EMCC European Monitoring Centre on Change

Partial unemployment

Czechia
Phase: Management
Type:
  • Response to COVID-19
  • Income support for workers
  • Working time flexibility
Sidst ændret: 03 August, 2021
Lokalt navn:

Částečná nezaměstnanost

Engelsk navn:

Partial unemployment

Coverage/Eligibility

This scheme is available for all employers (regardless of company size or sector) who are unable to assign work to employees due to inclement weather conditions, a natural catastrophe or  a temporary reduction of demand for the company's products or services. The reduction of working time and wages is based on the agreement between the employer and the trade union organisation. In workplaces where no trade union organisation operates, this agreement must be replaced by internal regulations. As of 1 January 2011, the approval of the labour office is no longer necessary. This change was introduced to reduce the administrative burden for the employer.

Main characteristics

Partial unemployment is defined in the Act No. 262/2006 Coll. of the labour code. In case of interruption of work due to inclement weather conditions or a natural catastrophe (section 207 of the labour code) or in case an employer cannot assign work to employees within the range of weekly working hours due to a temporary reduction of demand for the company's products or services (section 209 of the labour code), it is possible to pay to an employee a compensatory wage or salary in the minimum amount of 60% of their average earnings through an agreement in case of mentioned section 209 between the employer and the trade union organisation. In workplaces where no trade union organisation operates, this agreement must be replaced by internal regulations.

The measure in the section 209 of the labour code is not limited. The act No. 262/2006 Coll. of the labour code says it is a temporary measure only, however, does not define what the 'temporary measure' is. This measures can be complemented by an additional instrument according to the employment act (see the support instrument 'Contribution at the time of partial unemployment'), whereby the employer can apply for a financial contribution provided by the employment office.

Response to COVID-19

In the framework of the 'Antivirus employment retention programme' (Antivirus - podpora zaměstnanosti) the government compensates employers' wage costs from 12 March to end of 2020 (initially extended to October 2020).

The  Antivirus programme A was extended from 31 October to the end of 2020 with the Resolution No. 1039 of 14.10. 2020. From 1 October,:

  • EIn case of compulsory limitation of ativity or becuase of an order to quarantine, employers will now be entitled to an employee allowance of 100% of the wage compensation paid instead of the current 80%. At the same time, the maximum monthly contribution per employee increases from the current CZK 39,000 (€1,415) to CZK 50,000 (€1,814). For employees who cannot perform work due to quarantine, the contribution remains the same, that is  80% of the paid wage compensation. The maximum contribution remains at the original amount of CZK 39,000.

The Antivirus B programme was also extended until the end of 2020 with the resolution No. 1098 of 26 October 2020, the B regime of the Antivirus program:

  • In case of obstacles to work on the part of the employer due to economic difficulties caused by the COVID-19 crisis The conditions for granting the contribution remain the same as in the previous period. The employer is entitled to an employee allowance in the amount of 60% of the paid wage compensation, up to a maximum of CZK 29,000 (€1,052).

Funding

  • National funds
  • Employer

Involved actors

National government
Legal framework
Public employment services
The labour office is the administrative body and responsible for data monitoring
Employer or employee organisations
In workplaces where their a trade union, partial unemployment must be regulated by an agreement between the trade union and the employer. If no trade exists, employer's internal regulation is sufficient.

Effectiveness

By the end of 2016, some 40,933 employees (which accounts for 0.8% of total employment) were partially unemployed.

Year Number of employees
31 December 2014 58,739
31 December 2015 52,087
31 December 2016 40,933

Source: Labour office of Czechia (Úřad práce České republiky)

Strengths

This measure can help employers to endure a period of reduced demand for the company's products or services without facing redundancies. The employer also can ask the employment office for a financial contribution during partial unemployment (see support instrument 'contribution at the time of partial unemployment').

Weaknesses

Employees experience a wage reduction. For employers, it can be still costly if they experience lower demand for the company's products or services.

Eksempler

No information available.
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