On April 2, 2020, the Parliament passed an amendment to the Labor Code, which introduced the provision of §250b. This provision lists deviations from the rest of the provisions of the Labor Code for the period of declared emergency (DE) connected to the COVID-19 pandemic.
Below, we prepared a document that compares the previous situation and changes that are now in place.
We also added the relevant measures for businesses adopted in Slovakia mitigating the economic impact and the project conditions for maintaining employment in times of declared emergency.
Applicants have to apply electronically through their local labor office and can do so as of 6.4.2020 until the end of the calendar month during which the DE will cease.
In addition to the previously published conditions regarding the amount of the state contribution per employee, the maximum monthly contribution or the maximum annual ceiling, there were also several general conditions, including compliance with tax obligations. Relatively new is the condition that employers are obliged to keep the supported job positions for 2 additional months after the month for which the support is provided.
1. SUPPORT FOR EMPLOYERS UP TO 80 %
For an employer (except public administration entities), who in times of DE, maintains employment (job positions) in spite of being forced to shut down (stop or limit operations) based on the measures of the Public Health Authority.
Target group: employees, to whom the employer cannot assign work due to the obstacles on the part of the employer (§ 142 of the Labor Code)
Contribution amount:
- Compensation of up to 80 % of their employees‘ average salaries (up to a maximum of EUR 1 100)
- For employers who paid their employees a wage compensation of 60 % of their average earnings before the amendment to the Labor Code, the real wage compensation paid will be taken into account up to a maximum of EUR 880 (lowering the ceiling of EUR 1 100 by 20 %)
Employer contributions: covered by the employer (possible delay in the event of a decrease in revenues by 40 %)
Applications: starting from noon of April 6, 2020 on website: www.pomahameludom.sk
The maximum amount of contribution: EUR 800, 000 for the whole support period (per project)
2. SUPPORT FOR EMPLOYERS ACCORDING TO THE DECREASE OF REVENUES
For an employer (except public authorities), who is not forced to shut down (stop or limit operations) during the DE situation based on the measures of the Slovak Public Health Authority, but manages to maintain employment (job positions) in spite of decreasing revenue.
Target group: employees, to whom the employer cannot assign work due to the obstacles on the part of the employer (§ 142 of the Labor Code)
Contribution amount: depends on a decrease of revenues in comparisons with the same time period in 2019 (alternatively with an average for 2019)
Decrease in revenues by ≥ 20 % - the compensation for April and other months od DE will be 180 EUR (90 EUR for March)
Decrease in revenues by ≥ 40 % the compensation for April and other months of DE will be 300 EUR (150 EUR for March)
Decrease in revenues by ≥ 60 % the compensation for April and other months of DE will be 420 EUR (210 EUR for March)
Decrease of revenues by ≥ 80 % the compensation for April and other months of DE will be 540 EUR (270 EUR for March)
Employer contributions: covered by the employer (possible postponement in the event of a decrease of revenue by 40 %)
Applications: starting from noon of April 8, 2020 on website: www.pomahameludom.sk
The maximum amount of contribution: EUR 200, 000 per month per eligible applicant
3. APPLICABLE CONDITIONS FOR BOTH TYPES OF CONTRIBUTIONS:
Period: Since the 12.3.2020 till the end of the month, in which the restrictive measures of the Slovak Public Health Authority will be canceled.
Applicants have to apply electronically and can do so as of 6.4.2020 (for the time period since 12.3.2020).
Applications are handled by the local office of labor, social affairs and family in whose territory the employer retains jobs
Common provisions:
- Applicants had to establish/incorporate their entity (and begin to operate their business) until the 1.2.2020 at the latest
- Employers are obliged to pay employees (for whom the contribution is granted) a remuneration of 80 % of their average salary
- Employers are obliged to keep the supported job positions for 2 additional months after the month for which the applicant applied. They also can not take any legal actions to terminate the employment relationship with the employee (s) by dismissal or agreement for redundancy or cancellation of the employer
- Applicants must submit a statement of their employee count by 31.1.2020
- Applicants could not have been defined as a “business in difficulty” until 31.12.2019
- Compliance with their tax obligations
- Compliance with their duty to pay an advance payment of health insurance premiums, social insurance premiums, and the contribution for old-age pension saving
- Employers did not breach a ban on illegal employment within the two years preceding the submission of the application for a contribution
- No liabilities in respect of the Office which are past due
- Applicants are not bankrupt, in liquidation, under the administration of bankrupt’s estate or involved in other similar proceedings.
- Records show no unsatisfied claims of their employees, arising out of employment
- Are not banned from receiving subsidies, assistance or support from European Union funds
- They had a decrease in revenues (in case of the second measure)
The conditions are proven by an affidavit, which will be subsequently checked.
