On March 21, 2020, the Government of the Slovak Republic approved measures to mitigate the economic impact of the COVID-19 pandemic, with the aim of assisting, among others, businesses (as well as individuals—citizens). Applicants for such assistance had the opportunity, through the “First Aid” or “First Aid+” projects, to obtain funds based on a state subsidy, even without fulfilling the requirement to be registered in the public sector partner registry. However, this exemption from the legal requirement is valid only until December 31, 2020.
Source: https://www.pomahameludom.sk/assets/images/fb/fb_share.jpg
The Ministry of Labor, Social Affairs, and Family of the Slovak Republic, through the “First Aid” and “First Aid+” and the website www.pomahameludom.sk, enabled business entities and individuals (citizens) in the spring and fall of this year to apply for a financial grant to support and maintain employment, to support the preservation of jobs and the business activities of self-employed individuals during the declaration of a state of emergency in connection with the spread of COVID-19.
The assistance is intended primarily for:
- employers (including self-employed individuals who are employers) who had to close their operations or restrict their activities based on a decision by the Public Health Authority of the Slovak Republic (“Measure No. 1”),
- self-employed individuals who were required to close their businesses based on a decision by the Public Health Authority of the Slovak Republic or whose revenue has decreased by at least 20% (“Measure No. 2”),
- employers (including self-employed individuals who are employers) who maintain jobs even in the event of a suspension or restriction of their activities during a declared state of emergency (“Measures No. 3A and 3B”),
- self-employed individuals and single-member limited liability companies that have no other income (“Measure No. 4”),
- citizens who found themselves in a crisis situation without income during the coronavirus pandemic (“Measure No. 5”).
In connection with the “First Aid” project, several legislative changes were also implemented during the first wave of the COVID-19 pandemic, such as the adoption of Act No. 66/2020 Coll., which amended the provision of Section 54(1) of Act No. 5/2004 Coll. Act on Employment Services and on Amendments to Certain Acts (hereinafter also referred to as the “Act on Employment Services”), cit.:
“(1) The following are also considered active labor market measures:
e) projects to support the retention of jobs, including jobs in which self-employment is carried out or operated, and to support the retention of employees in employment in connection with the declaration of a state of emergency, a state of emergency or a state of exception and the elimination of their consequences, which are approved by the Ministry or the Central Office following approval of the conditions by the Government of the Slovak Republic and implemented by the Central Office or the Office.”
State contributions (subsidies) paid on the basis of fulfillment of the conditions of Measures No. 1, 2, 3A, 3B, and 4. Since applicants for such assistance have received or are receiving funds from the state budget, it is essential to also take into account the obligations arising from legislation concerning public sector partners and the register of public sector partners.
Amendment No. 66/2020 Z. z. also supplemented the Employment Services Act with the provision of § 72am, as follows:
“For an employer receiving a subsidy under projects pursuant to Section 54(1)(e) who is required to be registered in the register of public sector partners,66) the obligation to register in the Register of Public Sector Partners is deemed to have been fulfilled until December 31, 2020.”
It follows from the above that, upon fulfillment of the conditions of Act No. 315/2016 Coll. on the Register of Public Sector Partners and on Amendments to Certain Acts (hereinafter also referred to as the “Act on the Register of Public Sector Partners”), an exemption from the obligation to register in the Register of Public Sector Partners pursuant to the Act on the Register of Public Sector Partners applies at the time of the declaration of a state of emergency in connection with COVID-19, an exemption from the obligation to register in the Public Sector Partners Register under the Act on the Public Sector Partners Register applies to the implementation of projects supporting the maintenance of employment and the drawing of subsidies.
This means that employers who have participated or will participate in the aforementioned projects and have applied for or are applying for a financial contribution (or have already received it) were not required to be registered in the Public Sector Partners Register, or are considered automatically registered. Please note, however, that this exemption is valid only until December 31, 2020.
Employers who have received a financial contribution and meet the financial limits (or other conditions) for the obligation to register in the Public Sector Partners Register under Act No. 315/2016 Coll. are required to retroactively fulfill the obligation to register in the Public Sector Partners Register by December 31, 2020. Public sector partners who fail to register in the Public Sector Partners Register by the aforementioned date will be deemed to have failed to fulfill their registration obligation under the Act on the Public Sector Partners Register, as a result of which they may face sanctions under applicable laws (e.g., repayment of a grant or financial penalties).
If this situation applies to you and you have not yet registered in the Public Sector Partners Register, the law firm Hronček & Partners, s. r. o. is ready to provide you with its professional legal services. Please do not hesitate to contact us as soon as possible.
