Full text of Act No. 153 / 2006 Coll.
Full text of Act No. 118 / 2000 Coll., on the Protection of Employees in the Insolvency of Employers and on the amendment of certain laws, as resulting from subsequent amendments
Valid
153
PRESIDENT OF THE GOVERNMENT
Announces
full text of Act No. 118 / 2000 Coll., on the Protection of Employees in the Insolvency of Employers and on the amendment of certain laws, as is apparent from the amendments made by Act No. 436 / 2004 Coll. and Act No. 73 / 2006 Coll.
THE LAW
on the protection of workers in the insolvency of the employer
Parliament has decided on this law of the Czech Republic:
STAFF PROTECTION IN PAYING EMPLOYMENT
This law implements the relevant provisions of the European Community1) and provides for the protection of workers in the insolvency of the employer.
To the extent and under the conditions laid down by this law, a staff member shall have the right to satisfy his employer's unpaid wage entitlements (1a) who is insolvent.
(1) The law does not apply to employer employees who are:
(a) a legal person established by law, provided that the State has taken over or guaranteed its debts;
(b) the territorial unit (s).
(2) Furthermore, the Act does not apply to employees who have been seconded to work in the Czech Republic if their employer, who is a legal person, has a registered office or an employer who is a natural person, has a place of business outside the territory of a Member State of the European Union.
(3) Where an employer's staff member, as referred to in paragraph 1 (a), exercises a wage entitlement before or guaranteed by the State to take over the employer's debts, his entitlement shall not cease even after the State has carried out such acts in respect of a legal person.
For the purposes of this Act:
(a) staff member means any natural person with whom the employer has negotiated an employment relationship or an agreement on work on the basis of which he or she arose during the six months preceding the month in which the application for bankruptcy (hereinafter referred to as "the relevant period"), wage entitlements not paid by the employer,
(b) wage entitlements shall mean the salary (salary), the compensation and severance payments due to the staff member of the service, or the remuneration or compensation due to the staff member under the employment agreement, hereinafter referred to as "salary entitlements"), which have not been paid by the insolvent employer;
(c) the employer is insolvent if he has not met the wage claims due (4) of the staff member on the day following the date on which the application for bankruptcy was filed with the competent court in the Czech Republic (5), or with the supranational employer on the day on which he was declared unfit for payment to the competent authority in another Member State of the 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.
Employees of a supranational employer who is insolvent must be satisfied by the employment office only if the employees of that 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 by any employment office. 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 inform the employment office of this fact, together with the number of the account held with the money institution, in the application of wage entitlements 5b).
(2) For the purposes of this Act, the local competent office of work, in whose territory it has:
(a) the registered office of the employer who is a legal person;
(b) the place of business of the employer who is a natural person or in whose territory the organisational component of the transnational employer is located, which does not have its registered office in the Czech Republic;
(c) the residence of an employer who is a natural person and who has no place of business.
(3) Where a staff member requests the satisfaction of salary entitlements by an office of employment which is not locally competent pursuant to paragraph 2, that office of employment shall immediately forward the application to the local competent office of employment.
(4) The employment office responsible locally in accordance with paragraph 2 shall post on the official record no later than 5 working days after the date of communication by the Court of First Instance of the application for bankruptcy, information on employers whose employees may exercise their wage rights at the office of employment, and at the same time inform them of the time within which the staff may exercise those rights. It shall also communicate this information within the same period to the Ministry of Labour and Social Affairs, which shall publish it on its website no later than the following working day following their receipt and at the same time notify it to all employment offices within the same period. The employment authorities shall post this information on their official record or report it in another equivalent manner no later than the following working day following receipt from the Ministry of Labour and Social Affairs.
(5) Wage claims may be exercised by the staff member no later than 3 months from the date on which the employment office published the information referred to in paragraph 4 on the official record, provided that the other conditions laid down by this law are fulfilled. If, within that period, the court rejects or rejects an application for bankruptcy (5c), the proceedings shall be terminated (6) or the bankruptcy (7), the wage entitlements may be applied no later than the date on which the court has given its final ruling. The right to satisfy wage entitlements shall cease if it is not exercised within the time limits set out in the first and second sentences. However, the right of a staff member to exercise those wage rights in court shall not be affected.
(1) Wage entitlements may be exercised by the staff member within a maximum of three months of the relevant period to the extent appropriate to the wage claims due. The period of 3 months shall be calculated retroactively from the first day of the calendar month in which the application for bankruptcy has been lodged. The employment office may satisfy the staff member's salary claims against one and the same employer during a period of 1 year only once.
(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, with effect from 1 May of the calendar year for a period of 12 calendar months, at the rate of the average wage in the national economy for the previous calendar year. It shall be based on the amount applicable on the day on which the application for bankruptcy is lodged.
The staff member shall apply the wage entitlements to the employment office 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 needed for the calculation of income tax, the period for which he is requested and the manner in which his payment is made, or, where appropriate, 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 contributions are made under the special legislations8). The application may include documents proving the wage entitlements applied above.
(1) The employment office responsible locally under Paragraph 4 (2) shall, within 7 days of the application of the wage entitlements, invite at least one of the staff member in writing to submit, within 14 days of receipt of the call, a written list of the wage entitlements owed by all his staff for the relevant period. The employer is obliged to comply with this call within that time limit and at the same time demonstrate to the employment office whether he has carried out deductions and levies on staff members in the relevant period under the special legislation9).
(2) If the staff member applies the wage entitlements following a declaration of bankruptcy, the employer's obligations referred to in paragraph 1 shall be transferred to the trustee of the bankruptcy proceedings (10) (hereinafter referred to as the trustee).
(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 due by the employer or the administrator, the employment office shall, within 10 days of such declaration being submitted by the employer or the administrator, notify the staff member of the date, manner in which they are satisfied and indicate the period for which they satisfy the wage entitlements and shall give the financial institution an order for reimbursement.
(2) If the staff member has applied the wage entitlements within the period referred to in Article 4 (5) and more than 10 days have elapsed since the written declaration of the wage entitlements due by the employer or the administrator, the employment office responsible for deciding on the wage entitlement shall notify the staff member of the date, the manner in which the claims are met and an indication of the period for which the wage entitlements are to be met and shall give the financial institution an order for reimbursement within 10 days of receipt of the employee's application.
(1) If the amount of the employee's wage entitlements applied for 1 month does not agree with the declaration submitted to the employment office by the employer or the employer, the employment office shall decide on the award of the staff member's wage entitlement for that month at the established amount. If the amount of the wage entitlement cannot be demonstrated in accordance with the first sentence, the employment office shall grant a wage entitlement equivalent to the minimum wage applicable on the date of the application for bankruptcy (11).
(2) If the period during which the staff member applies the wage entitlements does not agree with the information provided by the employer or the administrator, the employment office shall satisfy the wage entitlements only for a period which is undisputed.
(3) If the employer or the administrator has failed to fulfil the obligations set out in Article 7 and the staff member has, when applying the wage entitlements, provided evidence showing that their amount and the period for which they are applied have been established, the employment office shall decide on the allocation of the wage entitlements for the period and the amount applied by the staff member.
(4) If the employer or administrator has failed to fulfil the obligations set out in Paragraph 7 and the staff member has failed to submit, in the application of the wage entitlements, documents proving their amount, the employment office shall decide and grant to the staff member a monthly wage entitlement equal to the minimum wage applicable on the date of the application for bankruptcy. 11).
(5) The employment office referred to in paragraph 1 or 4 shall grant a staff member a monthly wage entitlement equal to or above 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. Where a staff member to whom the wage entitlement referred to in paragraph 1 or 4 is granted applies a lower amount than the minimum wage, the employment office shall grant him the wage entitlement at the amount applied.
(6) If one of the legal conditions for the application of wage entitlements is not met, the employment office shall reject the application.
(7) The Labour Office shall re-decide on wage entitlements within 7 working days at the latest if the staff member subsequently demonstrates the period for which he applies the wage entitlements or subsequently proves them at the level of the difference between the amount provided and the actual amount. However, the staff member must prove these claims no later than 3 months after the date on which the application for bankruptcy is lodged, otherwise they shall cease to exist against the employment office.
(8) The Office of Labour shall forward the payment order to the Institute within five working days of the date on which the decision referred to in paragraphs 1 to 4 and 7 becomes final.
(1) The employment office shall, before meeting the wage entitlements provided for in Article 8, make reductions and levies under the special legislation9), which the employer should have carried out for staff for the relevant monthly period. Where the employment office has decided on a wage entitlement under Paragraph 9, it shall make reductions and levies under the special legislation of the recognised wage entitlement.
(2) At the same time, the Labour Office shall notify in writing, at the latest by the date of payment of the amounts corresponding to the wage entitlements of the relevant social security administration, the amount of the social security premiums and the contribution to the state employment policy and the relevant health insurance undertaking, the amount of the public health insurance premiums, the date of payment and the details of the employer for whose staff the said insurance was made. If this insurance is borne by employees' income which the employer has not charged to employees, it shall also notify the level of the assessment bases of the individual employees (12). In the sector of taxation of income from dependent activities and functional benefits, the employment office shall fulfil the obligations of the tax payer under specific legislation13).
(3) The Labour Office shall notify without undue delay the employer to which employees and to what extent the wage claims have been met.
(4) The Labour Office confirms to the Ministry of Labour and Social Affairs and, at the request of the municipal office, the municipal office of the municipality with extended competence and the regional office, the data on wage claims paid.
(1) The Labour Office shall notify the court or administrator, without undue delay, to which staff it has met the wage requirements.
(2) If the employment office has failed to satisfy the wage entitlements of the amount applied by the employee or has not declared the wage entitlements at all, the staff member may apply them together with other claims against the employer in bankruptcy proceedings (14).
(3) The amount of money paid and paid (paragraphs 8 to 10) shall be transferred to the employment office by the staff member who is entitled to the employer. If bankruptcy has been declared against the employer's assets, the Office shall declare the work of the claims of individual employees in bankruptcy proceedings 15).
(1) The employer shall be obliged to pay to the employment office the funds paid to the staff under this law and the amounts corresponding to the deductions and contributions made by the employment office under the special legislation within 3 weeks of the date on which the decision of the Court of First Instance was taken.
(a) the application for bankruptcy has been rejected for reasons other than the lack of assets (16);
(b) bankruptcy proceedings have been closed,
(c) bankruptcy has been cancelled in which the compulsory compensation has not been met (17);
(d) the application for bankruptcy (5c) has been rejected.
(2) Obligation to repay the funds in the cases referred to in paragraph 1 (b). (c) it is incurred by the employer only if the bankruptcy has been cancelled because it has been established by the court that there are no conditions for the declaration of bankruptcy (18), except that the insolvency proceedings are cancelled on the ground that the assets of the insurer are not sufficient to cover the costs of the bankruptcy (18a), which results in the removal of the employer without liquidation.
(3) If the employer has not paid the money to the employment office within the period referred to in paragraph 1, he shall be late. After the time limit has expired, he shall be obliged to pay interest on late payments.
The employer or administrator shall pay to the employment office the funds paid and paid, including interest on late payments, if the staff member has been awarded and provided on the basis of incorrect declaration of the wage entitlements due by the employer or the administrator, or if, for that reason, they have been made at an amount higher than the staff member's due. These amounts must be paid within 3 weeks of the date on which he became aware of this fact or when the employment office called upon him to pay these funds, within a maximum period of 3 years from the date on which the employment office paid them and carried them out. Interest on late payments shall apply from the date of payment by the staff member and the payment of funds under special legislation9).
The staff member shall be obliged to repay the funds, including interest on late payments, to the employment office if he knew or had to assume, in circumstances, that they were amounts wrongly determined or wrongly paid within 3 weeks of the date on which he became aware of this fact. The Office of Labour shall decide on the repayment of these amounts within 3 years of their declaration, otherwise the right shall cease. Interest on late payments shall apply from the date of payment of the staff member.
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, provide information (5a) on the reimbursement of the unpaid wage entitlements of employees of the supranational employer in the context of proceedings under this law.
Decisions of the employment authorities under Sections 9 and 14 and service pursuant to Section 7 shall be subject to the administrative rules. 19)
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.
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.
* * *
Act No. 436 / 2004 Coll., amending certain laws in connection with the adoption of the Employment Act, took effect on the first day of the third month following its publication (1 October 2004).
Act No. 73 / 2006 Coll., amending Act No. 118 / 2000 Coll., on the Protection of Employees in the Insolvency of Employees and on the Amendment of Certain Acts, as amended by Act No. 436 / 2004 Coll., came into force on the first day of the calendar month following the date of its publication (1 April 2006).
Prime Minister:
Ing. Paroubek v. r.
1) Council Directive 80 / 987 / EEC of 20 October 1980 on the approximation of the laws of the Member States relating to the protection of workers in the event of the insolvency of the employer. Directive 2002 / 74 / EC of the European Parliament and of the Council of 23 September 2002 amending Council Directive 80 / 987 / EEC on the approximation of the laws of the Member States relating to the protection of workers in the event of the insolvency of an employer.
(1a) Section 8 of the Labour Code.
2) Act No. 367 / 1990 Coll., on municipalities (municipal establishment), as amended.
3) Article 4 (2) of Act No. 1 / 1992 Coll., on wages, remuneration for on-call and on average earnings. § 3 (2) of Act No. 143 / 1992 Coll., on the salary and remuneration of on-call duty in budgetary and certain other organisations and bodies. Section 60a (1), § 238 and 239b of the Labour Code.
4) Sections 10 and 19 of Act No. 1 / 1992 Coll., § 16 and 22 of Act No. 143 / 1992 Coll., as amended by Act No. 40 / 1994 Coll.
5) Sections 4 and 4a of Act No. 328 / 1991 Coll., on bankruptcy and settlement, as amended.
(5a) Council Regulation (EC) No 1346 / 2000 of 29 May 2000 on insolvency proceedings.
5b) Act No. 101 / 2000 Coll., on the protection of personal data and on the amendment of certain laws, as amended.
5c) Paragraph 43 (2) of the Civil Code.
6) Sections 4 (5) and 5 (2) of Act No. 328 / 1991 Coll., as amended.
7) Article 44 (1) of Act No. 328 / 1991 Coll., as amended.
8) Act No. 592 / 1992 Coll., on Insurance for General Health Insurance, as amended.
9) Act No. 589 / 1992 Coll., on Social Security Insurance and Contribution to State Employment Policy, as amended. Act No. 592 / 1992 Coll., as amended. Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended. Act No. 586 / 1992 Coll., on Income Tax, as amended.
10) § 14a of Act No. 328 / 1991 Coll., as amended.
11) Paragraph 2 (1) (b) of Decree of the Government No. 303 / 1995 Coll., on minimum wage, as amended.
11a) § 83a (5) 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.
13) Act No. 337 / 1992 Coll., as amended. Act No. 586 / 1992 Coll., as amended.
14) Articles 20 (1) and 31 (3) (a) of Act No. 328 / 1991 Coll., as amended.
15) Article 20 of Act No. 328 / 1991 Coll., as amended.
16) Paragraph 4a (4) of Act No. 328 / 1991 Coll., as amended.
17) Article 43 (1) of Act No 328 / 1991 Coll.
18) Paragraph 44 (1) (a) of Act No 328 / 1991 Coll.
Article 68 (3) (f) of the Commercial Code.
19) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulation), as amended by Act No. 29 / 2000 Coll.
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Regulation Information
| Citation | Full text of Act No. 153 / 2006 Coll., Act No. 118 / 2000 Coll., on the Protection of Employees in the Insolvency of Employees and on the Amendment of Certain Laws, as resulting from subsequent amendments |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.04.2006 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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