Faced with the economic impact of the COVID-19 pandemic, a large number of companies are being forced to reduce their workforce. Many employers are required to pay redundant employees severance pay, a one-off benefit to compensate them for the loss of their jobs. This seemingly simple issue raises many practical problems. Additional doubts have emerged with regard to the interpretation of the Anti-Crisis Shield 4.0 provision temporarily limiting the maximum amount of benefits related to employment termination, including severance pay.

The pandemic caused by the SARS-CoV-2 virus and restrictions that it has evoked has brutally forced employees to review their vacation leave plans. On one hand this was caused, among others, by the closing of borders and mandatory quarantine while, on the other, by the sudden decrease in demand for labour in certain sectors. The availability of certain employees (even remotely) has become imperative for further business, whereas remaining employees have faced the perspective of dismissal or at least mandatory leave. It should be noted that entities conducting business in sectors listed in Shield 4.0 as paramount in securing proper functioning of the state and satisfaction of certain day-to-day needs (including the energy sector) have been statutorily obligated to refuse granting leave (not only vacation leave) or to reschedule/recall them. 

The provisions of Shield 4.0 are already in force as part of the draft law on interest rate subsidies for bank loans to ensure the financial liquidity of entrepreneurs affected by COVID-19, as well as amendments to some other acts.