Employment Law Aspects of the Sixth Slovenian COVID-19 Law

Authors: Darja Miklavcic, Karin Dodic, SELIH & PARTNERJI Law Firm

On 25 November 2020, the National Assembly adopted the Act on Intervention Measures for Mitigating the Consequences of the Second Wave of the COVID-19 Epidemic or the so-called PKP6 (hereinafter “the Sixth COVID-19 Law”), which provides for temporary measures to mitigate and eliminate the consequences of the infectious disease COVID-19. The adoption of the new package of measures regulated for in the Sixth COVID-19 Law is necessary due to the re-declaration of the epidemic, whereas some measures need to be supplemented (mainly from the Act Determining Interim Measures for Mitigation and Remedy the Consequences of the COVID-19 (ZZUOOP) (hereinafter “the Fifth COVID-19 Law”), as they were adopted before the epidemic was declared again) and some reactivated (e.g. subsidies to companies for employees temporarily waiting for work).

The main goal of the Sixth COVID-19 Law is to mitigate and eliminate the consequences and impact of the infectious disease COVID-19 on the economy, work and labour relations, social protection and health care whereby the present paper focuses mainly on the measures that the Sixth COVID-19 Law brings in the field of work and labour relations.

1. The measure of partial subsidies for a shorter full-time work

The Sixth COVID-19 Law is without prejudice to the provision of the Fifth COVID-19 Law regarding the measure of partial subsidisation of a shorter full-time work. The measure is valid on the basis of the Fifth COVID-19 Law, which stipulates that the government may, by a decision issued no later than 20 December 2020, extend this measure under the Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (ZIUOOPE), which is currently scheduled until 31 December 2020, for a total period of a maximum of six months, but no longer than until 30 June 2021.

2. Reimbursement of salary compensation for employees under quarantine or for employees unable to perform work due to force majeure due to childcare obligations, stop of public transport, closure of borders

The Sixth COVID-19 Law slightly changes the regulation of salary compensation to employees due to the ordered quarantine or inability to perform work due to force majeure introduced by the Fifth COVID-19 Law. From the point of view of the transparency of the measure, the following is a full summary of the regulation of this measure, as amended by the Sixth COVID-19 law.

Duration of the measure

In case of quarantine at home under the Fifth COVID-19 law: 1 October 2020 – 31 December 2020. Based on the application submitted on the basis of the Act Determining Intervention Measures to Prepare for the Second Wave of COVID-19 (ZIUPDV), the employer is entitled to a refund of paid salary compensations for the period from 1 October 2020 onwards, if the period of the ordered quarantine lasts after that date.

Inability to perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders: 1 September 2020 – 31 December 2020 with the possibility of extension for six months.

The government may extend the measure of reimbursement of salary compensations due to quarantine at home or inability to perform work due to force majeure due to childcare obligations by a decision for a period of six months.

Eligible employer

The right to the measure of reimbursement of salary compensation for employees under quarantine order or for employees unable to perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders may be exercised by any employer in the Republic of Slovenia, except:

• a direct or indirect user of the state or municipal budget, whose share of revenues from public sources in 2019 was higher than 70%;
• an employer performing a financial or insurance activity that belongs to group K according to the Standard Classification of Activities and had more than 10 employees on 13 March 2020;
• foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union in the Republic of Slovenia.

The employer may exercise the right to reimbursement of salary compensation for employees who are unable to perform work due to the quarantine at home and whose employer cannot organize work at home, and for employees who are unable to perform work due to force majeure due to childcare obligations up to and including the 5th grade of primary school or a child with special needs due to the quarantine at home or other external objective circumstance of inability to attend kindergarten, school or social care management and care services and employment under special conditions other than institutional care, or are unable to come to work due to the cessation of public transport or the closure of borders with neighbouring countries.

The employee is entitled to compensation of salary in the amount of 80% of his / her average monthly full-time salary from the last three months or from the period of work in the last three months before the start of absence due to force majeure referred to in the previous paragraph.

Reimbursement claim procedure

The employer exercises the right to reimbursement of paid salary compensations by submitting an application in electronic form to the Employment Service of Slovenia (hereinafter: “ESS”) within eight days from the entry into force of the Fifth COVID-19 law, if the measure is in force for the period before the entry into force of the Fifth COVID-19 law or within eight days from the beginning of the employee’s absence due to quarantine at home or absence from work due to force majeure due to childcare obligations, cessation of public transport or closure of borders. Based on the decision on the recognition of the right to reimbursement of paid salary compensations, the ESS concludes a contract with the employer on the reimbursement of paid salary compensation.

Employer’s obligations

During the period of receiving the reimbursement of paid salary compensations, the employer is obliged to pay net salary compensations to the employees and to pay all social insurance contributions, otherwise the employer must return the received funds in full.

Employee’s rights and obligations

The amount of salary compensation

The amount of salary compensation depends on the reason for the employee’s absence and amounts to:

• 100% salary compensation: an employee who has been in quarantine at home under the fifth COVID-19 law due to a contact with an infected person in the course of performing work for an employer;
• 80% average monthly full-time salary: an employee who was sent to quarantine at home upon return to Slovenia from a that country which was on the green or orange list at the time of the employee´s departure, an employee who was in quarantine at home under the Fifth COVID-19 law due to a contact or suspected contact with an infected person outside work and an employee who cannot perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders;
• 50% of the pay the employee would have received if he had worked and a minimum of 70% of the minimum wage: an employee who goes to the country on the red list and has informed the employer in writing at least one day before the departure that he or she is leaving for the country on the red list due to the following personal circumstances:
  • death of a spouse or common-law partner or death of a child, adopted child or child of a spouse or common-law partner;
  • death of parents (father, mother, parent of a spouse or common-law partner, adoptive parent)
  • birth of a child
  • summons to court.
• 0% salary compensation: an employee who has gone to a country on the red list and is not eligible for any of the above exceptions.

Certain special rules are foreseen for employees who, during their absence, acquire the right to absence from work on the basis of regulations on health insurance or parental care or for employees who start working part-time during their absence on the basis of special regulations.

Employee’s obligations

The employee in quarantine at home must notify the employer within 24 hours of the quarantine at home and the reasons for the quarantine at home, and within three days of receiving the quarantine decision, forward the latter to the employer.

In case of absence from work due to force majeure due to childcare obligations, cessation of public transport or closure of borders the employee must inform the employer of all circumstances that affect the occurrence of force majeure no later than three working days from the occurrence thereof.

Supervision over the allocation and payment of salary compensations, implementation of the contract, inspection control

An employer who claims reimbursement of salary compensation must enable administrative and financial control by the ESS over the fulfilment of contractual obligations. In the case of on-site inspections, the employer must enable the ESS access to computer programs, documents and procedures related to the implementation of the Fifth COVID-19 Law. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

3. Partial reimbursement of salary compensation for employees temporarily waiting for work

The conditions for applying for this measure remain similar to the ones in the previous intervention regulations – the Sixth COVID-19 Law only changes them somewhat in some places. We summarize them briefly below.

Duration of the measure

1 October 2020 – 31 January 2021.

Eligible employer

Any employer in the Republic of Slovenia who is temporarily unable to provide work to employees due to the consequences of the epidemic, except for:

• a direct or indirect user of the state or municipal budget, whose share of revenues from public sources in 2019 was higher than 70%;
• an employer performing a financial or insurance activity that belongs to group K according to the Standard Classification of Activities and had more than 10 employees on 13 March 2020;
• foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union in the Republic of Slovenia.

The measure is eligible for those employers whose estimated revenue (i.e. net sales revenue determined according to accounting rules and benefits from parental care insurance) in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the year 2019. If they did not operate throughout 2019 or 2020, the employers whose average monthly income in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the average monthly income in 2019 are also entitled to the measure. If they did not operate in 2019, the employers which were registered no later than 1 September 2020 and whose average monthly income in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the average monthly income in 2020 until 31 August 2020 are also entitled to the measure. If these conditions are not met when submitting the annual reports for 2020, the eligible employer shall return the funds received under the measure. If the application is submitted by an employer registered after 1 September 2020, the ESS rejects the application by a decision and there is no appeal against the decision.

Employers who do not meet the condition defined above and have the status of a humanitarian or disability organization are also entitled to the measure.

Reimbursement claim procedure

The employer exercises the right to reimbursement of paid salary compensations under the fifth COVID-19 law by submitting an application in electronic form to the ESS within eight days of sending the employee on temporary wait for work or within eight days of the entry into force of the fifth COVID-19 law for employees to whom the measure was ordered before the entry into force of the latter. The application must be submitted no later than 15 January 2021.

Employers who were registered in the period from 12 February 2020 to 1 September 2020 and sent employees on temporary wait for work before the entry into force of the Sixth COVID-19 Law for the period from 1 October 2020 onwards may submit the application in eight days from the entry into force of the Sixth COVID-19 Law, if they meet all the conditions for the exercise of the right.

Employer’s obligations

During the period of receiving reimbursement of paid salary compensation, the employer must pay salary compensation to employees and may not order overtime work or temporary redistribute the working time if this work can be carried out with employees on temporary wait for work. If the employer invites the employee to return to work, the employer must inform the ESS in advance. If the employer acts contrary to the above, the latter must return the received funds in full.

During the period of receiving partial reimbursement of salary compensation, the employer may not initiate the procedure of termination of the employment contract for business reasons to employees sent on temporary wait for work or terminate the employment contract to a large number of employees for business reasons, unless the dismissal programme for redundant employees was adopted before 13 March 2020 and the employer did not exercise the right to reimbursement of salary compensation for these employees under the fifth COVID-19 law or under previous intervention regulations. The employer cannot claim reimbursement of salary compensation for waiting for work at home for the employee during the period of notice.

Employee’s rights and obligations

An employee who is sent on temporary wait for work and for whom the employer receives a reimbursement of the paid salary compensation, in principle, retains all rights and obligations arising from the employment relationship.

The employer refers the employee in writing to a temporary wait for work. The written referral shall specify the period of temporary wait for work, the possibilities and manner of urging the employee to return to work prematurely, and the amount of salary compensation. During the temporary wait for work, the employee has the duty to return to work at the request of the employer up to seven working days in the current month (the employer must inform the ESS in advance).

If the employee’s salary was reduced due to the determination of shorter full-time work at the employer, the salary or the basis for salary compensation in the last three months before the determination of shorter full-time work shall be taken into account to determine the basis for salary compensation for temporary wait for work.

If the employee, in agreement with the employer, uses the right to annual leave during the period of temporary wait for work, he or she has the right to salary compensation for the period of using the annual leave in accordance with the Employment Relationships Act (hereinafter “ZDR-1”).

In accordance with the provisions of the Labour Market Regulation Act (hereinafter “ZUTD”), an employee may register in the job-seeker register during the period of wait for work and may be included in the measures provided to registered job-seekers.

The amount of salary compensation

The salary compensation amounts to 80% of the average monthly full-time salary from the last three months or from the period of work in the last three months before the beginning of the absence, but not less than the minimum wage.

An employer who is a direct or indirect user of the state or municipal budget, whose share of revenues from public sources was lower than 70 % in 2019, can claim a reimbursement of salary compensation only in the amount equal to the share of the revenues from non-public sources.

Certain special rules are foreseen for employees who, during their absence, acquire the right to absence from work on the basis of regulations on health insurance or parental care or for employees who start working part-time during their absence on the basis of special regulations.

Amount and procedure and method of exercising the reimbursement of salary compensation

The employer is entitled to a partial reimbursement in the amount of 80% of the paid salary compensation and not more than EUR 892.50. The 80% of the salary compensation covered by the Republic of Slovenia includes salary compensation and contributions for all social insurances (gross I).

The amount of partial reimbursement of the payment of the salary compensation paid for the month of November 2020 until the expiry of the entitlement, i.e. until 31 January 2021 is increased, namely it is limited upwards by the amount of the average monthly salary in the Republic of Slovenia, which currently amounts to EUR 1,799.07 gross. The amount of partial reimbursement of the paid salary compensation by the Republic of Slovenia may not exceed 80% of the value of the paid salary compensation.

Notwithstanding the above, the amount of partial reimbursement of salary compensation paid by the Republic of Slovenia paid for November 2020 until the expiry of entitlement may also amount to 100% for employers whose total amount of public funds received (in accordance with point 3.1 of the Commission Communication Temporary framework for state aid measures to support the economy in the event of the outbreak of COVID-19) did not exceed EUR 800,000 per individual company, and the maximum amount also includes the aid it will receive until the end of eligibility under the Fifth COVID-19 law. All amounts indicated must be expressed as gross amounts before deduction of taxes or other charges. The amount of partial reimbursement of the paid salary compensation paid for the month of November 2020 until the expiry of entitlement is limited by the amount of the average monthly salary in the Republic of Slovenia. The 100% reimbursement of salary compensation covered by the Republic of Slovenia includes salary compensation and contributions for all social insurances (gross I).

The right to reimbursement of paid salary compensations cannot be exercised by the employer:

• who does not meet mandatory duties and other monetary non-tax liabilities in accordance with the Financial Administration Act (ZFU), which are collected by the tax authority, if the employer has unpaid due liabilities on the day of submitting the application. An employer shall be deemed not to have fulfilled the obligations under this indent even if, on the day of submitting the application, the employer has not submitted all the withholding tax returns for employment income for the period of the last five years up to the date of submission of the application;
• if bankruptcy proceedings have been instituted against the employer or if the latter is in liquidation proceedings.

The employer who receives the funds must return the received funds in full if the liquidation procedure under the Companies Act (ZGD-1) is initiated, within the period:

• of receiving funds and
• after the cessation of receipt of funds, which is equal to the period of receipt of funds.

Supervision over the allocation and payment of salary compensations and inspection control

An employer who claims reimbursement of salary compensation must enable administrative and financial control by the ESS over the fulfilment of obligations. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

4. Absence from work without a visit to the physician

The Sixth COVID-19 Law continues to provide for the possibility of absence from work of an employee due to an illness without a certificate of justified absence from work issued by the chosen personal physician for up to three consecutive working days in total (hereinafter: “short-term absence due to illness”), up to a maximum of once in each calendar year. The employee is obliged to notify the employer in writing or electronically of the absence on the first day of absence. During the employee´s absence, the employee may not engage in a gainful activity or to move outside the place of his / her residence. Otherwise, the employee is not entitled to salary compensation.

If the chosen personal physician finds that the employee is still temporarily absent from work due to illness or injury even after a period of the short-term absence due to illness, the right to a one-time short-term absence due to illness shall be deemed not exercised. When it has been used for less than three consecutive working days, the right to a single short-term absence due to illness shall be deemed to be exercised.

The compensation for the period of the short-term absence from work due to illness is calculated in the amount of 80% of the employee’s salary in the previous month for full-time work and is borne by the Health Insurance Institute of Slovenia, except in the case of direct and indirect users of the state or municipal budget and in case of public service agencies.

The measure is valid until 31 December 2020 with the possibility of extension for six months.

5. Interim measures for the self-employed and micro-enterprises

The Sixth COVID-19 Law proposal is without prejudice to the provisions of the Fifth COVID-19 Law concerning interim measures for the self-employed and micro-enterprises regarding the emergency assistance in the form of monthly basic income. The latter continues to apply on the basis of the Fifth COVID-19 Law. On the other hand, the Sixth COVID-19 Law slightly interferes with the provisions of the Fifth COVID-19 Law regarding the partial reimbursement of lost income in certain cases, so this measure is briefly summarized below:

Partially reimbursed lost income for the duration of quarantine at home or for the inability to perform work due to force majeure due to childcare obligations

Duration of the measure

1 September 2020 – 31 December 2020 with the possibility of extension for a maximum of six months.

Beneficiary

The beneficiary for partially reimbursed lost income for the duration of the ordered quarantine at home or for the duration of inability to perform work due to force majeure due to childcare obligations due to the imposed quarantine or other external objective circumstances of inability to attend kindergarten or school cannot perform activities and organize the performance of activities at home, is:

• a self-employed person who is included in the compulsory pension and disability insurance on the basis of Article 15 of the Pension and Disability Insurance Act (hereinafter: “ZPIZ-2”) on the day of the entry into force of the Fifth COVID-19 Law;
• a shareholder of a company or a founder of a cooperative or institute who is a managerial person and is insured on the basis of Article 16 of the ZPIZ- 2 on the day of the entry into force of the Fifth COVID-19 Law; and
• a farmer who is included in the compulsory pension and disability insurance on the day of the entry into force of the Fifth COVID-19 Law on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The lost income is partially reimbursed to the beneficiary if on return upon crossing the border in the Republic of Slovenia he / she is sent to quarantine at home due to arrival from an area at high risk of infection, or due to contact with an infected person or due to inability to perform work due to force majeure due to the childcare obligation due to quarantine at home or other external objective circumstances of inability to attend kindergarten or school.

If a person is entitled to the emergency assistance in the form of monthly basic income, such person is not entitled to reimbursement of lost income for the same period.

Partially reimbursed lost income is exempt from all taxes and contributions.

The amount of the partially reimbursed lost income

EUR 250 for each ordered quarantine or for the time when the person is unable to perform work due to force majeure due to childcare obligations due to the imposed quarantine or other external objective circumstances of inability to attend kindergarten or school, but not more than EUR 250 for 10 days, EUR 500 for 20 days and EUR 750 in one month.

This measure is valid until 31 December 2020, with the possibility of extension for a maximum period of six months.

6. Suspension of the right to monetary compensation

The Sixth COVID-19 Law interferes with the ZUTD by providing for an additional case when the right to monetary compensation is suspended, namely, it stipulates that the latter, in addition to the cases already provided for in the ZUTD, is also suspended for a jobseeker who concludes a fixed-term employment contract to replace absent employees due to the implementation of measures to prevent the spread of infection.

7. Suitable employment under the ZUTD

The Sixth COVID-19 Law stipulates that, notwithstanding the provisions of the ZUTD, a person entered in the register of unemployed persons may be offered a suitable employment from the day of entry in the register of unemployed persons onwards, whereby, regardless of the definition in the ZUTD, employment that is not determined by the employment goals in the employment plan is also considered as suitable employment.

The measure described above is valid until 30 June 2021, and the government may extend this measure for a period of 6 months, until 31 December 2021 at the latest.

8. Salary compensation during temporary absence from work

The Sixth COVID-19 Law interferes with the Health Care and Health Insurance Act (ZZVZZ) and stipulates that insured persons are entitled to compensation based on the opinion of a personal doctor or the competent medical commission from the first day of absence from work due to cohabitation in a health institution of one parent with a sick child up to and including the age of 14 and, under certain conditions, also to a child up to and including 18 years of age. The right to compensation for the cohabitation of one of the parents in a health institution with a sick child lasts for the duration of cohabitation. Compensation for cohabitation is assessed in the same percentage as compensation for the care of a close family member.

9. Simplified work at home notification procedure

Pursuant to ZDR-1, the employer is obliged to inform the Labour Inspectorate of the Republic of Slovenia about the intended organization of work at home before starting work at home. The ZDR-1 does not specify a more detailed notification procedure. The Sixth COVID-19 Law regulates in what way and what information the employer must report to the Labour Inspectorate of the Republic of Slovenia, namely:

• information about the employer (name, address, registration number and activity performed);
• data relating to the employee who will perform work at home (name and surname, job title or type of work, with a brief description of the work to be performed by the employee, means of work and work equipment to be used by the employee, estimated duration and estimated share of working time at home);
• potential risk to the safety and health of the employee when performing work at home.

Employers will enter the required content in a form that will be published on the website by the Labour Inspectorate of the Republic of Slovenia. Employers will be able to submit the form electronically, through the information system for support of business entities (SPOT), which is managed by the
Ministry of Public Administration.

This measure is valid until 31 December 2020, and the government may extend this measure for a period of six months.

10.  Testing employees for COVID-19

The Sixth COVID-19 law is without prejudice to the provision of the Fifth COVID-19 Law which provides that in the period up to 30 June 2021 (with the possibility of extension for a period of six months) the payment of the test on SARS-CoV-2, to which the employer refers the employee, is not considered a bonus of the employee.

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« Expected new measures: Support for uncovered fixed costs » Funding for uncovered fixed costs: Changes proposed

Authors: Darja Miklavcic, Karin Dodic, SELIH & PARTNERJI Law Firm

On 25 November 2020, the National Assembly adopted the Act on Intervention Measures for Mitigating the Consequences of the Second Wave of the COVID-19 Epidemic or the so-called PKP6 (hereinafter “the Sixth COVID-19 Law”), which provides for temporary measures to mitigate and eliminate the consequences of the infectious disease COVID-19. The adoption of the new package of measures regulated for in the Sixth COVID-19 Law is necessary due to the re-declaration of the epidemic, whereas some measures need to be supplemented (mainly from the Act Determining Interim Measures for Mitigation and Remedy the Consequences of the COVID-19 (ZZUOOP) (hereinafter “the Fifth COVID-19 Law”), as they were adopted before the epidemic was declared again) and some reactivated (e.g. subsidies to companies for employees temporarily waiting for work).

The main goal of the Sixth COVID-19 Law is to mitigate and eliminate the consequences and impact of the infectious disease COVID-19 on the economy, work and labour relations, social protection and health care whereby the present paper focuses mainly on the measures that the Sixth COVID-19 Law brings in the field of work and labour relations.

1. The measure of partial subsidies for a shorter full-time work

The Sixth COVID-19 Law is without prejudice to the provision of the Fifth COVID-19 Law regarding the measure of partial subsidisation of a shorter full-time work. The measure is valid on the basis of the Fifth COVID-19 Law, which stipulates that the government may, by a decision issued no later than 20 December 2020, extend this measure under the Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (ZIUOOPE), which is currently scheduled until 31 December 2020, for a total period of a maximum of six months, but no longer than until 30 June 2021.

2. Reimbursement of salary compensation for employees under quarantine or for employees unable to perform work due to force majeure due to childcare obligations, stop of public transport, closure of borders

The Sixth COVID-19 Law slightly changes the regulation of salary compensation to employees due to the ordered quarantine or inability to perform work due to force majeure introduced by the Fifth COVID-19 Law. From the point of view of the transparency of the measure, the following is a full summary of the regulation of this measure, as amended by the Sixth COVID-19 law.

Duration of the measure

In case of quarantine at home under the Fifth COVID-19 law: 1 October 2020 – 31 December 2020. Based on the application submitted on the basis of the Act Determining Intervention Measures to Prepare for the Second Wave of COVID-19 (ZIUPDV), the employer is entitled to a refund of paid salary compensations for the period from 1 October 2020 onwards, if the period of the ordered quarantine lasts after that date.

Inability to perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders: 1 September 2020 – 31 December 2020 with the possibility of extension for six months.

The government may extend the measure of reimbursement of salary compensations due to quarantine at home or inability to perform work due to force majeure due to childcare obligations by a decision for a period of six months.

Eligible employer

The right to the measure of reimbursement of salary compensation for employees under quarantine order or for employees unable to perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders may be exercised by any employer in the Republic of Slovenia, except:

• a direct or indirect user of the state or municipal budget, whose share of revenues from public sources in 2019 was higher than 70%;
• an employer performing a financial or insurance activity that belongs to group K according to the Standard Classification of Activities and had more than 10 employees on 13 March 2020;
• foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union in the Republic of Slovenia.

The employer may exercise the right to reimbursement of salary compensation for employees who are unable to perform work due to the quarantine at home and whose employer cannot organize work at home, and for employees who are unable to perform work due to force majeure due to childcare obligations up to and including the 5th grade of primary school or a child with special needs due to the quarantine at home or other external objective circumstance of inability to attend kindergarten, school or social care management and care services and employment under special conditions other than institutional care, or are unable to come to work due to the cessation of public transport or the closure of borders with neighbouring countries.

The employee is entitled to compensation of salary in the amount of 80% of his / her average monthly full-time salary from the last three months or from the period of work in the last three months before the start of absence due to force majeure referred to in the previous paragraph.

Reimbursement claim procedure

The employer exercises the right to reimbursement of paid salary compensations by submitting an application in electronic form to the Employment Service of Slovenia (hereinafter: “ESS”) within eight days from the entry into force of the Fifth COVID-19 law, if the measure is in force for the period before the entry into force of the Fifth COVID-19 law or within eight days from the beginning of the employee’s absence due to quarantine at home or absence from work due to force majeure due to childcare obligations, cessation of public transport or closure of borders. Based on the decision on the recognition of the right to reimbursement of paid salary compensations, the ESS concludes a contract with the employer on the reimbursement of paid salary compensation.

Employer’s obligations

During the period of receiving the reimbursement of paid salary compensations, the employer is obliged to pay net salary compensations to the employees and to pay all social insurance contributions, otherwise the employer must return the received funds in full.

Employee’s rights and obligations

The amount of salary compensation

The amount of salary compensation depends on the reason for the employee’s absence and amounts to:

• 100% salary compensation: an employee who has been in quarantine at home under the fifth COVID-19 law due to a contact with an infected person in the course of performing work for an employer;
• 80% average monthly full-time salary: an employee who was sent to quarantine at home upon return to Slovenia from a that country which was on the green or orange list at the time of the employee´s departure, an employee who was in quarantine at home under the Fifth COVID-19 law due to a contact or suspected contact with an infected person outside work and an employee who cannot perform work due to force majeure due to childcare obligations, cessation of public transport or closure of borders;
• 50% of the pay the employee would have received if he had worked and a minimum of 70% of the minimum wage: an employee who goes to the country on the red list and has informed the employer in writing at least one day before the departure that he or she is leaving for the country on the red list due to the following personal circumstances:
  • death of a spouse or common-law partner or death of a child, adopted child or child of a spouse or common-law partner;
  • death of parents (father, mother, parent of a spouse or common-law partner, adoptive parent)
  • birth of a child
  • summons to court.
• 0% salary compensation: an employee who has gone to a country on the red list and is not eligible for any of the above exceptions.

Certain special rules are foreseen for employees who, during their absence, acquire the right to absence from work on the basis of regulations on health insurance or parental care or for employees who start working part-time during their absence on the basis of special regulations.

Employee’s obligations

The employee in quarantine at home must notify the employer within 24 hours of the quarantine at home and the reasons for the quarantine at home, and within three days of receiving the quarantine decision, forward the latter to the employer.

In case of absence from work due to force majeure due to childcare obligations, cessation of public transport or closure of borders the employee must inform the employer of all circumstances that affect the occurrence of force majeure no later than three working days from the occurrence thereof.

Supervision over the allocation and payment of salary compensations, implementation of the contract, inspection control

An employer who claims reimbursement of salary compensation must enable administrative and financial control by the ESS over the fulfilment of contractual obligations. In the case of on-site inspections, the employer must enable the ESS access to computer programs, documents and procedures related to the implementation of the Fifth COVID-19 Law. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

3. Partial reimbursement of salary compensation for employees temporarily waiting for work

The conditions for applying for this measure remain similar to the ones in the previous intervention regulations – the Sixth COVID-19 Law only changes them somewhat in some places. We summarize them briefly below.

Duration of the measure

1 October 2020 – 31 January 2021.

Eligible employer

Any employer in the Republic of Slovenia who is temporarily unable to provide work to employees due to the consequences of the epidemic, except for:

• a direct or indirect user of the state or municipal budget, whose share of revenues from public sources in 2019 was higher than 70%;
• an employer performing a financial or insurance activity that belongs to group K according to the Standard Classification of Activities and had more than 10 employees on 13 March 2020;
• foreign diplomatic missions and consulates, international organizations, missions of international organizations and institutions, bodies and agencies of the European Union in the Republic of Slovenia.

The measure is eligible for those employers whose estimated revenue (i.e. net sales revenue determined according to accounting rules and benefits from parental care insurance) in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the year 2019. If they did not operate throughout 2019 or 2020, the employers whose average monthly income in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the average monthly income in 2019 are also entitled to the measure. If they did not operate in 2019, the employers which were registered no later than 1 September 2020 and whose average monthly income in 2020 will decrease by more than 20% due to the epidemic or the consequences of the epidemic compared to the average monthly income in 2020 until 31 August 2020 are also entitled to the measure. If these conditions are not met when submitting the annual reports for 2020, the eligible employer shall return the funds received under the measure. If the application is submitted by an employer registered after 1 September 2020, the ESS rejects the application by a decision and there is no appeal against the decision.

Employers who do not meet the condition defined above and have the status of a humanitarian or disability organization are also entitled to the measure.

Reimbursement claim procedure

The employer exercises the right to reimbursement of paid salary compensations under the fifth COVID-19 law by submitting an application in electronic form to the ESS within eight days of sending the employee on temporary wait for work or within eight days of the entry into force of the fifth COVID-19 law for employees to whom the measure was ordered before the entry into force of the latter. The application must be submitted no later than 15 January 2021.

Employers who were registered in the period from 12 February 2020 to 1 September 2020 and sent employees on temporary wait for work before the entry into force of the Sixth COVID-19 Law for the period from 1 October 2020 onwards may submit the application in eight days from the entry into force of the Sixth COVID-19 Law, if they meet all the conditions for the exercise of the right.

Employer’s obligations

During the period of receiving reimbursement of paid salary compensation, the employer must pay salary compensation to employees and may not order overtime work or temporary redistribute the working time if this work can be carried out with employees on temporary wait for work. If the employer invites the employee to return to work, the employer must inform the ESS in advance. If the employer acts contrary to the above, the latter must return the received funds in full.

During the period of receiving partial reimbursement of salary compensation, the employer may not initiate the procedure of termination of the employment contract for business reasons to employees sent on temporary wait for work or terminate the employment contract to a large number of employees for business reasons, unless the dismissal programme for redundant employees was adopted before 13 March 2020 and the employer did not exercise the right to reimbursement of salary compensation for these employees under the fifth COVID-19 law or under previous intervention regulations. The employer cannot claim reimbursement of salary compensation for waiting for work at home for the employee during the period of notice.

Employee’s rights and obligations

An employee who is sent on temporary wait for work and for whom the employer receives a reimbursement of the paid salary compensation, in principle, retains all rights and obligations arising from the employment relationship.

The employer refers the employee in writing to a temporary wait for work. The written referral shall specify the period of temporary wait for work, the possibilities and manner of urging the employee to return to work prematurely, and the amount of salary compensation. During the temporary wait for work, the employee has the duty to return to work at the request of the employer up to seven working days in the current month (the employer must inform the ESS in advance).

If the employee’s salary was reduced due to the determination of shorter full-time work at the employer, the salary or the basis for salary compensation in the last three months before the determination of shorter full-time work shall be taken into account to determine the basis for salary compensation for temporary wait for work.

If the employee, in agreement with the employer, uses the right to annual leave during the period of temporary wait for work, he or she has the right to salary compensation for the period of using the annual leave in accordance with the Employment Relationships Act (hereinafter “ZDR-1”).

In accordance with the provisions of the Labour Market Regulation Act (hereinafter “ZUTD”), an employee may register in the job-seeker register during the period of wait for work and may be included in the measures provided to registered job-seekers.

The amount of salary compensation

The salary compensation amounts to 80% of the average monthly full-time salary from the last three months or from the period of work in the last three months before the beginning of the absence, but not less than the minimum wage.

An employer who is a direct or indirect user of the state or municipal budget, whose share of revenues from public sources was lower than 70 % in 2019, can claim a reimbursement of salary compensation only in the amount equal to the share of the revenues from non-public sources.

Certain special rules are foreseen for employees who, during their absence, acquire the right to absence from work on the basis of regulations on health insurance or parental care or for employees who start working part-time during their absence on the basis of special regulations.

Amount and procedure and method of exercising the reimbursement of salary compensation

The employer is entitled to a partial reimbursement in the amount of 80% of the paid salary compensation and not more than EUR 892.50. The 80% of the salary compensation covered by the Republic of Slovenia includes salary compensation and contributions for all social insurances (gross I).

The amount of partial reimbursement of the payment of the salary compensation paid for the month of November 2020 until the expiry of the entitlement, i.e. until 31 January 2021 is increased, namely it is limited upwards by the amount of the average monthly salary in the Republic of Slovenia, which currently amounts to EUR 1,799.07 gross. The amount of partial reimbursement of the paid salary compensation by the Republic of Slovenia may not exceed 80% of the value of the paid salary compensation.

Notwithstanding the above, the amount of partial reimbursement of salary compensation paid by the Republic of Slovenia paid for November 2020 until the expiry of entitlement may also amount to 100% for employers whose total amount of public funds received (in accordance with point 3.1 of the Commission Communication Temporary framework for state aid measures to support the economy in the event of the outbreak of COVID-19) did not exceed EUR 800,000 per individual company, and the maximum amount also includes the aid it will receive until the end of eligibility under the Fifth COVID-19 law. All amounts indicated must be expressed as gross amounts before deduction of taxes or other charges. The amount of partial reimbursement of the paid salary compensation paid for the month of November 2020 until the expiry of entitlement is limited by the amount of the average monthly salary in the Republic of Slovenia. The 100% reimbursement of salary compensation covered by the Republic of Slovenia includes salary compensation and contributions for all social insurances (gross I).

The right to reimbursement of paid salary compensations cannot be exercised by the employer:

• who does not meet mandatory duties and other monetary non-tax liabilities in accordance with the Financial Administration Act (ZFU), which are collected by the tax authority, if the employer has unpaid due liabilities on the day of submitting the application. An employer shall be deemed not to have fulfilled the obligations under this indent even if, on the day of submitting the application, the employer has not submitted all the withholding tax returns for employment income for the period of the last five years up to the date of submission of the application;
• if bankruptcy proceedings have been instituted against the employer or if the latter is in liquidation proceedings.

The employer who receives the funds must return the received funds in full if the liquidation procedure under the Companies Act (ZGD-1) is initiated, within the period:

• of receiving funds and
• after the cessation of receipt of funds, which is equal to the period of receipt of funds.

Supervision over the allocation and payment of salary compensations and inspection control

An employer who claims reimbursement of salary compensation must enable administrative and financial control by the ESS over the fulfilment of obligations. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

4. Absence from work without a visit to the physician

The Sixth COVID-19 Law continues to provide for the possibility of absence from work of an employee due to an illness without a certificate of justified absence from work issued by the chosen personal physician for up to three consecutive working days in total (hereinafter: “short-term absence due to illness”), up to a maximum of once in each calendar year. The employee is obliged to notify the employer in writing or electronically of the absence on the first day of absence. During the employee´s absence, the employee may not engage in a gainful activity or to move outside the place of his / her residence. Otherwise, the employee is not entitled to salary compensation.

If the chosen personal physician finds that the employee is still temporarily absent from work due to illness or injury even after a period of the short-term absence due to illness, the right to a one-time short-term absence due to illness shall be deemed not exercised. When it has been used for less than three consecutive working days, the right to a single short-term absence due to illness shall be deemed to be exercised.

The compensation for the period of the short-term absence from work due to illness is calculated in the amount of 80% of the employee’s salary in the previous month for full-time work and is borne by the Health Insurance Institute of Slovenia, except in the case of direct and indirect users of the state or municipal budget and in case of public service agencies.

The measure is valid until 31 December 2020 with the possibility of extension for six months.

5. Interim measures for the self-employed and micro-enterprises

The Sixth COVID-19 Law proposal is without prejudice to the provisions of the Fifth COVID-19 Law concerning interim measures for the self-employed and micro-enterprises regarding the emergency assistance in the form of monthly basic income. The latter continues to apply on the basis of the Fifth COVID-19 Law. On the other hand, the Sixth COVID-19 Law slightly interferes with the provisions of the Fifth COVID-19 Law regarding the partial reimbursement of lost income in certain cases, so this measure is briefly summarized below:

Partially reimbursed lost income for the duration of quarantine at home or for the inability to perform work due to force majeure due to childcare obligations

Duration of the measure

1 September 2020 – 31 December 2020 with the possibility of extension for a maximum of six months.

Beneficiary

The beneficiary for partially reimbursed lost income for the duration of the ordered quarantine at home or for the duration of inability to perform work due to force majeure due to childcare obligations due to the imposed quarantine or other external objective circumstances of inability to attend kindergarten or school cannot perform activities and organize the performance of activities at home, is:

• a self-employed person who is included in the compulsory pension and disability insurance on the basis of Article 15 of the Pension and Disability Insurance Act (hereinafter: “ZPIZ-2”) on the day of the entry into force of the Fifth COVID-19 Law;
• a shareholder of a company or a founder of a cooperative or institute who is a managerial person and is insured on the basis of Article 16 of the ZPIZ- 2 on the day of the entry into force of the Fifth COVID-19 Law; and
• a farmer who is included in the compulsory pension and disability insurance on the day of the entry into force of the Fifth COVID-19 Law on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The lost income is partially reimbursed to the beneficiary if on return upon crossing the border in the Republic of Slovenia he / she is sent to quarantine at home due to arrival from an area at high risk of infection, or due to contact with an infected person or due to inability to perform work due to force majeure due to the childcare obligation due to quarantine at home or other external objective circumstances of inability to attend kindergarten or school.

If a person is entitled to the emergency assistance in the form of monthly basic income, such person is not entitled to reimbursement of lost income for the same period.

Partially reimbursed lost income is exempt from all taxes and contributions.

The amount of the partially reimbursed lost income

EUR 250 for each ordered quarantine or for the time when the person is unable to perform work due to force majeure due to childcare obligations due to the imposed quarantine or other external objective circumstances of inability to attend kindergarten or school, but not more than EUR 250 for 10 days, EUR 500 for 20 days and EUR 750 in one month.

This measure is valid until 31 December 2020, with the possibility of extension for a maximum period of six months.

6. Suspension of the right to monetary compensation

The Sixth COVID-19 Law interferes with the ZUTD by providing for an additional case when the right to monetary compensation is suspended, namely, it stipulates that the latter, in addition to the cases already provided for in the ZUTD, is also suspended for a jobseeker who concludes a fixed-term employment contract to replace absent employees due to the implementation of measures to prevent the spread of infection.

7. Suitable employment under the ZUTD

The Sixth COVID-19 Law stipulates that, notwithstanding the provisions of the ZUTD, a person entered in the register of unemployed persons may be offered a suitable employment from the day of entry in the register of unemployed persons onwards, whereby, regardless of the definition in the ZUTD, employment that is not determined by the employment goals in the employment plan is also considered as suitable employment.

The measure described above is valid until 30 June 2021, and the government may extend this measure for a period of 6 months, until 31 December 2021 at the latest.

8. Salary compensation during temporary absence from work

The Sixth COVID-19 Law interferes with the Health Care and Health Insurance Act (ZZVZZ) and stipulates that insured persons are entitled to compensation based on the opinion of a personal doctor or the competent medical commission from the first day of absence from work due to cohabitation in a health institution of one parent with a sick child up to and including the age of 14 and, under certain conditions, also to a child up to and including 18 years of age. The right to compensation for the cohabitation of one of the parents in a health institution with a sick child lasts for the duration of cohabitation. Compensation for cohabitation is assessed in the same percentage as compensation for the care of a close family member.

9. Simplified work at home notification procedure

Pursuant to ZDR-1, the employer is obliged to inform the Labour Inspectorate of the Republic of Slovenia about the intended organization of work at home before starting work at home. The ZDR-1 does not specify a more detailed notification procedure. The Sixth COVID-19 Law regulates in what way and what information the employer must report to the Labour Inspectorate of the Republic of Slovenia, namely:

• information about the employer (name, address, registration number and activity performed);
• data relating to the employee who will perform work at home (name and surname, job title or type of work, with a brief description of the work to be performed by the employee, means of work and work equipment to be used by the employee, estimated duration and estimated share of working time at home);
• potential risk to the safety and health of the employee when performing work at home.

Employers will enter the required content in a form that will be published on the website by the Labour Inspectorate of the Republic of Slovenia. Employers will be able to submit the form electronically, through the information system for support of business entities (SPOT), which is managed by the
Ministry of Public Administration.

This measure is valid until 31 December 2020, and the government may extend this measure for a period of six months.

10.  Testing employees for COVID-19

The Sixth COVID-19 law is without prejudice to the provision of the Fifth COVID-19 Law which provides that in the period up to 30 June 2021 (with the possibility of extension for a period of six months) the payment of the test on SARS-CoV-2, to which the employer refers the employee, is not considered a bonus of the employee.