Coronavirus – New measures for employers - Slovakia

• Slovakia

• Coronavirus - Country overview
• Coronavirus - Workforce issues

17-04-2020

The Government of the Slovak Republic has recently amended some of the previously adopted measures for employers and self-employed persons for maintaining employment and helping to overcome the current crisis. It has even extended the state aid to those who were not eligible for any contribution pursuant to the previous plan.

Extended financial aid including “kurzarbeit” for employers

The Government of the Slovak Republic passed a resolution by which it amended the two previously adopted employment support measures applicable during the state of emergency.

Below are the means by which the government aims to support employers and other entitled groups in their decisions to maintain employment even when they are unable to assign work to employers. As it stands, details concerning only the first three measures have been published and the process for submission of requests for the last measure is currently unknown.

Measure 1 – “kurzarbeit” alternative 1

This applies to employers that;

• at the time of declaration of an emergency event, emergency state and serious state of emergency based on the Measure of the Public Health Authority of the Slovak Republic, have closed or restricted their sites (except public administration entities) and to those who;
• retain jobs even in the event of an obligation to interrupt or limit their operation. These individuals will be eligible for a state contribution

Contribution amount: payment of the employee's wage amounting to 80% of his / her average earnings, up to a maximum of EUR 1,100 per month. The maximum contribution of EUR 800,000 per employer is no longer applicable. The Labor Offices have been accepting requests for this contribution from 6 April 2020 .

Contribution eligibility conditions

• payment of an employee's wage compensation of up to 80% of their average earnings
• commitment that two months after the month for which the contribution is requested, the employment will not be terminated or no legal action resulting in the termination of the employment for organizational reasons will be taken
• submission of data on the number of employees as of 31 March 2020
• declaration that as of 31 December 2019 the business was not in crisis (this also applies to self-employed persons)

Other facts to be declared via an affidavit by the employer

• compliance with tax obligations under specific legal regulation
• compliance with the obligation to pay advance payments for public health insurance, social insurance and mandatory contributions to retirement pension savings
• non-violation of the prohibition of illegal employment in two years prior to the submission of the contribution application
• absence of due financial liabilities with respect to the Labor Office
• employer is not in bankruptcy, liquidation, forced administration or does not have a fixed payment schedule under specific legal regulation
• employer does not have outstanding claims of its employees resulting from employment
• employer is not sentenced with a legally valid and effective penalty of prohibition to receive subsidies or subventions or with a penalty of prohibition to receive aid and support provided from European Union funds, if the employer is a legal person

• declaration that as of 31 December 2019 the employer was not a company in difficulties

Measure 2

This applies to self-employed persons that;

• at the time of the declaration of the state of emergency closed or limited their operations based on a decision of the Public Health Authority, or;
• who suffered loss of revenue and;
• who do not have a simultaneous employment relationship or did not cancel or interrupt the trade license, will be eligible for a state contribution

The amount of the contribution will depend on the loss of revenue in comparison with the same period in 2019 (or if the trade license was not in operation at that time, in February 2020), as follows:

As well as the loss of revenues, the self-employed person must also demonstrate compliance with other conditions for the entitlement, e.g. that he/she was not in crisis prior to 31 December 2019, that all tax, social and health insurance obligations are complied with, that he/she did not violate the illegal employment legislation and that he/she is not in bankruptcy, liquidation, forced administration or does not have a fixed payment schedule under specific legal regulation.

The Labor Offices started accepting requests for this contribution from 8 April 2020.

Measure 3 – “kurzarbeit” alternative 2

This applies to employers that at the time of declared state of emergency to retain jobs during the interruption or limitation of their operation (i.e. who were not obliged to close or limit the operation based on a decision of a Public Health Authority), will be entitled to a state contribution.

The amount of the contribution to which the employer will be entitled, will be either a maximum of 80% of the employee´s average monthly wage, to whom the employer could not assign work due to hindrances at work (maximum EUR 880), or a contribution in the lump sum calculated pursuant to the tables in Measure 2 above, in which case the eligible employee may be assigned work, but no less than 50% of his/her monthly working time. The employer may choose whichever type of contribution is more favorable for them, but the chosen alternative shall apply to the whole period of entitlement.

As of 17 April 2020, the Labor Offices started to accept requests for this type of state aid.

Measure 4

Selected groups of persons who do not have any income during the state of emergency

Selected persons who do not fall within any of the above schemes and have no income such as;

• self-employed persons whose gainful activity has been interrupted or limited;
• self-employed persons who ceased their gainful activity as of 13 March 2020;
• a person carrying out work based on agreements outside the employment relationship;

may all be entitled to a contribution in the amount of EUR 105 in March 2020 and EUR 210 in April and May 2020.

As of today, the Labor Offices do not accept requests for this type of state aid and details for submission of requests is still to be announced.

Amendments in the Labor Code

On 2 April 2020, the Slovak Parliament approved amendments of the Labor Code to increase employers' flexibility in cases of the declaration of emergency events, emergency states and serious states of emergency.

The most important changes are:

• the employer is entitled to order the employee to work from home where possible
• the employer is obliged to notify the employee about the working time schedule at least two days in advance, unless a shorter period of time is agreed with the employee; this working time schedule is to be effective for at least one week. This measure provides employers with more flexibility; previously it was necessary to notify the employee about their work schedule at least one week in advance
• the employer may order an employee to take annual leave at least seven days in advance and may order the employee to take remaining annual leave from the previous year with two days warning. The time limit may be shortened with the employee’s consent
• if the employee cannot perform work entirely or partially due to ceasing or limitation of the employer’s activity (i.) caused by the decision of the public authority or (ii.) as a result of the declaration of an emergency event, emergency state or serious state of emergency, which causes difficulties for the employer to work, the employee is entitled to a wage compensation amounting to 80% of his/her average earnings. Should 80% of an employee’s wage not amount to the statutory minimum wage, the wage compensation must be at least the statutory minimum wage. An agreement with neither the employees’ representatives nor the employee is required

The above-mentioned amendments will apply during emergency events, emergency states and serious states of emergency and for the two months following their termination.