Draft Bill Promoting Families with Children

Kateřina Jirková

Ministry of Labour and Social Affairs

Key Objectives• Key objective: promoting the reconciliation of work

and family life – by means of supporting the development of childcare services

• Based on the Family Package approved by the government resolution from 19 November, 2008, No. 1451

• According to the Legislative Schedule of the government, it should be submitted "again" by February 2011 (proposal for effective measures by March 2012)

• The measures are in line with the programme declaration of the government ("creating conditions for the faster return of parents to gainful occupation, development of company nurseries, alternatives of pre-school institutions such as family centres/ mothers' centres, and neighbourly childminding")

Draft Bill History• The draft bill was consulted and submitted to the

Legislative Council of the government in the spring of 2009

• No debate on the draft bill in Topolánek's government

• The Ministry of Labour and Social Affairs did not submit it to the new government for fiscal reasons

• It was submitted to the government as the deputy proposal of Petr Nečas and Michaela Šojdrová

• The draft bill did not pass the legislative process - the debate finished in the 1st reading

Draft Bill Contents

• Parent mutual support – neighbourly childminding• Review of operating (sanitary and qualification) conditions for

childcare provided as service in the trade regime;• Setting the operating (sanitary and qualification) conditions for

childcare provided beyond the scope of Trade and Education Acts, i.e. including the care provided by companies and non-profit organizations;

• Tax-deductibility of employers' costs for establishing, operating and providing of childcare services to their employees, and similar advantages for self-employed people;

• Cancelling the conditioned entitlement to parental allowances, i.e. the limited time children over 2 can stay in the kindergarten, nursery or other similar institution, changing the "time account" for children under 2 from 5 days to 46 hours a month.

Measures Unimplemented by Draft Bill Promoting Families

with Children• Paternal: Allowances pursuant to the Health Insurance Act - not

implemented for fiscal reasons

• Discount on social insurance for employers in the amount of CZK 7,200 a year for one part-time employment for parents with a child under 6; discounts for disabled people will be implemented by another legal regulation

• Extending the scope of people entitled to receive the foster parent remuneration in form of a foster care allowance as specified by the State Social Support Act; allowances for foster parents carrying out their foster care in foster care institutions will be implemented by another legal regulation

Parent Mutual Support (PMS)

• Parents caring personally and all-day for their own child under 7 in the house or flat where they live with their family;

• Together with their child, they care for no more than 3 entrusted children;

• Excluded from the scope of authority of the Trade Act;

• Unlimited payment for the provided care;

• Calculation and payment of personal income tax, health and social insurance pursuant to general conditions;

• Entitlement to parental allowances pursuant to general conditions;

• No record keeping or registration system introduced.

Review of Operating Conditions for Childcare Trade

• For the regulated trade "Care for children under three", the qualification of the operator and the people providing the actual care, is determined as achieving the highest level of education and the duty to complete an accredited course;

• If the trade of "Care for children under three" and "Extracurricular education and learning, organising courses, trainings, including lecturing" involves no more than 4 children at a time, the facility is not bound by the sanitary decree;

• In case the care involves more than 4 children in the facility, the necessary requirements of the sanitary decree have to be considered.

Operating Conditions for Childcare Beyond Education & Trade Acts

• Practically, the operators most often include employers for their employees' children, and non-profit organisations;

• There are no clear conditions for providing childcare in practice;

• The qualification of people caring for children is determined by the highest achieved education and the completion of an accredited course;

• The number of children per one carer is determined;• Sanitary decree requirements must be observed if

more than 4 children are cared for at a time;• Tax advantages in case the service is provided by the

employer for their employees' children • No record keeping or registration system introduced

Tax-Deductible Costs• The costs for achieving, gaining and maintaining the

income for the purpose of determining the tax base of natural persons/legal entities include the costs for establishing and operating one's own facility to care for the employees' children, and the employer's non-monetary contributions for the provision of the care for their employees' children;

• Similar "tax advantages" for self-employed people who spend money on the care for their own child;

• The provision of non-monetary performance does not represent tax exempt for employees .

Cancelling the Condition of Limited Stay for Entitlement to

Parental Allowances• The entitlement to parental allowances is not

conditioned by the limited time a child over 2 could stay in the nursery, kindergarten or other similar institution any more (healthy as well as disabled children);

• The condition of due and all-day personal care is considered fulfilled in order to remain entitled to allowances, if the "healthy" child under 2 attends the nursery, kindergarten and other similar institution for no more than 46 hours a month;

• The current provisions remain applicable for disabled children under 2.

Proposal for Further Amendments

• Cancelling the free of charge last year of pre-school education

• Raising the financial participation of child's legal representatives in paying for the costs of pre-school education

Thank you for your attention!