Employer’s possibilities to reduce payment costs during the Covid-19 pandemic

Nowadays, situation is difficult in many circumstances.  And that not only for the employer but also for the employee. Below we provide you with an overview of all the current legal options you as employer have to reduce your labor costs in the current situation:

1. the employer has the right to interrupt work due to serious operational reasons and as a result of this to pay the employees a compensation of 60% of the employee's average earnings. This measure is only possible in agreement with the employees' representatives.  It is still possible to organize such employee representation within a few days;

2. the employer has the right to reassign an employee to other work other than that agreed upon, even without his consent, for the time necessary, if necessary to avert an emergency or to mitigate its immediate consequences;

3. the employer has the right to establish a working time account, ie. in the case of less need for work, the employee will work less hours than the weekly working time or will not perform the work at all, and if the work needs to be reworked, the employee will work more hours. This measure is only possible in agreement with the employees' representatives;

4. the employer has the right to order the employee to take his holiday. The employer must notify the employee of the leave order 14 days before the start of the holiday. The time limit may be shortened with the consent of the employee;

5. the employer has the right to order the employee to take compensatory leave for overtime work from the past. You have to obtain the agreement from the employee for taking up this compensatory leave.

If you are thinking of overcoming the current crisis in any of these ways, we will be happy to help you organize this, for example with the election of an employee representative so that you can interrupt your work and pay 60% of your labor costs. Do not hesitate to contact our experts. For more information, visit our website, Facebook or Linked-In.

VGD Legal s.r.o.

JUDr. Lucia Kalabová, lawyer

 

Disclaimer: The information provided to the Client is up to date as of 23.03.2020, it is for informational purposes only and does not replace any legal service pursuant to Act No. 586/2003 Coll. on Advocacy. VGD Legal s.r.o. does not assume liability for the completeness and accuracy of the information referred to in the paper. In case of questions about the information provided to the Client, the customer may ask VGD Legal s.r.o. for provision of legal services for this purpose.

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