CORONAVIRUS TASKFORCE UP-DATE - First state aid to employees, entrepreneurs and sole traders – First group – UPDATED 20 May 2020, 6 pm
Information stated below is of general nature and does not necessarily consider specific conditions of your case. For legal assistance in your specific case, please, do not hesitate to contact us.
Please note that the content below is current as at 20 May 2020, 6 pm. The conditions for provision of individual contributions to support the maintenance of employment may be changed. In the case of any changes, this content will be amended.
Ministry of Labour, Social Affairs and Family of the Slovak Republic updated Notification on possibility to submit application for provision of financial contribution (only as the “Notification”) in the project of employment maintenance in the case of an extraordinary situation, a state of emergency or a state of crisis (only as the “ES”) and reduction of its consequences (only as the “Project”). The Notification is published in Slovak on following websites:https://www.pomahameludom.sk/ and https://www.neprepustaj.sk/. Respective updates are made in red.
The first state aid group consists of employers (excluding public administration entities) including self - employed persons, who are employers, and who had to stop of limit performance of their business activities due to measures adopted by the Public Health Authority of the Slovak Republic and will maintain job positions during the ES (only as the “employer”).
The employer is considered to be:
a) legal person having its registered seat or seat of its organizational unit in the Slovak Republic, or natural person having its permanent residence in the Slovak Republic and at the same time is employing natural person in employment relationship or other similar relationship,
b) branch of a foreign legal person or foreign natural person with labour law subjectivity, entitled to carry out business activities in the Slovak Republic pursuant to the special regulation,
c) legal or natural person performing its business activities pursuant to the special regulation, especially procurement of employment for payment, temporary employment, employment support, provision of professional advisory services, provision of education and training for job-seekers, job-candidates and for employees in the Slovak republic.
Basic conditions for the contribution provision:
What must employer fulfil?
- Employer is obliged to pay a salary compensation to employees according to respective provisions of the Labour Code.
- Employer is obliged to maintain the job position if the employer is obliged to stop or limit its business activity due to measures adopted by the Public Health Authority of Slovak republic.
- Employer cannot terminate employment relationship with employee/employees by the notice or by the agreement for reasons stated in Section 63, par. 1, letters a) and b) of the Labour Code in the period of that two months after the month for which the contribution is provided.
- Employer is a subject established and performing business activities no later than from 1st February 2020.
- During contribution provision, the employer can increase number of employees, but no contribution shall be granted for new employees.
- During contribution provision, the employer cannot allocate the employee for who the contribution is granted to other operational premises, if the employer has more operational premises.
For which employees will the contribution be provided?
- Contribution is provided for an employee, to whom the employer could not assign work due to work obstacle on the part of employer (Section 142 of Labour Code).
- Contribution shall be provided only for employees whose employment relationship commenced on 1 March 2020 at the latest.
- For the purposes of contribution provision, the term employee means only an employee in employment relationship.
- Contribution shall not be provided for employees whose employment relationship is based on agreement on work outside employment, for the managing director working without an employment contract or shareholder working for its company without the employment contract, cooperating persons – e.g. wife, children, parents who pursuant to the Act on Illegal Work do not have to be in employment relationship, persons working on basis of agreement pursuant to the Civil Code, volunteers.
- Contribution cannot be provided for the employees who are receiving social security benefits (such as allowance for sick leave, so called PN or care for family member, so called OČR).
- Employer can apply for contribution only for employees in employment relationship and at the same time are not in the notice period at the day of application submission.
- The contribution shall not be provided to maintain job position of employees, to employment of which was for some period granted other type of contribution either for wage or for total cost of labour within AOTP (active labour market measures), except contribution for job position pursuant to the Section 53d of Act on Employment Services, while fulfilling following conditions:
- maximum intensity of aid established by relevant guidance and regulation on group exceptions, and at the same time
- maximum intensity of aid stated in relevant decision of Commission and on other compatible aid.
Amount of the contribution
The amount of the contribution shall be determined according to the following rules:
- The financial contribution is provided to cover the salary compensation amounting to 80% of the employee’s average salary. This amount shall not exceed EUR 1,100.
- The contribution for the employer who paid the salary compensation in amount less than 80 % of employee’s average salary in accordance with concluded collective agreement or written agreement with representatives of employees (Section 142 (4) of the Labour Code), shall be calculated considering actually paid salary compensation. This amount shall not exceed EUR 880.
- The contribution for the employer who paid the salary compensation according to the Labour Code in the amount exceeding 80 % of employee’s average salary, shall be paid in the amount of 80% of the employee’s average salary. This amount shall not exceed EUR 1,100.
- In case the salary compensation (which was already paid, or which will be paid by the end of the relevant calendar month in which the application is submitted) is less than EUR 1,100, the contribution shall not exceed actually paid salary compensation.
Filing an application – procedure
In case, the employer fulfils condition for provision of contribution within two measures from the Project in one calendar month, the application shall be submitted pursuant to the measure within which the employer has more number of calendar days.
If the employer has only one operation, it is possible to apply for contribution only within one measure for one month.
If the employer has two or more operations, it is possible to apply for contribution for one month within measure 1 and at the same time measure two, but for different premises.
The employer submits the application to the respective Office of Labour, Social Affairs and Family (hereinafter referred to as the “office”), determined according to the district where the job positions are maintained. In case the employer has more than one operation, the application shall be submitted to the office determined according to the district in which the employer has its registered office.
Mandatory Annex to the application is a report for contribution provision. More information on how to complete such report is available in the manual in Slovak language (Manuál k vypĺňaniu výkazu pre priznanie príspevku).
Part of the application consists from a declaration in which the employer declares that:
1.Employer pays to its employees the salary compensation in the amount pursuant to the respective sections of Labour Code.
2.Employer does not claim the contribution for employees in notice period or employee receiving social security benefits due to obstacles to work on the part of the employee.
3.Employer does not request the contribution for employees already receiving other salary contribution/total labour cost within the active labour market measures provided by Office of Labour, Social Affairs and Family.
4.Employer does not request the contribution for employees employed after 2 March 2020.
5.During the period of two months after the month for which the contribution is being provided, employer shall not terminate the employment relationship by the notice or agreement for reasons stated in Section 63, par. 1, letters a) and b) of the Labour Code.
6.Employer meets the conditions stipulated in Section 70, par. 7 of the Act on Employment Services by following:
- Employer fulfils tax obligation pursuant to the Act No. 595/2003 Coll. on Income taxes, as amended,
- Employer fulfils the obligations to pay advance public insurance levies, social insurance levies and obligatory old-age pension savings contributions,
- Employer is compliant with the prohibition of illegal employment for a period of two years prior to applying for the contribution,
- Employer does not have unpaid financial obligations towards the Labour Office,
- it has not been declared bankrupt or wound up, has not been in receivership and does not have a reimbursement schedule pursuant to special regulations,
- There are no outstanding claims of employees arising from their employment,
- It is not prohibited to receive subsidies or to receive aid and assistance provided from EU funds, in case the employer is a legal person;
7.There are no outstanding claims against this employer for repayment of aid on basis of former decision of European Commission declaring aid illegal and incompatible with the internal market,
8.Employer is a subject existing from and started to carry out its business activities on 1 February 2020 at the latest.
The facts declared by the applicant may be subject to ex-post controls.
By confirming correctness and verity of submitted data in the application and its annexes, the applicant shall be aware of consequences due to false declaration of the abovementioned facts, including criminal consequences (Section 221 Fraud, Section 255 Subsidy Fraud, Section 261 Damage to the Financial Interests of the European Union pursuant to the Penal Code No. 300/2005 Coll. as amended).
The application shall be submitted without signature and it shall be submitted by electronic post (mail) or electronically by electronic mailbox (as a priority). In exceptional cases, the application can be sent by post office or delivered personally.
The application for April 2020 shall be submitted until 31 May 2020. The employer submitting application for April or May shall submit the application by the end of calendar month, following the month for which the compensation is required.
Agreement of provision of financial contribution – signing and delivery
The contribution shall be provided to the employer without delay on basis of Agreement on provision of financial contribution (hereinafter referred to as the “Agreement”), which is sent by the office after delivery of application and control of its formal requirements.
If the Agreement is sent to the employer via post office, it is delivered in two counterparts, one for each party to the Agreement. The office sends already signed Agreement to the employer. The employer shall subsequently sign the Agreement and send one counterpart also by post (in exceptional cases personally) back to the office. Second counterpart is for the employer.
If the employer has active electronic mailbox for delivery, the office sends signed Agreement electronically through electronic mailbox. The employer signs this Agreement by certified electronic signature and sends it back to the office via portal www.slovensko.sk.
Please note, that the office will not accept documents signed by two methods at the same time. In other words - if the office signed the Agreement electronically, the employer cannot print the Agreement and sent it by the post, but it has to be also signed electronically.