Act No. 118 / 2000 Coll.
Law on the protection of workers in the insolvency of employers and on the amendment of certain laws
Valid
Law
Effective from 01.07.2000
118
THE LAW
of 6 April 2000
on the protection of workers in the insolvency of employers and on the amendment of certain laws
Parliament has decided on this law of the Czech Republic:
STAFF PROTECTION IN PAYING EMPLOYMENT
This law implements the relevant provisions of the European Union1) and provides for the protection of workers in the insolvency of the employer.
The staff member shall, to the extent and under the conditions laid down by this law, have the right to satisfy his employer, who is insolvent, the wage claims due.
(1) The law does not apply to employer employees against whom insolvency proceedings cannot be conducted (2).
(2) Furthermore, the Act does not apply to staff seconded to work in the Czech Republic if their employer is established outside the territory of a Member State of the European Union.
(3) The law also does not apply to a staff member who, during the relevant period, was an employee of an employer who is insolvent and, at the same time, was a member of his statutory body or a person who has a decisive influence on the employer's activities and had at least 25% participation in that employer.
(4) If the staff member applies the wage entitlement before the State takes over or guarantees the employer's debts, his entitlement shall not cease even after the State has carried out such acts in respect of the legal person.
(1) For the purposes of this Act:
(a) an employee means a natural person who is, or has been, with an employer in an employment relationship or with whom the employer has negotiated an agreement on the performance of the work, provided that such agreement provides for participation in sickness insurance under the law governing sickness insurance, or an agreement on the work on the basis of which the employer's wage entitlements were incurred during the relevant period;
(b) salary entitlements shall be understood as wages or salaries, compensation and severance payments due to staff members of the service, or remuneration or compensation due to staff members under an agreement to carry out work under the conditions laid down by the law governing sickness insurance or an agreement on the work which has not been paid by an employer who is insolvent;
(c) the employer is insolvent if he has not satisfied the workers' wage claims due, on the day following the date on which the moratorium was declared before the start of insolvency proceedings, or on the day following the date on which the insolvency proceedings were notified by the competent court in the Czech Republic or, in the case of a supranational employer, on the day on which he is deemed to be insolvent in another Member State of the European Union under the directly applicable European Union5a);
(d) the transnational employer is an employer who, in addition to operating in the Czech Republic, operates in the territory of at least one other Member State of the European Union;
(e) payable wage entitlement means a wage entitlement which has not been satisfied at the time of payment under the Labour Code 20),
(f) the relevant period shall be understood as the calendar month;
1. where a moratorium was declared prior to the opening of insolvency proceedings,
2. in which the opening of insolvency proceedings was notified (21); or
3. from which the transnational employer is considered insolvent in another Member State of the European Union,
and 3 calendar months preceding that month and 3 calendar months following that month.
(2) The Government may, for reasons of special consideration, extend the period referred to in paragraph 1 (f).
The wage entitlements of employees of a supranational employer who is insolvent shall be met only if the employees of the supranational employer have worked in the Czech Republic during the relevant period.
(1) A staff member may request the satisfaction of his / her wage entitlements of any regional branch of the Office of Labour or the contact post of the Regional Branch of the Office of Labour. If wage claims are claimed by an employee who is not staying in the Czech Republic, he is obliged to choose a representative for the delivery of documents in the Czech Republic and to communicate this, together with the number of the account held at the money institution, to the Regional Branch of the Labour Office or to the contact office of the Regional Office of the Labour Office in the application of wage entitlements.
(2) The Office of Labour of the Czech Republic shall decide on the entitlement through the regional branch of the Labour Office in whose territory it has:
(a) the employer's seat; or
(b) a multinational employer who is not established in the Czech Republic is located a commercial plant or a fissile plant.
(3) Where a staff member requests the satisfaction of the salary entitlements of the Regional Branch of the Office of Labour which is not locally competent in accordance with paragraph 2, or the contact post of the Regional Branch of the Office of Labour, that Regional Branch of the Office of Labour or that contact post of the Regional Branch of the Office of Labour shall forward the request to the locally competent Regional Branch of the Office of Labour.
(4) Information on the employer whose employees may exercise their wage entitlements at the Regional Office of the Labour Office or the contact office of the Regional Office of the Labour Office at the same time as information on the period within which the employees may exercise those rights will be published by the Office of the Labour of the Czech Republic in a manner that allows remote access immediately after they have become aware of insolvency.
(5) The staff member may apply the wage entitlements no later than 5 months and 15 days following the date on which the moratorium was announced before the insolvency proceedings or the opening of insolvency proceedings or the date of publication of the decision to initiate insolvency proceedings with the competent authority in another Member State of the European Union pursuant to the directly applicable European Union5a), provided that the other conditions laid down by this law are met. If, within that period, the moratorium declared prior to the opening of insolvency proceedings or the court has decided on an insolvency application other than by issuing a bankruptcy decision, the period shall end on the date of the moratorium's disappearance or on the date of the court's decision. If the entitlement to meet wage requirements is not exercised within that period, it shall cease to exist. However, the right of a staff member to exercise those wage rights in court shall not be affected.
(6) The Government may, for reasons of special consideration, extend the period referred to in paragraph 5.
(1) Wage entitlements may be exercised by the staff member up to a maximum of 3 calendar months of the relevant period, corresponding to the wage claims payable. After satisfying at least part of the wage entitlements applied, the Labour Office of the Czech Republic may, through the Regional Branch of the Labour Office, satisfy the additional wage entitlements of the same employee applied to the same employer only after the end of the calendar month in which 12 months have elapsed since the last month for which the wage entitlement of the applicant by the Czech Labour Office was satisfied.
(2) The total amount of wage entitlements paid by 1 employee, including the supplement referred to in Article 9 (7), may not exceed one and a half times the applicable amount in 1 month. The applicable amount shall be declared and published by the Ministry of Labour and Social Affairs in the Collection of Laws and International Contracts, with effect from 1 May of the calendar year, for a period of 12 calendar months, at the rate of the average national economy wage for the preceding calendar year. It shall be based on the amount applicable on the date of the moratorium's announcement prior to the opening of the insolvency proceedings or on the date of the notice of initiation of the insolvency proceedings.
(1) The staff member shall apply the salary entitlements to the Regional Office of the Labour Office or to the Regional Office of the Labour Office's contact post in writing. In the application, the staff member shall indicate in particular his name, birth number or date of birth, address of residence, employer's designation, registered office or place of business or place of residence, the amount of wage entitlements applied, the data required for the calculation of income tax, the calendar month of the period for which he applies the wage entitlements, and the method of payment thereof, or, where applicable, the identification of the account with the money institution to which the amount of wage entitlements should be transferred without cash, and the identification of the health insurance undertaking for which payments are made under specific legislation. (8) The application may include documents proving the wage entitlements applied above. In the application of wage entitlements, the staff member shall be obliged to prove the duration of the employment relationship, the employment agreement 20) or the employment agreement.
(2) If the staff member has exercised a claim under Paragraph 324a of the Labour Code, he shall indicate in the application referred to in paragraph 1 whether he has been satisfied by the guarantor and to what extent, and indicate the guarantor's identification details. The staff member shall inform the Regional Office of the Labour Office or the contact office of the Regional Office of the Labour Office of such facts even if they occur after the application has been submitted.
(1) The Regional Branch of the Office of Labour responsible locally in accordance with Article 4 (2) shall immediately invite at least one of the staff members to submit a written list of the wage entitlements owed by all their employees for the relevant period within 7 days of receipt of the call. The employer shall comply with this call within that time limit and at the same time prove to the Regional Branch of the Labour Office whether he has carried out, during the relevant period, deductions and levies on staff under the special legislation9) and provide the data necessary for calculating their amount.
(2) The obligation referred to in paragraph 1 shall be that of a person with a disposing right under the insolvency law (hereinafter referred to as "the person with a disposing right").
(1) If the amount of the wage entitlements and the period for which the staff member applies the wage entitlements agree with the written declaration of the wage entitlements payable by the person with the right to dispose, the Office of Labour of the Czech Republic, through the Regional Office of the Labour Office, shall, within 10 working days of the submission of this declaration, notify the staff member of the date, manner in which they are satisfied and give the payment order to the Institute of Money.
(2) If the staff member has applied the wage entitlements within the period referred to in Article 4 (5) and from the written declaration of the wage entitlements due by the person with the right to dispose has expired more than 10 working days, the Office of Labour of the Czech Republic shall notify the staff member, through the Regional Branch of the Office of Labour, of the date, how the claims are met and of the period for which they satisfy the wage entitlements and shall give the financial institution an order for reimbursement within 10 working days of receipt of the employee's application.
(1) If the employee applied the wage entitlements and the person with the right available confirmed the wage entitlements of the employee, including the amounts which cannot be regarded as wage entitlements under this law, the Labour Office of the Czech Republic will deduct these amounts from the total amount of the wage entitlements applied and the remaining part of the wage entitlements will be payable by the staff member.
(2) The Office of Labour of the Czech Republic, through the Regional Branch of the Office of Labour of the Czech Republic, shall transmit to the Institute the order for payment of the wage entitlements awarded no later than 5 working days after the date on which the decision to grant them is taken.
(1) If the amount of the employee of the wage entitlements applied for 1 month does not agree with the declaration submitted to the Regional Office of the Labour Office by a person with the right to dispose, the Labour Office of the Czech Republic will decide, through the Regional Office of the Labour Office, to grant the employee's wage entitlement for this month at the established amount. If the amount of the wage entitlement cannot be demonstrated according to the first sentence, the Office of Labour of the Czech Republic shall, via the Regional Branch of the Office of Labour, grant a wage entitlement equivalent to the minimum wage applicable on the date of the moratorium's announcement prior to the initiation of the insolvency proceedings or on the date of the notification of the opening of the insolvency proceedings.
(2) If the period during which the staff member applies the wage entitlements does not agree with the information provided by the person with the right to dispose, the Office of Labour of the Czech Republic will satisfy the wage entitlements only for a period of time which is undisputed.
(3) If the person with the right to dispose has failed to fulfil the obligations set out in § 7 and the staff member, when applying the wage entitlements, has provided documents proving to certify their amount and the period during which they are applied, the Labour Office of the Czech Republic shall, through the Regional Branch of the Labour Office, decide on the award of the salary entitlements for the period and the amount of the staff member.
(4) If the person with the right to dispose has failed to fulfil the obligations set out in § 7 and the staff member has failed to produce, when applying the wage entitlements, documents proving their amount, the Office of Labour of the Czech Republic shall decide through the Regional Branch of the Labour Office and grant the staff a monthly wage entitlement equal to the minimum wage applicable on the date of publication of the moratorium before the opening of the insolvency proceedings or on the date of notification of the opening of the insolvency proceedings.
(5) The Labour Office of the Czech Republic, through the regional branch of the Labour Office referred to in paragraph 1 or 4, shall grant workers a monthly wage entitlement equal to or greater than the minimum wage even if the staff member has not worked in the calendar month to the extent specified in the weekly work programme (11a), but only if the proportion of the wage entitlement corresponding to the shorter worked period is reached or exceeded. If a staff member to whom a wage entitlement is granted pursuant to paragraph 1 or 4 applies a lower amount than the minimum wage, the Labour Office of the Czech Republic shall grant him a wage entitlement at the maximum amount applied through the Regional Branch of the Labour Office.
(6) If some of the legal conditions for the application of wage entitlements are not met, the Labour Office of the Czech Republic will reject the application via the Regional Office of the Labour Office.
(7) The Labour Office of the Czech Republic, through the Regional Branch of the Labour Office, will re-decide on wage entitlements within 10 working days at the latest if the staff member subsequently proves the period for which he applies the wage entitlements or proves them subsequently at the level of the difference between the amount provided and the actual amount. However, the staff member must prove these rights within 15 working days of the date on which the decision is taken pursuant to paragraphs 1 to 4, otherwise they shall cease to exist against the Labour Office of the Czech Republic.
(8) The Office of Labour of the Czech Republic shall, through the Regional Branch of the Office of Labour, transmit a payment order to the Financial Institute no later than 5 working days after the acquisition of the legal power of the decision referred to in paragraphs 1 to 4 and 7.
(1) The Office of Labour of the Czech Republic, through the regional branch of the Labour Office, before meeting the wage entitlements provided for in Section 8 of these Rules, will make reductions and levies under the special legislation9), which the employer should have made on behalf of employees for the relevant monthly period. If the Office of Labour of the Czech Republic, through the Regional Branch of the Office of Labour, has decided on a wage entitlement pursuant to § 8a and 9, it shall make reductions and levies under the special legislation of the recognised wage entitlement.
(2) The Office of Labour of the Czech Republic shall deduct from the recognised wage entitlement through the Regional Branch of the Labour Office prior to the implementation of the reductions and levies referred to in paragraph 1 the wage entitlements to the extent that the employee was satisfied by the liability under the Labour Code 22).
(3) At the same time, the Regional Branch of the Labour Office shall notify in writing, by the date of payment of the amounts corresponding to the wage entitlements of the competent social security administration, the amount of social security premiums and the contribution to the state employment policy and the relevant health insurance undertaking, the amount of public health insurance premiums, the date of payment and the details of the employer for whose staff the said insurance office of the Czech Republic has been responsible through the Regional Branch of the Labour Office. If they pay this insurance on the income of employees not charged by the employer to employees, they shall also notify the level of the assessment bases of individual employees. 12) In accordance with § 8a and 9, the Labour Office of the Czech Republic has the position of tax payer.
(4) The Regional Branch of the Labour Office will notify the employer without undue delay to which employees and to what extent the Labour Office of the Czech Republic has satisfied the wage claims through the Regional Office of the Labour Office.
(1) The Regional Branch of the Labour Office shall notify without undue delay the court to which employees and to what extent the Labour Office of the Czech Republic has satisfied the wage claims through the Regional Office of the Labour Office.
(2) If the Office of Labour of the Czech Republic through the Regional Branch of the Office of Labour has not met the wage requirements of the amount applied by the employee or has not admitted the wage entitlements at all, the staff member may apply them together with other claims against the employer in insolvency proceedings.
(3) The Labour Office of the Czech Republic is transferred to the amount of funds paid and paid (Sections 8 to 10) of the wage entitlement of the employee who has against the employer. If a decision on the bankruptcy of the employer has been taken, the Labour Office of the Czech Republic will apply these claims in insolvency proceedings.
(1) Unless otherwise provided for, the employer's obligation to pay the funds paid by the employees under this Act to the Labour Office of the Czech Republic and the amounts corresponding to the deductions and levies made by the Labour Office of the Czech Republic through the Regional Branch of the Labour Office pursuant to special legislation, to the extent that these claims have not been met in insolvency proceedings, shall cease to exist on the date of the resolution terminating insolvency proceedings.
(2) The employer is obliged to pay the funds paid by the employees under this Act to the Labour Office of the Czech Republic and the amounts corresponding to the deductions and levies made by the Labour Office of the Czech Republic through the Regional Branch of the Labour Office under special legislation, in cases where the court has the power to rule
(a) decide on an insolvency proposal other than by issuing a bankruptcy decision;
(b) decide that the debtor is not bankrupt,
(c) cancel the bankruptcy for reasons other than the completion of the schedule order or because the debtor's assets are wholly inadequate;
within 15 working days of the date on which the Regional Branch of the Labour Office was requested in writing to pay them.
(3) The employer is also obliged to pay the funds paid by the employees under this Act to the Labour Office of the Czech Republic and the amounts corresponding to the deductions and contributions made by the Labour Office of the Czech Republic through the Regional Branch of the Labour Office under special legislation, in the event that the moratorium announced prior to the initiation of insolvency proceedings has ceased without the initiation of insolvency proceedings, within 15 working days of the date on which the Office's regional office was requested to pay them in writing.
(4) If the employer has not paid the funds to the Labour Office of the Czech Republic within the period referred to in paragraphs 2 and 3, he shall be late. After the time limit has expired, he shall be obliged to pay interest on late payments.
(1) A person with a disposition right who has recognised the wage claims due pursuant to § 7 shall be required to pay the funds paid and paid to the Labour Office of the Czech Republic if the staff member has been awarded and provided on the basis of incorrect declaration of the wage entitlements due by the person with the available entitlement or if, for this reason, they have been granted at an amount higher than that of the staff member. These amounts shall be paid within 3 weeks of the date on which they became aware.
(2) If a person with a disposition right who has wrongly paid and paid the funds referred to in paragraph 1 does not return the funds referred to in paragraph 1, the Regional Branch of the Office of Labour shall issue a decision on the obligation to return them.
(3) This Decision may be adopted no later than 5 years from the date on which the amount has been paid. This period shall not apply to the possibility of a further decision being taken in the same case.
(1) A staff member is obliged to return, without undue delay, to the Labour Office of the Czech Republic paid-up salary entitlements or part thereof, if he knew or had to assume, from the circumstances, that they were amounts granted unjustly or by mistake.
(2) If the staff member does not recover the wage entitlements paid or part of them referred to in paragraph 1, the Regional Branch of the Office of Labour shall issue a decision.
(3) This Decision may be adopted no later than 5 years from the date on which the amount has been paid. This period shall not apply to the possibility of a further decision being taken in the same case.
(1) The Ministry of Labour and Social Affairs shall, at the request of the bodies of the Member States of the European Union which satisfy the wage entitlements of the employer's insolvent employees, information (5a) relating to the reimbursement of the unpaid wage entitlements of the staff of the supranational employer in the context of proceedings under this Act.
(2) State authorities, municipalities and counties and their bodies, other legal and natural persons, at the request of the relevant regional branch of the Labour Office and of the Ministry of Labour and Social Affairs, communicate without delay and free of charge the data relevant to the satisfaction of employees' wage entitlements under this Act; they can do so in a way that allows remote access.
The Labour Office of the Czech Republic does not provide performance under this law outside the Czech Republic.
The provisions of this Act shall also apply in cases in which, on the date of the effective date of this Act, no more than 3 months have elapsed since the date of the application for bankruptcy.
Amendment of the Social Security Insurance Act and contribution to the State Employment Policy
In Article 5 of Act No. 589 / 1992 Coll., on Social Security Insurance and Contribution to State Employment Policy, as amended by Act No. 10 / 1993 Coll., Act No. 160 / 1993 Coll., Act No. 307 / 1993 Coll., Act No. 42 / 1994 Coll., Act No. 241 / 1994 Coll., Act No. 59 / 1995 Coll. and Act No. 160 / 1995 Coll., the following paragraph 3 is added:
"(3) The wage entitlements of employees paid by the employment office under the Employee's Insolvency Protection Act and the amendment of certain laws shall be treated as income charged by the Employee to the extent that the Employee has not charged them to the Employee. '
Amendment to the General Health Insurance Insurance Act
In Section 3 of Act No. 592 / 1992 Coll., on Insurance for General Health Insurance, as amended by Act No. 10 / 1993 Coll., Act No. 161 / 1993 Coll., Act No. 324 / 1993 Coll., Act No. 42 / 1994 Coll., Act No. 241 / 1994 Coll., Act No. 59 / 1995 Coll. and Act No. 149 / 1996 Coll., the following paragraph 11 is added:
"(11) For the purposes of general health insurance premiums, the wage entitlements of employees paid by the employment office under the Employee's Insolvency Protection Act and the amendment of certain laws shall be treated as income charged by the Employee to the extent that the Employee has not charged them to the Employee. This revenue shall constitute the basis of assessment of staff for the calendar month in question or, where appropriate, a proportion thereof, provided that the employer has paid the staff member a salary only for part of the month. ';
Amendment to the Pension Insurance Act
Act No. 155 / 1995 Coll., on Pension Insurance, as amended by Act No. 134 / 1997 Coll., Act No. 289 / 1997 Coll., Act No. 224 / 1999 Coll. and Act No. 18 / 2000 Coll., is amended as follows:
1. In Article 16 (4), the dot is replaced by a comma at the end of (ch) and the following point (i) is added:
"(i) for which, under the Employee's Insolvency and Amendment Act, wage claims have been paid at a lower amount than they were due."
2. In Article 37 (4), the third sentence is added: "The wage entitlements under the Employee's Insolvency Act and the amendment of certain laws shall be taken into account in the calendar month in which they were paid in so far as the employment relationship from which they arose is maintained."
3. In Paragraph 47 (1), the following sentence is inserted after the first sentence: "However, if it concerns wage entitlements under the Employee's Insolvency Act and amending certain laws, they shall be included in the income in the calendar year in which they were paid. '
4. In Paragraph 76 (1), at the end of the dot, the words "the conditions laid down in Paragraph 2 (2) (c) of this Regulation are not required to be fulfilled in the context of a reduction of the maximum permissible exposure shall be replaced by a semicolon."
Amendment of the State Social Support Act
In Article 5 (4) (a) of Act No. 117 / 1995 Coll., on State Social Support, as amended by Act No. 242 / 1997 Coll., the following words are added at the end: "and these are about wage entitlements under the Act on the Protection of Employees in the Insolvency of Employers and on the amendment of certain laws in the calendar quarter in which they were paid, '.
EFFECTIVE
This Law shall take effect on the first day of the second calendar month following the date of its publication, with the exception of Part Five, point 4, which shall take effect on 1 January 2001.
Klaus v. r.
Havel v. r.
Zeman v. r.
1) Directive 2008 / 94 / EC of the European Parliament and of the Council of 22 October 2008 on the protection of workers in the event of the insolvency of the employer.
2) Article 6 of Act No. 182 / 2006 Coll., on the bankruptcy and methods of its resolution (insolvency law), as amended.
(5a) Regulation (EU) 2015 / 848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings.
5b) Act No. 101 / 2000 Coll., on the protection of personal data and on the amendment of certain laws, as amended.
8) Act No. 592 / 1992 Coll., on Insurance for General Health Insurance, as amended.
9) Civil Code of Procedure. Act No. 586 / 1992 Coll., on Income Tax, as amended. Act No. 589 / 1992 Coll., on Social Security and Contribution to State Employment Policy, as amended. Act No. 592 / 1992 Coll., on Insurance against Public Health Insurance, as amended. Act No. 48 / 1997 Coll., on Public Health Insurance and amending and supplementing certain related laws, as amended. Act No. 280 / 2009 Coll., Tax Code, as amended.
11a) § 79 of the Labour Code.
12) Article 5 of Act No. 589 / 1992 Coll., as amended. Section 5 of Act No. 592 / 1992 Coll., as amended.
Article 68 (3) (f) of the Commercial Code.
20) Sections 67, 141 and 144 of the Labour Code.
21) § 101 of the insolvency law.
22) § 324a of Act No. 262 / 2006 Coll., Labour Code, as amended.
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Regulation Information
| Citation | Act No. 118 / 2000 Coll., on the Protection of Employees in the Insolvency of Employers and on the Amendment of Certain Laws |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.05.2000 |
|---|---|
| Effective from | 01.07.2000 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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