Covid remuneration (not) subject to insolvency of one half

Up until July 30 last year, debtors employed in the health care industry were concerned about whether or not the bonuses granted under the Department of Health's subsidy program for their deployment in the Covid epidemic would be subject to insolvency.

In fact, there were conflicting rulings by both High Courts, with the High Court in Prague saying that these bonuses could not be considered extraordinary income which the debtor was obliged to surrender in insolvency, and the High Court in Olomouc determining that the so-called covid bonuses were income subject to sanctions.

However, it is now clear. It is to be proceeded according to Section 24 a) of Act no. 191/2020 Coll. - the so-called Lex Covid Justice, as amended as of 31.07.2021, which provides that extraordinary Covid bonuses are indeed subject to execution of a judgment or distraint, but only in one half thereof.