Czech opposition support ‘kurzarbeit’ measures in principle

Opposition parties in parliament have in principle backed the government’s proposal to reintroduce a so-called kurzarbeit scheme through which the state reimburse part of private-sector wages discourage layoffs and limit working hours during the Covid-19 pandemic.

However, during an ongoing debate on Wednesday, some opposition MPs objected to the amount, duration and method of dispersing the proposed subsidies. The government aims to introduce amend the labour law from November to include kurzarbeit measures.

The current proposal would cap state contributions to 70 percent of an employee’s usual net salary but no more than the national average. The maximum period for which the short-time working subsidies could be paid out is 12 months. Kurzarbeit would not apply to health insurance, which is paid by employers (two-thirds) and employees (one-third).