We provide substitute performance.
What does that mean?
In the Czech Republic, Section 84 of Act No. 435/2004 Coll. regulates substitute performance.This is a special legal mechanism that allows companies that employ a lower or no percentage of persons with disabilities to comply with the legal obligation to employ such persons in certain circumstances. This mechanism allows them to "make up" the unworked shares of disabled people in other ways.
According to the Czech Labour Code, companies with more than 25 employees are obliged to employ at least 4% of their workforce with disabilities. If they fail to comply with this obligation, they can use alternative compliance, which is a way to meet the legal obligation in alternative ways.
Replacement performance can be realized for example:
- 1. Purchasing products and services from sheltered workshops – companies that employ people with disabilities or from other entities that meet the conditions.
- Employing people with disabilities in other companies – you can enter into an agreement with a company that has a higher proportion of employees with disabilities.
- Financial contribution to the state fund – if the company cannot or does not want to meet the obligation through employment or purchase, it can pay a contribution to the state fund.
Compensation is therefore a way for companies to meet their legal obligations without directly employing disabled people.
