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  • Grace Period for Work Incapacity Abolished as of July 2019

    01. 03. 2019

    p>According to the current legislation regarding temporary incapacity for work, an employee on a paid sick leave is financially covered by his or her employer for the first 14 days provided he or she meets the conditions to become eligible for paid sick leave under the Sickness Insurance Act as at the day when he or she falls sick. The employer is obliged to provide the employee with compensation of wage or salary in the statutory amount for their usual working days, or for shifts that the employee missed due to temporary incapacity to work. This compensation of wage or salary is not due to the employee during the so-called grace period, i.e. for the first three working days, maximum of 24 hours of work.

    Shown on a specific example: if the temporary incapacity to work (sickness) begins after the Friday shift of an employee whose usual working days are Monday through Friday, whereas he or she works ten-hour shifts Monday through Wednesday and five-hour shifts on Thursdays and Fridays, then the first day of the aforementioned 14-day period is Saturday, with the employee being paid a salary or wage compensation only as of the fifth hour of the Wednesday shift.

    As of July 1, 2019, when the Act No. 32/2019 Coll., amending the Labor Code, as amended, and some other laws, comes into effect, the system will change as the grace period has been abolished.

    Newly, or rather re-newly, since such rules were already applied before January 1, 2008, the employee will be entitled to receive wage or salary compensation at the statutory amount from the first working day or the first shift missed due to temporary incapacity for work. In the above example, the employee will be compensated for salary or wage from the very first missed hour of the Monday shift.

    Compared with the legislation effective before 1 January 2008, the Act No. 32/2019 Coll. does not foresee any correction or reduction of wage or salary compensation for the days or shifts missed. Wage or salary compensation will be provided in a uniform amount during the first 14 days of temporary incapacity for work and will be calculated in the same way as hitherto.

    The wage compensation is calculated as sixty percent of the gross hourly earnings capped with fixed limits.

    Two model situations:

    Example No. 1

    The average gross monthly earnings of the employee are CZK 30,000. The average hourly earnings of the employee are CZK 178. The employee was on a paid sick leave for 14 calendar days and missed 10 shifts of 8 hours, a total of 80 working hours.

    With the current set-up which includes the grace period, the employee will be paid:

    ● CZK 96,- for every missed hour of work

    ● CZK 769,- for every missed shift of work

    ● a total of CZK 5.383,- during the time of temporary incapacity for work (the first three shifts, i.e. 24 hours, are without compensation of salary or wage)

    With the new set-up without the grace period, the employee will be paid:

    ● CZK 96,- for every missed hour of work

    ● CZK 769,- for every missed shift of work

    ● a total of CZK 7.690,- during the time of temporary incapacity for work

    Example No. 2

    The average gross monthly earnings of the employee are CZK 100,000. The average hourly earnings of the employee are CZK 595. The employee was on a paid sick leave for 14 calendar days and missed 10 shifts of 8 hours, a total of 80 working hours.

    With the current set-up which includes the grace period, the employee will be paid:

    ● CZK 189,- for every missed hour of work

    ● CZK 1.511,- for every missed shift of work

    ● a total of CZK 10.575,- during the time of temporary incapacity for work (the first three shifts, i.e. 24 hours, are without compensation of salary or wage)

    PWith the new set-up without the grace period, the employee will be paid:

    ● CZK 189,- for every missed hour of work

    ● CZK 1.511,- for every missed shift of work

    ● a total of CZK 15.107,- during the time of temporary incapacity for work

    Author: JUDr. Jakub Morávek, Ph.D.

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