What is the opinion of the SME Ombudsman on the proposed amendments to the Social Security Act?
The proposed amendments assume thatcompanies who suspend their business activities will beobliged to pay zus contributions. The SME Ombudsman, who calls for changes to the proposed legislation, disagrees.
A spokesman for Small and Medium-sized Enterprises is alarming. Legislative work is currently underway, which will also include entrepreneurs with suspended economic activities. As it states, 'The intention to introduce an obligation to be subject to social insurance for members of public, partnerships, limited partnerships and sole proprietorships during the period of suspension of economic activity must be assessed negatively. Such a step is also a denial of the idea of suspending economic activity.’
These legal amendments are included in the proposed Article 1(2)(a) and (b) amends Article 13 of the Law of 13 October 1998 on the social security system. As the SME Ombudsman points out, the new provision 'clarifies the periods of social insurance for members of public, partnerships, limited partnerships and single-member limited liability companies’. Unfortunately, the wording of those provisions suggests that the afored entities would also be subject to social security insured at the time of suspension of economic activity, although the Draft does not amend Article 36a(1) and (2) of the System Law. On the other hand, those provisions show that pension insurance during the period of suspension of the exercise of an economic activity referred to in Article 23(1) to (3) of the Law of 6 March 2018 – The right of entrepreneurs, by persons engaged in non-agricultural economic activities, is voluntary. The entrepreneur does not pay sickness and accident insurance during the period of suspension of economic activity. The suspension of the exercise of an economic activity shall cease the social security obligation from the date on which the suspension of the exercise of economic activity begins until the day preceding the date of resumption of the economic activity. The draft merely clarifies article 36a(4) and concerns the question of resumption of business and the absence of the need to notify compulsory pension, pension and accident insurance and voluntary sickness insurance where it is subject to it before the suspension of business.’
