Support for maintaining employment also for large employers

Thursday, 16. April 2020
SUPPORT FOR MAINTAINING EMPLOYMENT HAS BEEN EXTENDED FOR BIG EMPLOYERS
 
Earlier this week the Slovak Government accepted the proposal to change the conditions for maintaining employment in times of declared emergency related to employers, regardless of their size.

 
The major change is related to employers, whose revenues dropped due to the declared emergency. In case they maintain job positions during the declared emergency, even in case of the stopped or limited business activity, employers are entitled to claim:
  1. compensations up to 80 % of their employees´ average salaries, up to a maximum of 880 EUR/employee for those employees who can´t work due to obstacles on the employer's side (§ 142 section 4 of the Labor Code)
  2. flat contribution for a part of the wage costs for each employee based on the decrease of revenues (net turnover), which will be compared to the same time period during 2019 (or alternatively to the monthly average of 2019). If the applicant did not operate during the same time period in 2019, revenues will be compared to February 2020.
 
The employer can choose only one type of the above-mentioned contributions for the whole period of contributions payments.
 
The amount of flat contributions is shown in the following tables:
 
DECREASE OF REVENUESCONTRIBUTIONS FOR MARCH 2020
less than 10%0 EUR
from 10% - 19,99%90 EUR
from 20% - 29,99%150 EUR
from 30% - 39,99%210 EUR
from 40% and more270 EUR







 
DECREASE OF REVENUESCONTRIBUTIONS FOR APRIL 2020 AND THE FOLLOWING MONTHS
less than 20%0 eur
from 20% - 39,99%180 EUR
from 40% - 59,99%300 EUR
from 60% - 79,99%420 EUR
from 80% and more540 EUR








Employers claiming the contributions are obliged to keep the supported job positions for 2 additional months after the month for which the applicant applied for the contribution.
 
Conditions applicable for both types of contributions:
  • the eligible period is related to the date when DE started, meaning from 13.03.2020 until the end of the calendar month in which the DE will end
  • employees in their termination period are not eligible for support
  • the contribution cannot be granted to employees who receive social security benefits (sick pay or nursing benefit) or those who are currently on paid leave
  • employers must submit a statement on their employee count by 31.3.2020
  • the employer could not be defined as a “company in difficulty” until 31.12.2019
  • only entities that were established and started to operate latest by 1.2.2020 may be eligible for contributions
  • applicants must have fulfilled the conditions of § 70 par. 7 of the Act on employment services (fulfilled tax duties, social and health insurance duties, etc.)  
For employers, who were forced to shut down based on the measures of the Slovak Public Health Authority, the originally declared ceiling of EUR 800 000, will no longer apply.

They will be able to claim contributions as compensation for employees' wages in the amount stipulated by a collective agreement or other written agreement with employees' representatives, while the compensation may reach max. 80% of their average earnings, not exceeding 1 100 EUR.