Background information

On 27 December 2022, the National Assembly adopted a long-awaited aid package for the economy: Act on Aid to the Economy to Mitigate the Effects of the Energy Crisis (ZPGOPEK). Following the partial subventions for rising energy costs in March 2022 and August 2022 , the law provides the basis for comprehensive aid to the economy in 2023. It consists of three support measures:

1. Partial reimbursements of the costs of price increases for electricity, natural gas and steam .
2. Wage compensations for temporary layoff and short-time work.
3. Liquidity loans .

The whole aid package (subsidies for energy price increases, wage compensations and liquidity loans) is worth €1.2 billion.

Content of measure

The second measure reactivated the short-time work and temporary layoff schemes from the COVID-19 pandemic. The two emergency interventions aimed to preserve jobs at risk due to the energy crisis and inflation. However, only employers entitled to state aid under point 1 are also entitled to employment support compensation. In addition, direct or indirect budget users are not eligible.

Under the temporary layoff and short-time schemes, employers are entitled to partial reimbursement of the wage compensation paid by the Employment Service of Slovenia. Employers may, in order to preserve jobs due to high increases in energy prices, order full-time workers to work part-time (minimum 20 hours and maximum 35 hours per week) and at the same time partially assign them temporary layoff (from 5 hours to 20 hours per week). Worker's compensation is equivalent to 80% of usual wage but not less than the minimum wage; state subsidises 80% of wage compensation, including all taxes and employer contributions, but not more than the average wage in October 2022.

The temporary layoff is limited to 30 days between 1 January 2023 and 30 June 2023. Workers must be employed before 1 January 2023 and not receive other employment funding. During the temporary layoff, workers are obliged to return to work for seven days upon the employer’s request one day before. Importantly, beneficiaries must invest half of the funds received within 30 months after the first application for wage compensation.

Short-time work compensation is available from 1 January 2023 to 31 March 2023 under conditions that employers cannot provide 90% of work to 10% of workers. The worker must be full-time employed for at least three months and receive no other employment funding. The government may extend the measure for two months. Before deciding on the two schemes, the employer must consult with the trade union or work council.

While receiving state aid and six months after, the employer may not initiate the dismissals of short-time workers or dismiss a large number of workers. Employers may not demand overtime work and uneven or temporarily distributed working time from remaining workers. They must keep working time records, documenting the start and the end of subsidised employees' work. While engaged in temporary layoff and short-time schemes, workers may participate in ALMP programmes.

The Health Institute of the Republic of Slovenia (ZRSZ) administers temporary layoffs and short-time work schemes. Employers must send applications within 15 days after the commencement of temporary layoff or short-time work. Reimbursements are paid periodically every month. Employers must return funding if they give false statements, pay dividends, buy their own shares, pay performance bonuses or awards to managers, make subsidised employment redundant within a six-month ban on layoffs etc. All grants must be paid off until 31 December 2023.

Use of measure

No information available.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

The Economic and Social Council (ESS), the tripartite social dialogue body, discussed and negotiated the law draft.

Views and reactions

Trade unions were content with the provision that state aid recipients have a six-month ban on layoffs and other conditions.

Sources

• 27 December 2022: Act on Aid to the Economy to Mitigate the Effects of the Energy Crisis ( Zakon o pomoči gospodarstvu za omilitev posledic energetske kriz (www.uradni-list.si)
• 14 February 2023: Government of the Republic of Slovenia, Measures to mitigate energy price rises (Ukrepi za omilitev draginje na področju energetike (www.gov.si)