As coronavirus outbreak affected business in Europe, the Slovenian government issued an Intervention Act to support the economy in this time. It includes various measures to help business owners as well as other members of the public. In case business owners will take advantage of those measures, they are not allowed to make the payment of dividends, Christmas bonuses and other rewards to management and employees.
Are you a company owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Attend our free webinars on governmental measures during coronavirus in Slovenia. Apply here or call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on data@data.si.
Data d.o.o. has been offering support to entrepreneurs with business in Europe for 30 years. In addition to company registration services, we also provide professional accounting services. Additionally, we also have a specialized legal department that supports business owners with every aspect of business Slovenian legislation. They can also assist you in implementing the measures that the state offers to entrepreneurs during coronavirus outbreak. We also follow the novelties that the state enforces to support the economy and can offer consultation. You can also follow us on Facebook.
The New Intervention Act
The new Act on Intervention Measures to Suppress the COVID-19 Epidemic and Mitigate its Impact on Citizens and the Economy (ZIUZEOP) brings more benefits and assistance to businesses. In order to request assistance, the company has to meet the required condition, but the law also limits applicants in payment of certain income to owners (dividends), management and employees. We will explain the limitations in this article.
Dividends, rewards to management, Christmas bonuses – not allowed when requesting governmental measures from Intervention Act
Business owners who take advantage of any assistance measure will be limited in paying certain income to owners, management and employees.
In 2020, business owners cannot do payments of
- profit,
- Christmas bonus (payment for business success),
- rewards to management.
Applicants for the assistance, who will nevertheless make the payment, will be required to repay any funds received. They will also have to pay statutory default interest.
Dividends or compensation?
What are the options for a company that chooses not to benefit from the new Act because it wants to pay dividends or rewards? In this case, too, companies are dealing with the problem of redundancies at this time, but do not want to terminate their contract them because they assume that they will recover business conduct when the current situation passes.
Forgo dividend payments or consider other legal options in detail? DATA legal advisors consult companies to take a good look at any legal options available to them to retain employment and employees.
In this context, it is also necessary to take into account the possibilities already provided by the Labor Relations Act. There is the employer’s option is to assign another type of work to their workers. Of course, this is only one option. Part-time work options and temporary pay reductions may also be considered.
Did you decide for the payment of bonuses and awards?
If you have made payments of dividends, you need to report it. In practice, it will also happen that companies will exercise the rights provided by the Intervention Law and later find that they do not qualify for them (for example, because they have paid dividends).
What options are available in this case? All recipients who subsequently find that they did not qualify will be able to inform the Financial Administration themselves. Based on the application, the Financial Administration will make a declarative decision based on the report of the recipient. Within 30 days of receipt of the declaratory decision, recipients of aid who are not entitled to it will have to repay the amount of aid received.
Have you decided not to do payment of dividends or bonuses?
If you do not pay dividends, Christmas bonuses and other awards in 2020, the new Act for Employers and Self-Employment allows:
- reimbursement of wages for for workers on waitlist,
- compensation of workers who do not work because of force majeure,
- exemption from payment of contributions for employees on waitlist or employees who do not work due to force majeure
- exemption from payment of pension / disability insurance contributions for workers who work during the epidemic,
- basic income for the self-employed,
- exemption from contributions for self-employed.
Are you a company owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Attend our free webinars on governmental measures during coronavirus in Slovenia. Apply here or call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on data@data.si.
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