New restrictions and legislative developments:

On Friday, 25 September 2020, the Czech government approved a new set of rules for the so-called kurzarbeit, which proposes to be implemented into the law no.435/2004 Coll. after further discussing in the legislation process.

Approved conditions so far are:

• Limitation in working time ranges from 20-80% of working hours (between 1 and 4 days a week) for each supported employee.
• There will be a state contribution of 70% of the original net wages for the time during which no work is performed.
• Maximum duration of state support is 12 months for each employee.
• Employers have to pay the full medical insurance contributions also for the time during which no work is performed. Social insurance contributions are calculated from 70% of the net wages.
• State support will be paid only to employers with a company seat in the Czech Republic.

Please note that this only constitutes a government proposal that has to undergo the legislative process.