Background information

COVID – Uncovered costs is a new programme, which - together with COVID 21 - replaces most of the previous sectoral compensation programmes:

• COVID Rent ,
• COVID Accomodation ,
• COVID Culture ,
• Compensation bonus for self-employed ,
• Antivirus employment retention programme .

COVID - Uncovered costs is an alternative to the COVID 2021 programmme . Which means that companies can choose only one of these two programmes.

The programme intends to cover part of the uncovered fixed costs and help businesses which are in a loss due to anti-pandemic measures. The support is for companies regardless of the specific sector, form of ownership or number of employees.

Content of measure

Applicant for the support has to prove the decrease at least of 50% in the company's turnover in comparison with relevant period. Comparison period is chosen by applicant (1 January 2019 till 31 March 2019, or the same period in 2020). The support covers relevant period of 1 January 2021 till 31 March 2021. Subsidies already provided from other compensation programmes will be deducted.

The total allocation of the programme is CZK 6,000,000,000 (€230,017,251 approx.). The support covers 60% of uncovered costs in relevant period, for state-owned entities or territorial self-governments the support covers 40% of uncovered costs.

Maximum amount of the support per applicant is CZK 40,000,000 (€1,533,448).

Applications can be submitted from 19 April 2021 until 19 July 2021 by Ministry of Industry and Trade of the Czech Republic, Ministerstvo průmyslu a obchodu České republiky, MPO .

Use of measure

No information available yet.

Target groups

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

Actors and funding

Actors	Funding
National government Company / Companies	European Funds National funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Consulted
Form	Not applicable	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

In designing.

Views and reactions

In general supportive, however, with comments. Employers´ organisations appreciate that the government has unified different sectoral programmes in two - COVID Uncovered costs and COVID 21. However, the largest employer organisation in Czechia, Confederation of Industry of the Czech Republic, Svaz průmyslu a dopravy České republiky, SP ČR together with employer and business associations in HORECA sector appeal to government - with introduction on COVID Uncovered costs programme - not to cancel COVID Rent programme, which is, according to above mentioned organisations, functional and proofed.

Employers´ organisations also criticize, that the applicant have to prove the decrease at least of 50% in the company´s turnover, which makes impossible for many businesses with lower decrease in turnover to reach for the support. Also the level of the support, compensation of 60% of uncovered costs, is not sufficient according to employers' organisations.

Sources

• 08 March 2021: HK ČR: Press release/HK ČR: Tisková zpráva (www.komora.cz)
• 16 March 2021: SP ČR: Appeal on government/SP ČR: výzva vládě (www.socr.cz)
• 01 April 2021: MPO: COVID Uncovered costs/MPO: COVID Nepokryté náklady (www.mpo.cz)
• 10 June 2021: MPO: COVID-Uncovered costs 2 call/MPO: COVID-Nepokryté náklady 2. výzva (www.mpo.cz)
• 22 November 2021: MPO: The government has approved new calls of compensation programmes/MPO: Vláda schválila kompenzace pro podnikatele v souvislosti s covid-19 (www.mpo.cz)