Kurzarbeit being now a part of the legal system of the Czech Republic (No. 1027)

With effect from July 01, 2021, the legal regulation of the allowance during partial employment (formerly partial unemployment), which is known as the so-called “Kurzarbeit”, has changed, based on an amendment to the Act on Employment. Compared to the current legal regulation and the temporary ANTIVIRUS crisis program, the Kurzarbeit should give a more stable possibility to employers to deal with major negative situations (economic recession, natural disasters, epidemics, cyber-attacks). The existence of such situations, and thus the activation of the conditions for provision of compensations, will be determined by the Government of the Czech Republic by its regulation, always in compliance with the current situation.

The basic condition for obtaining the contribution is that the employer, due to the confirmed crisis situation, assigns work to the employees only to the extent of 20 – 80 %, while paying employees a compensation of wages in the minimum amount of 80 % of their average earnings. If other specified conditions are met, the employer will receive a subvention from the state in the amount of 80 % of the paid wage compensations, to reimburse wages and transfers.  The allowance can amount to a maximum of 1.5 times the national average wage for the first to third quarters of the previous year. The maximum subvention period is one year.

publikováno 13.08.2021