Intervention Measures in the Field of Employment Following the Floods in August 2023
Author: Gregor Novljan
On August 9, 2023, the National Assembly of the Republic of Slovenia, in response to the floods that affected 179 municipalities, adopted the Act Amending the Natural Disaster Recovery Act (hereinafter referred to as “ZOPNN-F”). ZOPNN-F was published in the Official Gazette of the Republic of Slovenia on August 10, 2023, and is effective from August 11, 2023, onwards.
In the following, we briefly present the measures introduced in the field of labour and employment relations through the transitional provisions of ZOPNN-F. We emphasize that employers, in cases of natural disasters, have access to other solutions provided by the Employment Relationships Act (hereinafter referred to as “ZDR-1”), which we discussed in our previous article published on August 9, 2023.
- Temporary Measure in the Field of Work-off Days
ZOPNN-F interferes with the provisions of the Public Holidays and Work-off Days in the Republic of Slovenia Act by designating August 14th as a work-off day (only) for the year 2023. Since ZOPNN-F does not specify otherwise, the payment of salary compensation to employees on this work-off day will be the responsibility of the employers, similar to other work-off days.
- Temporary Measure for Salary Compensation to Employees Due to Inability to Work Caused by Force Majeure from the Consequences of a Natural Disaster
An employee who cannot perform their work due to force majeure resulting from the floods in August 2023 is entitled to salary compensation for the period when circumstances of force majeure justifying their absence occur, and in the amount determined by ZDR-1 for cases of temporary incapacity to provide work due to business reason, which is 80% of the average monthly salary of the employee for full-time work from the last three months before the start of the absence. The compensation must not be lower than the minimum salary in the Republic of Slovenia.
Under ZOPNN-F, the following circumstances on the employee’s side are considered as force majeure:
- Inability to commute to work,
- Inability to perform work due to necessary actions to mitigate damage or actions necessary to protect the lives or health of people and animals,
- Deterrence and prevention of damage, or
- Other circumstances of inability to work due to the consequences of a natural disaster.
In the event of absence from work due to force majeure from the consequences of a natural disaster, the employee must inform the employer about all relevant circumstances that affect the occurrence of force majeure no later than within three working days from the enforcement of ZOPNN-F or within three working days from the occurrence of this reason. If the employee has already informed the employer about these circumstances before the enforcement of ZOPNN-F, it is considered that the employee has fulfilled their obligation under this Act.
The amount of salary compensation paid for this reason will be reimbursed to employers (except for certain excluded groups) by the Republic of Slovenia. Employers can claim the right to reimbursement by submitting an electronic application to the Employment Service of Slovenia (hereinafter referred to as “ZRSZ”) within 15 days from the enforcement of ZOPNN-F or within 15 days from the start of the employee’s absence due to force majeure, attaching a statement from the employee regarding the relevant circumstances. The entitlement to reimbursement of salary compensation lasts from August 3, 2023, to December 31, 2023. ZRSZ will decide within 15 days from receiving a complete application, and an appeal can be made to the Ministry of Labour, Family, Social Affairs, and Equal Opportunities.
Reimbursement of compensation is paid to employers on a monthly basis, specifically on the last day of the month following the month of salary compensation payment based on ZOPNN-F.
During the period of receiving reimbursement for paid salary compensations, the employer must pay net salary compensations to employees and settle contributions for mandatory social insurance. In this period, the employer also cannot initiate termination proceedings for employment contracts for employees for whom reimbursement of paid salary compensations was claimed, nor terminate employment contracts for a larger number of employees due to business reasons (unless a program for resolving excess employees was adopted before August 3, 2023, and the employer did not claim the right to reimbursement of paid salary compensations for these employees under ZOPNN-F). The employer cannot claim reimbursement of paid salary compensations for an employee during the notice period.
If the employer acts contrary to any of the above obligations, the funds received for that employee must be returned in full, and the Inspectorate of the Republic of Slovenia for Labour may impose a fine on the employer and its responsible persons. In the event that profit has been paid-out, purchases of own shares or own business interests have been made, rewards have been paid to management, or portions of salaries for managerial performance have been paid in 2023 or for the year 2023, the employer must also return the received funds within 30 days after receiving the decision from the Financial Administration of the Republic of Slovenia, issued following prior notification by the employer.
- Temporary Measure in the Field of Paid Absence of an Employee – Volunteering
In addition to the paid absence days already regulated by the ZDR-1, a volunteer who is engaged in voluntary work within a voluntary organization has the right to paid absence from work for a maximum of seven working days for the purpose of mitigating the consequences of floods. The volunteer demonstrates eligibility for this absence based on a certificate issued by voluntary organization. The Republic of Slovenia fully reimburses the salary compensation for the volunteers.
- Temporary Measure of Partial Salary Reimbursement for Employees on Temporary Waiting for Work
Based on ZOPNN-F, the employer can claim the right to partial salary reimbursement for employees on temporary waiting for work, but only for the period from August 3, 2023, to October 31, 2023 (the Government of the Republic of Slovenia can extend this measure by a decision, but no later than December 31, 2023).
The employer provides written instructions to the employee for temporary waiting for work. In this written instruction, the duration of the temporary waiting for work, options, and the method for notifying the employee to return to work prematurely, as well as the salary compensation amount, are specified.
During employee’s waiting for work period, the employee must return to work upon the employer’s request for up to seven working days in the current month, with the employer providing such notice at least one day before the return to work. During this period, the employee is entitled to salary compensation equivalent to 80% of the average monthly salary for full-time work from the last three months before the start of the absence, and this compensation must not be lower than the minimum salary in the Republic of Slovenia. The same basis applies if the employer has implemented a measure of reduced full-time working hours, resulting in a decrease in the employee’s salary. Therefore, the pre-implementation basis is considered. If the employee uses annual leave during the temporary waiting for work period, he/she have the right to compensation for the time spent using annual leave in accordance with the provisions of the ZDR-1. During this period, the employee can register as a job seeker.
To employees who, before or during the period of this measure’s effectiveness, are utilizing social security benefits (e.g., based on regulations regarding health insurance, parental leave, etc.), salary compensation for this measure is not paid, or it is paid proportionally (depending on the type of social security benefit being used by the employees).
The Republic of Slovenia ensures a partial reimbursement of salary compensation for this measure at a rate of 80% of the salary compensation, limited by the average monthly salary in the Republic of Slovenia for the month of May 2023. The 80% salary compensation covered by the Republic of Slovenia includes all taxes and employer contributions (gross II). This means that the Republic of Slovenia reimburses employers, who claim the reimbursement for this measure, 80% of 80% of the average monthly salary for full-time work from the last three months before the start of the absence (gross II), while the employer covers 20%. Partial reimbursement of salary compensation is paid to employers on a monthly basis, specifically on the 10th day of the month following the month of salary compensation payment based on ZOPNN-F.
The employer can claim the right to reimbursement of paid salary compensations for employees on temporary waiting for work by submitting an electronic application to the ZRSZ within 15 days from the employee’s placement on temporary waiting for work. ZRSZ will decide within 15 days from receiving a complete application, and an administrative dispute is possible. Based on the decision from ZRSZ, the employer must file the request for partial reimbursement of paid compensations no later than June 30, 2024.
During the period of receiving reimbursement for paid salary compensations for employees who are temporarily waiting for work, the employer must pay salary compensations to employees, and during this time, the employer must not order overtime work or temporarily rearrange working hours if the work could be performed by employees placed on temporary waiting for work.
The employer, within the scope of this measure, is also prohibited from initiating termination proceedings for employment contracts due to business reason for employees placed on temporary waiting for work or from terminating employment contracts for a larger number of employees for business reasons (unless a program for resolving excess employees was adopted before August 3, 2023, and the employer did not claim the right to reimbursement of paid salary compensations for these employees under ZOPNN-F). During the notice period for an employee, the employer cannot claim partial reimbursement of salary compensation under ZOPNN-F.
If the employer acts contrary to any of the above obligations, the funds received for that employee must be returned in full, and the employer may be held responsible for the offense. In the event that profit has been paid-out, purchases of own shares or own business interests have been made, rewards have been paid to management, or portions of salaries for managerial performance have been paid in 2023 or for the year 2023, the employer must also return the received funds within 30 days after receiving the decision from the Financial Administration of the Republic of Slovenia, issued following prior notification by the employer.
- Other Temporary Measures
ZOPNN-F also introduces temporary measures in certain areas related to labour law, such as assistance for self-employed individuals (e.g., 1,200 EUR per month for August, September, October, November, and December 2023) and one-time solidarity aid (if paid by the employer in 2023 for severe damage incurred by an employee due to the natural disaster of floods in August 2023, up to a limit of 10,000 EUR is not included in the tax base for income from employment).
