Kurzarbeit, or the short-term work scheme, has introduced a new procedure in Slovakia intended to help employers maintain employment when they are unable to assign work to their employees due to external factors outside of their control. Kurzarbeit replaces the First Aid scheme.
What does Kurzarbeit mean for employers?
From 1 March 2022, employers in Slovakia can request financial support for the costs of employees’ salaries if the employer has to limit their operations due to external factors and, thus, cannot assign work to at least one-third of their employees for at least 10% of their standard working time.
What counts as an external factor?
Such external factors may include the declaration of a state of emergency, crisis situations, force majeure or any temporary major events that could not have been influenced or prevented by the employer and negatively impact the amount of work the employer can assign.
Conditions for employers
To be eligible for the aid, the employer must meet additional conditions, and the legislation contains specific rules regarding the calculation of aid. In 2022, the maximum amount of aid is 7.81 per hour. The aid cannot be provided for more than six months in total during a 24 consecutive month period.
In general, the employer is obliged to keep the job position for which the aid was provided for at least two months following the end of the calendar month after it was given.
Applying for the aid
The employer must apply for the short-term work allowance with the relevant labour office no later than the end of the calendar month following the month for which the financial assistance is requested. The application must be filed electronically and contain all the required data and annexes.
Missing the deadline and compliance
If an employer misses the deadline for applying for the aid, the employer will lose eligibility for its provision for that month. In addition, in the event of not complying with statutory obligations, the employer may be required to return any financial assistance provided to them.
Find out more
This article was produced by Peter Oravec, Partner at PRK Partners, Slovakia, a CELIA Alliance member firm
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. "CELIA Alliance" and "CELIA" are not trading names. For more information about the CELIA Alliance click here.
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