Poland: Covid-19 - shielding package - proporsals for employers

The Summary of government proposals for employers included in the assumptions of the shielding package addressed to entrepreneurs who have fallen into economic difficulties due to the COVID-19 epidemic.

1. Deferred payment of ZUS contributions

Entrepreneurs will be able to take advantage of postponing the payment date or divide ZUS contributions into installments without additional charges (interest, extension fee). At present, no criteria have been presented according to which entrepreneurs could receive this aid.

2. Wage subsidies

Entrepreneurs will be able to obtain wage subsidies in the amount of 40% of remuneration, not more than average remuneration. This support is to apply to companies whose turnover will drop by 15% in 2 months and show a loss in at least one of them or turnover in 1 month will decrease by 20% compared to the previous month, and the company will show loss. Such entities will be able to reduce the employee’s working time to 0.8 full time while maintaining at least the minimum wage. The state will then cover half of the employee’s remuneration, up to the limit of 40% of the average remuneration.

3. Extending the payment of care allowance in connection with the closing of educational establishments

In addition to the existing law, it is planned to further finance the extended care allowance for parents of children under 8 years due to a break in the operation of educational institutions. The decision in this respect is to be made by Monday, March 23.

4. Wage subsidies during downtime

Government proposals also provide for wage subsidies during downtime caused by COVID-19 up to half or all of the minimum wage. Other details of this proposal are not yet known.

5. Additional financing for employers employing disabled people

The government’s proposals also provide for additional fund for employers employing people with disabilities. The details of this proposal are not yet known.

6. Prolongation of the validity of work permits for foreigners

The proposal provides for the extension of the validity of work permits and declarations of entrustment of work to foreigners. The period of this extension is not yet known.

7. Flexibility of working time

Extension of working time settlement periods. The details of this proposal are not yet known, consultations with employers’ organizations and trade unions are underway.

Detailed proposals for specific groups of employers may vary depending on the size of the workplace.

Bills related to the above-mentioned proposals are to be released this week or early next week. The sitting of the Parliament, at which the draft provisions might be adopted, is scheduled for March 25 this year. Assuming an efficient course of work, the regulations could be published and enter into force at the earliest around 27-30 March this year.

_______

If interested in the above information and their impact on your business, please contact Wiktoria Cieślikowska wiktoria.cieslikowska@mddp.pl

In MDDP, we have also established a CORONAVIRUS CRISIS TEAM our experts assist in all areas of activity that may be affected by the coronavirus epidemic. We monitor the legislative work related to the coronavirus on an ongoing basis and follow the recommendations of the relevant authorities that may affect the business situation.

Questions and doubts should be addressed to: covid19@mddp.pl or directly to persons responsible for specific issues:

TAXES Bartosz Głowacki phone:+48 603 980 382, e-mail:bartosz.glowacki@mddp.pl
LABOR LAW Wiktoria Cieślikowska phone:+48 22 376 52 97, e-mail:wiktoria.cieslikowska@mddp.pl
PERSONAL DATA Daniel Michalski phone:+48 22 376 52 02, e-mail:daniel.michalski@mddp.pl
PAYMENT BACKLOGS, BANKRUPTCY AND RESTRUCTURING Bartłomiej Sadura phone:+48 737 883 705, e-mail:bartlomiej.sadura@mddp.pl
CONTRACTS Aleksandra Grabarska phone:+48 22 376 52 20, e-mail:aleksandra.grabarska@mddp.pl
CORPORATE FINANCE Łukasz Zabłocki phone:+48 22 320 48 52, e-mail:lukasz.zablocki@mddp.pl
FINANCIAL STATEMENTS Magdalena Michniewicz phone:+48 502 413 975, e-mail:magdalena.michniewicz@mddp-outsourcing.pl
BOOKKEEPING Agnieszka Tyczyńska-Osińska phone:+48 504 120 116, e-mail:agnieszka.tyczynska-osinska@mddp-outsourcing.pl
PAYROLL Barbara Kochańska-Mierzejewska phone:+48 516 281 916, e-mail:barbara.kochanska-mierzejewska@mddp-outsourcing.pl