Czechia To Introduce German-style Public Unemployment Insurance



Photo by Austin Distel on Unsplash

PRAGUE – Spurred by the coronavirus pandemic, the Czech Coalition Council will consider a proposal by the Minister of Labor and Social Affairs, Jana Maláčová, to permanently adopt a German-style public unemployment insurance scheme, known as “Kurzarbeit” or “Short-time working,” reported Seznam Zpravy on Monday.

PARTNER CONTENT

“Kurzarbeit” is a form of public insurance where in times of crisis, employers can reduce hours instead of laying off large numbers of employees, while the government provides funds to replace the income of workers, for example, 60 to 80 percent of an employee’s average wage. The program would extend up to nine months from the onset of a crisis. According to the International Monetary Fund, the scheme is one of the best available tools to combat economic shocks. Workers’ incomes are protected, while employers save on the hiring and rehiring process.

Seznam Zpravy notes that the proposed scheme may be needed in the fall, especially in the hard-hit manufacturing sector in Czechia, and could be implemented as early as September. The program would become effective immediately at the onset of a significant economic shock, such as a recession or a viral pandemic.

Prerequisites for the use of the public insurance law would include that a given employee must be employed for at least one year. Furthermore, the activation of the law would require extraordinary economic circumstances, “For example, in a situation where unemployment in the whole country will rise by 15 percent,” according to Maláčová.

Due to the temporary unemployment policy measures taken by the government amid the coronavirus pandemic, about 750,000 jobs have been protected by a similar policy. The proposal would make such measures permanent in Czech law if adopted.

CitySpy Network
007 has nothing on us!

Here at CitySpy we make it our life’s work to discover the beautiful secrets and hidden gems of Prague. Every day we sift through the shit bits to bring YOU the shiny bits!

Our team is a vibrant group of content creators full of introverts, extroverts, and every shade in between. We live the day to day mining the scraps of gold that can be found throughout the City of a Hundred Spires, and present them to you through videos (lots of video), articles, events and much more. Our spies don’t cover everything...

We only cover the best.
CitySpy Network

Latest posts by CitySpy Network (see all)

About CitySpy Network 143 Articles
007 has nothing on us!

Here at CitySpy we make it our life’s work to discover the beautiful secrets and hidden gems of Prague. Every day we sift through the shit bits to bring YOU the shiny bits!

Our team is a vibrant group of content creators full of introverts, extroverts, and every shade in between. We live the day to day mining the scraps of gold that can be found throughout the City of a Hundred Spires, and present them to you through videos (lots of video), articles, events and much more. Our spies don’t cover everything...

We only cover the best.