European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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

Wage guarantee in case of insolvency

Ochrana zaměstnanců před platební neschopností zaměstnavatele

Country Czechia , applies nationwide
Time period Open ended, started on 01 April 2000
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category 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)

Background information

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.

Content of measure

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.

Updates

The following updates to this measure have been made after it came into effect.

17 November 2022

Updated figures in list for "The number of employers, number of submitted employees' applications and paid wage guarantee" in Use of Measure.

Use of measure

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:

  • Number of employers, whose employees are qualified for the wage guarantee in insolvency (-)
  • Submitted employees´applications (-)
  • Processed applications (3,737)
  • Wage guarantee paid to employees in total (thousands CZK) (273,895)
  • Wage guarantee paid to emplyoees in total (thousands EUR) (10,67)

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

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:

  • No involvement
  • Main level of involvement: Unknown

Involvement

No involvement.

Views and reactions

No view.

Sources

  • 31 October 2022: Act No. 118/2000 Coll., Protection of employees in the event of insolvency of their employer (www.ilo.org)
  • 31 October 2022: Act No. 182/2006 Coll., Insolvency act (www.ilo.org)
  • 31 October 2022: Analysis of development of employment and unemployment, MPSV (www.mpsv.cz)
  • 31 October 2022: Labour office of Czechia (Úřad práce ČR) (www.uradprace.cz)

Citation

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

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.