Seven frequently asked questions on receiving subsidies for downtime
- Q: Although the amendment to the Labour Code regulating the calculation of downtime pay came into force on 19 March 2020, can this amendment be used to calculate downtime pay from 16 March 2020?
Answer: Since the laws and amendments thereto are not retroactive and no specific amendment procedure has been foreseen, for the period from 16 March 2020 to 19 March 2020, the version of the Labour Code in force at that time shall apply, and for the period from 19 March 2020 onwards, the amendments to the Labour Code as amended shall apply. It should be noted that additional amendments to this article of the Labour Code may be made as the quarantine period continues.
- Q: If a company is not included in the list of taxpayers subject to tax measures due to COVID-19, will it receive a public subsidy if it declares a work stoppage?
Answer: According to the current version of the Employment Law, they will, but it will be 60% of the calculated funds instead of 90%. It should be noted that this procedure is subject to change.
- Q: After quarantine, a worker needs to be kept in employment for 3 months in order to be eligible for the subsidy. If during this three-month period the employee starts to commit serious breaches of the employment relationship, e.g. absenteeism, which would lead to her dismissal, would we receive the subsidy for this employee?
Answer: Under the current version of the Employment Act, the subsidy would have to be repaid. It should be noted that this is still subject to change.
- Q: If a person is employed under a service contract and holds a self-employed certificate, i.e. he is a service provider, but the relationship between the company and the service provider corresponds to that of an employment relationship, can the subsidy be claimed for this person?
Answer: According to the current version of the Employment Act, no.
- Q: Employees have returned from a business trip and are currently on sick leave. Will it be subsidised?
Answer: Yes, provided that the workers do not have sick leave certificates.
- Q: Do I need to inform the National Labour Inspectorate about the company’s outages?
Answer: Not required under current legislation. It should be noted that there is a draft legislation that provides for the notification of downtime to the State Labour Inspectorate, but it has not yet been adopted and it is unclear whether it will be adopted.
- Q: Can the announcement of a work stoppage be made by separate orders and on different dates for each individual employee, or is there one mandatory date for announcing a work stoppage for all employees?
Answer: Orders or other documents declaring a stoppage must be realistic, i.e. they must state when the actual absence or reduction in work took place.