Major changes for employers in the Anti-Crisis Shield 4.0 | PRO HR Coronavirus

2020.06.24

The Anti-Crisis Shield 4.0. has been in force since 24 June 2020 and it has introduced a number of important solutions for employers. We present the most important ones below.

  1. Extending the group of companies eligible to receive funding from the Guaranteed Employee Benefits Fund for employees unaffected
  1. by down-time under the Labour Code;
  2. by downtime or reduced working time due to COVID-19.
  1. Economic downtime and reduced working time

If the revenue for the sale of goods or services falls on account of COVID-19 (this does not mean a decline in business revenue within the meaning of the law) and a major increase in the burden presented by the salary fund, an employer may:

  1. reduce the working time of an employee by a maximum of 20% to no less than 0.5 of a full-time equivalent;
  2. place an employee on economic downtime.
  1. Limitation on uninterrupted rest, equivalent working time, application of less favourable terms and conditions of employment 

If the quotient of the costs of its salary fund increases, an employer may:

  1. limit uninterrupted daily rest to a minimum of 8 hours and uninterrupted weekly rest to a minimum of 32 hours, including a minimum of at least 8 hours of uninterrupted daily rest;
  2. enter into an agreement on introducing an equivalent working time system in which it is permissible to extend the daily working time to a maximum of 12 hours in a settlement period of no longer than 12 months; 
  3. enter into an agreement on the application of less favourable terms of employment for employees than stipulated by their employment contracts. 
  1. Duties pertaining to the Company Social Benefits Fund 

If business sales fall, or if the burden posed by the salary fund grows significantly, employers may suspend the following duties:

  1. establishing or operating the social benefits fund;
  2. paying the underlying contribution;
  3. paying holiday leave benefits.

The regulations of collective bargaining agreements and rules and regulations pertaining to remuneration are not in force if they set the contribution to the Company Social Benefits Fund or other social and existential benefits at a higher level. 

  1. Extending overdue holiday leave

Employers may give employees unused holiday leave up to 30 days of holiday leave on dates they choose without employee consent and regardless of the holiday leave schedule. 

  1. Termination of a non-compete agreement

Employers may terminate non-compete agreements by giving 7 days’ notice of termination.