10 forms of help for employers. Anti-crisis shield | PRO HR Coronavirus

2020.04.06

The President has signed a package of laws constituting the "anti-crisis shield". What are the most important forms of assistance and benefits for employers in the anti-crisis shield?

 

I Economic downtime
 

  • Employers with a certain decline in economic turnover will be able to introduce economic downtime on the basis of an agreement with the social side. Downtime may include persons employed under employment agreements, outwork agreements, mandate contracts and other service contracts to which the mandate provisions apply accordingly. Such downtime does not apply to b2b contracts.
  • As part of the downtime, the employer may reduce employee pay by no more than 50%. The reduced remuneration may not be lower than the minimum remuneration for work, calculated on a full-time basis.
  • After the introduction of downtime, the employer may receive from the state co-financing of the reduced employee remuneration and social security contributions due from the employer up to the amount of co-financing.
  • The amount of funding is half the minimum wage, i.e. PLN 1,300.00 gross for a full-time job. The amount of co-financing does not depend on the amount of reduced remuneration, but it is calculated proportionally to the part-time work.
  • Co-financing will be available for a total period of 3 months from the date of submission of the grant application, during a downtime (the Council of Ministers may extend this period). The co-financing will not cover employees who in the month preceding the month in which the employer applied for assistance, earned more than PLN 15,595.74 gross.
  • Co-financing means that part of the reduced salary will be financed by the state from the Guaranteed Employee Benefits Fund. Co-financing does not mean that employees will receive from the state additional remuneration in excess of the amount of reduced remuneration as part of economic downtime.
  • The employer will not be able to terminate the employment contracts, for reasons not related to employees, to persons affected by economic downtime, for which the employer received funding during the grant period and for a maximum period of 3 months after the end of the grant.

II Reduction of working time
 

  • Employers with a decrease in economic turnover will be able to reduce, based on an agreement with the social side, the working time of employees by 20% (rigid amount), but not more than to 0.5 full-time employment. The reduced remuneration may not be lower than the minimum remuneration, calculated proportionally to the part-time basis.
  • Due to the reduction of working time, the employer may receive from the state co-financing reduced employee remuneration and social security contributions due from the employer up to the amount of co-financing.
  • The amount of co-financing is to be half of the reduced remuneration, but not more than 40% of the average remuneration from the previous quarter preceding the submission of the application announced by the Central Statistical Office (currently PLN 2,079.43).
  • The conditions for granting co-financing are analogous to those for an economic stop (see above).

III Financing of salaries by the staroste
 

  • The staroste may co-finance part of the salary costs and social security contributions due from them for entrepreneurs who have experienced a decline in economic turnover. Co-financing may cover persons employed under employment agreements, outwork agreements, mandate contracts and other service contracts to which the mandate provisions apply accordingly.
  • The funding will amount to a maximum of 50% to 90% of the minimum wage and will be triggered by a 30% decrease in turnover.
  • Co-financing may be granted for a period not longer than 3 months. The entrepreneur is obliged to keep employees covered by the co-financing for the period of co-financing and, after the co-financing has ended, for a period equal to this period.
  • The entrepreneur cannot receive the above co-financing in the part in which the same costs have been or will be financed from other public funds.
  • A micro entrepreneur who ran a business before March 1, 2020 will be able to take advantage of a loan granted by the staroste from the Labor Fund in the amount of up to PLN 5,000.00 for a period of up to 12 months with a three-month grace period. At the entrepreneur's request, the loan will be canceled with interest, if the entrepreneur does not reduce full-time employment compared to the employment level as at 29 February 2020.
  • Entrepreneurs who make PIT advance payments should make advance payments collected for March and April 2020 on revenues from service relationship, work and social security benefits paid by the payer to the account of the tax office by June 1, 2020. Until this date they may allocate the cash they have collected.

IV Exemption from the obligation to pay contributions
 

ZUS, at the request of an entrepreneur who, as at 29 February 2020, reported less than 10 insured persons for social insurance, releases him from the obligation to pay unpaid contributions for: compulsory social and health insurance, Labor Fund, Solidarity Fund, Guaranteed Employee Benefits Fund or Temporary Retirement Fund for the period from March 1, 2020 to May 31, 2020.

V Flexible working time, less favorable employment conditions

Employers affected by the effects of the COVID-19 virus may benefit from the following solutions:

  • to reduce uninterrupted daily rest from at least 11 to not less than 8 hours and uninterrupted weekly rest from at least 35 hours to not less than 32 hours;
  • concluding an agreement on the introduction of an equivalent working time system, in which the extension of the daily working time may be extended to no more than 12 hours - without the need to meet the conditions for the introduction of this working time system, referred to in the Labor Code, in the longer settlement period, i.e. not exceeding 12 months;
  • concluding an agreement on the use of less favorable employment conditions than those resulting from employment contracts concluded with employees, to the extent and for the time fixed in the agreement.

VI Subsequent implementation of PPK
 

  • The deadlines for concluding the PPK management agreement for employers covered by the obligation to create PPK have been postponed from January 1, 2020.
  • As a consequence, the PPK contract should be concluded by November 10, 2020, and the PPK management contract by October 27, 2020.

VII Suspension of preventive examinations
 

  • The Act provides for suspension of the obligation to perform medical examinations:
  1. periodic as well as employee examinations in conditions of exposure to substances and carcinogens or fibrotic dusts;
  2. medical and psychological examinations of drivers performing road transport in accordance with the Road Transport Act;
  3. periodic medical examinations and psychological examinations of train drivers in accordance with the Railway Transport Act.
  • The suspension of the obligation does not include conducting preliminary and control examinations, but assumes the possibility of performing them in a different mode. In the absence of availability of a doctor authorized to conduct initial or follow-up examination, the examination may be carried out by another doctor. A medical certificate issued in this mode expires after 30 days from the date of cancellation of the epidemic state.
  • After cancellation of the epidemic status, the employer and employee are obliged to immediately take up the suspended duties and perform them within a period not exceeding 60 days from the date of cancellation of the given state.

VIII Additional privileges for critical companies
 

  • Employers answering, among others for the supply of energy, energy resources and fuels, teleinformation networks, water supply, transport, production, storage, storage and use of chemical and radioactive substances, as well as their subcontractors and key suppliers will be able to change the system or the distribution of employees' working time as necessary to ensure business continuity.
  • Such a change may be the introduction of an equivalent or task-based working time system without the rules and restrictions of the Labor Code.
  • Changes to systems or working time schedules will be able to enter into force immediately after they have been communicated to employees.
  • The employer's second special right is the ability to instruct employees to work overtime to the extent necessary to ensure business continuity.
  • As part of changes in the organization of work under the Act, the employer may refuse to grant the employee holiday leave, leave on demand, unpaid leave and other leave.

IX Performing work on Sunday
 

  • The Act relaxes restrictions on Sunday trading. During the period of epidemic emergency or epidemic state and within 30 days following their cancellation, it is possible to perform activities related to unloading, receiving and displaying necessities.
  • Exemption from trade restrictions does not apply on Sundays on which the holiday falls. In the near future such Sundays will fall on April 12 (Easter) and May 3.

X Changes regarding the stay and work of foreigners
 

Temporary residence permits

  • Sejm approved significant changes in the scope of extending the right of residence of foreigners staying in Poland. It is assumed that if the expiry of the validity of the residence permit or visa-free period falls within the period of validity of the epidemic emergency or epidemic status, this period shall be extended 30 days following the date of cancellation of the last state.
  • The proposed change also extends the right to work if work is provided on the basis of a uniform temporary residence and work permit. Work must be provided on the conditions indicated in the issued temporary residence and work permit.

Validity of issued visas

  • Similarly, the validity period of a national visa ("type D") is also extended, which is often the basis of residence for foreigners who work. At the same time, Sejm agreed to extend the deadline for submitting an application for its extension. The extension of a visa by law will not require a new visa sticker.

Work permit and declaration of intention to entrust work to a foreigner

  • Sejm approved changes in the scope of extending documents legalizing work in Poland. The period of validity of work permits and seasonal work permits has increased, as well as the maximum period of work based on the declaration of entrustment of work. The extended period includes the epidemic threat or epidemic status followed by an additional 30 days. Importantly, the expiry of the legal work period must take place during the period of the epidemic threat and epidemic status, not within the 30 days immediately following their cancellation.
  • Sejm also approved the introduction of a special provision specifying the deadline for submitting an application for the extension of a work permit, as a result of the extension of the period of validity of a work permit under the law. The Act provides that the deadline for submitting the application is the last day of the period of validity of the work permit extended by law.

What else should an employer know?
 

Care allowance for the next period
 

  • In connection with the decision to close educational institutions by April 12 this year, parents who have already used additional care allowance may apply for this benefit once again for the next period.
  • The statement will be considered after the entry into force of the amended provisions.
  • A person who wants to apply for additional care allowance before the act's entry into force may:
  1. apply to get additional care allowance due to the need to take care of a child under 8 years of age due to unforeseen closure of the facility, which is an application for the payment of an allowance for a further (subsequent) period or
  2. apply for care allowance on general terms, in which case you will be entitled to care allowance within the limit of 60 days in a calendar year.
  • For the payment of care allowance, an application for care allowance Z-15A and a declaration of unforeseen closure of a nursery, kindergarten or school are required.
  • It is anticipated that the number of persons entitled to additional care allowance will be extended to insured persons who are released from work due to the need to provide personal care over:
  1. a person with a disability certificate;
  2. a person with severe or moderate disability (up to the age of 18);
  3. a sick adult, disabled family member in the event of suspension of day care facilities.
  • Carer's allowance will be granted if the nanny or day carer cannot be engaged.

Support for people with business activities

  • Persons who started their business before February 1, 2020 will be entitled to a one-off down time benefit amounting to PLN 2,080.00 gross.
  • Conditions for obtaining a down time benefit:
  1. no suspension of business activity, reduction of income in the month preceding the month of submitting the application by at least 15% compared to the previous month, income from business activity not higher than PLN 15,681,00 gross or - alternatively
  2. suspension of business activity after January 31, 2020, gross business income not higher than PLN 15,681,00.
  • The down time benefit will also be payable to persons performing the agency contract, orders, contract for specific work and other contract for the provision of services if the ordering party or ordering party ceases operations.