The ‘Anti-crisis Shield 4.0.’

On June 4, 2020, The ‘Anti-crisis Shield 4.0.’ approved by Sejm

The most important changes refers to the possibility of obtaining remuneration subsidies for employees who are not covered by economic stoppage or reduced working time; clarifying the rules for performing remote work or to the possibility of unilaterally granting up to 30 days of overdue leave.

In addition, the new Act: allows employers for termination of non-competition agreement binding after termination of employment with a 7-day notice; limits the amount of severance allowance up to 10 times the minimum salary and envisages the possibility of suspending the social fund or reducing the payment for social fund.

See more details below.

1. Employer who has experienced a decrease in economic turnover can apply for co-financing of remuneration for employees who are not covered by economic stoppage or reduced working time.

2. The rules for performing remote work have been clarified:

a) employees can work remotely if they have sufficient technical and housing conditions to perform work in such a way;
b) the employer should provide the resources, materials and logistics services necessary to perform remote work;
c) employees may use their own resources provided that the security of information and personal data is ensured;
d) employees performing remote work keep a record of activities performed according to the employer’s instructions.

3. During the period of the epidemic / emergency status, employer has the right to terminate non-competition agreement binding after the employment relationship with a 7-day notice period. It refers also to non-competition agreement binding after termination of mandate contract, service contract or contract for specific work.

4. The employer is entitled to introduce economic stoppage/reduce working time up  to 20% (no more than 0.5 full-time) regardless the decrease in turnover:

a) no specific % decrease in turnover is required (unless the employer wants to apply for a remuneration subsidy);
b) condition for using the abovementioned solutions is the increase in costs of remunerations in relation to the revenues from sale of goods or services;
c) the maximum period of using this solution is up to 12 months from the end of the epidemic;
d) an agreement with trade unions or employee representatives is required.

5. During the period of the epidemic / emergency status, the employer may unilaterally grant employee up to 30 days of overdue annual leave.

6. During the period of the epidemic / emergency status, provided that the employer has a % decrease in turnover or an increase in the cost of remuneration within the meaning of the Act:

a) the amount of severance allowance and other benefits due to termination of employment is limited to 10 times the minimum remuneration;
b) employer may suspend the obligation to create social fund and make deductions as well as the obligation to pay holiday benefits;
c) operation of other funds or fulfill social and living obligations (excluding conditions of employment contracts) and apply the statutory amount of payment for social fund are suspended.

7. Reduction of daily and weekly rest, introduction of equivalent working time system and a settlement period extended to maximum 12 months or application of less favorable employment conditions than those resulting from employment contracts is possible not only in the event of a decrease in turnover by %, but also in the event of the increase in remuneration costs in relation to revenues, as defined in the Act.

8. Inspections at the entrepreneur – with the entrepreneur’s consent  inspection activities may be carried out via a postal operator or electronic means of communication.