Claiming partial reimbursement of salary compensation for short-time work

Authors I Darja Miklavčič and Anja Bošnik

 

On 12 July 2025, the Act on the Enforcement of Partial Reimbursement of Wage Compensation for Shorter Working Time (Official Gazette of the Republic of Slovenia, No. 47/25; hereinafter referred to as “ZUDPNP”)[1] entered into force. The main purpose of ZUDPNP is to promote the preservation of jobs.

 

ZUDPNP introduces a permanent short-time work scheme. In accordance with this Act, employers who meet the prescribed conditions may, under certain circumstances, claim the right to partial wage compensation for employees who are assigned to work part-time and are simultaneously partially placed on temporary layoff.

 

 

Circumstances under which the measure may be activated:

 

The measure may be activated in the event of natural or other disasters or crisis situations, as defined by the law governing protection against natural and other disasters, and activated by the protection and rescue plan. In such a case, employers may assign an employee to part-time work for a maximum of 6 months within 24 months from the first assignment, as long as the reasons persist.

 

The measure may also be activated in the case of temporary circumstances—when the Government of the Republic of Slovenia adopts a decision identifying a group or sector of activities affected by circumstances that employers in those activities could not reasonably influence or prevent, and which temporarily and negatively affect their business operations. In such a case, the measure may be ordered for the duration of the Government’s decision, but not exceeding 6 months.

 

Employers may apply to the Employment Service of Slovenia (hereinafter: “the Service”) for partial reimbursement of wage compensation for the period during which the employee is temporarily laid off. The extent of temporary layoff may range from 5 to 20 hours per week.

 

 

Employers entitled to claim the right to partial reimbursement:

 

An employer may claim the right if they:

• • • employ workers under a full-time employment contract;
    • are a legal or natural person registered in the Business Register of Slovenia, or a natural person engaged in agricultural activity registered in the Register of Agricultural Holdings;
    • are unable, by their own assessment, to provide at least 90% of work to at least 30% of employees per month – in cases of natural or other disasters or crises, only the business unit in the relevant area may be considered;
    • are not subject to bankruptcy or liquidation proceedings on the date of the application;
    • have settled all mandatory taxes and non-tax liabilities, or any unpaid liabilities on the application date do not exceed 50 euros;
    • are not a direct or indirect user of the state or municipal budget.

 

Before deciding on reduced working time, the employer must consult with trade unions or the works council (if no trade union exists), obtain their written opinion, and provide a written response. ZUDPNP defines the content and deadlines of such consultations. If there is no trade union or works council, the employer must inform employees in the usual manner.

 

The employer must issue a written order for part-time work before it begins, containing all legally required elements. Certain employees (e.g., those in the notice period due to business-related termination, or those employed for less than three months) cannot be assigned to reduced working time under ZUDPNP.

 

 

Rights and obligations of employers and employees:

 

During the period of part-time work, the employee is entitled to payment for hours actually worked and to wage compensation for the time spent on temporary layoff. The compensation amounts to 80% of the base, which typically represents the employee’s average monthly full-time salary from the last three months before the assignment. The compensation must not be lower than the proportional minimum wage nor exceed the full-time salary.

 

The employee is also entitled to a proportionate rest break and must, at the employer’s request, return to full-time work.

 

Within five days of being assigned reduced working time, the employee must register with the Employment Service’s short-time work register and inform the employer.

 

Employees are entitled and obliged to participate in training or education programs agreed upon with the Service. For each hour of participation, they are entitled to a participation allowance and reimbursement of travel expenses, as defined by the Regulation on the Implementation of Active Employment Policy Measures. Within 30 days of successful completion of the program, the Service pays a bonus of €100.

 

The employer must regularly pay wages and proportional compensation to employees under the scheme, according to the assigned working share.

 

During the period of receiving partial reimbursement—and for a period equal to the reimbursement period, but not less than one month thereafter—the employer may not dismiss employees covered by the measure or employees performing similar work. Collective redundancies are also prohibited. Employers may not order overtime or uneven working hours during this period.

 

 

Application procedure:

 

Employers claim the right to partial reimbursement by submitting an electronic application with all required attachments to the Employment Service through the na eStoritve ZRSZ – Portal za delodajalce, within 15 days of ordering reduced working time. The Service issues a decision on the application.

 

Partial reimbursement for the previous month is then claimed through a payment request submitted to the Service.

 

The reimbursement equals 60% of the paid compensation (excluding employer contributions) but may not exceed 50% of the latest known average annual gross salary in Slovenia, converted to a monthly amount.

 

 

Repayment of received funds:

 

ZUDPNP also provides for the repayment of received funds if the employer:

• • • violates the provisions of ZUDPNP (e.g., fails to consult, issues incomplete orders, denies employee rights, or breaches the layoff prohibition);
    • submits false documentation during the application process;
    • initiates liquidation proceedings during or after the benefit period;
    • adopts a resolution of the general meeting on profit sharing, payment of dividends or income paid as dividends, purchase of own shares or ownership interests, or payment of performance bonuses to management.In such a case, the amount to be repaid depends on when the circumstance requiring the repayment occurred.If the circumstance occurred within the first year after the Employment Service’s decision was issued, the employer must repay the received funds in full. If the circumstance occurred in the second or third year after the decision was issued, the employer must repay an amount equal to the value paid for profit sharing, dividends or income paid as dividends, purchase of own shares or ownership interests, or management performance bonuses, up to 50% of the total value of received wage compensation reimbursements.The value of the received partial wage compensation reimbursements shall be revalorized based on the average annual inflation rate. This obligation also binds all legal successors and affiliated companies of the employer.

 

ZUDPNP also provides for fines for employers and responsible persons in the event of violations.

 

 

 

[1] Act on the Enforcement of Partial Reimbursement of Wage Compensation for Shorter Working Time (Official Gazette of the Republic of Slovenia, No. 47/25).