Zákon o socialnom poisteni č. 461/2003; Zakon o konkurze a restrukturalizacii č. 7/2005, v zneni neskorsich predpisov; Zákonník práce č. 311/2001
Act on Social Insurance No. 461/2003; Act on Bankruptcy and Restructuring No. 7/2005, as amended; Act on Labour Code No. 311/2001
All workers with an employment relationship that lasted at least 18 months before the insolvency (the last working day before the employer filed for insolvency) are eligible, including employees with fixed-term contracts, part-time workers and employees working externally according to assignment contracts. However, employees of the state, public organisations, support organisations, national funds and municipalities, as well as domestic workers in a family business or people working for their family relatives who have not entered into an employment relationship are not eligible.
An employer is considered insolvent if it has filed for insolvency at the court.
The guarantee covers non-paid wages, bonuses, holiday remuneration, severance payments and travel expenses. The benefit covers employees wage claims for a maximum duration of three months. In 2019, the average payment for an employee was €2,173.
To get access to the wage guarantee benefits, the employee has to apply within 60 days after the insolvency or termination of the employment relationship. The Social insurance Agency (SP), which administers the guarantee fund, has to decide and pay the benefit within 60 days from the application. The fund is financed by employers' contributions.
In the context of the COVID-19 pandemic, the government has amended Act No. 461/2003 on social insurance with a view to helping many businesses affected by the outbreak of the pandemic to stay aflot. The amendments postponed the deadline for compulsory payments from employers and self-employed to insurance funds. Since March 2020, any employer and self-employed paying compulsory monthly contributions to social insurance funds, and whose revenue from business decreased by at least 40%, in comparison with March 2019, 2019 average or February 2020, are entitled to pay these contributions not until 31 July 2020 - the new deadline is 31 December 2020. The same deadline is for payments for April, May, June and July. Besides, employers and self-employed, of which at least one business unit was compulsory closed at least for 15 working days, does not need to pay any contribution for April.
The Social Insurance Agency paid 1,446 wage compensations from the Guarantee fund in the toal expenditure €2.29 million to employees of 78 insolvent companies in 2017. In 2018, it paid more compensations, 1,702 in the total amount of €2.58 million, but the number of concerned insolvernt companies was 63.
Cost covered by
Involved actors other than national government