tests are available for their employees;
    • At the latest on 5 March order employees to get tested;
    • At the latest on 12 March all employees who are present at the workplace must be tested; from this date on, employers cannot allow access to the workplace to employees who have not been tested;
    • From then on, employers must ensure that employees are tested every 7 days.
  • Phase 2 – Employers located in the Czech Republic with 50–249 employees must:
    • At the latest on 5 March ensure that tests are available for their employees;
    • At the latest on 8 March order employees to get tested;
    • At the latest on 15 March all employees who are present at the workplace must be tested; from this date on, employers cannot allow access to the workplace to employees who have not been tested;
    • From then on, employers must ensure that employees are tested every 7 days.
  • Phase– Employers located in the Czech Republic with 10–49 employees must:
    • At the latest on 17 March ensure that tests are available for their employees;
    • At the latest on 19 March order employees to get tested;
    • At the latest on 26 March all employees who are present at the workplace must be tested; from this date on, employers cannot allow access to the workplace to employees who have not been tested;
    • From then on, employers must ensure that employees are tested every 7 days.
  • Phase 4 – Employers located in the Czech Republic with 1-9 employees must:
    • At the latest on 28 March ensure that the tests are available for their employees;
    • At the latest on 30 March order employees to get tested;
    • At the latest on 6 April all employees who are present at the workplace must be tested; from this date on, employers cannot allow access to the workplace to employees who have not been tested;
    • From then on, employers must ensure that the employees are tested every 7 days.

Do I have to test all employees or are there any exceptions?

Employers must in principal test all their employees, whether they are employed under regular employment contracts or under different arrangements, such as DPP or DPČ and where appropriate also other persons entering the employer’s workplace (please see above point 2.).

There are however certain exceptions:

  • employees who work from home permanently/on a long-term basis;
  • employees who have already had COVID-19 as confirmed by laboratory testing, provided that the following conditions are met:
    • employee had COVID-19 in the last 3 months (employers must demand a confirmation from the employee and keep a copy thereof – personal data processing is in this case based on the employer’s legal obligation);
    • isolation period has expired;
    • employee has no symptoms of COVID-19;
    • no more than 90 days have passed from the employee’s first positive RT-PCR test or POC antigen test.

The employee is obliged to prove the illness with an appropriate medical certificate. It is not quite clear how to prove or verify that the employee has no symptoms of COVID-19. To make sure, we would recommend having the employee sign a declaration that he/she has no symptoms of the disease which will also include an obligation to immediately contact the employer by phone in case any symptoms should appear in order to coordinate next steps. Since it is obviously not possible to submit each employee to a comprehensive medical check daily, we suggest measuring the employee’s temperature before they enter the workplace, since high temperature is a typical symptom of the disease and the practice is currently routinely used by medical and similar facilities before allowing access to visitors.

  • employee has a certificate issued by the Czech Ministry of Health documenting his vaccination against disease COVID-19, if at the same time:
    • it has been at least 14 days since the first dose (in case of a one-dose scheme) or the second dose (in case of a two-dose scheme) of vaccine, and
    • the employee doesn’t show any signs of disease COVID-19.
      The employee is obliged to prove the carried-out vaccination (including its date) with a relevant medical certificate.
  • Employees who have taken one of the below tests in the last 7 days and tested negative:
    • RT-PCR test for the presence of SARS-CoV-2 virus;
    • POC antigen test for the presence of SARS-CoV-2 virus; or
    • self-test taken at the employer’s premises (or, under the same conditions, at employee’s home).

Do employers have to test employees themselves?

Employers do not need to carry out the tests themselves (or via their designated employees), but may also:

  • Delegate the testing to their provider of occupational health services:
    • If the provider is not located directly at the employer’s address, the provider must first apply to their supervising Regional Office for a permission to provide medical services outside its regular location;
    • If such a provider has contracts with health insurance companies, it is entitled to automatically bill the procedure to the respective employee’s health insurance company, which will pay for it (i.e., the costs of testing will not be billed and documented to the health insurance company by the employer, which will reduce administrative costs for employers).
  • Use testing sites at medical facilities:
    • It has been announced that the main form of testing will remain to be testing at professional medical (testing) facilities;
    • Employer may arrange for testing of employees directly with a medical facility located close to the employer’s site or employee’s residence;
    • Costs will be billed to the respective health insurance company directly by the medical facility, thus reducing employer’s administrative burden;
    • Certain medical providers promptly offered group testing at the employer’s workplace.
  • Request employees to self-test at home:
    • This testing method is suitable in particular for employees who work outside employer’s premises (visit customers etc.);
    • May also be used by employees who work at the employer’s premises, but test before they leave for the workplace;
    • It is necessary to make sure that employees follow the testing manual and that the employer keeps record of their results;
    • The validity of the test does not differ from tests performed by the employer at the workplace.

Which tests should be used for testing employees?

Employers must make sure that tests used for employee testing be delivered by a provider who was granted an exception for antigen testing by non-medical personnel by the Ministry of Health – a list of such providers and the tests they supply is available HERE and is regularly updated. All types of tests have been granted the exception and it is therefore possible to test from saliva or to use nose or mouth swabs, none of which is a preferred option.

Using a test which has not been approved may result both in the employer failing to meet its obligation to test employees and in health insurance companies refusing to pay for the test (or demanding that the amount paid be returned).

Tests from approved suppliers may be purchased via standard distribution networks, i.e., directly from a distributor (which is the most cost-efficient way for large orders), or in pharmacies.

All tests must include a manual in Czech.

(!) Note: Keep invoices for the tests purchased – the invoices may in the future be requested for checks by a health insurance companies.

Where to test employees and how to do it?

Employers should take the following steps before they start testing employees:

  • Employer will designate a suitable testing area at the workplace – a room which is not frequently used or where employees do not concentrate; the area should be regularly disinfected;
  • Employer will ensure that all employees who assist during workplace testing and employees who take the test at home will be familiar with the patient information leaflet and manual for the test;
  • Employer will equip employees who assist at testing with protective equipment (FFP2 respirator, protective glasses and gloves);
  • Assisting employees will record the test results into a Completed Tests Chart (may be downloaded HERE) – where they will record, among other things, the employee’s health insurance company and health insurance number (usually a national ID number)

(!) Note: Health insurance companies prepared an online application on their websites (same one for all health insurance companies), through which it’s possible to apply for a contribution for the antigen tests. The application can’t be filed by any other means other than through this application. The application can be found HERE.

How to react to test results?

The test result is of crucial importance to employers:

Negative test results

  • Employee may continue work at the workplace as long as they adhere to protective measures introduced at the workplace.

Positive test results

  • In case of a positive result, the employer or the employee must immediately contact:
    • Provider of occupational health services or employee’s registering GP;
    • If the employee is not registered with any GP, then the Regional Hygiene Authority;
  • The respective physician or the hygiene authority will order a confirmation test using the RT-PCR testing method and will issue a request form for it in ISIN (information system for infectious diseases) – employee must undergo the confirmation test, the costs of which will be billed to the health insurance company directly by the medical facility which performed the test;
  • Employee must minimize the risk of infecting other people, i.e., employee must immediately leave the workplace (or in case of testing at home, stay at home) and stay in isolation;
  • If an employee tests positive at home, he/she must notify the employer and proceed as described above.

How to dispose of material used/produced during testing?

Please note that materials used/produced during testing may possibly qualify as hazardous waste, employers should therefore, in accordance with recommendations issued by the Ministry of Environment:

  • Place all used testing kits in a black plastic bag at least 0,2 mm thick (or in case of thinner material, use two plastic bags – one inserted in the other);
  • When the bag is full or no later than 24 hours from the first use, tie the bag and treat the surface with disinfectant;
  • Throw the bag into a regular container for mixed communal waste – never leave plastic bags with used testing kits next to waste containers!
  • Persons responsible for waste disposal will always thoroughly clean their hands with warm water and soap or use hand disinfectant.

Contributions from health insurance companies

Since self-testing will generate considerable expenses for employers, health insurance companies will partially reimburse employers as follows:

  • CZK 60 for maximum 4 tests per month per one employee, i.e. in total CZK 240 a month per one employee; it is obvious that these contributions in most cases cannot cover the actual costs incurred by employers in the purchase of antigen testing kits;
  • The subsidy will also apply to employees employed under a DPČ or DPP, and other persons, who the employer is obliged to test, although only those who are subject to mandatory health insurance payments;
  • For the provision of the subsidy its indecisive whether the self-test was carried out at the working place or the employee carried it out at home;
  • Numbers of completed tests are to be reported to health insurance companies electronically 1x month via a website application https://www.samotesty-covid.cz/;
  • The subsidy is paid for the previous month retrospectively;
  • First clearances with health insurance companies were made beginning of April 2021.

Costs of more frequent testing of employees will be borne solely by the employers.

How the employer shall proceed in case of an application for a contribution for testing:

  • Obtain a message from the data box entitled “Program to support the implementation of COVID-19 self-sampling tests“ activation code to the system; in case the employer hasn’t received the code, the employer may request the generation of the code HERE;
  • Visit the website https://www.samotesty-covid.cz/;
  • Proceed with the first registration of the user into the system:
  • chose login data (i.e. login name and password);
  • fill out personal data of the relevant worker, who is responsible for submitting the application (including and ID document);
  • fill out contact address and other contact data;
  • confirmation of registration is only possible by ticking the consent to the terms and conditions of the program for the grant of the contribution;
  • after finalizing the registration process the user will access the homepage, which appears every time he logs into to the system.
  • Fill out data regarding the purchase of the test kit (“New purchase documents“):
    • identification of the supplier;
    • identification of invoice;
    • listing of individually purchased items (i.e. type and number of tests and price per piece incl. VAT);
    • attaching a scan of accounting/tax documents (“Attach file“) in pdf, jpeg or png format; the maximum size of the file is 5 MB;
    • added items shall be always saved; even unfinished data can be saved; the final sending is done via button „Check and send“, a declaration of truthfulness should be ticked regarding the filled out data.
  • Fill out overview of carried out tests („New test results“) for the calendar month for which its requested (i.e. in April for March tests etc.), containing the following data:
Date when the test
was carried out
The number of the insured person Name Surname Health insurance company Negative test result Positive test result
    • number of the insured person: filling out the number, under which the person is insured;
    • health insurance company: indicating the relevant code (e.g. 111, 207, 210 and so on);
    • result of test negative/positive: indicating either „yes“ or „x“ in the relevant column, the second column is left unfilled;
    • it’s possible to import data from the table from the file of the overview of tests saved in the system of the employer („Import from file“), or it’s possible to fill out the list item by item manually („Add test manually“);
    • it’s possible to fill out all employees into the table, for which the employer requests the contribution, it’s not necessary to divide the employees according to their health insurance companies;
  • Fill out banking connection, to which the contribution should be sent;
  • Check and send the overview of the tests carried out.

A detailed user manual to be filled out is to be found HERE.

What if an employee refuses to take the test?

From the given dates, employers cannot allow access to the workplace to employees who have not been tested and employees are obliged to undergo testing (with exceptions described above).

From the perspective of employment law, if an employee refuses to test, it will be considered as absence from work for reasons on the part of the employee. Since this does not entail a right for salary compensation under statutory provisions, such absence will be unpaid.

Taking into account all circumstances, we believe that employers may conclude that if there are no serious reasons to reject testing on the part of the employee, his/her refusal to test may be considered a breach of employment-related obligation, which, after a warning and a period of time to remedy may result in the employee’s termination.

What if an employer fails to test employees?

Supervising authorities have already made clear that they will check whether employers meet their obligations related to employee testing. Inspections will be carried out primarily by the Regional Hygiene Office. However, due to their full capacities, their powers may also be shared by Labour Inspectorates. Sanctions might therefore be imposed under the Public Health Protection Act as well as under health and occupational safety rules set forth in the Labour Inspection Act. According to information shared by the authorities, penalties of up to CZK 500,000 may be imposed.

We recommend that all employers keep accurate records of the testing (in particular by keeping the requested Test Charts as described in Article 6 above) and require submission of documents from testing of employees by other parties and documents attesting to employees having already had Covid-19 (see Article 3 and 4 above).

Other private subjects with mandatory testing

Self-employed persons

Same obligation as for other employers from the 6 April 2021 is set out for self-employed persons performing their main self-employment located in the Czech Republic, who from this date must not enter their workplace or place of performance of work without a negative test, unless they are given the exception (described in point 3 above).

There is another exception for self-employed persons, which is that self-employed persons don’t have to be tested if on their workplace or place of performance of work they don’t come into contact with third persons, with the exception of persons living  in the same household.

Self-employed persons who’s result as part of the self-testing is positive for the presence of the virus, are from the 28 March 2021 obliged to leave the workplace or place of performance to their current residence and without delay inform their GP about the result (other health service provider or the relevant hygiene station, if applicable).

Non-governmental non- profit organizations

All employers located in the Czech Republic, which are non-governmental non-profit organizations and are employing at least 1 person have the same responsibilities as the smallest employers, i.e.:

  • At the latest on 28 March ensure that the tests are available for their employees;
  • At the latest on 30 March order employees to get tested;
  • At the latest on 6 April all employees who are present at the workplace must be tested; from this date on, employers cannot allow access to the workplace to employees who have not been tested;
  • From then on, employers must ensure that the employees are tested every 7 days.

Non-governmental non-profit organizations are the following:

  • associations and their branches,
  • foundations and endowments,
  • ecclesiastical legal entities or purpose-built facilities of churches,
  • charitable companies,

The conditions as well as exceptions from testing are the same as conditions described above for business entities.

Sources

In connection with the new governmental measures aiming to prevent the spread of disease Covid-19, the Government, apart from the current programs (mainly Antivirus, compensation bonus and other sectoral programs), approved new compensation programs in the Czech Republic, namely COVID-2021 and COVID-Uncovered costs (hereinafter each as “Program”). Receipt of applications starts these days – the applications will be submitted through the AIS MPO portal (portal of the Ministry of Industry and Trade).

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Please, be advised that one applicant cannot apply for financial aid under COVID-2021 and COVID-Uncovered costs at the same time, since they are alternative programs. Also, they cannot be combined with compensation bonus provided by the Ministry of Finance for the same or part of the relevant period.

Program COVID-2021 COVID-UNCOVERED COSTS
Relevant period From the 11 January to the 31 March 2021 From 1 January 2021 to 31 March 2021
Eligible applicant An applicant is an entrepreneur (natural or legal person) who carries out a business activity under Act No. 455/1991 Coll., on Trade Licensing (Trade Licensing Act), as amended;

An applicant did not exceed limit under point 3.1 of the EU Temporary Framework up to the amount of EUR 1,8 million.

An applicant is an entrepreneur (natural or legal person) who carries out a business activity under Act No. 455/1991 Coll., on Trade Licensing (Trade Licensing Act), as amended;

An applicant did not exceed limit under point 3.12 of the EU Temporary Framework which amounts to EUR 10 million.

Terms of provision Applicant’s sales (revenue from business activity and sale of goods) decreased by 50% in comparison to the same period of year 2019 or 2020 (an applicant, who was established or started to carry on business after 1 January 2021 can pick any three consecutive months in year 2020 for the comparison);

An applicant has at least one employee that can be expressed as an equivalent to a full-time job;

Eligible costs are for example personnel costs, material costs, services (e.g. leasing), depreciation, taxes and charges, loan repayments, overheads, etc., incurred from 1 February 2020 to 31 March 2021.

Applicant’s turnover decreased by minimally 50 % in comparison to the same period of year 2019 or 2020 (an applicant, who was established or started to carry on business after 1 January 2021 can pick any three consecutive months in year 2020 for the comparison), and;

At the same time has “uncovered costs” incurred during the Relevant Period which means, for the purposes of the Program, loss reduced by temporary aid that was granted to the applicant or for which he applied under point 3.1 of the EUR Temporary Framework (such as COVID-Rent, Antivirus, COVID-Gastro or other targeted programs).

Documents required Identification of the comparison period and justification for the decrease in sales;

Identification of employees (in an employment relationship, co-operating persons, managing directors with a contract of performance that were to the date of registered at the Czech Social Security to pay premiums on 11 January 2021);

An affidavit of an applicant stating that he is an eligible applicant and fulfils all the requirements of the Program – this part is included in the application itself.

Modified profit and loss account for the Relevant Period compiled according to Annex No. 2 of the Call released by the of the Ministry of Industry and Trade (MPO);

Statement on turnover decrease for the Relevant Period compared to corresponding period compiled according to Annex No. 2 of the Call released by the MPO;

Overview of all state aid granted to the applicant or for which he applied under point 3.1 of the EUR Temporary Framework compiled according to Annex No. 2 of the Call released by the MPO;

An affidavit of the applicant stating that he is an eligible applicant and fulfils all the requirements of the Program – this part is included in the application itself.

Submission of applications 12 April 2021 from 9:00 to 31 May 2021 to 16:00 19 April to 19 June 2021
Maximum amount of financial aid per applicant CZK 500 multiplied by the number of employees multiplied by the number of days in the Relevant Period;

In case the applicant had less than 3 employees to the date of the 11 January 2021 the financial aid amounts to CZK 1,500 per day.

CZK 40,000,000

We will be happy to provide you with our advisory services regarding this financial aid. We can offer you a professional assessment of whether the financial aid applies to you, the preparation of a list of all the essential steps and documents necessary to participate in the financial aid program, or we will gladly represent you in the entire grant procedure. This will save you a lot of time and hassle associated with submitting applications (also taking into account the significant technical problems reported by the systems).

Updated on 5.2.2021

In the context of the new government measures aiming at preventing the spread of Covid-19 disease, the government apart from the current programs in force (mainly Antivirus, Covid-Rent II and others) approved new financial aid in the Czech Republic, namely Covid-Gastro-Closed enterprises and Covid-Accommodation II.

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COVID-Gastro-Closed enterprises

Program under the patronage of Ministry of Industry and Trade (“MIT”)

Aim

The subsidy is granted for operating costs and maintaining business, such as personnel costs, material costs, services (including e.g. leasing), depreciation, taxes and charges, loan repayments, overheads, etc.

Authorized entities must fulfil all the following conditions

Amount of financial aid

Application

Temporary frame

The financial aid falls under the so-called Temporary frame and is therefore subject to application of the maximum of 800 thousand EUR (in which is also included the financial aid received from other programs, i.e. Antivirus A+, Covid-Rent I and II etc.). Negotiations are currently under way to extend the Temporary frame until the end of 2021 and to double the ceiling, i.e. EUR 1.6 million.

There is no legal right to the granting of a subsidy.

COVID-Accommodation

Under the patronage of the Ministry of Local Development (“MLD”)

To whom the financial aid is designated

Two subsidy titles are opened, one for collective accommodation establishments and the other for individual accommodation establishments.

Unlike the first wave of the COVID program – Accommodation shall be the new wave extended by financial support for individual accommodation establishments, namely private accommodation, small guesthouses, apartments, rooms, recreational objects providing temporary accommodation for tourists.

However, the financial aid is not intended for accommodation services in an apartment building (e.g. Airbnb), as these apartments can be rented out on the real estate market.

The precise definition of authorized entities will be provided in the Call.

The maximum amount of the financial aid

Applicable period

Acceptance of application

Accepting applications will commence after the Call is published by the MLD, with the following days of publication:

We will gladly provide you with advice on the financial aid. We can offer you professional assessment of whether the financial aid applies to you, preparation of a list of all essential steps and documents necessary to participate in the financial aid program, or we will gladly represent you throughout the procedure for granting the financial aid, and we will spare you the considerable amount of time and concern associated with the submission of applications (also taking into account the significant technical problems reported by the systems in recent days).

The amendment to the Czech Labour Code, which came into effect as of 30 July 2020, has also affected the calculation of employees average earnings, whereas this change is significant especially to employees with lower incomes. According to the previous legislation, it was necessary to comply with the minimum wage limit only, but employers must now ensure that the amount of the average earnings also reaches the guaranteed wage limit. And if it does not, the average earnings must be adjusted to this limit by the employer.

To explain, the guaranteed wage is an instrument similar to the minimum wage. However, while the minimum wage is a general remuneration for work limit, the guaranteed wage is a minimum limit of remuneration according to the strenuousness, complexity and responsibilities associated with such work. The amount of the guaranteed wage is determined by the Government Regulation no. 567/2006 Coll., which divides individual jobs into 8 groups, where the simplest jobs that do not require any special qualifications fall into the first group (and the guaranteed wage equals the minimum wage here, i.e. CZK 14,600; e.g. cleaning), while the most demanding jobs in terms of complexity and responsibility, with high psychological strain and demands on creative and abstract thinking, fall into the eighth group (with a guaranteed wage of CZK 29,200; e.g. financial and capital market trading). Similarly to the minimum wage, the amount of the guaranteed wage is valorised annually.

Therefore, in order to be able to ensure compliance with the guaranteed wage when calculating the average earnings of its employees, the employer must assign each employee to one of the guaranteed wage groups. If the employer fails to fulfil this obligation and does not take into account the guaranteed wage limit when calculating the average earnings, there is a risk of recourse, among other things, in the form of a penalty for committing an offense in the area of employee remuneration in the amount up to CZK 1 million, depending on the circumstances and severity.

Employers in the Czech Republic with up to 50 employees have now the opportunity to lower the contributions to social security and to the state employment policy paid by the employer for employees in the months of June, July and August 2020. The aim of the waiver is to support the employers to maintain employment. The relevant government proposal has passed through the entire legislative process and is awaiting for publication in the Collection of Laws.

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Are you eligible for the support – antivirus C in the Czech Republic?

As an employer, you can use this opportunity if you are not already drawing compensation under programs Antivirus A and Antivirus B; you are not a healthcare provide and answer the following questions affirmatively:

If you answered YES to all of the above questions, you are allowed to reduce contributions to social security and to the state employment policy. The conditions for the waiver of contributions need to be determined for each month separately.

In practical terms, the number of employees does not only include employees who are actively employed and perform their activities, but also those who are on maternal or parental leave, unpaid leave, or do not work due to obstacles on the part of the employer. On the contrary, company executives working under an executive employment agreement and employees who work part time based on i.e. Agreement to perform work (DPČ) or Agreement to complete a job (DPP), even if their total remuneration exceeds the limit for social security contributions, are not included in the number of employees. These individuals are excluded for calculation purposes from the comparison of the assessment bases. The calculation should not be affected by the decrease in the number of employees due to resignation or retirement.

How to draw the support?

You do not have to apply for a waiver. Employers only need to verify if they meet the above conditions with their payroll accountant. If the above conditions are met, you may claim the waiver for the relevant month via the “Overview of social security contributions” form by reducing the employer’s assessment base. This form is usually submitted on monthly basis by the payroll accountant to the Czech Social Security Administration.

Only contributions paid by the employers in the amount of 24,8% of their assessment base up to the assessment base of CZK 52,253 (1.5 times the average wage) per employee is waived. Hence, employers can save almost CZK 13,000 per employee on contributions to social security. However, please note that it is not allowed to deduct assessment base for an employee who has been fired due to organizational changes or redundancy. Contributions for these employees thus remain unchanged. In addition, the reduction of the assessment base should not have an impact on the calculation of the super gross salary of an employee.

Conclusion

As an employer, you will need to carefully consider which support is more beneficial; whether compensation under Antivirus A or Antivirus B, or reduction in social security contributions under program Antivirus C in the Czech Republic. In case of any questions our legal, tax and payroll department will be pleased to assist you.

Updated on 10.6.2020

With the aim to support employment, the Czech Ministry of Labor and Social Affairs (MoLSA) has prepared several packages that should aid employers in a difficult economic situation and prevent mass redundancies.

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Extension of the targeted project (Antivirus) to support employment

Under the project, employers receive a contribution to compensate the wage they have been forced to pay even though employees have not been working due to closures, restrictions of business activities or quarantines (scheme A) or due to partial unemployment (scheme B).

The project was initially limited to wage compensation paid for March and April 2020. The government first agreed to extend the compensation until 31 May 2020, and so employers may apply for a contribution to wage compensation paid to employees in May, both under scheme A and B.

At a meeting on 25 May 2020, the government approved a further extension of the project until 31 August 2020. However, this extension only applies to scheme B i.e. employers who have initiated partial unemployment.

At its meeting on 9 June 2020, the government approved the extension of the Antivirus program until 31 August 2020 also for scheme A. The reason is that even today, employees are still ordered to quarantine (and a growing number of such employees cannot be ruled out) and that despite the release of measures, there are still employers who cannot fully carry out their activities with regard to the restriction on events over 500 people (festivals, cultural events, exhibitions, etc.).

Please find more information about the Antivirus project summarized in this article.

Possibility of postponing payments of contributions to social security

On 20 May 2020, the Senate approved a bill to reduce the penalties on delayed payments of social security contributions and contributions to the state employment policy paid by the employer. According to the newly approved legislation, employers may only defer payment of social security contributions (24.8%) for May, June and July 2020.

However, they are still obliged to withhold and pay contributions from gross wages of the employees (6.5%) and submit a monthly overview of the total amount of contributions to the Czech Social Security Administration (CSSA). According to the amendment, it will also be possible to provide an overview of the total amount of contributions in electronic form, starting with the overview for June 2020.

However, the deferral of the payments to social security will not remain without any penalties. If the contributions for May, June and July 2020 are paid no later by 20 October 2020, employers will be penalized at a reduced rate of 4%. Otherwise, the penalties would be at the full rate of 18%.

In the event that employers decide to defer payments of contributions paid by the employer, it will not be necessary to notify the CSSA. According to CSSA, employers will not be penalized if the total amount of penalties does not exceed CZK 1,000.

The deadline for deregistering and registering employees brought forward

The unfortunate amendment to the legislation above approved the moving forward the deadline for filing the registration and deregistration of the employees to CSSA. Until recently, employers are obliged to report the employee’s entry or exit within 8 calendar days. However, with effect from 1 September 2020, the deadline has been bought forward and the employers will be obliged to notify the CSSA (electronically) no later than the next working day. If the CSSA is not notified by the next working day, the employers may receive a fine of CZK 20,000.

This amendment causes additional administrative burdens for employers and payroll accountants, although reducing administrative burdens should be the goal of government proposals. The Chamber of Tax Advisers, the Association of Accountants and other institutions consider this change to be disproportionate. Unfortunately, according to the latest information, the MoLSA is not currently considering changing the law.

Waiver of social security contributions – the “C” scheme of the Antivirus project

In the Chamber of Deputies, the government bill on the waiver of social security contributions and contributions to the state employment policy is now also awaiting discussion.

The waiver of contributions means a reduction in the assessment base for the employer, i.e. a waiver of 24.8% of the total income of employees, and the waiver for June, July and August 2020 is expected.

The waiver of contributions will only apply to smaller companies – they will be available only to employers who do not employ more than 50 employees in the employment relationship participating in sickness insurance.

The employer will also have to meet the following conditions:

The achievement of the conditions will be assessed each month separately.

The aid will not be provided to public sector employers or health insurance providers covered by health insurance. Concurrent drawing of contributions from schemes A and B is also excluded.

It will not be necessary to apply for a waiver of contributions. The employers only need to decrease the amount of contributions in monthly overviews sent to CSSA and pay the corresponding reduced amount.

On 23 March 2020, Government of the Czech Republic adopted resolution no. 293, amending resolution no. 257 of 19 March 2020. Under this resolution, the Government adopted the “Antivirus”, a targeted program for employment sustainability and support of businesses, introducing 5 separate programs (marked A to E below) for prevention of unemployment and economic crisis in the Czech Republic due to the spread of the novel SARS2 coronavirus.

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Due to the state-wide introduction of restriction of freedom of movement, quarantine of travellers from risk-countries and quarantine of infected persons as well as persons the infected interacted with, the majority of businesses have been severely hit. In order to prevent the rise of unemployment, the Czech Labour Ministry (MPSV) and the Labour Office (Úřad práce) will commence compensating the directly affected employers.

Below we bring you a short summary of the introduced compensatory measures. No specifics on the mechanism were provided as of yet, we will be bringing you the latest news as soon as they are published.

The below spreadsheet lists the individual programs, as well as the overview of the legal ground for the situation, its description, usual employees´ entitlement to remuneration in such situations and the announced compensation to employers´ provided to be provided by the Labour Ministry.

LC* Labour Code Act No. 262/2006 Coll.

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