PKP3 – current measures to assist employers
On 29 May 2020, the National Assembly of the Republic of Slovenia passed the Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (ZIUOOPE) or “PKP3”, which enters into force on 31 May 2020, and the temporary measures apply from 1 June 2020 onward. The main measure introduced to the labour market is the option of reducing full-time work and the state partially subsidising it; in addition, the PKP3 also retains the option of temporary lay-off and salary compensation for June 2020. There are still a number of ambiguities regarding certain issues, as well as new explanations every day from the relevant authorities, so this article will be regularly updated. Additional legal information is regularly published on our website. We can do it together, stay healthy!
Summary – Main new features introduced by the PKP3
In order to preserve jobs in the aftermath of the epidemic and due to the temporary inability to provide work for business reasons, the new PKP3 provides employers with the option of prescribe their full-time employees short-time work (at least 20 to 35 hours a week) while also partially temporarily laying them off (5 to 20 hours a week). This measure allows the employer to deviate from their fundamental obligation to the employee to guarantee them the work time that has been agreed upon in the employment agreement.
Regardless of the decree in this provision, the employee’s labour law status remains unchanged, the full-time employment contract remains as is and the employee continues to be fully included in all social security schemes and retains all the rights and obligations from the concluded employment relationship (unless expressly stated otherwise in the PKP3). The employee is entitled to a salary for the hours they are working. The portion of time in which the employee is temporarily laid-off entitles them to a salary compensation pursuant to the provisions of the ZDR-1 (80% of the basis).
Employers will also be able to claim partial reimbursement of the paid salary compensation (so-called subsidy) from the Employment Office of the Republic of Slovenia for this period of partial temporary lay-off for 20 to 5 hours a week.
In addition, the PKP3 also provides for the option of decreeing temporary lay-offs and salary compensation reimbursement as projected by the current intervention legislation (ZIUZEOP) for the month of June 2020. This allows employers to temporarily lay-off an employee until no later than 30 June 2020 and claim partial salary compensation reimbursement for the period under the current legislation.
MEASURE I: SHORT-TIME WORK AND PARTIAL TEMPORARY LAY-OFF
1. GENERAL OVERVIEW OF THE SHORT-TIME WORK MEASURE
The PKP3 introduces the option of ordering short-time work and simultaneous temporary lay-off in order to preserve employment positions in the aftermath of the epidemic and the temporary inability to guarantee work for business reasons.
The measure can be adopted by employers only for the following employees:
- Those with full-time employment agreements and
- In a way in which the employer guarantees the employee work for at least half of the regular working hours (i.e. at least 20 to 35 hours a week).
An employer who guarantees their employee at least 20 hours of work a week and the employee is temporarily laid-off for the rest of the scheduled working hours (i.e. 5 to 20 hours a week) can claim a partial salary compensation reimbursement. This partial salary compensation reimbursement is defined by the PKP3 as a subsidy.
2. WHICH EMPLOYEES CANNOT BE PUT ON SHORT-TIME WORK?
According to the PKP3, short-time work is not possible:
- For an employee during a notice period
- For an employee with social security rights, i.e. an employee who is already entitled to short-time work and who receives a partial compensation as per legislation on retirement, disability insurance, or who is already entitled to short-time work based on health insurance of parental protection legislation.
3. TIME LIMITATION OF THE PKP3 SHORT-TIME WORK MEASURE
The measure of decreeing short-time work with a simultaneous temporary lay-off of the employee for workers who have full-time employment contracts is available for the period from 1 June 2020 until no later than 31 December 2020.
4. WHAT IS THE PROCESS FOR AN EMPLOYER DECREEING SHORT-TIME WORK?
a. An obligatory prior consultation and written opinion of the union or workers council
Before making a decision about decreeing short-time work, an employer must consult with the employer’s union, and if the employer does not have any unions, with the workers council about:
- The extent of the short-time work,
- The number of employees who have been ordered such work, and
- The duration of the decree.
The employer must also acquire a written opinion of the union or workers council.
In the event that the employer does not have an organized union or workers council, the employer must inform the employees in the ordinary manner before making the decision.
If the circumstances change regarding the decrees for short-time work, especially the scope of the short-time work, the number of employees that will be decreed to perform such work, and the duration of the decree that was the foundation for making the decision, a new consultation must be done.
PKP3 does not set the time limitation in which the consultation must be carried out; it also does not set the time limitation in which the union or workers council should provide a written opinion. In terms of the deadline for informing and consultation, the possible time limitations must be taken into account that are set in collective agreements at the level of the activity and in the business collective agreements. It is certain that the consultation must be done before the employer reaches a decision. We also believe that the employer is obligated to enable the union or workers council a reasonable deadline to prepare for the consultation.
b. Written decree by the employer
The employer issues a written decree to the employee about the short-time work.
The written decree should include:
- The scope of the short-time work that cannot be shorter than half of the full-time work (i.e. no shorter than 20 hours a week),
- Duration of the short-time work,
- Dispersion of the working time or manner of dispersion of the working time,
- The duration of the break during working hours,
- The amount of compensation for work-related costs,
- The possibility and manner of appeal to the employee to perform full-time work again, and
- The amount of the salary compensation.
c. Informing the Employment Office of the Republic of Slovenia (“ZRSZ”) within three days from the day of the decree.
Regarding the general diction in the PKP3 that an employer must inform the ZRSZ about having decreed an employee to short-time work within three days of said decree, we believe employers are obligated to inform the ZRSZ in every case such a decree is issued (and not only in cases in which the employer claims the subsidy). If an employer acts contrary to this obligation, the received funds will need to be returned.
5. WHICH EMPLOYERS ARE ENTITLED TO CLAIM SUBSIDIES PURSUANT TO THE PKP3?
An employer who guarantees an employee work for at least half the regular hours (i.e. at least 20 hours a week), can apply or claim a partial salary compensation reimbursement (i.e. subsidy).
Rights to the subsidy are granted to employers that cumulatively meet the following criteria:
- A legal entity or natural person that was registered in the Slovenian Business Register before 13 March 2020,
- Employs workers based on full-time employment agreements,
- In their estimation, cannot guarantee at least 90% of work a month to at least 10% of their employees,
- The employer is not a direct or indirect budget user of the budget of the Republic of Slovenia or the budget of the municipality, whose share of income from public sources in 2019 amounted to over 50%.
6. WHAT IS THE APPLICATION PROCESS FOR THE SUBSIDY?
Employers claim subsidies on a monthly basis for the past month, as long as they meet the criteria according to the PKP3 (see previous item).
Employers claim a subsidy by submitting an application for a subsidy within 15 days of decreeing the measure of short-time work to the ZRSZ, to which they should enclose:
- Documentation on meeting the conditions set in the PKP3 (see previous item)
- A signed statement obligating the employer not to breach the prohibition of termination within a month after the period as set in the PKP3 (see item 7-)
- Consent to the publication of the data, as the list of all subsidy recipients and the amounts of received subsidies will be published on the ZRSZ websites.
The ZRSZ will issue a decision on the employer’s application within 15 days of receiving the (complete) application. Only an administrative dispute will be able to be filed against such a ZRSZ decision, as the PKP3 expressly does not enable the possibility of appealing against a ZRSZ decision.
Based on the decision, the employer and the ZRSZ will conclude a subsidy contract, in which the mutual relationships and obligations of the contracting parties are determined. The subsidy contract will contain provisions about the subject matter, the amount, the manner of subsidy payment, the conditions and manner of returning the subsidy, the duration of receiving the subsidy, monitoring, reporting, sanctions for breach and control over the measure implementation.
The subsidy will be paid to the employer on a monthly basis, no later than 30 days after the employer and the ZRSZ conclude the subsidy agreement.
7. WHAT ARE EMPLOYERS’ OBLIGATIONS DURING IMPLEMENTING SHORT-TIME WORK PURSUANT TO THE PKP3?
a. While receiving the subsidy
- An employer must regularly pay the salary and salary compensation to employees who have been decreed short-time work in a proportionate part according to the ordered share of work or the temporary lay-off;
- During the period of receiving a subsidy and a month after this period, a prohibition of starting the termination procedure of an employment contract for business reasons applies for employees who have been decreed short-time work, or to terminate employment contracts to a larger number of workers for business reasons.
- The exception to this obligation is if the redundancy program had already been passed prior to 13 March 2020 and the employer had not applied for a subsidy for these employees pursuant to this act or the ZIUZEOP;
- Prohibition of ordering overtime, unequal dispersion or temporary dispersion of the working time, if said work can be performed with employees who have been decreed short-time work.
Some questions have been posed regarding limitations to overtime and the unequal dispersion of working hours. In our opinion, judging by the linguistic and systematic explanation of the PKP3, the unequal dispersion of working time for workers who are working short-time work is permissible, based predominantly from the text of Article 14(4) of the PKP3. We also believe that the limitation of the provision regarding overtime should be interpreted as referring to employees who have not been ordered short-time work, as the employees working short-time work are already governed by ZDR-1 rules that overtime cannot be unilaterally decreed. Decreeing overtime to employees working short-time work is in contrast with the very institute of decreeing short-time work, as this could enable the employees’ employment agreement to be simply revoked. On the other hand, it is sensible that employees whose working hours have not been cut, cannot be ordered overtime, if employees on short-time work could have done the work. In addition, their working time cannot be unequally dispersed, as any excess hours are turned into overtime, if no offset occurs.
b. Generally due to the measure
- Keeping records on the working hours of an employee who has been decreed short-time work in a way that clearly states the time or arrival and departure from work according to the time of the actual arrival and departure (upon actual arrival and departure; not only at the end of the workday);
- Obligation to inform the ZRSZ within three days of decreeing short-time work.
c. Additional obligations and consequences of receiving funding per the PKP3
- Acting in contrast to the obligations set out in items a. and b. means the employer will have to return the received funds in their entirety including the statutory accrued interest, while also being a violation, to which a fine has been prescribed (see item 11-);
- If an employer begins the process of liquidation per ZGD-1 during them receiving funds or in the period afterward that is the same period of the period of receiving the funds, the received funds must be returned in their entirety including statutory accrued interest;
- If the employer practices profit appropriation up until this act entered into force (i.e. 31 May2020), as well as the purchase of the company’s own shares or business shares, management bonuses or business performance bonuses in 2020 or for the year 2020, the employer has to inform the Financial Administration of the Republic of Slovenia. The received funds will have to be returned after the decision has been issued, along with the statutory accrued interest, which start from the day the subsidy was received until the day the funds are returned.
8. SUBSIDY AMOUNT FOR SHORT-TIME WORK AND THE PAYMENTS
The PKP3 provides the subsidies for retaining employment positions in predetermined amounts:
- EUR 448 a month per employee for ensuring employment for short-time work from 20 to including 24 hours a week,
- EUR 336 a month per employee for ensuring employment for short-time work from 25 to including 29 hours a week,
- EUR 224 a month per employee for ensuring employment for short-time work from 30 to including 34 hours a week.
- EUR 112 a month per employee for ensuring employment for short-time work in the scope of 35 hours a week.
The subsidy will be proportionately decreased for the employee’s absence in cases that are determined in the ZDR-1. These are by and large cases in which an employee is absent because they are using their annual leave, sick leave, holidays, and other work-free days. In such cases, the salary compensation the employee receives will be different (see item 9-). Explanations to the PKP3 proposal also provide that the employer will only be entitled to a subsidy when the work is being done for short-time work and the subsidy will only paid for the days the employee is working and for that section of the short-time work.
The subsidy will be paid to the employer monthly (in its entirety or in proportion). The PKP3 provides that the subsidy is to be paid within 30 days after the subsidy contract has been concluded between the employer and the ZRSZ.
9. RIGHTS AND OBLIGATIONS OF AN EMPLOYEE WHO HAS BEEN DECREED SHORT-TIME WORK AS PER THE PKP3
PKP3 also provides for certain rights and obligations of an employee who has been decreed short-time work. The most important of these is that the employee retains all the rights and obligations from the employment relationship as if they were working full-time, unless if expressly provided otherwise in the PKP3.
This means the employee has got:
- The right to receive payment for the time they are actually working (100% of the salary);
- The right to salary compensation for the hours up to full-time work in which they are not working after being decreed short-time work, in the amount as determined in the ZDR-1 for the event of a temporary inability to guarantee work for business reasons (80% of the basis; regardless of the subsidy rate for which the employer is eligible);
- The right to a break that is proportionate to the time spent in the workplace;
- The obligation to perform full-time work at the employer’s request;
- The right to a monthly salary compensation when they are absent from work in the cases as set in the ZDR-1 (i.e. use of annual leave, sick leave, holidays and other work-free days) in the amount set in the ZDR-1. Herein, the work obligations of the employee are taken into account that have been prescribed with the full-time employment contract. The basis for the amount of salary compensation is determined relative to the salary the employee would have received, if they had been working full-time;
- The right to register in the register of employment seekers during the period of the short-time work pursuant to the provisions of the ZUTD and to be included in measures that are provided for registered seekers of employment (e.g. certain measures of life-long career orientation and arranging employment). During their full-time work, the employee is not obligated to carry our activities from the active employment policy measures pursuant to the ZUTD. The PKP3 also provides that in the case the employee was included in these measures based on the employer’s consent, the basis for the salary compensation is higher, i.e. set pursuant to Article 137(7) of the ZDR-1 – in the amount of an average monthly full-time salary for the past three months, but also not exceeding the amount of the salary the employee would have received, had they been working.
10. WHAT ABOUT EMPLOYERS THAT WILL NOT BE APPLYING FOR A SUBSIDY OR WILL NOT BE GRANTED THE SUBSIDY?
Article 23 of the PKP3 states that employers are entitled to implement the measure from this section of the PKP3, namely the section regarding the short-time work and partial temporary lay-off for the period from 1 June 2020 until 31 December 2020 even if they are not granted the subsidy or they do not apply for it.
The draft of the act is explained as the purpose of this provision being that getting the subsidy is not a condition for short-time work and temporarily laying-off employees pursuant to the provisions of this act, wherein this kind of measure will naturally financially lie entirely on the employer.
In light of this, it seems these employers do not need to fulfil individually set conditions from the PKP3 that expressly relate to being granted the subsidy (Article 12 PKP3, see item 5-) and to the obligations and limitations from Article 18 of the PKP3 that apply for the period during which the subsidy is granted and for a certain period afterward (especially the obligation of non-terminating, see item 7-).
11. OVERSIGHT OF THE PRESENTED MEASURES OF SHORT-TIME WORK AS PER THE PKP3 AND PENAL PROVISIONS
Oversight of the granted and paid subsidies pursuant to the PKP3 will be carried out by the ZRSZ, which will also be able to acquire certain personal data on those employees for which the employer receives a subsidy at no charge from the existing databases of the Employment Office of the Republic of Slovenia, the Pension and Disability Insurance Institute of Slovenia, the Financial Administration of the Republic of Slovenia, as well as work time records from the employer.
Inspections of the implementation of the provisions from the PKP3 (i.e. Articles 11 to 20) will be performed by the Labour Inspectorate pursuant to legislation on inspections.
The penal provisions for subsidy recipients who violate the prohibition of terminations or ordering overtime, disproportionate dispersion or the temporary dispersion of working hours if the work could have been done with employees who have been decreed short-time work can face fines in the following amounts:
- From EUR 1,500 to EUR 8,000 for employees employing 10 or fewer employees;
- From EUR 10,000 to EUR 50,000 for other employers;
- From EUR 450 to EUR 2,000 for the employer’s responsible person;
- From EUR 450 to EUR 1,200 for the individual employer.
12. RELATION TO OTHER INTERVENTION MEASURES
We believe the measure of short-time work is compatible with the measure of partial salary compensation for temporary lay-offs that the PKP3 provides for employers until no later than 30 June 2020 and that is detailed below.
At the same time, it is important to raise attention to the provision that the beneficiaries must submit the applications for funds from provisions set in the ZUIZEOP and the measures determined in the PKP3, that cease to apply on 31 May 2020, by 30 June 2020 (unless the ZUIZEOP and the PKP3 specify otherwise).
On the day the PKP3 enters into force (i.e. 31 May 2020), certain provisions of the ZIUPPP (the first intervention act) cease to apply, i.e. Articles 2 to including 11, which enabled employees to be temporarily laid-off and receive salary compensations for that period.
At the same time, the previous provisions of the PKP3 do not contain an expressed reference to Article 18 of the ZIUPPP, which provides that regardless of Article 148(7) of the ZDR-1, in 2020 full-time work is taken into account as the average work obligation in a period not exceeding 12 months relating to the unequal dispersion and the temporary dispersion of the working hours. The 2020 calendar year applies as the reference period in which the full-time work is set off in the unequal dispersion or temporary dispersion of working hours as the average work obligation in a 12-month period. It follows from the stated that Article 18 of the ZIUPPP applies.
MEASURE II: SALARY COMPENSATION REIMBURSEMENT FOR TEMPORARILY LAID-OFF EMPLOYEES
13. GENERAL OVERVIEW OF THE MEASURE AND ELIGIBLE EMPLOYERS
The measure of a temporary lay-off and salary compensation reimbursement for temporarily laid-off employees had already been introduced with the previously passed intervention legislation, i.e. the ZIUZEOP provisions. Read more about this measure here.
The ZIUZEOP imposed a time limit on the measure of temporary lay-offs and partial salary compensation until 31 May 2020. As a result of the present strained economic situation, the PKP3 has extended this measure until the end of June 2020 with the conditions set in the PKP3.
The measure applies to every employer in the Republic of Slovenia that is temporarily unable to provide work to their employees due to the consequences of the epidemic and that will in their estimate (estimate according to the income from sales, determined according to accounting rules, and the compensation from the parental care insurance):
- Have an over 10% decrease of income in 2020 relative to 2019 due to the epidemic;
- If they were not in business in the entire year of 2019 or 2020, employers whose average monthly income in 2020 will fall by over 10% due to the epidemic relative to the average monthly income in 2019 are also entitled to the measure;
- If the company was not operating in 2019, employers whose average monthly income in 2020 has decreased by over 10% relative to the average monthly income in 2020 by 12 March 2020 are also entitled to the measure.
The eligibility for the measures will be judged retroactively: if the conditions from the PKP3 are not achieved when submitting annual reports for 2020, the beneficiary will have to return the received funds from the measure.
Regardless of the presented conditions (i.e. for those who do not meet the criteria), employers who have the status of a humanitarian organization per the Humanitarian Agencies Act or a status of disabled persons organizations per the Disabled Persons Organizations Act are entitled to the measure.
Entities not entitled to the measure of salary compensation reimbursement for temporarily laid-off employees include:
- Direct or indirect budget users of the budget of the Republic of Slovenia or a municipal budget, whose share of income from public sources in 2019 was over 70%;
- Employers performing financial or insurance activities that fall into group K according to the standard classification of activities, and who had over ten employees as of 13 March 2020;
- Foreign diplomatic representative offices and consulates, international organizations, representative offices of international organizations and institutions, authorities, and agencies of the European Union in the Republic of Slovenia;
- Employers that do not meet the obligatory contributions and other monetary non-tax obligations in accordance with the act regulating financial administration, collected by the tax authority, if they have unpaid due obligations on the day the application is submitted (wherein it is considered the employer does not meet the obligations from this paragraph, if they did not submit all of the withholding tax returns for income from employment relationship for the period of the last five years up until the application was submitted);
- Employers who are facing insolvency proceedings.
14. TIME LIMITATION OF THE TEMPORARY LAY-OFF MEASURE
The measure of temporary lay-offs is available for the period from 1 June 2020 until no later than 30 June 2020.
15. WHAT IS THE PROCESS AND MANNER OF EXERCISING SALARY COMPENSATION REIMBURSEMENT?
An employer issues a written decree to the employee that they have been temporarily laid-off. The written decree must contain the period of the temporary lay-off, options and manner of contacting the employee to return to work ahead of schedule, and amount of salary compensation.
In order to claim salary compensation reimbursement, the employer must submit an electronic application to the ZRSZ within 8 (eight) days of temporarily laying-off the employee, but by no later than 30 June 2020.
Exercising the measure according to the PKP3 therefore involves submitting a new application in electronic form, regardless of any prior exercising of the salary compensation according to the previous measures.
The application must have the following documentation enclosed:
- An estimate of the income decrease, for which the employer is criminally and materially liable;
- Documentation on the temporary lay-off of employees due to the employer’s temporary inability to guarantee work for business reasons;
- For employers whose employments are directly or indirectly co-financed from the budget of the Republic of Slovenia through special programs can claim salary compensation reimbursement only in the amount of the difference up to the full co-financing and the actual subsidy: the application must also include the share of financing from the budget of the Republic of Slovenia in 2019.
The ZRSZ will issue a decision about the application within 15 days.
The partial salary compensation reimbursement will be paid to the employer monthly, on the 10th day of the month following the month the salary compensation was paid (except for employees whose salary compensation reimbursement does not burden the employer), in a proportionate share or in its entirety.
The employer is entitled to a salary compensation reimbursement for the actual monthly or weekly obligation, for a holiday or other work-free day, determined by the law, if the employee would have actually worked that day.
16. WHAT ARE THE RIGHTS AND OBLIGATIONS OF THE TEMPORARILY LAID-OFF WORKERS?
An employee who has been temporarily laid-off and for whom the employer is receiving a reimbursement for the paid salary compensation retains all the rights and obligations from the employment relationship, unless where otherwise specified by the PKP3.
The temporarily laid-off worker therefore has:
- the obligation (and not a right, as was projected by the ZIUZEOP-A) to return to work at the request of the employer for up to seven workdays in a given month, and the employer must give prior notice to the ZRSZ about this;
- the right to salary compensation in the amount set in the ZDR-1 for the case of a temporary inability to ensure work for business reason (80% basis), but no less than the minimum salary in the Republic of Slovenia;
- option to use annual leave as coordinated by the employer, wherein the employee is entitled to salary compensation for the entire time in accordance with the general provisions of the ZDR-1.
17. WHAT IS THE AMOUNT OF THE PARTIAL SALARY COMPENSATION REIMBURSEMENT?
If the employers meet the set conditions, they will be eligible to receive a partial salary compensation reimbursement from the Republic of Slovenia, in the amount of 80% of the paid salary compensation, but no more than the largest amount of unemployment compensation set in the ZUTD (i.e. EUR 892.50 gross). This 80% of the salary compensation covered by the Republic of Slovenia includes a salary compensation and contributions for all social insurance.
The amount of the partial salary compensation reimbursement from the Republic of Slovenia cannot exceed 80% of the value of the salary compensation, the employer covers the rest of the compensation up to 20% of the salary and contribution compensation.
The partial salary compensation reimbursement will be paid to the employer on a monthly basis – on the 10th day in the month following the month the salary compensation was paid (except for employees whose salary compensation reimbursement does not burden the employer), proportionately or in its entirety. An employer that is a direct or indirect budget user of the budget of the Republic of Slovenia or the municipal budget whose income share from public sources in 2019 was under 70% can claim salary compensation reimbursement only for the share that is the same as the share of its income from non-public sources.
The employer is entitled to a salary compensation reimbursement for the actual monthly or weekly obligation, for a holiday or other work-free day as set by the law, if the employee would actually have worked on that day.
18. WHAT ARE THE EMPLOYER’S OBLIGATIONS DURING THIS TIME?
a. During the period of receiving salary compensation reimbursement:
- The employer must pay salary compensations to their employees pursuant to the PKP3;
- Prohibition of ordering overtime if the work can be performed with temporarily laid-off employees;
- Prior informing the ZRSZ if the employer requires the employee to return to work;
Acting in opposition to the abovementioned obligations means the employer will have to return the received funds in their entirety including the statutory accrued interest, while at the same time constituting a violation for which penalties have been prescribed (see item 19-);
b. During the period of receiving the funds and for a period after that is the same as the period the funds were received:
- If an employer starts the process of liquidation pursuant to ZGD-1, it applies that the received funds must be returned in their entirety including statutory accrued interest.
c. During the period of receiving salary compensation reimbursement: the employer cannot terminate the employee’s employment agreement.
As opposed to the limitations that apply when applying for a subsidy as per PKP3 and other measures according to previously applicable intervention act (ZIUZEOP), the PKP3 does not include an expressed prohibition of profit appropriation, purchasing own shares or business shares, management bonuses or business performance bonuses paid in 2020 or for 2020. Considering the fact that this kind of limitation was included in all the similar intervention measures, we advise a reserved approach with said payments regarding the implementation of this measure of partial salary compensation reimbursement.
19. OVERSIGHT OF THE AWARDING AND PAYING SALARY COMPENSATIONS AND OF THE MEASURE IMPLEMENTATION; PENAL PROVISIONS
Administrative and financial oversight of fulfilling contractual obligations will be performed by the ZRSZ: employers who applied for salary compensation reimbursements must enable the ZRSZ this oversight of their fulfilling contractual obligations and enable them access to their computer programs, documentation, and procedures in the event of an inspection in their premises. The ZRSZ is also able to acquire certain personal data on those employees for which the employer receives a subsidy at no charge from the existing databases of the Employment Office of the Republic of Slovenia, the Pension and Disability Insurance Institute of Slovenia, the Financial Administration of the Republic of Slovenia. The ZRSZ also has the right to acquire documentation and records that clearly state the manner of exercising rights as per PKP3, as well as directly from the employer (wherein those parts of the documents will be blacked out that are not necessary to determine the reason for the termination of the employment and for handing in that kind of document).
Inspections of the implementation of the provisions from the PKP3 (i.e. Articles 24 to 32) will be performed by the Labour Inspectorate pursuant to legislation on inspections.
The penal provisions for partial salary compensation reimbursement for temporarily lay-off recipients who failed to enable administrative and financial oversight, paid salary compensations contrary to the PKP3, ordered overtime to employees during the time they were receiving partial salary compensations, or who failed to inform the ZRSZ about calling an employee back to work can receive the following fines:
- From EUR 1,500 to EUR 8,000 for employees employing 10 or fewer employees;
- od EUR 3,000 to EUR 20,000 for other employers;
- od EUR 450 to EUR 2,000 for the employer’s responsible person;
- od EUR 450 to EUR 1,200 for the individual employer.
QUESTIONS REGARDING STATE AID
20. DO THE RECEIVED SUBSIDY PER THE PKP3 AND THE SALARY COMPENSATION REIMBURSEMENT PER PKP3 CONSTITUTE STATE AID?
Yes, the received subsidy an employer receives based on the PKP3 and the received salary compensation reimbursement the employer receives pursuant to the PKP3 constitute state aid and are as such subject to limitations stemming from state aid rules.
Pursuant to Article 22(1) of the PKP3 and Article 34(1) of the PKP3, the measures are implemented in accordance with item 3.10 of the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak (“Temporary Framework”).
21. DO THE SUBSIDY RECEIVED BASED ON THE PKP3 AND THE SALARY COMPENSATION REIMBURSEMENT PER THE PKP3 TALLY IN THE EUR 800,000 CAP SET BY THE ZIUZEOP?
We believe a subsidy received based on the PKP3 or a salary compensation reimbursement per the PKP3 do not tally in the EUR 800,000 cap, as this limitation is not mentioned in the text of the PKP3: it does not determine the maximum amount of received funds, nor does it contain a reference to the relevant limitation from the ZIUZEOP.
Item 3.10 of the Temporary Framework, which is the basis for these two measures, does not contain such a limitation. In our opinion, the EUR 800,000 cap was set in item 3.1 of the Temporary Framework, which sets out the general rules for granting aid (in the form of direct grants, repayable advances, tax advantages and other forms), does not apply to the funds that are granted pursuant to item 3.10.