According to the Anti-Crisis Shield, an entrepreneur who has noted a decrease economic turnover following epidemic COVID-19 can apply for the grating of benefits for the protection jobs (article 15g).
I Check are you entity that can get help:
1. Are you an entrepreneur within the meaning of the Business Act?
An entrepreneur, who can apply for benefits the Guaranteed Employee Benefits Fund, is a natural person or an organizational unit with no legal personality, whose separate Act legal capacity, pursuing the business activity. Entrepreneurs are also partners in a civil law partnership in the scope of their business activity. In the application, you declare that you are an entrepreneur within the meaning of article 4 paragraph 1 or 2 of the Entrepreneurs Law.
2. Decrease in economic turnover – how to verify?
According to the definition set out in the Act, a decrease in the sales of goods or services in terms of quantity or value is considereda decrease in economic turnover:
- not less than 15%, calculated as:
A total turnover in any two consecutive calendar months indicated
(after 1st January 2020 r. to the day preceding the submission of the application)
A total turnover of the analogous 2 consecutive calendar months the previous year
- not less than 25%, calculated as:
Turnover from any given calendar months indicated
(after 1st January 2020 r. to the day preceding the submission of the application)
Turnover from the previous month
For month is considered 30 also consecutive calendar days.
So entrepreneurs who want to apply for funding must run a business for at least 2 months to be able to calculate the decline in economic turnover. In the application, you should indicate the date when decreasing economic turnover, and which form you have chosen the calculation.
3. You are not in arrears – you have financial problems but you cannot be arrears.
An entrepreneur, who wants to apply should have tax obligations and social and health insurance contributions, the Guaranteed Employee Benefits Fund, Labor Fund or Solidarity Fund settled by the end of the third quarter of 2019. The application should make a statement that it is not in default of public-law obligations by the end of the third quarter of 2019. The envisaged support applies to entrepreneurs who have financial problems due to the current situation, while previous commitments, in particular commitments by the end of the third quarter of 2019 should be regulated.
4. Check whether there are any premises for a declaration of bankruptcy – article 11 or article 13 paragraph 3 of the Bankruptcy Act.
In accordance with article 11 of the Bankruptcy Law, the debtor becomes insolvent if you lost the ability to perform their monetary obligations. Loss of ability to perform its due monetary obligations is when delays in performing its monetary obligations exceed three months. A debtor is insolvent when its financial liabilities (not included in future obligations and liabilities to shareholders or shareholder loan or other legal actions with similar effects, referred to in article 342 paragraph. 1 point 4) exceed the value of its assets, and this condition lasts for more than 24 months. To check whether monetary liabilities exceed the value of assets, it is necessary to analyze on the basis of balance sheet data whether the following condition persists for a period exceeding 24 months:
Liabilities – (provisions for liabilities + liabilities to related parties) > value of assets
According to the templates of applications, which appeared on the websites of certain offices in the application must declare that there are no grounds for bankruptcy referred to in article 11 or article 13 paragraph 3 of the Bankruptcy Act. It is worth noting that this condition does not result from article 15g, and the lack of reasons for a bankruptcy applies only to some other applications for financing.
II What is the scope of support to protect jobs?
1. Support is provided during periods of economic downtime or reduced working time and after this period.
For economic downtime is considered to be the period during which work is not performed by an employee for reasons not related to the employee who is ready to work.
- Employer pays the employee a remuneration subject to economic downtime reduced by no more than 50%, not lower than the amount of the minimum remuneration for work, with consideration of the extent of working time.
- The maximum amount of funding from the Guaranteed Employee Benefits Fund is PLN 1,533.09 (gross) – including social security contributions due from the employer on work full-time.
The reduced working time is the employee’s working time reduced by the entrepreneur for reasons not related to the employee.
- An entrepreneur may reduce working time by 20%, not more than to 0.5 full-time.
- The remuneration paid to the employee may not be lower than the minimum remuneration for work, with consideration of the extent of working time.
- The maximum amount of funding from the Guaranteed Employee Benefits Fund per employee is 2,452.27 (gross) – including social security contributions due from the employer on the benefit granted.
2. The exclusions.
The entrepreneur cannot receive support:
- With regard to the same employees in terms of the same payment titles for the protection of jobs – this does not mean, however, that it is impossible to simultaneously take advantage of the exemption in paying contributions pursuant to article 31zo Anti-Crisis Shield. Then the co-financing does not cover the released contributions.
- For employees who in the month preceding the month of submitting the application received remuneration higher than 300% of the average remuneration from the previous quarter announced by the Central Statistical Office, valid as at the date of submitting the application.
At the same time, it should be noted that the co-financing is not granted to employees who are on sickness benefit or maternity leave, because they are not financed from the entrepreneur’s funds. Such an employee may be covered by the agreement only when returning from sickness benefit or maternity leave.
III Information about the application.
The application should indicate:
- number of employees who are covered by economic downtime,
- for what period are funds from the Guaranteed Employee Benefits Fund are to be granted (for a maximum of 3 months),
- indicate the purpose in which amount will be allocated for co-financing to remuneration of employees, and in what amount to cover social security contributions of employees due from the employer. You should also remember about exemption from the obligation to pay social security contributions.
The application should be accompanied by a list of employees entitled to benefits paid from the Guaranteed Employee Benefits Fund and it should be stated that the application does not include employees who are excluded from receiving this assistance.
In addition, the application should indicate whether it is intended to take advantage of exemptions in the payment of social security contributions, which were presented in the COVID-19 Act, and state that social security contributions were paid from employees’ remuneration, which were included in the list of employees attached to the application.
Necessary documents to be attached to the application: https://psz.praca.gov.pl/documents/10240/11905422/wniosek_fgsp.pdf/283e7120-2d14-4972-9ddd-d28818eda699?t=1585687939076
- Copy of the agreement on reducing the working time of employees or covering employees with economic downtime – the conclusion of such an agreement between the establishment trade union organization or employees’ representatives, the agreement should specify the conditions and mode of work performance during periods of economic downtime or reduced working time.
- List of employees entitled to benefits paid from the Guaranteed Employee Benefits Fund – the entrepreneur is obliged to enter in the list of employees for whom he applies for funding.
- Copy of the power of attorney if represented by a proxy.
- Agreement for the payment of benefits for the protection of jobs from the Guaranteed Employee Benefits Fund funds for co-financing the remuneration of employees affected by economic downtime or reduced working time, as a result of COVID-19, according to a specific formula which can be found here: https://psz.praca.gov.pl/documents/10240/11905422/umowa_fgsp.pdf/2142f1b9-fa61-49f6-a964-430433169432?t=1585727523735
IV Additional information.
On the basis of the concluded agreement on the payment of benefits received from the Guaranteed Employee Benefits Fund funds for the protection of jobs, the entrepreneur cannot terminate the employment contract for reasons not related to the employee during the employee’s receipt of benefits from the Fund and in the period (or periods) after that time, but no longer than for the total period of their peeling, i.e. a maximum of 3 months. The entrepreneur is also obliged to:
the use of funds in accordance with the terms of the contract,
- failure to terminate the employment contract for reasons not related to the employee during the period of receiving remuneration from funding from the Guaranteed Employee Benefits Fund and for the period of subsequent months corresponding to the number of months of funding from the Guaranteed Employee Benefits Fund,
- documenting the use of funds obtained as intended – up to 30 days after receiving the benefit tranche, if the funds are used as intended, the entrepreneur is obliged to reimburse them with interest in the amount specified as in the case of tax arrears, counting from the date of transfer of funds that were used for purposes other than those intended,
- documenting the employment of employees for whom the benefit was received in appropriate periods,
- return of unused funds in the abovementioned time.
The entrepreneur violates the terms of the contract if he refuses to submit to an inspection or if the inspection is not possible, the entrepreneur is obliged to return to the bank account of the Provincial Labor Office all funds together with interest in the amount determined as for tax arrears, calculated from the date of transfer of funds.
Applications can be submitted in paper and electronic form via the platform: https://www.praca.gov.pl/eurzad/index.eup?eform=VIA-WOMP#/inneSprawy/wyborUrzedu
In the case of applications submitted in paper form, it is possible to extend the application processing procedure and transferring funds to the employer. If the application is submitted completely, the application should be considered immediately, up to 7 working days, but it is not the deadline for transferring funds.
If you are interested in support in obtaining such funding or have doubts whether they can apply for such funds, please contact us.