First Aid Plus

First Aid Plus

Measures for entrepreneurs aimed on jobs sustainability support

Dated: 18.11.2020

In respect to re-declaring a state of emergency, and the measures taken in connection with it, the Slovak Government changed the scope and the conditions of the economic measures and state support provided through its "First Aid" project, currently updated as the "First Aid Plus" project.

This updated "First Aid Plus" project will apply to applications already submitted for the month of October 2020 and it further extends the implementation period of the economic measures from January to March 2021. Already existing applicants will receive amendments to their contracts. The starting time for the submitting of new applications and reports for the use of First Aid Plus is scheduled for the second week of November. Below is an overview of the adopted changes, MEASURE 5: SOS Subsidy can be found here: https://sk.lgp-lawyers.at/en/news-en/legal-aspects-of-the-coronavirus-second-wave/sos-subsidy/

MEASURE 1: State contribution to the employers whose operations are mandatory closed or activities are limited on the basis of decision of Public Health Authority:

Entitled Applicant for Measure 1:

Employer (including self-employed person as employer) with the exemption of the public administration entities, whose operations are mandatory closed on the basis of decision of Public Health Authority and who will maintain jobs for one month during a declared extraordinary situation or state of emergency and for two months after its termination, even in the case of the interruption or restriction of their operation on the basis of Public Health Authority´s Measure during the declared. 

Amount of Support:

Support in the amount of 80% of the total price of the employee's salary costs (instead of 80% of an employee's average salary) or in the amount set out by the collective agreement or other written agreement with the representatives of employees throughout the period of provision of the contribution under the condition that the employment relationships will continue to exist. Maximum support for one employee in the amount of EUR 1.100. 

The support shall also include employees who were hired after 1 March 2020, but no later than 2 September 2020. The contributions may be provided also to subjects that were established and started their business operations after 1 February 2020, but no later than 2 September 2020. 

The period to dismiss an employee for which the employer obtained support is reduced from two months to one month at the time of the declared state of emergency.

Based on the notification of the Ministry of Labor and Social Affairs on the possibility of submitting an application for a financial contribution, the total amount of aid for one self-employed applicant (SZČO) may not exceed EUR 800,000 – the above mentioned does not apply to self-employed person who concludes an agreement or amendment under the conditions valid from 01. October 2020 (EUR 120,000 for fisheries and aquaculture applicants, EUR 100,000 forapplicant in primary agricultural production). As to other enterprises, the limit in the amount of 800.000 EUR for one applicant was canceled, i.e. that also the large enterprises may apply for same contribution of the state as other entities.

MEASURE 2: State contribution to self-employed persons whose operations were mandatory closed or limited their operations based on decision of Public Health Authority

Entitled Applicant for Measure 2:

Self-employed person which cumulatively meets the following conditions: 

  • Person who has interrupted performance or operation of business activity based on Public Health Authority´s Measure during the period of declared extraordinary situation or state of emergency or whose revenues have decreased at least by 20%,
  • Person who has been insured with respect to healthcare and social insurance (mandatorily or voluntarily) in the period up to 31 June 2020 and the insurance lasts after this date or who draws so-called insurance contributions holiday pursuant to the Act No. 461/2003 Coll on social insurance, as amended,
  • person who has not cancelled or suspended its trade license,
  • the eligibility is extended also to subjects which were established and started business operations after 1 February 2020, but no later than 2 September 2020,
  • the condition of prohibition of parallel operation or pursuit of a self-employed activity with an employment relationship has been cancelled.

Amount of Support:

The state contribution shall compensate the decrease of revenues. 

The amount of the contribution in each category of the turnover decline is increased by 1.5 times (see below), provided that from such amount the net income from the employment relationship for the relevant calendar month shall be deducted: 

Turnover decline (categories)

April to September 2020

from September 2020

20% - 39.99%

EUR 180

EUR 270

40% - 59.99%

EUR 300

EUR 450

60% - 79.99%

EUR 420

EUR 630

80% and more

EUR 450

EUR 810

Revenues will be compared to the same period last year. 

It is possible to change the method of calculating the decrease of revenues within individual months.

MEASURE 3: State contribution to employers affected by the extraordinary situation or state of emergency

Entitled Applicant for Measure 3:

The employer (including self-employed person as an employer) with exemption of the public administration entities, who maintain jobs for one month during a declared extraordinary situation or state of emergency and for two months after its termination, even in the case of the interruption or restriction of its operation activity.

The support shall also include employees who were hired after 1 March 2020, but no later than 2 September 2020. The contributions may be provided also to subjects that were established and started their business operations after 1 February 2020, but no later than 2 September 2020.

The period to dismiss an employee for which the employer obtained support is reduced from two months to one month at the time of the declared state of emergency.

Amount of Support:

The applicant may decide between the following forms of the contribution for the employee, who does not draw the social security benefits (sick leave benefit, nursing leave benefit) or is not on holiday:

  • payment of compensation of salary of employee in the maximum amount of 80 % of the total price of the employee's salary costs (instead of 80% of an employee's average salary) of each employee, with a maximum of EUR 1.100 per month, or
  • flat-rate contribution for the compensation of the part of salary expenses for each employee depending on the decrease of the revenues in the amount mentioned in Measure 2.

The employer can choose only one of the options for the entire period of the contribution.
The allowance cannot be provided for employees who receive social security benefits or take leave.

MEASURE 4: State contribution to the selected groups of self-employed persons which during the declared extraordinary situation or state of emergency do not have any income

Entitled Applicant for Measure 4:

  • self-employed person who has interrupted or restricted the performance or operation of his activity, and who has not been insured with respect to healthcare and social insurance or who does not draw so-called insurance contributions holiday pursuant to the Act No. 461/2003 Coll on social insurance, as amended, or
  • natural person who is sole shareholder of a limited liability company, and at the same time is its managing director and is not its employee (so-called Single-Member Limited Liability Company).

For this purpose, as income shall be considered also: retirement pension, early retirement pension, invalidity pension, service pension.

Amount of Support:

The applicant may apply a flat-rate contribution for compensation of loss of income from employment and other gainful activity in the amount of 315 EUR. 

The condition is that these persons do not have any other income from entrepreneurial, non-entrepreneurial and dependent activity from 1 October 2020. Exceptions are income from employment relationship, agreements on work performed outside employment relationship and an invalidity pension with a decrease in the ability to perform gainful activity up to 70%.

Undertaking in difficulty

One of the conditions relating to the above-mentioned measures is that the applicant shall not to be a undertaking in difficulty.

For the determination of this status of the applicant is the basic rule that if a company is in liquidation, restructuring or bankruptcy, it is automatically an undertaking in difficulty.

If an undertaking has been in existence for less than three years, it is not considered to be in difficulty unless it is in liquidation, restructuring or bankruptcy.

If the company has existed for more than three years, the entrepreneur must further investigate the financial situation of the company.

At the request of the Ministry of Labor and Social Affairs, this condition was deleted in relation to employers who will apply for employee wage contributions. However, the European Commission did not accept another request that the self-employed person in difficulty could also apply for a contribution, so at present the existence of a company in difficulty is only examined in the case of measures no. 2 and 4.

Author:

JUDr. Mária Porubská Tökölyová, advokát