Kurzarbeit is a term used for an arrangement between employees, the employer, and the state. Employees have their working hours reduced, and the state compensates them for the lost income. The employer commits to not making any redundancies. Under Czech legislation, this is governed by Section 209 of the Labour Code and Section 115 of the Employment Act.
Benefit amount during short-time work
(1) The short-time work benefit is provided to the employer only for the portion of the employee's weekly working hours during which the employer does not assign work to the employee, at the rate of 80% of the wage compensation due to the employee under Section 120c(1)(a), plus social security contributions and the contribution to the state employment policy calculated from this portion of the wage compensation, which the employer is required to pay as the taxpayer of such contributions under the Act on Social Security Insurance and the Contribution to the State Employment Policy, and public health insurance contributions calculated from this portion of the wage compensation, which the employer is obliged to pay on behalf of its employees under the Act on Public Health Insurance Contributions.
(21) The maximum monthly amount of the short-time work benefit is 1.5 times the average wage in the national economy for the first to third quarter of the calendar year preceding the calendar year in which the notification under Section 120e(1) was submitted.
Section 120e
(1) The short-time work benefit is provided to the employer by the Labour Office on the basis of a written notification submitted electronically by the employer in accordance with special legislation 109), and is paid in Czech currency.
The benefit application must contain information defined by law.
From version 2023.1.0, Kurzarbeit configuration is also supported in ABRA Flexi.
Kurzarbeit Setup
To configure this feature, you need to enter the compensation percentage for Kurzarbeit. This can be set via Company - Settings, on the Modules - Employees - Other tab:
The default value is set to 80%.
Entering Absences under Kurzarbeit
Kurzarbeit absences can be entered in the usual way, either via the Employees - HR menu on the Absences tab, or via Employees - Payroll Update using the Update Absence button.
A new Kurzarbeit option has been added here:
After payroll recalculation, the Kurzarbeit compensation is calculated using the percentage entered in the company settings:
On the payslip, it can then be found in the usual Absence field:
