On 4 June 2022, an amendment to the ECS Act went into effect. From the employers' perspective, the most significant changes are:
 

• The possibility of early conclusion of the ECS management agreement

The ECS management agreement can be concluded already 14 days from the employee's hiring. At the same time, the maximum deadline for concluding the agreement, i.e. by the 10th day of the month following the month in which the 3-month term of employment expired, remains unchanged.
 

• New deadline for submitting a declaration on the ECS management agreements concluded for ECS participants

An Employee Capital Scheme participant submits a declaration on the ECS agreements previously concluded on his/her behalf within 7 days from the date of conclusion of the ECS agreement for him/her with the current employer. This amendment also entails a change in the deadline for informing the employee of his/her obligation to apply for a transfer payment on his/her behalf - the employer should do this immediately upon receipt of the statement.
 

• Clarifying the rules for enrolling employees aged 55+ in ECS

The amendment clarifies that the conclusion of an ECS management agreement for a person aged 55 or older is always done at his/her request.
 

• New deadline for ECS participant's declaration regarding additional payments

The declaration regarding the financing of additional payments by the ECS participant is effective from the month following the month in which it was submitted.
 

• Standardized deadlines for making contributions to the ECS

The amendment specifies that the first payments to the ECS are calculated and collected from the remuneration paid to the ECS participant after the legal relationship arising from the ECS management agreement arises. Both the first payments and subsequent payments are made by the 15th day of the month following the month in which they were calculated and collected.
 

• The State Labour Inspection Service may conduct inspections regarding inducement to opt out from the ECS

The State Labour Inspection Service has been given the authority to inspect employers for compliance with the prohibition on inducing employees to opt out from saving in the ECS.

Find more in the PRO HR July 2022.