Please find below a short overview of the most recent developments in Polish Labour Law on the co-financing of salaries in crisis-affected companies prepared by L&E Global Polish partner, A. Sobczyk & Wspó?pracownicy.
On November 21st, 2013 the Act on the special provisions regarding the protection of jobs entered into force in Poland. The Act provides for special aid for entrepreneurs, including the possibility of granting government subsidies for the protection of jobs in the form of subsidies to: salaries, social insurance contributions, and employee trainings regarding employees that have been affected by economic downtime or a reduction in working time.
Conditions for granting subsidies
The subsidies may be granted to entrepreneurs who have suffered from a decline in turnover of more than 15% in a 6 month period, who are not insolvent, and who have no arrearages in their public dues (taxes, social insurance contributions).
An agreement with representative trade unions or employee representatives regarding the groups to be affected with downtime or a reduction in working time is a condition of granting such subsidies. The agreement might also take the form of a collective agreement.
The subsidies include the partial co-financing of the affected employees’ salary, in an amount not exceeding 100% unemployment benefits (in 2013 – 823 PLN, approx. 200 EUR).
Moreover, the employer may recover up to 80% of training costs, not exceeding 300% of the average salary (10.837,53 PLN, approx. 2.700 EUR). The training must be justified by the current or future needs of the employer.
The above mentioned subsidies may be granted for a period of up to 6 months. During this period and three months afterwards, the employer loses the right to terminate the affected employee’s employment contract due to reasons attributable to the employee.