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Covid-19 – State Support for Businesses

Covid-19 – State Support for Businesses

Poland
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Over the coming months, businesses will be able to apply for various forms of state support, which may be mixed and matched depending on circumstances.

Standstill Allowance

  • one-off allowance of PLN 2,080, subject to possible extension for another month
  • for sole traders whose income in the preceding month did not exceed PLN 15,681 and was at least 15% lower than the month before that, provided that they have not suspended operations
  • for sole traders whose income in the preceding month did not exceed PLN 15,681, in the case of sole traders who suspended operations after 31 January 2020
  • for persons working under contracts of mandate made no later than on 1 February 2020, provided that their income in March was at least PLN 1,300 gross (otherwise, they can apply for an amount corresponding to their actual income)
  • persons employed under civil-law agreements whose total income in the preceding month was lower than PLN 1,300 gross can only receive the amount of their last month’s income and not the full amount of standstill allowance

Social Security Contributions

  • sole traders and persons working under contracts of mandate may be released from the obligation to pay social security contributions for March, April, and May 2020
  • microenterprises may be released from payment of social security and health insurance contributions for March, April, and May 2020, both for entrepreneurs and their employees
  • sole traders who employ other people may be released from the obligation to pay their own social security contributions, provided that their income in the preceding month did not exceed PLN 15,681 net
  • only microenterprises registered with the Polish Social Insurance Institution (ZUS) as contribution payers prior to 1 February 2020 are eligible

Care Allowance for Children

  • sole traders and persons working under contracts of mandate may receive an additional 14-day care allowance for children up to the age of 8
  • contingent on timely payment of voluntary sickness insurance contributions in the past

Low-Interest Loans

  • microenterprises may apply to the Labour Office for low-interest loans of up to PLN 5,000 to be repaid within 12 months
  • microenterprises that continue to employ their staff as of 29 February 2020 for the next 6 months will not have to repay the loan
  • available only to microenterprises registered with the Polish Social Insurance Institution (ZUS) as contribution payers prior to 29 February 2020

Salaries and Flexible Working Hours

  • businesses forced into a standstill due to quarantine may receive a maximum subsidy of PLN 1,533.09 per employee (including social insurance contributions attributable to the employer)
  • if employees are working part-time due to lower turnover, the maximum total amount of subsidy is PLN 2,452 per employee (including social insurance contributions attributable to the employer)
  • for businesses that recorded a drop of at least 15% in sales over two months in 2020 or a month-to-month drop of at least 25% in revenue compared with the corresponding period of the previous year
  • maximum settlement period of 12 months
  • optional introduction of a 12-hour working day as part of a system of equivalence
  • shorter minimum rest periods – 8 hours day-to-day and 32 hours per week
  • possibility of lowering salaries and reducing working time, as well as suspending payment of any bonuses, commissions, etc.
  • no effect on employees’ rights under the Labour Code, including annual leave
  • employers who violate statutory limits will not be eligible for state support

By Jeremiasz Kusmierz and Piotr Bobrowski, Senior AssociatesPenteris

Poland Knowledge Partner

Penteris is a law firm combining in-depth expertise, robust advice, and a pan-regional reach.

We provide full-service business law advice within five sector lines: Energy & natural resources, Financial institutions, Private equity, Real estate, and Retail.

On the market since 2001, we were originally part of a Scandinavian law firm and then a founding office of a pan-Baltic organisation.

Our attorneys will work closely with you, providing you with the hard skills, service-minded know-how, and legal expertise that will keep you secure while you lead the market.

Our skills are at your disposal:

  • Expertise and passion wrapped up in a personal service
  • Close-knit team providing a multidisciplinary approach
  • Ability to listen, understand, and deliver for the tangible benefit of the client.

The team continues to be internationally recognised year on year, most recently by Chambers Global 2020, Chambers Europe 2020, and The Legal 500 EMEA 2020.

Firm's website: https://penteris.com

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