CORONAVIRUS TASKFORCE UP-DATE - The first state aid to employees, entrepreneurs and sole traders – First group – UPDATED

Information stated below is of general nature and does not necessarily consider specific conditions of your case. For legal assistance in your specific case, please, do not hesitate to contact us.

The first state aid group consists of employers (excluding public administration entities) including self- employed persons, who are employers, and who had to stop or limit performance of their business activities due to measures adopted by the Public Health Authority of the Slovak republic and will maintain the job positions during the time of the extraordinary situation.

Basic conditions for the contribution provision:

  • Obligation to pay a salary compensation to employees amounting to 80% of the employee’s average salary (* for March, applicant who, pursuant to Section 142 of the Labour Code, paid salary compensation in the amount according to the collective agreement are also entitled),
  • Contribution shall be provided for the employee to whom the employer or the self-employed person (as an employer) cannot assign work due to obstacle on the part of employer (Section 142 of Labour Code),
  • Obligation to maintain the job position even if the employer or the self-employed person (as the employer) had to stop or to limit performance of their business activities due to measures adopted by the Public Health Authority of Slovak republic,
  • Commitment that two months after the month for which the contribution is being requested, the employment relationship shall not be terminated and no legal action shall be performed that would terminate the employment relationship with such employee/employees by notice or by agreement for reasons stated in Section 63, par. 1, letters a) and b) of the Labour Code,
  • Applicant is a subject established and performing business activities no later than 1st February 2020,
  • Contribution is granted for only those employees who were employed before 1st March 2020,
  • Term employee means only an employee in employment relationship,
  • Contribution shall not be provided for employees whose employment relationship is based on agreement on work outside employment, for the managing director working without an employment contract or shareholder working for its company without the employment contract, cooperating persons – e.g. wife, children, parents who pursuant to the Act on Illegal Work do not have to be in employment relationship, persons working on basis of agreement pursuant to the Civil Code, volunteers,
  • Unauthorized applicants are public entities as well as a limited liability company with no employees,
  • Contribution cannot be provided for the employees who are receiving social security benefits (such as allowance for sick leave, so called PN or care for family member, so called OČR).

Amount of the contribution:

The financial contribution is provided to cover the salary compensation amounting to 80% of the employee’s average salary. This amount shall not exceed 1,100 euros.

The contribution for the employer who paid the salary compensation in amount less that 80 % of employee’s average salary in accordance with concluded collective agreement or written agreement with representatives of employees, shall be calculated considering actually paid salary compensation. This amount shall not exceed 880 euros.

The contribution for the employer who paid the salary compensation according to the amended Labour code (applicable from 4th April 2020) in the amount exceeding 80 % of employee’s average salary, shall be paid in the amount of 80% of the employee’s average salary. This amount shall not exceed 1,100 euros.

If the salary compensation (which was already paid or which will be paid by the end of the relevant calendar month in which the application is submitted) is less than EUR 1,100, the contribution shall not exceed actually paid salary compensation.

The maximum amount of the contribution for one applicant shall be of EUR 800,000 for the whole period of project realisation.

Filing an application – procedure

The application form is available on https://www.pomahameludom.sk and also on https://www.neprepustaj.sk.

The employer or the self-employed person who is employer shall submit the application to the respective Labour Office, determined according to the district where the job positions are maintained.

Mandatory Annex to the application is a report for contribution provision. More information on how to complete such report is available in the manual in Slovak language (Manuál k vypĺňaniu výkazu pre priznanie príspevku)

Part of the application consists from a declaration in which the employer or self-employed person (as the employer) declares that:

  • the employer (or self-employed person as the employer) pays to its employees salary compensation amounting to 80% of the employee’s average salary according to the report for contribution provision,
  • the employer (or self-employed person as the employer) does not claim the contribution for employees in notice period or employee receiving social security benefits due to obstacles to work on the part of the employee,
  • the employer (or self-employed person as the employer) does not request the contribution for employees already receiving other wage contribution/total labour cost within the active labour market measures provided by Office of Labour, Social Affairs and Family,
  • the employer (or self-employed person as the employer) does not request the contribution for employees employed after 1st March 2020,
  • the employer (or self-employed person as the employer) shall not during the period of two months after the month for which a contribution is being requested, to terminate the employment relationship and shall not perform any legal action by which the employment relationship with an employee/employees may terminate by notice or by agreement for reasons stated in Section 63, par. 1, letters a) and b) of the Labour Code
  • the employer (or self-employed person as the employer) was not a business in difficulty as at 31 December 2019,
  • the employer (or self-employed person as the employer) meets the conditions stipulated in Section 70, par. 7 of the Act on Employment Services by following:

fulfils tax obligation pursuant to the Act No. 595/2003 Coll. on Income taxes, as amended,

fulfils the obligations to pay advance public insurance levies, social insurance levies and obligatory old-age pension savings contributions,

is compliant with the prohibition of illegal employment for a period of two years prior to applying for the contribution,

does not have unpaid financial obligations towards the Labour Office,

it has not been declared bankrupt or wound up, has not been in receivership and does not have a reimbursement schedule pursuant to special regulations,

there are no outstanding claims of employees arising from their employment,

it is not prohibited to receive subsidies or to receive aid and assistance provided from EU funds, in case the employer is a legal person;

  • there are no outstanding claims against this self-employed person for repayment of aid on basis of former decision of European Commission declaring aid illegal and incompatible with the internal market,
  • the employer (or self-employed person as the employer) started to carry out its business activities before 1st February 2020.

The application can be submitted by:

a) electronic post (e-mail),

b) electronically by electronic mailbox,

c) post office (in exceptional cases),

d) personally (in exceptional cases).

The application shall be submitted by the end of calendar month, following the month for which the compensation is required.

The contribution shall be provided without further delay on basis of the Agreement on provision of financial contribution.

Please note that the conditions for provision of this contribution to the first group can change in the future. In this case, we will update this document.