Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CZ-2000-14/2622 – Updated – measures in Czechia
|Country||Czechia , applies nationwide|
|Time period||Open ended, started on 01 April 2000|
|Context||Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Author||Aleš Kroupa (Research Institute for Labour and Social Affairs)|
|Measure added||23 June 2022 (updated 17 November 2022)|
In case of an employer's insolvency, the measure according to act no. 118/2000 Coll., Protection of employees in the event of insolvency of their employer can guarantee the living standard of employees. The employee can to submit the application for claims to the labour office.
All employees are eligible for the subsidy, including part-time workers and fixed-term workers. Other employees are also excluded from protection, namely employees who are members of the employer’s statutory body and shareholders with half and higher participation. Then employees who work for the employer as temporary agency workers (TAW) and whose wages are covered by a TAW insurance in case of insolvency.
The employee has to apply within 5 months and 15 calendar days following the date on which the labour office published its official board information to the court regarding the employer who has filed an insolvency petition or has impounded property. All claims (wage, payment for holidays, termination of a job, payment for time off to visit a doctor) that arose in the period of three months before and three months after the month when the insolvency was announced are covered. Wage claims are covered for a maximum period of three months, for a monthly amount of one and a half average wage in Czechia as prescribed by law. The guarantee is financed by the state and paid by the labour office; there are no employers’ contributions.
The number of employers, number of submitted employees' applications and paid wage guarantee followed the economic cycle in the country, as it can be observed. In 2020, the following data according labour office were recorded:
|Applies to all workers||Applies to all businesses||Does not apply to citizens|
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Wage guarantee in case of insolvency, measure CZ-2000-14/2622 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2000-14_2622.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.