The crisis shield provides for a number of aid solutions for employers affected by the outbreak. This is, among others, the possibility of obtaining co-financing for the salary of the employee, introducing flexible working time or exemption from payment of ZUS contributions.
Support for staff salaries may be granted in two options depending on the size of the activity (number of persons employed, annual net turnover).
first co-financing option
For all employers regardless of the number of employees employed and are entitled to two cases dependent on the situation and decision taken by the employer:
- covering the employee with an economic downtime – the possibility of reducing the employee's salary by a maximum of 50%, but not lower than 2,600 PLN gross (minimum wage) for full-time.
In this case, it is possible to obtain a maximum amount of funding 1,533.09 PLN which consists of 50% minimum remuneration plus social security contributions.
- a reduction in the working time of the employee by 20% (not less than 0.5 This appropriation is intended to cover the following: i.e. 2,600 PLN gross).
In this case, it is possible to obtain a maximum amount of funding 2,452.27 PLN (maximum 50% reduced remuneration), but not more than 40% average monthly remuneration from the previous quarter (2,079.43 PLN) for full-time staff plus social security contributions.
The conditions for the award of compensation to employees in this option are:
• decrease in economic turnover (undertaking as a reduction in sales of goods and services in quantity or in value) as a result of COVID-19:
- • at least 15% during any subsequent period 2 months after 1 January 2020 compared to similar 2 months of the previous year (a month is also considered 30 subsequent days), or
- • at least 25% of any month after 1 January 2020 compared to the previous month (a month is also considered 30 subsequent days);
- • to conclude an agreement with trade unions and if the employer does not have trade unions with employees' representatives;
- • non-compliance with taxes and social security contributions to the end third quarter 2019;
- • no grounds for declaring bankruptcy;
- • the prohibition of dismissals for economic reasons of the employees covered by the co-financing period; and 3 months after this period.
- second co-financing option
Concerning micro, small and medium-sized entrepreneurs i.e. those who employ no more than 249 staff and whose net annual turnover does not exceed 50,000,000 EUR.
These employers will be entitled to receive support for the employee's remuneration, subject to a fall in economic turnover at the following percentage thresholds:
- • decrease in turnover by at least 30% - the maximum amount of the grant will be 50% minimum wage (1,300 PLN), plus social security contributions;
- • decrease in turnover by at least 50% - the maximum amount of the grant will be 70% minimum wage (1,820 PLN), plus social security contributions;
- • decrease in turnover by at least 80% - the maximum amount of the grant will be 90% minimum wage (2,340 PLN), plus social security contributions.
The conditions for the award of compensation to employees in this option are:
- decrease in economic turnover as a result of COVID-19 understood as a reduction in sales of goods or services in quantity or in value calculated as the ratio of total turnover over any period indicated 2 subsequent calendar months after the day 1 January 2020 by the day preceding the date on which the grant application was lodged, compared to the total turnover from the corresponding 2 subsequent calendar months of the previous year;
- non-compliance with taxes and social security contributions to the end third quarter 2019;
- no grounds for declaring bankruptcy;
- maintenance in employment of employees covered by the co-financing period and a period equal to that period after the completion of the co-financing period.
Attention!
Some District Labour Offices have set deadlines for receiving applications for employee remuneration (financing from the governor). This is important because the funding is provided until the funds are exhausted so it can decide the order of applications.
For example, link to PUP in Krakow (the recruitment started 14 April): https://www.uppk.pl/1,formy-aktywizacji/57,aktualne/aktualnosci/19731680,otwarcie-naboru-wnioskow-o-udzlelenie-dofinansowania-czesci-kosztow-wynagrodzen-pracownikow-art-15-zzb-
and PUP in Warsaw 29 April: https://warszawa.praca.gov.pl/-/12111190-dofinansowanie-czesci-kosztow-wynagrodzen-pracownikow-dla-mikroprzedsiebiorcow-malych-i-srednich-przedsiebiorcow
For both options, staff remuneration will be available for maximum 3 months and will also include staff employed under a contract or other service contract. The Council of Ministers may, in order to counter the economic impact COVID-19, by means of a regulation, extend the period of the parking benefit, with a view to the duration of the emergency or epidemic situation and its effects.
It should also be noted that the employer cannot benefit from both options of co-financing for the same employee. It is therefore appropriate to consider which option will be more favourable in a given situation.
HOW CAN WE HELP?
We provide support in all aspects related to the possibility of obtaining support for employees' salaries, including:
- · we will help you determine what form of co-financing will be the most advantageous in your company;
- · we will assist in drawing up appropriate proposals and completing documentation,
- · we will examine the situation regarding the possibility of obtaining co-financing,
· we offer support in possible negotiations with trade unions and the preparation of an agreement.
All other details about the law contained in the Crisis Shield can be found in our Guide: www.russellbedford.pl/services/anti-crisis guide