The Act amending the act on special solutions related to the prevention, counteraction and
eradication of COVID-19 […], i.e so called anti-crisis shield, adopted by the Parliament on March 31,
2020, introduces a number of solutions for the period of deepening crisis caused by the epidemic.
Below we present the main tools of the economic stimulus package for entrepreneurs, included in this
legal Act.
1. Co-financing of remuneration in the event of downtime or reduced working time.
The special Act provides for two main forms of financial support for entrepreneurs, which aim to
protect employment in companies, despite economic difficulties. In the first of these forms, the funds
will be paid from the Guaranteed Employee Benefits Fund (GEBF) by the directors of the Provincial
Labor Offices. Employers who have experienced economic downtime or reduced working time as
a result of a decrease in economic turnover caused by COVID-19 will be able to apply for the funding.
The special law provides for a dedicated procedure and conditions for introducing these measures at
the employer on the basis of an agreement with trade union organizations or employee
representatives. According to the employers’ organization, this requirement may in practice prevent
the use of this assistance, especially for large companies, where reaching agreement in a short time
will be extremely difficult. This is because, the time to submit an application, due to the limited
resources of the GEBF, will be of key importance.
The funding applies to employees’ remuneration and social security contributions due from the
employer. What is important, the employer, which introduced economic downtime may decrease the
remuneration by not more than 50% and to the level of at least minimum remuneration (currently
2600 PLN gross). So decreased remuneration may be subsidized with the amount up to 50% of the
minimum remuneration for work, i.e. up to a maximum of PLN 1553.09 per one employee (including
social insurance contributions).
The remuneration of employees covered by reduced working time by 20% (for part time workers not
less than 0,5 time), in turn, may be subsidized up to 50% of its value, but no more than 40% of the
average monthly salary from the previous quarter, applicable as at the date of submitting the
application, i.e. currently – up to PLN 2452.00 per employee (including social insurance contributions).
The support will not apply to remuneration that in the month preceding the submission of the
application was higher than 300% of the average gross remuneration from the previous quarter (i.e.
currently 15595 PLN).
As a rule, all entrepreneurs employing staff can apply for the funding. The condition for submitting the
application is to demonstrate a decrease in economic turnover by a minimum of 15% in the
selected period of two months of 2020 compared to the same period of 2019, or by a minimum of
25% in the selected month of 2020 compared to the previous month, as well as good financial
condition of the entrepreneur as at the end of 2019, according to the criteria described in detail in the
Act. The given criteria include inter alia not being in arrears with social security contributions or not
having tax liabilities.
The funding will be granted for a maximum period of 3 months, with the possibility of extension in
the event of an extension of the epidemic status. From the draft of the Act the criticized provision on
examining applications in order of receipt has been removed. However, one should be aware of the
fact that entrepreneurs who are the first to submit applications will have a better chance of obtaining
funding – the Fund’s resources will not be enough to help everyone. Importantly, the employer who
benefited from the support must maintain the employment of the subsidized employees in the
period of receipt of the aid and directly following period, not longer than 3 months, under pain of
repayment of support amount with interest. This solution is also criticized as shifting to entrepreneurs
the economic risk related to the continuation of the global economic crisis.
2. Aid for entrepreneurs in the biggest crisis
The second form of funding will be implemented by the county governor through the county labor
offices. Support will only apply to micro, small and medium-sized entrepreneurs (so employing
maximum of 249 people) – so it does not apply to large companies. In addition, applications for
obtaining the given subsistence costs may be submitted by those entities in which the decrease in
economic turnover, calculated on a year-to-year basis, was greater than 30%. In this situation, the
financial support in relation to remuneration costs and the corresponding social security contribution
due from the employer will be up to 50% of the minimum remuneration for work (i.e. the amount of
PLN 1533,09 per employee), with a turnover decrease of more than 50%, the aid will be up to 70%
of the minimum remuneration for work with contributions (PLN 2,146.33 per employee), while
above 80% decrease in turnover, the employer may apply for funding in the amount of up to 90% of
the minimum remuneration for work and appropriate contributions (PLN 2,759.56 per employee).
Similarly to the benefits from the GEBF, also this financial support set out in the Act is provided for a
maximum of 3 months with the possibility of extension. The conditions for obtaining the given aid are
also similar, i.e. good financial standing of the entrepreneur in 2019, assessed according to the
criteria specified in the Act. Employees whose remuneration has been subsidized may not be
dismissed in the period of receipt of the support and equal period following that period, which
requires prudence when submitting applications. Breach of this condition leads to the obligation of
return of support amount (in proportion to the remaining employment period) without interest.
The Act provides for a short 14-day deadline for submitting an application for assistance – counted
from the appropriate announcement in a given district (poviat). In this way, the circle of recipients of
this form of assistance is limited to companies that will sooner be affected by the severe slowdown
caused by the crisis around COVID-19. Due to the limited resources of the Labor Fund, from which
the support is to come, it should be borne in mind that not all entrepreneurs who meet the formal
criteria will be able to use this form of assistance.
Managing the company’s operations in uncertain times that have become our part is not easy. Taking
advantage of the support offered requires quick action and precise completion of the application,
which includes a number of statements made under pain of criminal liability. We will be happy to
assist our clients in making decisions in this regard and at every stage of the procedure for obtaining
support.
FOR MORE INFORMATION PLEASE CONTACT:
Magdalena Pilarska
Attorney at Law
T: +48 58 7820050
Mob. +48 696074317
E: pilarska@pl.millercanfield.com
Magdalena Olkiewicz – Borkowska
Attorney at Law
T: +48 58 7820050
Mob. +48 501583837
E: olkiewicz@pl.millercanfield.com
Disclaimer: This publication has been prepared for clients and professional associates of Miller Canfield. It is
intended to provide only a summary of certain recent legal developments of selected areas of law. For this
reason the information contained in this publication should not form the basis of any decision as to a particular
course of action; nor should it be relied on as legal advice or regarded as a substitute for detailed advice in
individual cases. The services of a competent professional adviser should be obtained in each instance so that
the applicability of the relevant legislation or other legal development to the particular facts can be verified.