The Fifth COVID-19 Act Adopted in Slovenia

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

On 15 October 2020, the Slovenian Parliament adopted the Interim Measures for Mitigation and Elimination of Consequences of COVID-19 Act (ZZUOOP) or the so-called Fifth COVID-19 Act (hereinafter: “Fifth COVID-19 Act”). This is the fifth package of measures carried out by the Ministry of Labour, Family, Social Affairs and Equal Opportunities. The Fifth COVID-19 Act covers measures in the field of health, work, social protection, economy, education, execution of criminal sanctions and justice, agriculture, economy and food, and infrastructure. It will enter into force the day after its publication in the Official Gazette.

In this article, SELIH & PARTNERJI Law Firm presents the key measures in the field of labour law and some other important points introduced by the new act.

1. Reimbursement of salary compensation for employees under quarantine order or for employees unable to perform work due to force majeure due to childcare obligations

Duration of the measure

In case of quarantine ordered under the Communicable Diseases Act (ZNB) or under the Fifth COVID-19 Act: 1 October – 31 December 2020 with the possibility of extension for six months.

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.

In case of inability to perform work due to force majeure due to childcare obligations (employee – a parent of a child or a person who cares for and protects a child on the basis of a valid enforcement title, or a guardian who actually cares for and protects his or her protégé) due to the imposed quarantine measure or other external objective circumstances of inability to attend kindergarten or school: 1 September – 31 December 2020 with the possibility of extension for six months.

Eligible employer

The employer may exercise the right to reimbursement of salary compensation for employees who are unable to perform work due to the quarantine order 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 imposed quarantine or other external objective circumstance of inability to attend kindergarten or school.

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: “EES”) within eight days from the entry into force of the Fifth COVID-19 Act if the measure relates to the period before the that or within eight days from the beginning of the employee’s absence. Based on the decision on the recognition of the right to reimbursement of paid salary compensations, the ESS concludes a contract on the reimbursement of paid salary compensation with the employer.

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 quarantined under the Communicable Diseases Act or the Fifth COVID-19 Act due to a contact with an infected person in the course of performing work for the employer;
• 80% average monthly full-time salary: an employee who received a quarantine decision upon return to Slovenia from a country which was on the green or orange list at the time of the employee´s departure, an employee who was quarantined under the Communicable Diseases Act or under the Fifth COVID-19 Act 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;
• 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 travels to the country on the red list and has informed the employer in writing at least one day before departure that he or she is travelling to 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 travelled 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 quarantined employee must notify the employer within 24 hours of the quarantine that he or she has been quarantined and the reasons for the quarantine, and within three days of receiving the quarantine decision, forward it to the employer.

In case of absence from work due to force majeure due to childcare obligations due to the ordered quarantine or other external objective circumstance of inability to attend kindergarten or school 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 the access to computer programs, documents and procedures related to the implementation of the Fifth COVID-19 Act. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

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

The conditions for applying for this measure remain the same as in the previous intervention regulations. They are briefly summarized below.

Duration of the measure

1 October – 31 December 2020 with the possibility of extension for a maximum period of six months, but not longer than until 30 June 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 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 12 March 2020 are also entitled to the measure. If these conditions are not met when submitting the annual reports for 2020, all the funds received under the measure should be returned.

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 Act 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 Act for employees sent to temporary wait for work before the Act enters into force. The application must be submitted no later than 15 December 2020.

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 could have been carried out by the employees on temporary wait for work. If the employer invites the employee to return to work, they must inform the ESS in advance. If the employer does not comply with the above, the received funds must be returned 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 with employees sent on temporary wait for work or terminate the employment contract with 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 Act or previous intervention regulations.

Employee’s rights and obligations

An employee who is sent on temporary wait for work and for whom the employer receives 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 requesting that the employee returns 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 for 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, the basis for salary compensation for temporary wait for work is determined based on the salary or the basis for salary compensation in the last three months before the determination of shorter full-time 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 (ZDR-1).

During the period of wait for work, the employee may, in accordance with the provisions of the Labour Market Regulation Act (ZUTD), apply in the job-seeker register and be included in 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 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 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 partial reimbursement in the amount of 80% of the paid salary compensation and not more than EUR 892.50 (gross I).

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

• who does not meet the 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, they have not submitted all the withholding tax returns for employment income for the period of the last five years up to the date of the 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 them 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, 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.

3. The extension of the measure of partial subsidies for shorter full-time work

The Fifth COVID-19 Act stipulates that the Government of the Republic of Slovenia may extend (by a decision issued no later than 20 December 2020) the measure of partial subsidies for a shorter full-time work from the Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (ZIUOOPE), currently foreseen until 31 December 2020, for a total period of a maximum of six months (but no longer than until 30 June 2021).

4. Interim measures for the self-employed and micro-businesses

4.1. Emergency assistance in the form of monthly basic income

Duration of the measure

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

Beneficiary

The beneficiary of the emergency assistance in the form of a monthly basic income is a person who has been registered to perform activities at least from 1 September 2020 until the entry into force of the Fifth COVID-19 Act and is unable to carry out the activity or performs it to a significantly reduced extent due to the consequences of the COVID-19 epidemic also after the end of the COVID-19 epidemic, namely:

• 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 Act;
• 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 Act; 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 Act on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The beneficiary is deemed to be unable to carry out the activity or performs it to a significantly reduced extent due to the consequences of the COVID-19 epidemic if the revenue (i.e. net sales revenue determined according to accounting rules and benefits from parental care insurance) of the beneficiary will decrease by more than 20% in 2020 due to the consequences of the COVID-19 epidemic compared to the year 2019. If the beneficiary did not operate throughout 2019 or 2020, the beneficiary whose average monthly income in 2020 will decrease by more than 20% compared to the average monthly income in 2019 due to the consequences of the COVID-19 epidemic is also entitled to the assistance. If the beneficiary did not operate in 2019, the beneficiary whose average monthly income in 2020 will decrease by more than 20% compared to the average monthly income in 2020 until 31 August 2020 is also entitled to the assistance. If the condition set out in this paragraph is not met, the beneficiary must repay all the aid.

A person who does not pay compulsory duties and does not fulfil other monetary non-tax liabilities is not entitled to the monthly basic income if the latter has unpaid due tax liabilities on the day of submitting the application.

The amount of the emergency assistance

The emergency assistance amounts to EUR 1,100 per month or EUR 700 per month for the self- employed in culture or EUR 940 per month for beneficiaries-farmers who are exempt from employers’ contributions for compulsory pension and disability insurance.

The emergency assistance in the form of monthly basic income for beneficiaries who have submitted an application for the payment of partially reimbursed lost income (point 4.2.) is reduced for an individual month by the amount of partially reimbursed lost income paid.

If the beneficiary is not included in the insurance for the entire month or for a full insurance time in an individual month, he or she is entitled to a proportional part of the emergency assistance.

The monthly basic income is exempt from all taxes and contributions.

Repayment of the monthly basic income

The entity that has claimed emergency assistance in the form of monthly basic income must repay the received aid in the following cases:

• if since the entry into force of the Fifth COVID-19 Act there has been a distribution of profits, acquisition of own shares or own business shares, payment of bonuses to management or part of salary for business performance paid to management in the year 2020 or for the year 2020, the beneficiaries must inform the Financial Administration of the Republic of Slovenia (hereinafter: “FURS”). The beneficiary must repay the received funds the decision is served, together with the statutory default interest running from the day of exercising the rights from the Fifth COVID-19 Act until the day of repayment;
• if the beneficiary subsequently finds that he or she does not meet the condition of decline in revenues, they must notify FURS no later than the deadline for submitting a tax return for 2020 (otherwise statutory default interest is charged).

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

Duration of the measure

1 September – 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 Act;
• 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 Act; 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 Act on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The amount of the partially reimbursed lost income

The amount of the partially reimbursed lost income is 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.

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

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

5. Other

Absence from work without visiting a physician

An employee may be absent from work due to 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”) once in each calendar year. The employee is obliged to notify the employer of the absence in writing or electronically 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 will be considered not exercised. However, it is considered exercised when used for less than three consecutive working days.

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 for full-time work in the previous month. It is borne by the Health Insurance Institute of Slovenia.

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

Testing employees for COVID-19

If the employer refers the employee to get tested for SARS-CoV-2, the payment of the test in the period up to 30 June 2021 (with the possibility of extension for a period of six months) is not considered as the employee’s credit rating.

Mobile application for notification of contacts with those infected with SARS-CoV-2 virus

The Fifth COVID-19 Act also envisages the establishment of an application for mobile phones, intended to inform users about contacts with those infected with the SARS-CoV-2 virus. The use of the mobile application is voluntary.

Mass Real Estate Valuation

The Fifth COVID-19 Act proposes that, for the purposes of determining entitlements from public funds, the measure of temporary freezing of data on generalized real estate values taken into account in these proceedings, to the cross-sectional state on 26 March 2020 (reflecting the real estate market as at 31 March 2017) be extended until the day of attribution of generalized values to the valuation records on the basis of Article 20 of the Real Property Mass Valuation Act (ZMVN-1), which follows the Decree determining real estate valuation models. To this day, the Surveying and Mapping Authority of the Republic of Slovenia also still displays the data on the generalized market value determined on 26 March 2020 (reflecting the real estate market as at 31 March 2017), and therefore the values obtained with the last evaluation already carried out shall not be published.

Extension of the measure of assumption of the guarantee obligation

The measure by which the Republic of Slovenia assumes a guarantee obligation in accordance with the Act Providing Additional Liquidity to the Economy to Mitigate the Consequences of the COVID-19 Epidemic (ZDLGPE) also applies to credit agreements concluded by 30 June 2021 at the latest.

Possibility of extension of the validity of tourist vouchers

The Fifth COVID-19 Act gives the Government of the Republic of Slovenia the option to extend the validity of tourist vouchers for a maximum period of 12 months.

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« The Uncertain Fate of the Intervention Measures in the Field of Construction Law » Changes in the Operation of Courts during the Declared Epidemic

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

On 15 October 2020, the Slovenian Parliament adopted the Interim Measures for Mitigation and Elimination of Consequences of COVID-19 Act (ZZUOOP) or the so-called Fifth COVID-19 Act (hereinafter: “Fifth COVID-19 Act”). This is the fifth package of measures carried out by the Ministry of Labour, Family, Social Affairs and Equal Opportunities. The Fifth COVID-19 Act covers measures in the field of health, work, social protection, economy, education, execution of criminal sanctions and justice, agriculture, economy and food, and infrastructure. It will enter into force the day after its publication in the Official Gazette.

In this article, SELIH & PARTNERJI Law Firm presents the key measures in the field of labour law and some other important points introduced by the new act.

1. Reimbursement of salary compensation for employees under quarantine order or for employees unable to perform work due to force majeure due to childcare obligations

Duration of the measure

In case of quarantine ordered under the Communicable Diseases Act (ZNB) or under the Fifth COVID-19 Act: 1 October – 31 December 2020 with the possibility of extension for six months.

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.

In case of inability to perform work due to force majeure due to childcare obligations (employee – a parent of a child or a person who cares for and protects a child on the basis of a valid enforcement title, or a guardian who actually cares for and protects his or her protégé) due to the imposed quarantine measure or other external objective circumstances of inability to attend kindergarten or school: 1 September – 31 December 2020 with the possibility of extension for six months.

Eligible employer

The employer may exercise the right to reimbursement of salary compensation for employees who are unable to perform work due to the quarantine order 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 imposed quarantine or other external objective circumstance of inability to attend kindergarten or school.

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: “EES”) within eight days from the entry into force of the Fifth COVID-19 Act if the measure relates to the period before the that or within eight days from the beginning of the employee’s absence. Based on the decision on the recognition of the right to reimbursement of paid salary compensations, the ESS concludes a contract on the reimbursement of paid salary compensation with the employer.

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 quarantined under the Communicable Diseases Act or the Fifth COVID-19 Act due to a contact with an infected person in the course of performing work for the employer;
• 80% average monthly full-time salary: an employee who received a quarantine decision upon return to Slovenia from a country which was on the green or orange list at the time of the employee´s departure, an employee who was quarantined under the Communicable Diseases Act or under the Fifth COVID-19 Act 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;
• 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 travels to the country on the red list and has informed the employer in writing at least one day before departure that he or she is travelling to 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 travelled 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 quarantined employee must notify the employer within 24 hours of the quarantine that he or she has been quarantined and the reasons for the quarantine, and within three days of receiving the quarantine decision, forward it to the employer.

In case of absence from work due to force majeure due to childcare obligations due to the ordered quarantine or other external objective circumstance of inability to attend kindergarten or school 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 the access to computer programs, documents and procedures related to the implementation of the Fifth COVID-19 Act. Inspection control over the implementation of the above measures is performed by the Labour Inspectorate of the Republic of Slovenia.

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

The conditions for applying for this measure remain the same as in the previous intervention regulations. They are briefly summarized below.

Duration of the measure

1 October – 31 December 2020 with the possibility of extension for a maximum period of six months, but not longer than until 30 June 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 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 12 March 2020 are also entitled to the measure. If these conditions are not met when submitting the annual reports for 2020, all the funds received under the measure should be returned.

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 Act 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 Act for employees sent to temporary wait for work before the Act enters into force. The application must be submitted no later than 15 December 2020.

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 could have been carried out by the employees on temporary wait for work. If the employer invites the employee to return to work, they must inform the ESS in advance. If the employer does not comply with the above, the received funds must be returned 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 with employees sent on temporary wait for work or terminate the employment contract with 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 Act or previous intervention regulations.

Employee’s rights and obligations

An employee who is sent on temporary wait for work and for whom the employer receives 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 requesting that the employee returns 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 for 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, the basis for salary compensation for temporary wait for work is determined based on the salary or the basis for salary compensation in the last three months before the determination of shorter full-time 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 (ZDR-1).

During the period of wait for work, the employee may, in accordance with the provisions of the Labour Market Regulation Act (ZUTD), apply in the job-seeker register and be included in 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 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 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 partial reimbursement in the amount of 80% of the paid salary compensation and not more than EUR 892.50 (gross I).

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

• who does not meet the 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, they have not submitted all the withholding tax returns for employment income for the period of the last five years up to the date of the 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 them 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, 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.

3. The extension of the measure of partial subsidies for shorter full-time work

The Fifth COVID-19 Act stipulates that the Government of the Republic of Slovenia may extend (by a decision issued no later than 20 December 2020) the measure of partial subsidies for a shorter full-time work from the Act Determining the Intervention Measures to Mitigate and Remedy the Consequences of the COVID-19 Epidemic (ZIUOOPE), currently foreseen until 31 December 2020, for a total period of a maximum of six months (but no longer than until 30 June 2021).

4. Interim measures for the self-employed and micro-businesses

4.1. Emergency assistance in the form of monthly basic income

Duration of the measure

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

Beneficiary

The beneficiary of the emergency assistance in the form of a monthly basic income is a person who has been registered to perform activities at least from 1 September 2020 until the entry into force of the Fifth COVID-19 Act and is unable to carry out the activity or performs it to a significantly reduced extent due to the consequences of the COVID-19 epidemic also after the end of the COVID-19 epidemic, namely:

• 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 Act;
• 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 Act; 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 Act on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The beneficiary is deemed to be unable to carry out the activity or performs it to a significantly reduced extent due to the consequences of the COVID-19 epidemic if the revenue (i.e. net sales revenue determined according to accounting rules and benefits from parental care insurance) of the beneficiary will decrease by more than 20% in 2020 due to the consequences of the COVID-19 epidemic compared to the year 2019. If the beneficiary did not operate throughout 2019 or 2020, the beneficiary whose average monthly income in 2020 will decrease by more than 20% compared to the average monthly income in 2019 due to the consequences of the COVID-19 epidemic is also entitled to the assistance. If the beneficiary did not operate in 2019, the beneficiary whose average monthly income in 2020 will decrease by more than 20% compared to the average monthly income in 2020 until 31 August 2020 is also entitled to the assistance. If the condition set out in this paragraph is not met, the beneficiary must repay all the aid.

A person who does not pay compulsory duties and does not fulfil other monetary non-tax liabilities is not entitled to the monthly basic income if the latter has unpaid due tax liabilities on the day of submitting the application.

The amount of the emergency assistance

The emergency assistance amounts to EUR 1,100 per month or EUR 700 per month for the self- employed in culture or EUR 940 per month for beneficiaries-farmers who are exempt from employers’ contributions for compulsory pension and disability insurance.

The emergency assistance in the form of monthly basic income for beneficiaries who have submitted an application for the payment of partially reimbursed lost income (point 4.2.) is reduced for an individual month by the amount of partially reimbursed lost income paid.

If the beneficiary is not included in the insurance for the entire month or for a full insurance time in an individual month, he or she is entitled to a proportional part of the emergency assistance.

The monthly basic income is exempt from all taxes and contributions.

Repayment of the monthly basic income

The entity that has claimed emergency assistance in the form of monthly basic income must repay the received aid in the following cases:

• if since the entry into force of the Fifth COVID-19 Act there has been a distribution of profits, acquisition of own shares or own business shares, payment of bonuses to management or part of salary for business performance paid to management in the year 2020 or for the year 2020, the beneficiaries must inform the Financial Administration of the Republic of Slovenia (hereinafter: “FURS”). The beneficiary must repay the received funds the decision is served, together with the statutory default interest running from the day of exercising the rights from the Fifth COVID-19 Act until the day of repayment;
• if the beneficiary subsequently finds that he or she does not meet the condition of decline in revenues, they must notify FURS no later than the deadline for submitting a tax return for 2020 (otherwise statutory default interest is charged).

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

Duration of the measure

1 September – 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 Act;
• 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 Act; 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 Act on the basis of Article 17 or the fifth paragraph of Article 25 of the ZPIZ-2.

The amount of the partially reimbursed lost income

The amount of the partially reimbursed lost income is 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.

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

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

5. Other

Absence from work without visiting a physician

An employee may be absent from work due to 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”) once in each calendar year. The employee is obliged to notify the employer of the absence in writing or electronically 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 will be considered not exercised. However, it is considered exercised when used for less than three consecutive working days.

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 for full-time work in the previous month. It is borne by the Health Insurance Institute of Slovenia.

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

Testing employees for COVID-19

If the employer refers the employee to get tested for SARS-CoV-2, the payment of the test in the period up to 30 June 2021 (with the possibility of extension for a period of six months) is not considered as the employee’s credit rating.

Mobile application for notification of contacts with those infected with SARS-CoV-2 virus

The Fifth COVID-19 Act also envisages the establishment of an application for mobile phones, intended to inform users about contacts with those infected with the SARS-CoV-2 virus. The use of the mobile application is voluntary.

Mass Real Estate Valuation

The Fifth COVID-19 Act proposes that, for the purposes of determining entitlements from public funds, the measure of temporary freezing of data on generalized real estate values taken into account in these proceedings, to the cross-sectional state on 26 March 2020 (reflecting the real estate market as at 31 March 2017) be extended until the day of attribution of generalized values to the valuation records on the basis of Article 20 of the Real Property Mass Valuation Act (ZMVN-1), which follows the Decree determining real estate valuation models. To this day, the Surveying and Mapping Authority of the Republic of Slovenia also still displays the data on the generalized market value determined on 26 March 2020 (reflecting the real estate market as at 31 March 2017), and therefore the values obtained with the last evaluation already carried out shall not be published.

Extension of the measure of assumption of the guarantee obligation

The measure by which the Republic of Slovenia assumes a guarantee obligation in accordance with the Act Providing Additional Liquidity to the Economy to Mitigate the Consequences of the COVID-19 Epidemic (ZDLGPE) also applies to credit agreements concluded by 30 June 2021 at the latest.

Possibility of extension of the validity of tourist vouchers

The Fifth COVID-19 Act gives the Government of the Republic of Slovenia the option to extend the validity of tourist vouchers for a maximum period of 12 months.