Change in the notification duty for employers from April 2022
On April 1, 2022, the amendment to the Employment Act No. 435/2004 Coll. will enter into force. Among other things, this amendment introduces significant changes in the submission of notifications of termination of employment relationship with employees, submitted by the employer to the relevant District Social Security Administration (hereinafter DSSA). The information the employer must provide in the form will be expanded. These are the data that are crucial for awarding and assessing the amount of unemployment benefits. Until the end of March, these data are provided by the employer in the confirmation for the purposes of assessing the qualification to unemployment benefits, which the employee himself/herself requested from them. When submitting an application for payment of unemployment benefits, the employee will no longer provide the labor office with all the necessary confirmations, but the labor office must learn everything necessary from the CSSA system; CSSA has the obligation to lead and administer such system from April 1, 2022. For the sake of completeness, we add that the obligation to report this information applies to absolutely all employees, even if it is clear that they will not draw unemployment benefits.
The deregistration form with all newly required formalities must be sent within the same deadline as before, i.e. within 8 calendar days from the end of employment, although the range of reported data has expanded considerably.
In practice, this will mean that payroll accountants will now and then process payrolls for leaving employees on a preferential basis, for the purpose of calculating the average earnings that will be recently included in the confirmation. There will also be increased pressure from the DSSAs for the timeliness of submitted notifications.
From the beginning of April, if the employer does not submit a deregistration form with all the required formalities within the legal deadline, he will be subject to sanctions according to the Health Insurance Act, but also according to the Employment Act.
Further information can be found on the website of the Czech Social Security Administration. The relevant form is not yet available, however we expect it to be published as soon as possible.

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