Coronavirus 2020

Key novelties of Anti-Corona Package - Act on Intervention Measures for Mitigation and Elimination of the Consequences of the SARS-COV-2 Epidemic (ZIUOOPE)

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Below are some key novelties brought by the new law:

1.Partial subsidization of full-time reduction (Articles 11-23 of ZIUOOPE)

An employee who works only part of the working hours can be reimbursed for salary compensation for the remaining part of working time to full time, for which employee is assigned to work in the delegation from 5 to 20 hours per week, but must be partially reimbursed for determination of part-time work, (hereinafter: subsidy).

The right to a subsidy has an employer, who fulfills the following conditions:

• is legal or natural person entered in the Business Register of Slovenia before 13 March 2020 and employed employees on the basis of proposals for full-time employment, and

• estimates that at least  10% of employees cannot provide at least 90% of work.

The employer that can claim a partial refund of the paid salary compensation (subsidy) from the Employment office of RS for the time of partial temporary waiting of employee for work in the delegation from 5 to 20 hours per week.

The subsidy amounts to:

  • €448 per month per employee to keep part-time work for a 20 to 24 hours per week,
  • €336 per month per employee to keep part-time work for a 25 to 29 hours per week,
  • €224 per month per employee to keep part-time work for a 30 to 34 hours a week,
  • €112 per month per employee to keep part-time work for 35 hours per week.

This measure will be available to the employer from 1 June 2020 to 31 December 2020 at the latest.

The employer can claim the subsidy on a monthly basis for previous month, until the conditions are mets. The employer proves the fulfillment of the conditions with a written statement.

In accordance with the provisions of the law governing the labor market, an employee may register in the register of jobseekers during the ordered part-time work and may be included in the measures provided by the Employment Service to registered jobseekers.

The employer may not;

• during the period of receiving the subsidy and for one month after this period, initiate the procedure of termination of the employment contract for business reasons for part-time employees, or terminate the employment contracts to a larger number of employees for business reasons, unless the dismissal program was adopted before 13 March 2020 and the employer did not claim a subsidy for these workers under this Act or ZIUZEOP (violation of the prohibition of dismissal) and

• order overtime work in the period of receiving the subsidy, if this work can be performed with workers who have been ordered to work part-time.

An employer who has received a subsidy on the basis of this Act must, in the event of profit distribution, purchase of shares or rewards to management or part of salaries for business performance paid to management in 2020 or for 2020 since the entry of this Act into force, inform the Financial Administration of the Republic of Slovenia. The funds received must be returned, together with statutory default interest, which run from the date of receipt of the subsidy until the date of repayment.

2. Reimbursement of salary compensation to workers on temporary waiting for work (Articles 24-34 of the ZIUOOPE)

Partial reimbursement of salary compensation to employees on temporary waiting for work may be claimed by any employer in the Republic of Slovenia who is temporarily unable to provide work due to the pandemic consequences, unless employer who is:

-direct or indirect user of the budget of the Republic of Slovenia or the budget of the municipality, whose share of revenues from public sources in 2019 was higher than 70%,

-an employer engaged in a financial or insurance activity belonging to group K according to the standard classification of activities and having more than ten employees on 13 March 2020,

-foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union in the Republic of Slovenia.

The measure is eligible for those employers:

  • whose estimated revenues in 2020 will fall by more than 10% compared to 2019 due to the epidemic.
  • Who did not operate in the entire year 2019 or 2020, and whose average monthly income in 2020 will decrease by more than 10% compared to the average monthly income in 2019 due to the epidemic.
  • Who did not operate in 2019, andwhose average monthly income in 2020 will decrease by more than 10% compared to the average monthly revenue in 2020 until 12 March 2020.

If the conditions of this paragraph are not met when submitting the annual reports for 2020, the beneficiary shall return the funds received under this measure.

The employer may send an individual employee on a temporary standstill until 30 June 2020 at the latest.

The amount of partial reimbursement of paid salary compensation in this act amounts to 80% of salary compensation and is limited by the amount of the maximum amount of unemployment benefit specified in the law governing the labor market.

The employer shall exercise the right to reimbursement of paid salary compensations under this Act by submitting an application in electronic form to the Employment Service of Slovenia within eight days of the employee's posting on temporary waiting for work, but no later than 30 June 2020.

The right to reimbursement of paid salary compensations referred to in the previous paragraph may not be exercised by the employer:

- who does not fulfill the obligatory duties and other monetary non-tax obligations in accordance with the Financial administration Act, which are collected by the tax authority, if he has unpaid obligations on the day of submitting the application. An employer shall be deemed not to have fulfilled the obligations under this indent even if he had not submitted all withholding tax returns on the date of submission of the application for the period of the last five years up to the date of submission of the application;

- if bankruptcy proceedings have been instituted against him.

3. Voucher for improving the economic situation in Tourism (Article 35 ZIUOOPE)

The beneficiary of the voucher is a person who will reach the age of 18 in 2020, with permanent residence in the Republic of Slovenia on 13 March 2020, other persons who do not meet the age requirement but meet the condition regarding permanent residence are entitled to voucher in the amount of 50 euros. The voucher is issued to the beneficiary and is redeemed by 31.12. 2020 and is transferable between close family members in a straight line to the second generation.

Providers, where the voucher can be redeemed, are entities registered in the Republic of Slovenia, entered in the register of accommodation establishments kept by the Agency of the Republic of Slovenia for Public Legal Records and Related Services performing activities according to the Standard Classification of Activities:

- 55.100 - Hotels and other similar accommodation,

- 55.201 - Holiday homes and resorts,

- 55,202 - Tourist farms with rooms,

- 55.203 - Renting private rooms to guests,

- 55.204 - Mountain lodges and youth hostels,

- 55,209 - Other short-term accommodation,

- 55.300 - Camping activities.

4. Financial incentives based on the COVID-19 financial incentive program (Article 36 ZIUOOPE)

Financial incentive is given in the form of grants and repayable funds to ensure the current operations and liquidity of companies and adequate security or safe operations of companies in order to prevent the spread of COVID-19, to co-finance revenue shortfalls in tourism and hospitality, to provide support to manufacturing in border problem areas ensuring the digitalization and digital transformation of companies and for development projects in progress or with the potential for rapid start-up.

Beneficiaries are micro, small, and medium-sized enterprises facing the negative consequences of the COVID-19 epidemic, which receive an incentive in the form of a percentage of project funding, a lump sum or other simplified forms of costs.

The financial incentive is granted on the basis of an application submitted by the beneficiary to a public tender or public invitation or in accordance with the procedure with a direct contract in accordance with the Public Finance Act. It is awarded in the form of a percentage of project funding, a lump sum or other simplified forms of costs.

On the date of submission of the application, the beneficiary must meet all the conditions set out by the Temporary Framework for State aid measures to support the economy in the event of an outbreak of COVID-19 (OJ C No. 91 I of 20.3.2020). The conditions require registered office or address in the Republic of Slovenia and that on the day of submission of the application, liabilities and other obligations are paid.

5. Ensuring the liquidity of companies through public funds (Article 37 of the ZIUOOPE)

The Slovenian Enterprise Fund and the Slovenian Regional Development Fund will be able to receive earmarked funds and use them for liquidity assets for micro, small and medium-sized enterprises.

Dedicated assets may be reduced to a minimum of earmarked funds.

6. Operation of Courts (Article 67 ZIUOOPE)

During the judicial holidays, i.e. from 1st August to 15th August 2020, the courts will hold hearings and decide only in urgent cases.

Act on Intervention Measures for Mitigation and Elimination of the Consequences of the SARS-COV-2 Epidemic (ZIUOOPE) entered into force on 1.6.2020.

With its entry into force, Articles 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11 of the Intervention Measures in the Field of Wages and Contributions Act (Official Gazette of the Republic of Slovenia, no. 36/20, 49/20 –ZIUZEOP and 61/20 –ZIUZEOP-A) shall expire.

Source:Official Gazette