Overview of the most recent measures and information related to COVID-19 in the sphere of WAGES and HUMAN RESOURCES

With regards to the continual adoption of new measures to mitigate the economic impact of the COVID-19 crisis on the employers and employees (“crisis”), we have prepared an overview of all the applied measures. This document may prove as a practical guidance providing orientation in the adopted legislative changes as well as the information published by the respective state authorities.

Labour Code

• Work from home. The employer is entitled to instruct the employees to perform work from home provided that the agreed type of work enables such option. The employee has the right to perform this work provided that the agreed type of work enables such option and that there are no material operational reasons preventing the performance of the work from home.
• Obstacles at work on the part of the employer and wage compensation. In cases where the employer cannot assign work to the employee during a crisis wholly or partially due to closing down of the employer’s operation or due to limitation of the operation as a result of a decision by a state authority, or possibly due to declaration of an emergency situation, this shall represent an obstacle at work on the employer’s part, for which the employee shall be entitled to wage compensation amounting to 80% of his/her average wage, however, not less than is the minimum wage. Nonetheless, the above shall not rule out an arrangement entered into between the employer and employee representatives about a reduction in wage compensation amounting to 60% of the employee’s average wage. However, this provision shall not apply to employees of the entities subject to economic mobilisation, to whom the obligation to work was imposed by the law.
• Obstacles at work on the part of the employee and wage compensation. The employee shall not be entitled to wage compensation for his/her absence at work during his/her own material personal obstacle to work due to quarantine measures, isolation, and whole-day provision of treatment to a sick family member, or whole-day provision of care to a natural person pursuant to a specific statutory regulation. For these purposes, the employee shall be entitled to sickness benefit, which is paid by the Social Insurance Company.
• Working time allocation. The employer is obliged to inform the employee with regards to the working time allocation at least two (2) days in advance, unless the employer agrees on a shorter notice period with the employee. Working time allocation must be applicable for at least one (1) week.
• Taking of paid leave. Where the employer requires the employee to take paid leave, it is obliged to notify the employee:

1. At least seven (7) days in advance, if the leave falls into the current year,
2. At least two (2) days in advance, if the requirement concerns an unused paid leave rolled over from the previous year.

Health and social insurance; contributions to old-age pension saving and complementary pension saving  

• Suspension of the obligation to pay mandatory health insurance contributions by the employer (10%). Concerns the employers who register a year-on-year decline in net turnover by 40% or more. The government shall provision in its regulation the particular method how to determine the decline in net turnovers. The approval only concerns the suspension in payments of the advance insurance premium contributions for March 2020, which is now payable by 31 July 2020.

In its regulation, the government may determine also other future periods to which the suspension of advance insurance premium contributions shall apply.

• Suspension of the obligation to pay mandatory social insurance contributions by the employer (25.2%). Concerns the employers who register a decline in net turnover by 40% or more. The government shall provision in its regulation the particular method how to determine the decline in net turnovers. The approval only concerns the suspension in payments of the advance insurance premium contributions for March 2020, which is now payable by 31 July 2020

In its regulation, the government may determine also other future periods to which the suspension of advance insurance premium contributions shall apply.

The suspension of payment of mandatory insurance premium contributions shall not concern the contributions which the employer is obliged to pay on behalf of the employees. These shall be payable in standard statutory due dates.

• Suspension of the payment of mandatory payments for complementary pension saving (the so-called 3^rd pillar or DDS in Slovak). This concerns employers who register a decline in net turnover by 40% or more. The government shall provision in its regulation the particular method how to determine the decline in net turnovers. The approval only concerns the suspension in payments of mandatory contributions for March 2020, which is now payable by 31 July 2020  

The due date agreed in the employment agreement or collective agreement for the purpose of payment of complementary pension saving contributions shall not apply.

In its regulation, the government may determine also other future periods to which the suspension of advance insurance premium contributions shall apply.

More information can be found here: “Suspension of payments of health and social insurance contributions by employers”.

Tax on income from dependent work activity (employment)

• Suspension of advance income tax payments – the employer is obliged to withhold advance payments from the employees’ wages and pay the amount to the authorities in statutory deadlines (i.e. not later than within 5 working days after payment disbursement, transfer, or accrual of the taxable wage to the employee’s credit). Due date of the selected advance tax from employee wages was not officially extended by the government, however, the new Act no. 67/2020 provisions that the tax authorities shall not impose any default interest in cases where the employer transfers the amounts by the end of the calendar month following after the end of the pandemic period (i.e. if the pandemic ends on 15 June 2020, the due date will be deemed complied with by 31 July 2020).
• Submitting of monthly report on withheld and transferred advance tax payments. No suspension applies to submitting of these documents. Monthly report for March 2020 must be submitted in the deadline by the end of April 2020 at the latest.
• Submitting of annual report on withheld and transferred advance tax payments for the year 2019. The report is submitted by the end of the second (2^nd) calendar month following after the end of the pandemic period. This date also represents the due date for the income tax.
• Performing of the annual tax reconciliation (ATR) for the year 2019. The employer shall perform the ATR by the by the end of the calendar month following after the end of the pandemic period. The employer is obliged to deliver the document proving the ATR has been performed to the authorities by the end of the second (2^nd) calendar month following after the end of the pandemic period.
• Settling of the ATR results for the year 2019 for the benefit of the employee. The difference between the calculated income tax and the summary of the withheld advance income tax payments for the benefit of the employee, payment of the employee bonus, tax bonus per child and tax bonus for interest rate must all be settled by the employer not later than by the wage reconciliation for the second (2^nd) calendar month following after the end of the pandemic period.
• Allocation and usage of a share of the paid income tax for the year 2019. Based on the employee’s request, the employer shall be obliged to issue a confirmation of tax payment for the purposes of allocation of a share of the paid income tax and do so not later than by the 15^th day of the second (2^nd) calendar month following after the end of the pandemic period. A declaration on allocating a share of the paid income tax can be submitted by the end of the second (2^nd) calendar month following after the end of the pandemic period.

Posting of employees and the A1 form

• According to the information from the Social Insurance Company with regards to payment of social insurance contributions during the crisis, the following rules shall apply:

1. An employee working solely abroad, who is currently working from home in the Slovak Republic – the employee is not obliged to inform the Social Insurance Company of this fact. At the same time, it is not necessary for the employee to ask for determination of the applicable legislation, i.e. determination of the country where the employee is to pay social insurance premium contributions. The premium contributions shall continue to be paid in the member state where the employee has his/her mandatory insurance due to exclusive performance of work (employment);
2. An employee working solely abroad, who is currently working partially from home in the Slovak Republic and partially abroad – the employee is not obliged to inform the Social Insurance Company of this fact. At the same time, it is not necessary for the employee to ask for determination of the applicable legislation, i.e. determination of the country where the employee is to pay social insurance premium contributions. The premium contributions shall continue to be paid in the member state where the employee has his/her mandatory insurance due to exclusive performance of work (employment).

• A notice for posted employees (i.e. employees from the Slovak Republic posted in another EU member state), who have the portable PD A1 document issued to them:

If posted employees with issued PD A1 document interrupt their activity abroad due to the crisis, they are not obliged to inform the respective branch of Social Insurance Company, unless there arises any circumstance, which would result in premature termination of the posting.

Contribution for employee wages from the Office of Labour, Social Affairs and Family of the Slovak Republic

• Filing of the applications for contributions amounting to 80% of the average wage of the employee not exceeding the amount of €1100 per employee. All employers who had to close down their operation or limit the performance of their commercial activities based on the decision of the Public Health Authority of the Slovak Republic (abbreviated as UVZ SR) shall be eligible for this contribution. The contributions shall be provided per each employee, to whom the employer cannot assign work due to obstacles at work on the employer’s part. After complying with the statutory terms and conditions, employers may apply for the contribution starting from 6 April 2020.

Details on how to file this application can be found at www.pomahameludom.sk.

• Filing of the applications for contributions to wages of employees in case the turnovers fall by 20% and more. All employers who did not have to close down their operation or limit the performance of their commercial activities during the crisis shall be eligible for this contribution. The contributions shall be provided per each employee, to whom the employer cannot assign work due to obstacles at work on the employer’s part. After complying with the statutory terms and conditions, employers may apply for the contribution starting from 13 April 2020. The template of this application is yet to be published.

Details on how to file this application can be found at www.pomahameludom.sk.

Occupational safety and health (OSH, in Slovak known as BOZP)

• Provision of information on the OSH regulations to employees. During the crisis, the employer is not obliged to provide the employee with information on the OSH legal and other OSH regulations, e.g. after hiring a new employee, after transferring the employee to a new workplace, transferring the employee to a different occupation etc. in cases where fulfilling of this obligation is objectively impossible (e.g. no collective OSH training can be held due to across-the-board prohibition on any gatherings). However, the employer will have to comply with this statutory obligation immediately when possible, not later than within one (1) month after the date on which the crisis situation is called-off.
• Suspension of any running deadlines for meeting of the statutory obligations. Actions, such as e.g. recreational stays of employees, performance of preventive medical check-ups essential to retain validity of documents confirming professional competence etc, will have to be fulfilled not later than within one (1) month after the date on which the crisis situation is called-off.

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