Czech Republic: Short-time work introduced in Employment Act
The Czech President has approved an amendment to the Employment Act to include short-time work.
Following on from Senate approval in July 2015, in August the President of the Czech Republic approved an amendment to the Employment Act concerning the introduction of so-called 'Kurzarbeit' (short-time work) into the Czech working environment. The president’s approval is the last step in the legislative process, following which conditions for introducing short-time work have been finally set. Employees whose working time has been reduced due to the crisis will receive 70% of their normal salary, but only 50% of it will be paid by their current employer and the other 20% will be reimbursed by the government.
Companies in crisis can ask for financial support via the Labour Office and their applications are individually discussed by the government. Vladimír Dlouhý, President of the Czech Chamber of Commerce, pointed out that the approval process is lengthy, inflexible and too bureaucratic that companies would rather try to solve their problems in other ways.