On Friday, 23 October 2020, the Act on Temporary Measures for Mitigation and Elimination of Consequences COVID-19 (ZZUOOP) was published in the Official Gazette of the Republic of Slovenia, which brings the following novelties:
- Reimbursement of workers' compensation for quarantine or incapacity for work due to force majeure - childcare (Articles 57-67)
- II. Measure of partial reimbursement of salary compensation to temporary laid-off workers (Articles 68-78)
- Possibility of extending the measure of part-time working hours (Article 6)
- Extraordinary financial assistance in the form of monthly basic income (Articles 88-92)
- Partial reimbursement of lost income for the self-employed and partners for the duration of quarantine at home or inability to perform work due to force majeure due to the obligation of childcare (Articles 93-97)
- Short-term absence due to illness (Article 20)
- Testing of employees on SARS-CoV-2 is not considered as a provided benefit of employees (Article 33)
I. Reimbursement of workers' compensation for quarantine or incapacity for work due to force majeure childcare (Articles 57-67)
1. This measure shall apply in the case of quarantine: from 1 October 2020 to 31 December 2020 and Force Majeure: from 1 September 2020 to 31 December 2020, with the possibility of extension for six months.
2. Quarantine decision
The amount of salary compensation in case of force majeure is 80% of the average monthly salary of a full-time employee (137/7 ZDR-1), and in case of salary compensation due to quarantine it depends on the reason for issuing the quarantine decision and amounts to:
- 100% of salary compensation the worker would have received if working, belongs to the worker who has been ordered quarantined due to contact with an infected person in the course of performing work (at the workplace);
- 80% of the average monthly salary of a full-time employee (137/7 ZDR-1) belongs to the employee who received the quarantine decision upon arrival in Slovenia, and upon his departure this country was on the green or orange list and to the employee, who has been quarantined for contact with an infected person outside of work;
- 50% of the salary, the worker would receive if working, and not less than 70% of the minimum wage belongs to a worker who visited a country on the red list and has presented a written statement to the employer at least one day before departure that he was visiting the country on the red list due to the following personal circumstances; death of a spouse or common-law partner, death of a child, adopted child or child of a spouse or common-law partner, death of parents (father, mother, spouse or common-law partner of a parent, adoptive parent), birth of a child, summons to court.
- 0% of the salary compensation belongs to a worker who has gone to the country on the red list and does not claim exemptions.
If the employee has exercised or is entitled to part-time work during the quarantine or during the quarantine period and receives partial compensation on the basis of the regulations on pension and disability insurance or is entitled to part-time work on the basis of health insurance or parental care regulations, the salary compensation is paid in a proportional part, and the employee retains the rights of benefits or payment of social security contributions according to the above regulations, as if he were working.
3. Force majeure - childcare
The law reintroduces the right to reimbursement of paid salary compensations for childcare, taking into account his age and other circumstances or due to force majeure. A child is considered to be a child up to and including the 5th grade of primary school, children in adapted and special programs in primary schools with an adapted program and in institutions for the upbringing and education of children with special needs, and children who have certain assistance in the orientation decision.
Employers shall judge excused absence from work based on elements considered to be force majeure: the presence of an external cause, the unexpectedness of the event, and the inevitability of the event. Within these elements, it is necessary to assess the possibility of childcare performed by the other parent, the possibility of a different distribution of working hours.
The employee shall notify the employer of any circumstances affecting the occurrence of force majeure no later than three working days from the occurrence of the reason for absence. For the purpose of reimbursement of compensation, the employer needs a statement from the employee on the existence of circumstances that affect the occurrence of force majeure.
An employee who is unable to perform work due to force majeure due to childcare obligations is entitled to salary compensation in the amount determined by ZDR-1, in case of temporary inability to provide work for business reasons (Article 138 of ZDR-1). Accordingly, the employee has the right to salary compensation in the amount of 80% of the base from paragraph 7 of Article 137 of ZDR-1 (same basis as for annual leave, etc.).
The employee receives salary compensation for the period for which the child is quarantined or as long as circumstances of force majeure are given which justify his/her absence.
The employer may exercise the right to reimbursement of paid compensations (I. gross) at the Employment Service of the Republic of Slovenia in:
- 8 days from the entry into force of the law, for absences from 1.9.2020 until the entry into force of PKP5
- 8 days from the beginning of the employee's absence for absences after the entry into force of PKP5.
The employee's duty is to inform the employer within 24 hours that he is in quarantine and the reasons for it, within 3 working days of receiving the quarantine decision to forward it to the employer, and within 3 working days of the reason to notify the employer of absence from work due to force majeure.
Eligible employers:
Employers will be able to exercise the right to reimbursement of paid quarantine compensations for workers who are unable to perform work due to force majeure (due to the obligation of childcare due to quarantine or other external objective circumstances of inability to attend kindergarten or school) or who will not be able to organize work at home and for workers.
The employer is obliged to pay the employees net salary compensations and contributions for all compulsory insurances during the period of receiving the reimbursement of the paid salaries, otherwise, the received funds should be returned in full amount.
Reimbursement claim procedure
1. Submission of an application to the Employment Service of Slovenia (within 8 days from the entry into force of the law, if the employer exercises the right to reimbursement for the period before the entry into force or within 8 days from the beginning of the employee's absence)
2. On the basis of the decision on the recognition of the right, a contract on reimbursement is concluded with the Employment Service of Slovenia
3. Submission of the claim
A new definition of quarantine; Quarantine at home is a measure by which the National Institute of Public Health (NIJZ) or the Police send an oral instruction to a person referred to in the first paragraph of this article to self-isolation at the address of residence by limiting contact with persons who do not live in the same household. They inform the person about the purpose and method of carrying out quarantine at home with the instructions prepared by the NIJZ. The NIJZ or the Police refer the person to quarantine (until now the Ministry of Health) with oral instructions. As proof of exercising the right to salary compensation or other rights from health and social care, the NIJZ or the Police hand over to this person confirmation of referral to quarantine at home directly or forward it by e-mail or regular mail within 72 hours.
II. Measure of partial reimbursement of salary compensation to temporary laid-off workers (Articles 68-78)
1. The measure is valid until 31 December 2020, with the possibility of extension for up to six months.
2. Eligible employer
Humanitarian and disability organizations are also eligible, even if they do not meet the condition of declining revenues.
To such assistance are entitled employers whose, according to their estimates, revenues (Revenues from this paragraph are net sales revenues determined according to accounting rules) will fall by more than 20 % in 2020 due to the epidemic compared to 2019. If they did not operate throughout 2019 or 2020, those employers whose average monthly income in 2020 will decrease by more than 20 % compared to the average monthly income in 2019 are also entitled to the measure. If they did not operate in 2019, the measure is also eligible for those employers whose average monthly income in 2020 will decrease by more than 20 % due to the epidemic compared to the average monthly income in 2020 until 12 March 2020.
If the conditions are not met when submitting the annual reports for 2020, the beneficiary shall return the funds received under the measure.
- Salary compensation amounts to 80% of the base from 137/7 ZDR-1, but not less than the minimum wage.
- Reimbursement of salary compensation to the employer
The employer is entitled to a partial refund in the amount of 80% of the paid salary compensation and not more than EUR 892.50 (gross I). The employer is entitled to a refund of salary compensation for the actual monthly or weekly obligation, for a holiday and other non-working day, if the employee would actually work on that day.
The employer is not entitled to reimbursement if:
- fails to comply with mandatory duties and other monetary non-tax liabilities in accordance with the law governing the financial administration, which are collected by the tax authority, if it has unpaid due liabilities on the day of filing the application;
- if, on the date of submission of the application, he has not submitted all withholding tax returns for employment income for the last five years until the date of submission of the application;
- if bankruptcy proceedings have been instituted against employer or if employer is in liquidation proceedings.
Obligations of the employer:
- payment of salary compensation during the period of receiving reimbursements
- shall not order overtime or temporarily redeploy working hours if this work can be done with temporary laid-off workers
- inform the Employment Service of Slovenia in advance if the employee is summoned to work
Refund of refunds received:
• breach of employer's obligations
• if liquidation proceedings are initiated, according to the law governing companies during the period of receipt of funds and after the cessation of receipt of funds (for the same period)
Redundancies of workers
During the period of receiving partial reimbursement, employer shall not initiate the procedure of termination of the employment contract for business reasons to employees who have been temporary laid-off or terminate the employment contract of a large number of employees for business reasons, unless the redundancy program has been adopted before 13. 3. 2020 and the employer did not exercise the right to reimbursement of compensation for these workers under Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (ZIUZEOP), Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (ZIUOOPE), Act Determining Intervention Measures to Prepare for the Second Wave of COVID-19 (ZIUPDV) or this Act.
Reimbursement claim procedure
- Submission of an application to the Employment Service of Slovenia(within 8 days from the entry into force of the law for workers sent on hold before the entry into force of the law or within 8 days from the posting of waiting)
- The Employment Service of Slovenia decides on the application within 15 days by a resolution
- Submission of the claim
III. Possibility of extending the measure of part-time working hours (Article 6)
The measure of partial subsidization of part-time work is extended by the Government of the Republic of Slovenia by a decision issued no later than 20 December 2020, for a maximum of six months, but no longer than 30 June 2021, provided that the Temporary Framework for State Aid Measures support to the economy in the event of an outbreak of COVID-19 (OJ C No 91 I of 20.3.120, p. 1 and amendment to OJ C No 112 I of 4.4.420 p. 1) extended to 2021
IV. Extraordinary financial assistance in the form of monthly basic income (Articles 88-92)
1. The measure is valid: from 1 October 2020 to 31 December 2020, with the possibility of extension for six months.
2. Beneficiary
The beneficiary of extraordinary assistance in the form of monthly basic income is a person who has been registered to perform activities at least from 1 September 2020 until the entry into force of this Act and cannot or does not perform activities due to the consequences of the COVID-19 epidemic COVID-19 epidemic, namely:
- a self-employed person who is, on the day this Act enters into force, included in compulsory pension and disability insurance (insurance base 005),
- a partner or shareholder of a company or the founder of a cooperative or institution who is a part of the management,
- a farmer who is included in the compulsory pension and disability insurance on the day of the entry into force of this Act on the basis of Article 17 or the fifth paragraph of Article 25 of ZPIZ-2.
A person who does not pay compulsory duties and does not fulfil other monetary non-tax liabilities is not entitled to basic income if this person has unpaid overdue tax liabilities on the day of submitting the application.
Those whose income will fall by more than 20% in 2020 due to the epidemic are eligible for assistance. If they did not operate in the entire year 2019 or 2020, those self-employed persons whose average monthly income in 2020 will decrease by more than 20% compared to the average monthly income in 2019, are also entitled to assistance. If they did not operate in 2019, those self-employed are also entitled to assistance, whose average monthly revenues in 2020 will decrease by more due to the epidemic than 20% of the average monthly income in 2020 until 31 August 2020. If the condition set out in this paragraph is not met, the beneficiary shall repay the whole assistance. Revenues include net sales revenues determined in accordance with the accounting rules and benefits from parental care insurance.
3. Amount
Extraordinary aid amounts to EUR 1,100/ month, EUR 700 / month for the self-employed in culture and EUR 940 / month for farmers.
If the beneficiary is not included in the insurance for the entire month or for the full insurance period, he is entitled to a proportional amount according to the share of inclusion in the insurance for an individual month or to the full insurance period.
If a person of the law is entitled to extraordinary assistance in the form of a monthly basic income for the same period, he is not entitled to reimbursement of lost income.
Basic income is exempt from all taxes and contributions (exempt from the tax base).
4. Monthly Basic Income filing procedure
Submitting an application via e-Taxes for the month;
October, submission until 31.10.2020, received funds by 10.11.2020,
November, submission by 30.11.2020, received funds by 10.12.2020,
December, submission by 31.12.2020, received funds by 10.01.2021.
If the beneficiary submits a statement for several months in total, he is transferred the sum of the monthly basic income for each month.
4. Repayment of received funds
1. If since the entry into force of this Act there has been a payment of profits, purchases of own shares or own business shares, payment of bonuses to management or part of salaries for business performance paid to management in 2020 or for year 2020, the beneficiaries shall inform Slovene Tax Administration (FURS). The received funds shall be returned after the service of the decision, together with the statutory default interest, which runs from the day of exercising the rights from this law until the day of return.
2. Failure to meet the condition of declining revenues - notify FURS no later than the deadline for submitting a tax return for 2020. The aid must be repaid within 30 days of service of the decision. After the expiration of this period, statutory default interest is charged.
If the beneficiary returns the basic income and has not submitted an application for partially reimbursed lost income (quarantine and force majeure), he may submit the application within 30 days of the return of the basic income. FURS pays the partially reimbursed lost income within 15 days of receiving the application.
V. Partial reimbursement of lost income for the self-employed and partners for the duration of quarantine at home or inability to perform work due to force majeure due to the obligation of childcare (Articles 93-97)
1. The measure is valid until 31 December 2020 (with the possibility of extension for six months)
2. Beneficiary
The beneficiary for partially reimbursed lost income, who, due to the ordered quarantine at home or inability to perform work due to force majeure, cannot perform activities and organize the performance of activities at home, is:
- a self-employed person who, on the day this Act enters into force, includes compulsory pension and disability insurance (insurance base 005),
- a partner or shareholder of a company or the founder of a cooperative or institution which is a manager,
- a farmer who is included in the compulsory pension and disability insurance on the day of the entry into force of this Act on the basis of Article 17 or the fifth paragraph of Article 25 of ZPIZ-2.
Force majeure: the right to reimbursement of paid salary compensations for the protection of a child, taking into account his age and other circumstances or due to force majeure. A child is considered to be a child up to and including the 5th grade of primary school, children in adapted and special programs in primary schools with an adapted program and in institutions for the upbringing and education of children with special needs, and children who have certain assistance in the orientation decision.
Quarantine: if he received a quarantine decision on arrival in Slovenia, but when he left that country was on the green or orange list, or if he was quarantined due to contact with an infected person.
3. Amount of reimbursed lost income
250 euros for each ordered quarantine or for a period of force majeure, but not more than 250 euros for 10 days, 500 euros for 20 days and 750 euros in one month.
Partially reimbursed lost income is exempt from all taxes and contributions (exempt from the tax base).
The Monthly Basic Income and the compensation of lost income are mutually exclusive for the same period.
Enforcement
An application submitted on e-Taxes up to 30 days after the ordered quarantine or reason for force majeure and no later than 31 December 2020. FURS makes a transfer by the 10th of the month for applications submitted in the previous month.
VI. Short-term absence due to illness (Article 20)
The measure is valid until 31 December 2020, with the possibility of extension for six months.
Absence from work due to illness without a confirmation of justified abstinence from work, issued by the chosen personal doctor, for up to three consecutive working days in a row, at most once in an individual calendar year.
The employee notifies the employer in writing or electronically of the short-term absence due to illness on the first day of absence. A worker may not engage in gainful activity or move outside his place of residence during the period of short-term sick leave.
Amount of compensation to the employee: 80% of the employee's salary in the previous month for full-time work.
Reimbursement to the employer: the compensation is covered by the Health Insurance Institute of Slovenia (ZZZS). The application must be submitted to the ZZZS no later than 3 months after the expiry.
VII. Testing of employees on SARS-CoV-2 is not considered as a provided benefit of employees (Article 33)
This measure is valid until 30 June 2021, with the possibility of an extension for six months.
Notwithstanding Article 39 of ZDoh-2, payments by the employer for testing employees on SARS-CoV-2, to which they are referred and covered by the employer, are not considered a provided benefit.
The law entered into force on 24.10.2020. Source: Official Gazette. In case of additional questions, we are happy to be at your disposal.