Force-majeur: Social Security compensations

On April 17, the Government Gazette published 2 resolutions of the Ministry of Labor concerning measures to support employees in connection with force majeure and the economic crisis.

Force-majeure

This regulation allows the Social Security Office to pay compensation to employees who:

- Are insured with the Social Security Fund and entitled to receive unemployment benefits.

- Forced to temporarily stop working during the period from March 1 to August 31, 2020.

- Do not receive salary from the employer during temporary cessation.

- The employment was not terminated.

If such conditions are met, an employee is entitled to receive the compensation in the amount of 62% of the daily wage rate for a maximum of 90 days in the period from March 1 to August 31, 2020.

All of the above must be directly related to the covid-19 and/or preventive government measures in connection with the coronavirus, regardless of whether the employer has suspended the company's activities by its own decision or in connection with the government orders.

To provide a possibility to receive the compensation for employees, the employer must draw up and submit, possibly electronically, a certificate - an application for compensation to employees in connection with force-majeure.

Compensation is not paid if an employee applies for compensation after being dismissed. If an employment ceases after the compensation has been paid, the payments will be discontinued as soon as the employee is dismissed.

Economic crisis

In case of termination of employment due to the economic crisis, employees are entitled to receive the compensation in the amount of 70% of the salary for 200 days if the employee was dismissed, and 45% for 90 days if the employee terminated the employment of his own will.

It should be noted that the decree defines the period of economic crisis from March 1, 2020 to February 28, 2022.

Compensation applies only to employees who have paid contributions to the Social Security Fund for at least 6 of the prior 15 months.