Subsidies to protect jobs – a short guide

Below, I present a short description of the possibility of applying for a subsidy for the protection of jobs from the funds of FGŚP.

Who is eligible? 

Entrepreneurs who:

1) have registered a decrease in economic turnover following the occurrence of COVID19 in quantitative or qualitative terms in the following amounts:

a) not less than 15%, calculated as the ratio of the total turnover during any given 2 consecutive calendar months falling within the period after 1 January 2020 to the day preceding the date of submission of the application for a subsidy as comparison with the total turnover during the same 2 consecutive calendar months of the previous year. Thirty consecutive calendar days shall also be considered as a month if the two-month comparison period starts during a calendar month, i.e. on a day other than the first day of the given calendar month; or

b) not less than by 25%, calculated as the ratio of the turnover of any given calendar month after 1 January 2020 to the day preceding the date of submission of the application for a subsidy as compared with the turnover of the previous month. Thirty consecutive calendar days are also considered as a month if the comparative period starts during a calendar month, i.e. on a day other than the first day of the given calendar month.

2) are not in arrears in the payment of tax liabilities, social security contributions, health insurance, the Fund or the Labour Fund, until the end of the Q3 of 2019, with certain exceptions;

3) in respect of which there are no grounds for declaring bankruptcy.

For what purpose?

1) Remuneration subsidy:

a) for employees (employment contract):

• affected by the economic stoppage, or
• whose working time was reduced,

following the occurrence of COVID-19 (stoppage or reduced working time must be introduced in the enterprise as set out in the item below).

b) persons employed on the basis of a contract of employment for a home-based work, or a contract of mandate or any other contract for the provision of services to which the provisions relating to the assignment apply, except for domestic help employed by a natural person:

• affected by the economic stoppage, or
• whose working time was reduced,

following the occurrence of COVID-19 (stoppage or reduced working time must be introduced in the enterprise as set out in the item below).

2) For the payment of employees’ social security contributions due by the employer on the benefits granted as defined in item 1) above.

How much?

1. If the employer introduces economic stoppage and reduces remuneration

It is entitled to a subsidy in the amount of 50% of the minimum remuneration for work determined on the basis of the regulations on minimum remuneration for work, taking into account the working time (i.e. PLN 1,300 for a full-time job and PLN 750 for a half-time job) and a subsidy for contributions.

When:

• the employer reduces the employee’s remuneration by a maximum of 50% and it will not be lower than the minimum remuneration for work taking into account working time;

• the employee or the person referred to in item 1) b) above did not receive remuneration higher than PLN 15,681 in the month preceding the month in which the application was submitted.

That is, if you reduce your employee’s remuneration to 50% (except that it cannot be lower than the minimum remuneration taking into account the working time – i.e. PLN 2,600 gross for a full-time job, PLN 1,300 for a half-time job), you will get PLN 1,300 for a full-time job and PLN 750 for a half-time job.

In addition, you will also receive funds to pay the employee’s social security contributions due by the employer on the benefit granted.

So, in total you will receive PLN 1,533.09 for a full-time job and PLN 766.55 for a half-time job.

2. If the employer reduces the working time 

It is entitled to a subsidy in the amount of half of the employee’s remuneration, but not more than 40% of the average monthly remuneration from the previous quarter announced by the President of the Statistics Poland Office on the basis of regulations on pensions and disability pensions from the Social Insurance Fund (today it is about PLN 2,080) and a subsidy for contributions.

When:

• the employer reduces the working time by 20% to no more than half-time job;

• the remuneration will not be lower than the minimum remuneration for work taking into account working time;

• the employee or the person referred to in item 1) b) above did not receive remuneration higher than PLN 15,681 in the month preceding the month in which the application was submitted.

For how long? 

In the period of economic stoppage or reduced working time for a total of 3 months as of the date of placing the application.

What do you have to do?

1) Sign the agreement with the trade unions (if they are established at the Employer’s) or with employees’ representatives* on the reduced working time or economic stoppage.

* The term “employees’ representatives” means the representatives selected in accordance with the procedure adopted at the respective Employer.

2) Send a copy of the agreement referred to in item 1) above to the competent district labour inspector within 5 working days as of the date of entering into the agreement.

3) Submit an application for granting benefits together with documents and statements necessary to enter into an agreement on payment of benefits to the director of the province labour office competent for the seat of the respective entrepreneur.

4) Enter into agreement with the director of the province labour office.

Note:

The provisions of Articles 7–16 of the Act of 11 October 2013 on Special Arrangements Relating to the Protection of Work Places, with the exception of Article 8, section 3, item 8 of that Act, and its implementing provisions shall apply accordingly to the payment and settlement of benefits.

What should such an agreement cover?

The agreement shall specify at least:

1) Occupational groups subject to economic stoppage or reduced working time;

2) Reduced working time applicable to employees;

3) The period for which the arrangements for economic stoppage or reduced working time apply.

What is a period of economic stoppage or reduced working time?

1) The economic stoppage is a period of non-performance of work by an employee for reasons not related to the employee who is on standby.

2) Reduced working time is a working time of an employee reduced by the entrepreneur for reasons not related to the employee, but not more than to half of the working time.

Beata Bieniek-Wiera, attorney-at-law