The government has adopted changes to the period in which employers have a duty of remuneration when temporarily laying off employees. From 1 September 2020, the duty of remuneration period will be 10 days.
According to the Obligation to Pay Wages during Temporary Redundancy Act, when laying off an employee, employers must, in principle, pay lay-off pay and other remuneration for 15 days (the employer's period). After this period, employers are exempt from payroll obligations for 26 weeks during an 18-month period (the exemption period) in the event of continued temporary lay-offs.
As a result of the COVID-19 pandemic, the government has implemented several measures to protect businesses, jobs and workers. One of these measures was to change the employer-financed period from 15 to two days. At the same time, it was announced that the rules regarding temporary lay-offs would be reassessed on an ongoing basis.
As more people return to work, the government has now decided to increase the employer-financed period from two to 10 days.
The amendment was adopted on 26 June 2020 and entered into force on 1 September 2020.
