Return of the salary subsidies

Subsidies to employees’ salaries, aimed at protecting jobs, are one of the types of assistance for companies provided under the anti-crisis shield. Generally, the subsidy is non-repayable, but there are situations in which employers will be obliged to return the received financial support.

The rules for the refund of the benefits are the same for all forms of co-financing the employees’ salaries:

• subsidies from the Guaranteed Employee Benefits Fund for the salaries of employees covered by economic downtime or reduced working hours (Article 15g),
• subsidies for the salaries of employees who are not covered by economic downtime or reduced working hours (Article 15gg),
• subsidies for part of the employees’ salary costs from the Labour Fund (Article 15zzb),

When does the salary subsidy have to be returned?

The employer is obliged to return the obtained subsidy in the situation:

• of using the funding for purposes other than those specified in the agreement,
• of termination of the contract of the subsidised employee for reasons not concerning the employee,
• of a refusal to undergo a control on the use of funds or in the situation of an evident inability to carry out a control.

The recipient of each form of subsidy is obliged to use the awarded funds in accordance with the purpose indicated in the agreement. If this condition is not met, he is obliged to return the part of the funds which was used in violation of the agreement.

Rules for returning the subsidy

If the employees covered by the subsidy are not kept employed during the period for which the subsidy was granted, there is also an obligation to return the subsidy, and the amount of this return depends on the legal basis on which the subsidy was granted:

• co-financing of the part of the salary costs from the Labour Fund (Article 15zzb) – the employer shall refund the co-financing proportionally to the period during which the employee has not been employed,
• co-financing from Guarantee Employee Benefits Fund to the salaries of the employees covered by economic downtime or reduced working hours (Article 15g) – the employer shall return the part of the funds which was used to co-finance the salaries of the employee whose contract has been terminated,
• co-financing from Guarantee Employee Benefits Fund to the salaries of the employees not covered by economic downtime or reduced working hours (Article 15g) – the employer shall return all funds granted for all employees, not only for the employee whose contract has been terminated,

See also: Mergers and acquisitions – protecting Polish companies in the era of COVID-19

Control of the proper use of funds

Both the use of funds from the Guaranteed Employee Benefits Fund and from the Labour Fund can be audited during the period of benefiting from the subsidy as well as within 3 years from the date of submission by the recipient the documents confirming the proper use of funds. If the recipient refuses to submit to the audit or if the audit cannot be carried out, there is an obligation to return the entire co-financing granted.

The subsidy obtained from the Guaranteed Employee Benefits Fund should be returned together with interest accruing from the date of fund transfer, while the subsidy from the Labour Fund is returned without interest.

The funds granted, regardless of the legal basis, which have not been used, e.g. in a situation in which the employment relationship between the employer and the subsidised employee is terminated by the employee, should also be returned.

Author:

Magdalena Wilkoszewska
Director of the Labour Law Department, Attorney-at-law
TGC Corporate Lawyers 

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