On 29 December 2020, the National Assembly of the Republic of Slovenia adopted # PKP7 or the Intervention Measures Act to help mitigate the consequences of the second COVID-19 epidemic (ZIUPOPDVE). Novelties and measures to protect jobs to help the economy.

Key measures;

1. PARTIAL COVERAGE OF FIXED COSTS (Article 9)

The maximum amount of the partial criterion of fixed costs, which is otherwise introduced # PKP6, is determined for the management according to the new criteria:

• EUR 1,000 per month per employee or self-employed person, shareholder or founder of company or institute, during the eligible period whose sales revenues fell by 30 to 70 percent,
• EUR 2,000 per month per employee or self-employed person or partner, shareholder or founder of a cooperative or institute, in the eligible period whose sales revenues fell by more than 70 percent,
• 70 percent of the net loss (AOP 187 or AOP 183 and a quarter of the anticipated advance payment of personal income tax on income from activities for 2020) of the beneficiary, which is a medium-sized or large company, stated in the income statements in the eligible period or 90 percent of net loss (AOP 187 or AOP 183 and a quarter of the anticipated advance payment of personal income tax on income from activities for 2020) of the beneficiary, which is a micro or small enterprise, in the income statements during the eligible period. Aid obtained through this measure shall not be considered as a determination of profit or loss.

2. TERMINATION OF THE EMPLOYMENT CONTRACT IF THE EMPLOYEE MEETS THE CONDITIONS FOR OBTAINING AN OLD-AGE PENSION (ARTICLE 21)

Employees who meet the conditions for old-age retirement, i.e. as a rule at the age of 60 and with 40 years of service, may be terminated by the employer without giving a valid reason and with 60 days' notice, in accordance with the first and fourth paragraphs of Article 27 of the On Pension And Disability Insurance Act.. In the event of termination of the employment contract (PoZ) on the basis of the said intervention provision, the employee is entitled to severance pay in accordance with Article 108 of the Employment Relationships Act.

3. EXTENSION OF THE MEASURE OF PART-TIME WORKING (Articles 25-28)

The employer may order part-time work for an individual worker until 30 June 2021. The application for a subsidy may be submitted within the deadline referred to in the first paragraph of Article 16 of the ZIUOOPE no later than 10 June 2021. The employer gives statement, that they paid the workers a salary or salary compensation.

4. USE OF ANNUAL LEAVE FOR 2020 (Article 54)

A worker who was unable to spend due to the Covid-19 epidemic is entitled to use all annual leave for 2019, which was not used in 2020, until 28 February 2021. Annual leave for 2020 is entitled to use until 31 December 2021.

5. LAW ON FINANCIAL OPERATIONS, INSOLVENCY PROCEDURES AND FORCED TERMINATION (Articles 56-57)

Notwithstanding Article 38 and the first paragraph of Article 39 of the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act (ZFPPIPP), the management is not obliged to file a petition for the commencement of bankruptcy or compulsory settlement proceedings if the company's long-term insolvency is due to an epidemic. This measure is valid until 31 March 2021, unless there is no prospect that the company will be able to remedy the long-term insolvency situation. The government may extend the measure by a decision for a maximum of six months

If the company's bodies are unable to carry out the actions and measures of financial restructuring referred to in Articles 36 and 37 of the ZFPPIPP in time due of declaring an epidemic, they must start implementing them no later than one month after the epidemic is cancelled.

Notwithstanding Articles 236, 237 and 238 of the ZFPPIPP, the period for which the court may postpone the decision on the creditor's motion for bankruptcy and the period during which the debtor justifies his request for postponement of the decision is four months if the debtor's insolvency is due to declaration of an epidemic. This measure is applicable in bankruptcy proceedings initiated at the request of the creditor by 31 March 2021 at the latest. The Government may, by decision, extend the measure for a maximum of six months. The decision to extend the measure shall be published by the Government in the Official Gazette of the Republic of Slovenia.

The debtor may also justify the postponement of the decision on the creditor's proposal to initiate bankruptcy proceedings by providing evidence that he has eliminated the insolvency through other financial restructuring measures or with a sufficient volume of business.

A debtor's insolvency shall be deemed to be the result of a declaration of an epidemic if the debtor carries out an activity for which a government or ministerial regulation or a local community regulation has determined that the activity (services or sale of goods) is temporarily banned or the debtor as at 31 December 2019 was not insolvent.

If the court adjourns the decision on the creditor's motion for bankruptcy in accordance with this Article, the enforcement court shall, at the request of the debtor, adjourn enforcement for that period.

6. PROVISIONAL MEASURES IN THE FIELD OF WORK - CRISIS SUPPLEMENT (Article 85)

Every employee who works and whose last paid monthly salary did not exceed twice the minimum wage, the employer pays in addition to the salary for the month of December 2020 a crisis allowance of 200 euros, which is exempt from all taxes and contributions. If the worker does not work for the whole month of December, he is entitled to a proportional part of the allowance referred to in the preceding paragraph.

In order to reimburse the paid crisis allowance to the employee, the employer shall submit a statement via the FURS information system stating that the employee has paid the crisis allowance referred to in the first paragraph of this Article. The beneficiary submits a statement via the FURS information system in electronic form by the end of February 2021 at the latest.

7. PROVISIONAL MEASURES IN THE FIELD OF ECONOMY (Articles 103-105)

Liquidity funds for companies for the implementation of financial products in the amount of EUR 90 million are provided in the budget of the Republic of Slovenia.

Funds for bank loan guarantees Financial resources for the implementation of the measure are provided in the budget of the Republic of Slovenia in the amount of EUR 30 million and are intended for the creation of a reserve fund to cover losses in the form of cashed guarantees. Public Fund of the Republic of Slovenia for Entrepreneurship.

Guarantee to SID Bank for the first loss of the financial engineering loan fund in the field of tourism

With this Act, the Republic of Slovenia guarantees SID Bank as a guarantor for the priority coverage of the deficit from the eligible costs of the financial engineering measure in the amount of EUR 100 million. The financial engineering measure shall be implemented for 12 years and shall be established by a contract concluded between the ministry responsible for economic development and technology and SID Bank within six months of the entry into force of this Act. The deficit referred to in the first sentence of this paragraph shall be determined upon the liquidation of the measure, whereby the liquidation calculation shall be confirmed by the ministry.

8. PURCHASE OF QUICK TESTS ASSISTANCE IN CONDUCTING ANTIGENIC RAPID TESTS FOR VIRUS (ARTICLE 106)

A beneficiary of aid for carrying out rapid antigenic tests for SARS-CoV-2 virus is a legal or natural person organized as a company, sole proprietor or cooperative.

The beneficiary is entitled to assistance for carrying out rapid tests in the amount of EUR 40 per employee on the day of submitting the application.

A person who fails to meet mandatory duties and other monetary non-tax obligations in accordance with the law governing the financial administration collected by the tax authority is not entitled to assistance for performing rapid tests if he has outstanding tax liabilities or other monetary tax liabilities on the day of application, in the amount of more than 5,000 euros.

For the payment of aid for the performance of rapid tests, the beneficiary submits a statement through the FURS information system that he is the person defined in the previous article. FURS pays all in one time transfer.

9. PROVISIONAL MEASURES IN THE FIELD OF RENTAL RATIO OF OFFICE BUILDINGS AND OFFICE PREMISES (Article 117)

A lessee of business buildings or business premises who, due to the COVID-19 epidemic, is prevented by regulations from carrying out economic activity or is significantly restricted and as a result cannot use business real estate in whole or in part for the agreed purpose, may:

• regardless of the Business Buildings and Business Premises Act, terminates the lease agreement with a written statement with a notice period of 8 days;

• requests a deferral of payment of obligations under the lease agreement;

• requires the extension of a fixed-term lease.

The landlord may not terminate or withdraw from the lease because the tenant has requested a deferral of payment of the rent or an extension of the lease in accordance with this Act.

The measures are valid until June 30, 2021. The government may extend them for a maximum of six months. The decision to extend the measure shall be published by the Government in the Official Gazette of the Republic of Slovenia.

Source: Official Gazette.