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The Ministry of Labour and Social Affairs developed a program “Floods 2024” in connection with floods that hit part of the Czech Republic’s territory in September. This scheme is intended for employers affected by the floods, whether directly or indirectly, to partly cover staff costs. Please find below information related to a press release, which was published on the website of the Ministry of Labour and Social Affairs. However, details of the scheme have not been available so far.

What Situations is the Program Intended for

A contribution under the scheme is to cover a portion of costs of employers whose employees are entitled to a compensation for wage due to obstacles on the employer’s part, specifically in the following situations:

• Interruption of activity due to damage to property: The contribution applies to an obstacle to work on the employer’s part pursuant to Section 207 (b) of the Labour Code (the employee is entitled to a wage compensation at a minimum of 60% of the average salary); and
• Interruption of activity due to power failure or shortage of raw materials: The contribution applies to an obstacle to work on the employer’s part pursuant to Section 207 (a) of the Labour Code (the employee is entitled to a wage compensation at a minimum of 80% of the average salary).

What Should the Contribution’s Level Be

The contribution will be granted in the amount of 50% of the wage compensation (including mandatory levies), but at no higher than CZK 18,400 a month per employee.

The cost eligibility period runs from the 5th calendar day following the date of the concerned obstacle’s origination and ends on 31 October 2024.

How to Apply for the Contribution

On the basis of an employer’s application, an agreement will be entered into between the Labour Office of the Czech Republic and the employer. The contribution will be provided after the submission of a wage compensation settlement and once the causal link between the obstacle’s occurrence and the floods is documented.

Please feel free to contact us with any questions or for assistance in filing the application.

Lenka Kolmanová
kolmanova@clarksonhyde.cz