Czech lower house adopts rules for integrational social enterprises, new law could aid disadvantaged people with finding regular jobs

An integrational social enterprise (ISE) could be established by either a local or regional level authority to solve local problems with the unemployment of disadvantaged people, for instance. That is the premise of the bill that has been approved by the Chamber of Deputies.

Senators will now assess the bill. An ISE, according to the bill, would be required to have 30 % of its own staff be disadvantaged persons.

For instance, the ISE would employ people without educations, persons of advanced age, asylum-seekers, those who are the caregivers to their own infirm relatives, persons under collections proceedings, the longterm unemployed, youth who have just aged out of compulsory schooling (ninth grade), homeless persons, youth who have just aged out of a children’s home, or persons released from prison, for up to two years at the most. Exceptions would be made for persons aged 60 and over or persons living with disabilities, who could be employed longer.

One condition would be that the disadvantaged person would be listed as a job-seeker with the Labor Office for a certain amount of time. The lower house’s Social Committee recommended a regulation requiring the ISE to perform its work in accordance with values such as environmental and social sustainability, among others.

The provision of the motivational contribution to the ISE would last two years instead of the originally proposed three years. However, it will not be equivalent to just 11 % of the assessed baseline, but 17 %.

Lawmakers increased the minimum amount of the motivational contribution compared to the bill originally submitted by the Government from 80 % of the average monthly wage in the national economy to 120 % of the average for Q1-Q3 of the calendar year in which it will be provided, as long as that employment relationship lasts the whole year. The original bill also proposed that the ISE would also receive CZK 1,000 [EUR 40] per disadvantaged employee for operating costs.

Czech MP Pavla Pivoňka Vaňková (Mayors and Independents – STAN) successfully proposed that the Chamber of Deputies increase the operating cost contribution to CZK 2,500 [EUR 100] for workers with more severe social disadvantage, such as persons released from prison, for instance. The Labor Ministry will recognize the status of the integrational social enterprises as employers.

One condition for recognition will be that the enterprise not owe back taxes to either customs or inland revenue and that it not owe back insurance deposits. Any ISE that is insolvent or in liquidation will not be recognized by the ministry.

Such a firm will also not be allowed to do business in gambling. The Labor Ministry will manage the register of such enterprises.

ISEs should also provide their employees with social counseling on how to be tenants in good standing or how to manage their debt. The Chamber of Deputies also adjusted the rules of the integration fund that such enterprises would create to strengthen such workers’ social skills, based on a proposal by Czech MP Vít Kaňkovský (Christian Democrats – KDU-ČSL).