As Covid-19 measures are being relieved, we bring you the latest legal news on some of the most important questions regarding resuming normal office work.
Our lawyers from 8 jurisdictions will provide you with the latest requirements companies need to make for their employees to resume regular office work, on future impact of Covid-19 on contractual obligations and some of the main requirements for companies to become eligible for state aid.
Albania
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
Some of the main requirements consist in daily checking all employees for Covid-19 symptoms, providing masks, gloves and hand sanitizer with at least 60% alcohol for employees, providing hand sanitizer with at least 60% alcohol for all clients, ensuring natural ventilation of closed premises, etc.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used (should have been used)?
Many contracting parties in employment contracts, lease contracts and other have evoked the implementation of the force majeure clause of the respective contracts.
The implementation of the force majeure clause has been often objected by the other party due to the lack of clarity of the respective measures adopted by the Albanian government with regards to the businesses allowed or not allowed to exercise their activities during the lockdown period.
2. Should you include Covid-19 when entering into new contracts?
We would recommend the contracting parties to include the proclamation of a Covid-19 epidemic/pandemic as a force majeure event, without conditioning the implementation of the force majeure clause with the government measures which may be unclear and amended very frequently.
State aid eligibility
1. What are the latest measures of state aid for companies?
The Council of Ministers issued the Decision of the Council of Ministers, approving financial aid for all self-employed persons and employees of all small companies which were ordered to close due to the measures taken by the Albanian government.
Moreover, the Council of Ministers issued the Normative Act No. 12, ordering the postponement of rent payment for March and April 2020, for all legal entities, for all notarial rent agreements entered into prior the proclamation of the state of emergency.Furthermore, the Bank of Albania decided to postpone the term for the payment of loan instalments until 31.05.2020 for all loans issued by all financial institutions licenced by the Bank of Albania to businesses or individuals experiencing difficulties due to the Covid-19 pandemic.
With regards to fiscal incentives adopted to support local business, the Albanian government decided to postpone until the 31st of July 2020, the term for all legal entities for the filing of financial statements.
Furthermore, the final term for all legal entities with annual income less than ALL 14.000.00 to pay the income tax instalments for 2020, is postponed until the 31stof December 2020.
2. What requirements companies need to meet to be eligible for the help from the state?
All self-employed with annual income less than ALL 14.000.000 and employees of all companies with annual income less than ALL 14.000.000 are eligible to receive financial aid from the Albanian government, under the condition that such entities were ordered by the Albanian state authorities to close due to the Covid-19 pandemic.
All legal entities with annual income less than ALL 14.000.000 are eligible to benefit from the postponement of the rent payment for March and April 2020, under the condition that such entities were ordered by the Albanian state authorities to close due to the Covid-19 pandemic.
Business or individuals must provide for the financial institution, sufficient proof with regards to the difficulties due to the COVID-19 pandemic.
3. In which cases do they lose the right for help?
Self-employed/employees who have declared an annual salary income of more than ALL 2.000.000 for 2019 are not eligible to receive the financial aid.
Bosnia & Herzegovina
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
1.1. Republic of Srpska
Companies that are allowed to perform activities are obliged to organize the activity in such a way which provides all the conditions for preventing the occurrence and spread of coronavirus.
Thus, the following sanitary and hygienic measures must be taken at the workplace:
– regularly clean and wipe all work surfaces and objects with appropriate disinfectants,
– provide all necessary means for cleaning and disinfection which is available to all,
– regular and frequent hygienic hand washing with soap and water,
– in case of impossibility to wash hands, alcohol-based disinfectant can be used if the hands are not visibly dirty,
– put up posters promoting hand washing in a hygienic way,
– combine these measures with other communication measures, such as providing guidance by occupational safety officers, meetings with employees and the like.
Promote and implement respiratory hygiene measures:
– display posters to promote the implementation of proper respiratory hygiene, as well as through internal and external communication,
– ensure the availability of tissues / napkins used for coughing, sneezing, runny nose, which after use are disposed of in a hygienic manner in closed waste bins,
– provide certain amounts of face masks (medical / surgical) to be used in case of signs of respiratory infection until final disposal.
Measures to be taken in case of Covid-19 in the community:
– inform all employees to stay at home in case of respiratory symptoms (cough, fever, shortness of breath) and to contact a medical doctor, epidemiologist or family medicine doctor at the local health center,
– place this information in visible places (poster) in the company and send it to other communication channels that are used, etc.
Republic and local self-government units’ bodies and other entities exercising public authorities are obliged to organize their work as follows:
– limit the number of people staying in the same office,
– maintain a distance between citizens at a distance of at least 2 meters,
– to enable the operation of the counter hall with the control of the number of service users, the physical distance of 2 meters and with the provision of a transparent physical barrier between the employee and the service user.
1.2. Federation of Bosnia and Herzegovina
Companies are to implement special protection measures that will prevent the occurrence of harmful consequences by health of workers, in a way to workers shorten the working hours, if any the work process allows.
Employers who employ a larger number of workers should reorganize the workplace in order to avoid concentrating more workers on one place.
Companies are also to take hygienic and physical distance measures.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used (should have been used)?
Existing contracts generally did not address the Covid-19 situation, save from some contracts that contain detailed Force Majeure clauses.
Thus, some of the mechanism which were used to address the Covid-19 crisis were claims of force majeure, reduction of purchases/supplies of services and prices (if possible) and termination of contracts.
2. Should you include Covid-19 when entering into new contracts?
The Covid-19 situation has uncovered the importance of drafting clear Force majeure clauses, provision of options for adaptation, amendment or termination of the contract in case of such unexpected adverse events.
Thus, force majeure clause now should be included, and such clauses need to be detailed, based on objective criteria and easily applicable between the parties.
State aid eligibility
1. What are the latest measures of state aid for companies?
1.1. Federation of Bosnia and Herzegovina
The Government of FBiH has made a decision to reduce the contribution for health insurance of workers working abroad by BAM 10.
The Tax Authority announced instructions for filling in the application for subsidizing contributions for compulsory insurance according to Act on mitigation of negative economic consequences caused by the coronavirus pandemic which was explained in the previous SELA article.
FBH Act on Mitigation of Negative Economic Consequences was adopted on 7 May 2020. This Act prescribes the conditions and manner of assistance to economic entities affected by coronavirus, the abolition of administrative fees, court, utility and tourist taxes as well as certain fees, and the adoption of a program of short-term and medium-term measures of importance for mitigation of negative economic consequences on the economy in Canton of Sarajevo.
Further, Sarajevo Canton adopted a Program of Short- and Medium-Term Measures Important for Mitigating Negative of economic consequences on the economy in Sarajevo Canton caused by coronavirus (Covid-19).
Moreover, Canton Sarajevo announced the public call for the allocation of funds to finance part of the minimum wage for the months of April and May 2020.
1.2. Republic of Srpska
Respective authorities in RS adopted several decrees such as:
– legislative decree on the establishment of a compensation fund (for mitigation of the consequences of coronavirus),
– decree on the conditions and manner of using tourist vouchers in catering facilities, with the aim of developing domestic tourism,
– decree on the allocation of funds to business entities and entrepreneurs to remedy the consequences of the coronavirus pandemic for April 2020, in order to preserve the employment.
The following subjects are not entitled to this help: banks, insurance companies, business entities that registered their activities after 29 February 2020, business entities with over 50% of the capital owned by the RS, or local self-government units, business entities that have exercised the right to payment of the lowest salaries and contributions for the month of April 2020 in accordance with the decree with legal force on tax measures to mitigate the economic consequences caused by the corona virus, etc.
2. What requirements companies need to meet to be eligible for the help from the state?
Depending on the exact type of help, but the general condition is that the company is affected by the consequences of the corona virus (especially if operation of their business was banned).
3. In which cases do they lose the right for help?
Companies that do not fulfil prescribed requirements would be dismissed with their application. Some public call prescribed which entities are not eligible for help.
For instance, Canton Sarajevo published in their public call for the allocation of funds that no public enterprises, public institutions, government and local governments units can apply for this subventions etc.
RS acted similarly when prescribing the requirements in Decree on the allocation of funds to business entities and entrepreneurs in order to mitigate the consequences of the coronavirus pandemic for April 2020 (as explained above in point 1).
Bulgaria
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
An emergency anti-epidemic state has been declared until 30 June 2020 on the territory of Bulgaria. Until then the recommendation for telework still remains in place for all employers.
For those whose work processes do not allow for telework, the following anti-epidemic requirements are established:
– disinfection in accordance with statutory algorithms,
– denial of access to the work place of employees with notable symptoms,
– briefing and instruction of employees regarding personal hygiene and provision of soap and disinfectants,
– ensuring at least 1.5 meters of social distance between employees,
– depending on the risk evaluation, provision of personal protection equipment (masks, gloves, helmets, physical barriers between employee and customer etc.).
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used (should have been used)?
Existing contracts generally did not properly address the Covid-19 situation, except for some containing detailed and well-drafted Force Majeure clauses or allowing for some flexibility or adaptation in light of economic changes.
Some of the mechanism which were used to address the Covid-19 crisis were temporary amendments through negotiations and mutual compromise of the parties, claims of force majeure, reduction of purchases/supplies of services (if possible) and early termination of contracts (if possible).
2. Should you include Covid-19 when entering into new contracts?
The Covid-19 situation has uncovered the importance of drafting clear Force majeure clauses, provision of options for adaptation, amendment or termination of the contract in case of such unexpected adverse events. Those clauses should be fairly detailed, concise, based on objective criteria and easily applicable between the parties.
In that respect, even if there is no explicit reference to Covid-19, drafting and review of contracts should be done by taking into account the possible impact of events such as the Covid-19 pandemic on the contractual relation and properly addressing it.
State aid eligibility
1. What are the latest measures of state aid for companies?
The currently available state aid measures include:
– capital investment of up to EUR 800 000 per individual investment through the Fund Manager of Financial Instruments in Bulgaria (Fund of Funds),
– Portfolio Guarantee Program through the Bulgarian Development Bank (BDB) where guarantees are provided by 12 commercial banks,
– unsecured loans for small and medium-sized enterprises – a program managed by the BDB through commercial banks,
– loans to small and medium-sized enterprises with interest rate subsidies – a product offered and managed by the Fund of Funds,
– Wage subsidy by the State in the amount of 60% of the employee’s social security income for January 2020 and 60% of the paid social security contributions due by the employer with the purpose of preventing dismissal of personnel and preserving employment.
2. What requirements companies need to meet to be eligible for the help from the state?
For the aid measures listed under p. 1) – 4) above the specific terms and conditions depend on the type of aid and the provider of the preferential financing and guarantees chosen by the company. Generally, the focus of the measures is on small and medium-sized enterprises which have suffered some reduction of turnover within the last months and have not have significant difficulties or debt prior to that.
The wage subsidy as per p. 5) is currently available to companies performing activities which fall directly within the economic sectors with a prohibition or restriction of activity imposed due to Covid-19 anti-epidemic measures or companies with a complete or partial suspension of activity or such with a part-time regime of work introduced and at least a 20% decrease of the revenue.
3. In which cases do they lose the right for help?
Depending on the measure, generally non-compliance with the terms under which the aid is provided shall result in loss of the right for help.
For example, employers who have been approved and receive state wage subsidies shall return the subsidies received in case they dismiss any of their employees during the subsidy period or in case they don’t preserve the employment of the subsidized employees for at least a period equal to the subsidy period.
Croatia
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
Epidemiological situation in Croatia is constantly stable throughout June, with small number of new cases of Covid-19 infection. National Civil Protection Headquarters has significantly reduced the volume and the reach of decrees directed to the general public, wide range of industries and different aspects of everyday life.
Consequently, the majority of industries is activated and almost all aspects of everyday life normalized, all recommended by the Croatian Institute of Public Health to be done following all general anti-epidemic measures and special recommendations and instructions published by that authority.
Recommended methods for prevention and repression of the Covid-19 infections – applicable to employers as well – are self-assessment before coming to work (body temperature check), often hand washing, social distancing, hands disinfection, surfaces and premises cleaning and disinfection.
Importance of cooperation of the employees and responsibility of each individual amid Covid-19 crisis has been emphasized – that each individual/employee is obliged to immediately inform the employer in case of safety at work and health issues and to act according to obligations from the labour legislation, health and safety legislation and recommendations issued by competent authorities specifically for Covid-19 outbreak.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used?
Sudden inability to fully meet contractual obligations has affected numerous business relationships in different industries in Croatia.
Legal mechanisms for reaching solution provided under Croatian civil obligations legislation are:
– force majeure,
– change of contract or its termination due to change of circumstances,
– inability for fulfilment of the contract for which neither of the contracting parties is responsible,
– uncertain fulfilment of contractual obligations by one of the contracting parties.
Many of the contracts endangered by the Covid-19 crisis are heavily renegotiated, using different mentioned mechanisms.
2. Should you include Covid-19 when entering into new contracts?
Strong earthquake that hit Zagreb in March 2020 and Covid-19 outbreak have additionally motivated existing and future contracting parties to contractually provide solutions for unexpected situations in the future and are, mostly in the form of the force majeure clauses, included in the contracts.
State aid eligibility
1. What are the latest measures of state aid for companies?
Latest measure announced by the Croatian Government for May 2020, aimed to support and assist the employers in different industries in overcoming the crisis caused by Covid-19 pandemic is a monetary aid to employers in the net amount of HRK 4,000.00 (approx. EUR 530,00) per employee monthly (for full time employment) and in the proportional net amount per employee monthly depending on the number of working hours for employees in the part time employment.
Previously existing measures are, among others, public contributions postponement and/or payment in instalments, postponement of payment of credit obligations, loans favourable credit conditions to the companies for the purpose of liquidity etc.
2. What requirements companies need to meet to be eligible for the help from the state?
For the latest measure for monetary aid to employers for employees the main requirement is a decrease in revenues of at least 50% for May 2020 compared to May 2019.
3. In which cases do they lose the right for help?
Employer who has requested support for 50+ employees will have to return the aid if, from the moment of receiving it until 31 December 2021:
– pays dividend or share of profits or other equivalent receipts that are considered a distribution of profits regardless the tax period it originates from,
– it allocates its shares/business shares to its management board members, executive directors, procurators or other persons authorised to employer’s full or partial management,
– pays bonuses, rewards for business results above the non-taxable amount provided in the income tax legislation or,
– acquires its own shares/business shares.
Montenegro
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
In order to continue with their regular activities, companies need to act in accordance with the official guidelines provided by the Government for different categories of business concerning preventive measures.
Protective personal equipment (face masks) is obligatory e.g. for employees and patients in public health institutions, employees in child, adult and elderly care take institutions as well as employees and passengers in public transportation vehicles.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used?
Similar to other countries in region, outdated legislative framework governing the contractual relations did not provide adequate solutions when it comes to effects which Covid-19 had on contractual relations.
Therefore, this situation was resolved through conclusion of annex to the agreement, granting the extension of the deadlines for a time period during of which Covid-19 measures were in force and, in some cases, offering the reduction of the periodical fees payable under the agreement, postponement of payments or payment free periods and similar.
2. Should you include Covid-19 when entering into new contracts?
Yes, this is highly advisable, having in mind that practice showed that standard force majeure clauses do not in clear and understandable manner regulate scenarios such as Covid-19.
However the clauses governing events like this one, should be not be limited only to Covid-19. Instead, it should be phrased in an abstract and general manner comprising any similar event which might occur in the future with precise definition of legal consequences arising due to such events.
State aid eligibility
1. What are the latest measures of state aid for companies?
The measures consist of direct aid in amount of minimum wages for each employee with employee agreement as of February 2020, as well as for new employees in the period of six months.
Furthermore, quick credit lines are available in order to help the liquidity of the economy.
2. What requirements companies need to meet to be eligible for the help from the state?
The Companies eligible for the state are the ones which fulfilled all of their obligations concerning taxes and acted in accordance with the legislation enforced during the epidemic situation.
More specifically, the main requirement is that the company did not terminate employment of any employee during the epidemic situation, in comparison to the number of employees in February 2020.
3. In which cases do they lose the right for help?
In case of employment termination and allocation of state aid resources for other than designated purposes.
North Macedonia
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
The Macedonian Government imposed the following measures for employers:
– mandatory carrying of personal face protection during the performance of work tasks. Personal face protection includes any form of protection that covers the area of the nose and mouth (respiratory mask FFP2 or higher standard, disposable surgical mask, textile mask for multiple use, silk neckwear or scarf, cotton neckwear or scarf, bandana or similar),
– prohibition of entry and movement in the working premises of any natural person who does not wear personal protective equipment,
– guidelines for employees for personal hygiene and providing soap and disinfectants based on alcohol,
– physical distance of at least 1 meter between employees, reduction of physical meetings with clients with a recommendation for use of teleconference equipment, recommendation for work in shifts or remote work if possible,
– regular cleaning and disinfection of the working environment,
– cancellation or postponement of work-related trips that are not necessary and will be held in regions where there is a greater transfer and an increased number of people with Covid-19,
– self-isolation of employees who have symptoms that correspond to Covid-19.
The measures were initially imposed for the term of the emergency state that was extended a few times and currently lasts until June 22, 2020. However, the Government announced that the said measures will continue to apply after the end of the state of emergency.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used?
In general, agreements did not contain clauses that would precisely address the Covid-19 situation. Even when addressed, having many aspects, the Covid-19 situation could not always have been covered with proper protection for the parties.
That being said, the parties relied upon the dispositive norms from the Obligation Law, in terms of the ‘force majeure’ features defined with the law, as well as on the ‘hardship’ concept as defined by the Obligations Law.
2. Should you include Covid-19 when entering into new contracts?
Definitely. Although the lawfully prescribed concept of ‘force majeure’ and ‘hardship’ provide sufficient protection, the Covid-19 crisis demonstrated too many aspects that are impossible to always be covered with the general lawful provisions. Hence, the situation requires protective clauses tailor made for the specific legal relation.
State aid eligibility
1. What are the latest measures of state aid for companies?
The latest state aid measures include:
– financial support in the amount of 25% of the realized investment, but not more than:
a) EUR 40k, for businesses with up to EUR 1m total income for 2019,
b) EUR 100k, for businesses with between EUR 1m and 10m total income for 2019,
c) EUR 140k, for businesses with between EUR 10m and 50m total income for 2019,
d) EUR 200k, for businesses with more than EUR 50m total income for 2019,
– reduction of the interest rate calculated on the amount of more or less paid tax and ancillary tax duties by 50% (and it will be in the amount of 0.015% during the state of emergency),
– prolongation of the forced debt collection procedure until June 30, 2020, as follows:
a) for tax debt that is overdue and unpaid, and for which no forced collection procedures have been initiated,
b) for tax debt on all grounds that will be due for payment in the months of May and June 2020 ,
c) for court fees and fines, i.e. fines and costs imposed in litigation, misdemeanour, criminal and administrative proceedings in favour of the state and are charged by it, which are overdue and unpaid, and for which no forced collection procedure has been initiated,
– two packages of interest-free credit lines (for micro-small and medium-sized companies) have been implemented so far, as follows:
a) “Covid 1” package intended for the field of catering, tourism and freight transport –up to EUR 30k,
b) “Covid 2” package intended for the most affected sectors – up to EUR 90k,
c)implementation of the “Covid 3” package is underway, which promises direct support to the economy, innovation and development for the preservation of the existing and new jobs.
2. What requirements companies need to meet to be eligible for the help from the state?
The requirements differ depending on the type of the help. In general, they are related to:
– the number of employees and a prohibition for decreasing of the number of employees,
– the amounts of decreased profits,
– the prohibition for distribution of profits to the shareholders, as well as success based awards and similar annual awards.
3. In which cases do they lose the right for help?
In general, the help is lost if the company disregards the conditions under which the state aid measure has been provided.
Serbia
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
In general, employers are obliged to provide their employees to work at the workplace and in the work environment in which safety and health measures at work have been implemented.
The Government of the Republic of Serbia is in the process of adoption of a new decree, i.e. the Regulation on Preventive Measures for Safe and Healthy Work for the Prevention and Spread of Infectious Diseases Covid-19.
This Regulation will prescribe the preventive measures that the employer is obliged to fulfil to ensure safe work and health of employees, as well as people found in the work environment, for prevention of dissemination of Covid-19, i.e. it will stipulate series of measures and obligations for both employers and employees.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used?
Similar to other countries in region, outdated legislative framework governing the contractual relations did not provide adequate solutions when it comes to contractual relations affected by Covid-19.
Therefore, this situation was resolved by the contractual parties through the conclusions of annex the agreement, granting the extension of the deadlines for a time period during of which Covid-19 measures were in force and, in some cases, offering the reduction of the periodical fees payable under the agreement, postponement of payments or payment free periods and similar.
2. Should you include Covid-19 when entering into new contracts?
Yes, it is recommendable. Clauses governing events like this, should be not be limited only to Covid-19.
Instead, it should be phrased in an abstract and general manner comprising any similar event which might occur in the future with precise definition of legal consequences arising due to such events.
State aid eligibility
1. What are the latest measures of state aid for companies?
The measures consist of direct financial aid in amount of minimum wages for employees for March, April and May 2020, fiscal benefits (postponing the payment of taxes) and providing economical credits (the amount of credit is limited based on the category of the business entity).
The Chamber of Commerce of Serbia announced the proposal of new set of measures to the Government in near future.
2. What requirements companies need to meet to be eligible for the help from the state?
The main requirement is maintenance of manpower. The employers may qualify for the benefits under the condition they have not reduced their employee headcount in the period from 15 March 2020 until 10 April 2020 for more than 10%.
The ground for employment termination is irrelevant. Fixed-term employees whose contracts expire during the relevant period shall not count into the 10% threshold.
3. In which cases do they lose the right for help?
In case the employer reduces the number of employees for more than 10% (excluding the employees who had fixed-term employment agreements), in the period between 15 March 2020 and 31 October 2020, the company not only loses the right for help, but have to return the received help with default interest as well.
Slovenia
Getting back to work / health measures
1. What are the main requirements companies need to meet so employees can safely return to office work?
The main requirements for the employers are the following:
– to actively encourage sick employees to stay home and to ensure that their sick leave policy is flexible and in line with public health doctrine guidelines,
– to perform routine cleaning of the work environment (especially entry and exit points, and the premises),
– to ensure regular room ventilation and proper operation of ventilation systems,
– to order the employees to take care of hygiene (cough hygiene, hand washing and disinfection, etc.),
– to encourage or strive to use methods that do not involve personal contacts (telephones, video conferencing, the Internet), even if people work in the same building and make it possible to work from home as much as possible.
Future of contractual obligations
1. Have the existing contracts properly addressed the covid-19 situation? If not, what mechanisms were used?
A vast majority of contracts did not include the provisions governing the consequences of delays and other breaches of the contract due to force majeure, such as the Covid-19 epidemics. Such situations were usually only envisaged in more complex contracts.
In the absence of such provisions, contracting parties were left with the possibility of trying to reach an agreement or, in case this was not possible, relied on the general provisions of the Obligations code.
2. Should you include Covid-19 when entering into new contracts?
Yes, when entering into new contracts it is advisable to agree on specific provisions governing the consequences of delays and other breaches of the contract in case of another outbreak of Covid-19, or (even more advisable) due to occurrence of any of the force majeure situations.
State aid eligibility
1. What are the latest measures of state aid for companies?
On 31 May 2020, the Slovenian National Assembly adopted the third “package” of measures to mitigate the consequences of the Covid-19 epidemic to Slovenian economy.
The main state measures included in the so-called “PKP3” are subsidizing the part-time work, extension of the validity of the measure to reimburse the salary of employees, who are waiting for work at home, and awarding vouchers to Slovenian residents, who can use them with Slovenian tourist accommodation providers.
2. What requirements companies need to meet to be eligible for the help from the state?
With regard to the measure of subsidizing the part-time work, the eligible company (employer) is a company, which:
– is a legal or natural person who was registered in the Slovenian Business Register before 13 March 2020 and is employing full-time employees,
– assesses it cannot provide at least 10% of his employees with at least 90% of the work load,
– is not a direct or indirect beneficiary of the state or municipal budget, whose share of revenue from public sources in 2019 was higher than 50%.
Due to the fact that the second measure (i.e. reimbursement of the salaries of employees, who are waiting for work at home) is only an extension of the measure under the “PKP1” (the first package of measures), the conditions prescribed therein continue to fully apply.
The vouchers for Slovenian tourists will be awarded to all Slovenian residents, namely to residents, who are born in or before 2002, will receive a voucher in the amount of EUR 200, and the residents, who were born in 2003 and later, will receive a voucher in the amount of EUR 50. The vouchers can be used at the providers, who are:
– entered to Slovenian Business register,
– entered to Slovenian Register of accommodation establishments,
– and they are qualified (under classification of business activities) as hotels, resorts, touristic farms, lodges, camps, auto camps or other short-term accommodation providers
3. In which cases do they lose the right for help?
The company loses the right to compensation for the part-time work, if it does not notify the Employment Service about the implementation of the part-time work within three days. In this case the company will also need to return the received funds with the statutory default interest.
Furthermore, if liquidation proceedings are initiated during the period of receipt of the subsidy or during a subsequent period equal to the period of receipt of the subsidy, the received subsidy will need to be returned with statutory default interest.
The same consequence is foreseen if the employer distributes profits, purchases its own business shares, or pays bonuses or awards to management for business performance in 2020 or for 2020. These provisions apply to both the measure of subsidizing the part time work and for the reimbursement of the salaries of employees, who are waiting for work at home.
Breach of conditions can furthermore lead to high penalties for both the companies and the responsible individuals.
*Disclaimer: The information contained herein is intended solely for informational purposes and is generally available to the public and obtained from sources believed to be reliable. SELA does not guarantee the accuracy, completeness, or timeliness of the information and shall not be liable for any damages or costs in connection with the use of the content contained herein. Nothing in this document or its updates is to be construed as providing legal advice in any manner. For any inquiries please get in touch with one of our team members.