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 helping, among others, business entities (but also natural persons - citizens). Applicants for such assistance had the opportunity to obtain financial resources through the “First Aid” or “First Aid+” projects on the basis of a state contribution, even without fulfilling the obligation to register in the register of public sector partners. However, this prerequisite for fulfilling the legal obligation is only valid 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+” projects 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 contribution to support and maintain employment in order to support the preservation of jobs and the self-employment of self-employed persons during the state of emergency (state of emergency) declared in connection with the spread of the COVID-19 disease.
The aid is intended primarily for:
- employers (including self-employed persons who are employers) who have had to close their businesses or restrict their activities on the basis of a decision of the Public Health Authority of the Slovak Republic (“Measure No. 1”),
- self-employed persons who had to close their businesses based on a decision of the Public Health Authority of the Slovak Republic or whose revenues fell by at least 20% (“Measure No. 2”),
- employers (including self-employed persons who are employers) who maintain jobs even in the event of interruption or restriction of their activities during the declaration of a state of emergency (“Measures No. 3A and 3B”),
- self-employed persons and single-member limited liability companies that have no other income (“Measure No. 4”),
- citizens who find 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 made 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 and Supplements to Certain Acts (hereinafter also referred to as the “Act on Employment Services”), quote:
"(1) Active labor market measures shall also include
e) projects to support job retention, 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 after 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 the fulfillment of the conditions of Measures No. 1, 2, 3A, 3B, and 4 are considered projects to support job retention pursuant to Section 54(1)(e) of the Employment Services Act. Since applicants for such assistance have received or are receiving funds from the state budget, it is necessary to take into account the obligations arising from legislation relating to public sector partners and the register of public sector partners.
Amendment No. 66/2020 Z. z. added the following provision to the Employment Services Act: Section 72am, quote:
"For an employer who receives a contribution under projects pursuant to Section 54(1)(e) and who must be registered in the register of public sector partners,66) the obligation to register in the register of public sector partners shall be deemed to have been fulfilled by 31 December 2020.
It follows from the above that, after fulfilling 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”) is valid at the time of the declaration of an emergency situation in connection with COVID-19 in the implementation of projects to support the maintenance of employment and the use of subsidies an exemption from the obligation to register in the register of public sector partners under the Act on the register of public
This means that employers who have participated and will participate in the above-mentioned projects and have applied for or are applying for a financial contribution (or have already been paid) do not have to be registered in the register of public sector partners or are considered automatically registered.
Please note, however, that this exemption only applies 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 register of public sector partners within the meaning of Act No. 315/2016 Coll. z. are required to subsequently fulfill their obligation to register in the register of public sector partners by December 31, 2020. Public sector partners who fail to register in the register of public sector partners by the above date will be considered as having failed to comply with their registration obligation under the Act on the Register of Public Sector Partners, as a result of which they may face sanctions under applicable law (e.g., repayment of the contribution or financial penalties).
If you are affected by this situation and have not yet registered in the public sector partner 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.
