INFORMATION ABOUT NOT CREATING A SOCIAL BENEFITS FUND - FREE DOCUMENT TEMPLATE! - DOWNLOAD

Information on not establishing a Social Benefits Fund - free template

The company social benefit fund (ZFŚS) is cash accumulated by the employer in a separate bank account. They are obtained from the annual contribution to the Company Social Benefits Fund. The purpose of this fund is to provide social support to eligible employees. Not every employer is required to establish a Social Benefits Fund. However, those who are not obliged to do so should prepare a special document, which is the information about not establishing the Company Social Benefits Fund. You can read about how to prepare it in the article.

ZFŚS - who is not obliged to create it?

The company social benefit fund is obliged to create:

budgetary units and local government budgetary establishments,

employers employing at least 50 full-time employees as of January 1 of a given year (Article 3 (1) and (2) of the Act on the Company Social Benefits Fund).

The employment status includes all employees employed under an employment contract.

However, employers who meet the second condition and are covered by a collective labor agreement or are obliged to issue remuneration regulations, may be exempted from the obligation to establish a Company Social Benefits Fund. In the case of employers covered by a collective labor agreement, the decision not to establish a ZFŚS should be included in the collective labor agreement. On the other hand, employers who are not covered by the collective labor agreement, but create the remuneration regulations, should create an annex to the regulations.

Employers employing fewer than 50 full-time employees as of January 1 of a given year may create ZFŚS or pay holiday benefits, but they do not have to do so (Article 3 (3) of the Act on the Company Social Benefits Fund). Those who employ less than 50 employees and are not covered by a collective labor agreement, and do not create remuneration regulations, should provide employees with relevant information. Information on the failure to establish a Social Benefits Fund and not to pay the holiday benefit should be provided to employees by the end of January in the manner adopted by the employer, e.g. by e-mail or information posted on the notice board. Information about not establishing a Social Fund should be provided to employees by January 31. Importantly, such information should be provided every year.

It is assumed that failure to provide such information means that in a given year the employer creates the Company Social Benefits Fund or pays holiday benefits. Employer, remember that when you resign from establishing a ZFŚS, you must transfer all unused funds from previous years for activities in accordance with the ZFŚS regulations.