On 1 March 2009, employment laws were amended to reduce the impact of the current global financial crisis and help people at least maintain their current living standards.
Under changes to the Labour Code, employees are treated as being on holiday and entitled to at least their basic salary when they cannot work due to material operational reasons at any time between 1 March and 31 December 2012 (with the agreement of their employee representatives).
During this time, they are deemed to be working and so continue to accrue holiday. They are also entitled to basic salary as it is a mandatory part of their terms and conditions of employment and is payable for work done or time worked (or treated as worked).
Once the material operational reasons no longer exist, the employee must work off the time without being entitled to basic salary (unless a more favourable arrangement is agreed with the employer).
Any work they do during their time off (up to their normal weekly hours) does not count as overtime or entitle them to any further salary. Any work they do must comply with the 48-hour maximum working week required under the Labour Code.
A package of financial incentives has also been introduced through changes to the Act on employment services. These involve contributions to employers which are provided under binding agreements with the relevant office of labour, social affairs and family. They include:
- employers who have continued to provide work for its employees despite there being material operational reasons but subsequently need to temporarily reduce their hours can receive a contribution towards health and social insurance payments (payable by both employer and employee) so that they only have to pay the employees’ salaries
- employers who have been in business for at least 12 months can receive a contribution for hiring someone who has been on the unemployment register for at least for 3 months
- employees who have been on the unemployment register for at least for 3 months and received both an allowance and an extra allowance for material need can receive a contribution if they become and remain self-employed for at least 2 years
Law: Labour Code (Act no. 311/2001 Coll. as amended); Act on employment services (Act no. 5/2004 Coll. as amended)
