Draft Special Flood Act – Key Information for Entrepreneurs

The government bill amending the Act on special solutions related to the removal of flood effects and some other acts (also called the flood special act) has been submitted for the first reading at the Sejm session.

This bill introduces a range of changes and regulations aimed at more effective management of crisis situations related to floods and support for affected entities.

However, these changes will also affect employers – below we present the most important guidelines.

Additional leave

According to the latest guidelines: “From the date the Act enters into force until December 31, 2024, the employer is obliged to grant, upon employee’s request, up to 4 additional days of paid annual leave for flood-related recovery activities, to be taken on dates indicated by the employee. The employee must submit the leave request no later than on the first day of the leave.”

In the justification to this provision, it was noted that: “The added Article 61a of the draft amending Act provides the employee with the right to be granted by the employer up to 4 additional days of leave on demand, within the scope of the employee’s annual leave entitlement. This right addresses situations where the employee has not been directly affected by the flood but wishes to help those affected, for example as a relative or volunteer, for which leave from work is necessary. The provision stipulates that this right will only apply until the end of 2024, and the total amount of leave granted under this provision, leave granted under Article 8a of the “flood act” and leave on demand granted under the Labor Code must not exceed 8 days.“

Additionally, the employer will be obliged to grant an employee affected by the flood leave from work of up to 20 days for flood recovery directly related to their property or property of a related or unrelated person living and managing a household together with them. During this leave, the employee retains the right to remuneration. The employee’s application for leave must be submitted no later than on the day of taking the leave. The employer may refuse only if granting the leave is objectively impossible due to the employer’s special needs.

Importantly, the voivodeship marshal, upon the employer’s request submitted via the regional labor office competent for the place of business, will reimburse the employer’s costs for employee remuneration and social security contributions from the Guaranteed Employee Benefits Fund.

Intervention benefit

An entrepreneur affected by the flood and conducting business activity on the date of issuing the regulation will be entitled to an additional benefit. The Social Insurance Institution (ZUS) will administer the intervention benefit, which will be financed from the state budget’s special reserve.

To obtain the intervention benefit, the affected entrepreneur will submit an application to ZUS. It may be submitted electronically via an information profile created in the IT system provided by ZUS. The entrepreneur may apply for funds up to the maximum amount of the damage incurred.

The intervention benefit may be granted only to an entrepreneur who:

1. Has suffered damage consisting of loss, damage, or destruction, directly caused by the flood, to material components of the enterprise necessary for the continuation of business activity, and
2. Commits to conducting business activity for at least 6 months from the date of receiving the intervention benefit, and
3. Commits to maintaining the employment level for 6 months from the date of issuing the regulation.

Summary

The introduction of the flood special act is an important step toward supporting both employers and employees in the face of flood-related threats. Additional regulations concerning leave, work absences, and intervention benefits aim not only to minimize the crisis effects but also to support efforts to rebuild the affected communities. Employers should be aware of upcoming changes and prepare for their implementation to effectively use available support mechanisms.

It will also be crucial to monitor further legislative work, which is currently underway. Possible amendments and changes should be taken into account.

If you have any questions or concerns, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.