In the year 2000, my partners and I launched the PETERKA & PARTNERS law firm in Prague, Czech Republic. Over time we developed an ambitious idea - to create an integrated regional law firm, which at first seemed almost impossible. However, after years of dedication and hard work, we became a strong alternative to the global giants and local law firms active in the CEE region through their networks or best friends.
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. Here is an overview of the adopted changes:
1. CONTRIBUTIONS TO EMPLOYERS WITH COMPULSORILY CLOSED OPERATIONS
The state will reimburse 80% of an employee's salary costs (instead of 80% of an employee's average salary). The limit remains the same, a maximum of EUR 1,100 per person as a contribution for salary compensation paid by employers to employees (during closed operations).
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.
2. CONTRIBUTIONS TO ENTREPRENEURS AFFECTED BY DECLINE OF TURNOVER
The plan for financial contributions (to compensate loss of income) to self-employed persons (natural persons, i.e., entrepreneurs, performing business under the Trade Licensing Act, including self-employed persons performing business under special laws (auditors, notaries, actors. etc.) and farmers, is amended as follows:
Turnover decline (categories)
April to September 2020
from September 2020
20% - 39.99%
40% - 59.99%
60% - 79.99%
80% and more
3. CONTRIBUTIONS TO EMPLOYERS WITH CLOSED/LIMITED OPERATIONS OR AFFECTED BY DECLINE OF TURNOVER
In this category, the following changes apply:
As for the contributions (through measures 3A or 3B), there are the following changes:
a) employers, whose operations were closed/limited due to the state of emergency (3A) - a financial contribution to the salary compensation of an employee, to whom the employer could not assign work due to obstacles on the part of the employer caused by the extraordinary situation (§ 142 of the Labour Code), is increased to 80% of the total price of the employee’s salary costs (instead of the 80% of the employee's average earnings], a maximum of up to EUR 1,100 (instead of EUR 880)
b) employers, who are experiencing a decline in sales (3B) - a flat-rate financial contribution to cover part of the salary costs of an employee, depending on the decline in the employer's turnover, is increased to 80% of the total price of the employee's salary costs (instead of 80% of the employee's gross salary), up to the amount of the contribution according to the adjusted table of turnover decline under measure no.2:
from October 2020
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This summary is for informational purposes only and may not be considered a legal opinion or advice on how to proceed in a particular case. The summary reflects the status as of 5 November 2020.