Mega Act (ZIUZEOP): Other (prevention of money laundering and terrorism financing, insurance and financial instruments market, salaries, salaries compensations and relocations in the public sector, providing of public services, public procurement and environmental protection) (5/5)

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Date11 Apr 2020

On 2 April 2020, the National Assembly adopted an Act on the intervention measures to mitigate the consequences of the communicable disease SARS-CoV-2 (COVID-19) epidemic for citizens and the economy (Act). The Act entered into force on 11 April 2020, the day after its publication in the Official Gazette of the Republic of Slovenia.

The Act among others provides for the rules regarding (1) deferral of borrower’s payment obligations, (2) employment relationship and payment of social security contributions (3) health and social security, (4) enforcement, insolvency and other financial obligations, and (5) other areas of law. In this section, we present a variety of areas not covered in the previous sections, namely, the prevention of money laundering and terrorist financing, the insurance and financial instruments markets, salaries and wages and transfers in the public sector, public service delivery, procurement and protection environment.

Prevention of money laundering and terrorism financing

The Prevention of Money Laundering and Financing of Terrorism Act (Official Gazette of the Republic of Slovenia, Nos. 68/16 and 81/19, hereinafter: ZPPDFT-1) defines the measures that the relevant persons are obliged to implement in order to prevent money laundering and terrorist financing. One of the key measures is to carry out the identification of the client and to verify his/her identity, which is, in principle, carried out in the personal presence of the client even before the conclusion of the business relationship.

In certain circumstances, the Act allows certain entities operating in the capital market and the insurance market to, during the epidemic, carry out the in-person identification of a client and verification of its identity at a later stage.

Pursuant to the Act, the in-person identification of a client may be carried out within one month after the conclusion of the business relationship or within one month after the announcement of the termination of the epidemic, if this is necessary to prevent major damage for the client’s business because of the epidemic.

Although the carrying out of the in-person identification and verification of the client’s identity is postponed until after the conclusion of the business relationship, the person liable is obliged, even before the conclusion of the business relationship, to take all possible actions for getting to know their client, which do not require physical proximity with the client, such as retrieving client information electronically, by use of videoconferences, etc.

A temporarily adapted method of conducting a client review under ZPPDFT-1 is not permitted if there is an increased risk of money laundering or terrorist financing.

Insurance and financial instruments market

Deadline for the submission of annual report and auditor’s report on the audit of the annual report as defined by the Company Act (ZGD-1), is, regardless of the provisions of the Insurance Act (ZZavar-1) prolonged so that in 2020, the Insurance companies are required to submit it to the Insurance Supervision Agency within 5 months after the end of the calendar year at the latest.

Deadline for the preparation and publishing of annual reports, half-yearly reports and consolidated reports of public or investment companies respectively, is in 2020 prolonged exceptionally until 31 May 2020, regardless of the provisions of the Market in Financial Instruments Act (ZTFI-1) and of the provisions of the Banking Act (ZBan-2) that are  mutatis mutandis applicable also to the investment companies.

Salaries, salaries compensations and relocations in the public sector

Relocation of a civil servant:

  • it is permissible during an epidemic for a civil servant to be temporarily transferred, without his consent, to (i) another post within the same employer or (ii) to the same or another post to other employer;
  • a transferred civil servant has the right to a salary for work and other employment rights, as they derive from relocation, unless the salary he would receive and other employment rights to which he would be entitled, if he carried out his work without relocation, are more favourable to him. Then the latter rights are applied;
  • the government determines by decree (i) the conditions and content of the decision on temporary relocation, (ii) civil servants who are not allowed to be temporarily relocated, (iii) and the method of payment of salary, reimbursement of expenses and other benefits.

Overtime work during the epidemic:

  • the superior may, without his or her consent, order to the public servant to complete the started work or to perform an urgent work, if:
  • the work has been ordered during the duration of epidemic and
  • the urgent tasks cannot otherwise be performed;
  • a civil servant must carry out the ordered work irrespective of the labour law regulations regarding the time limits of daily work obligation, daily and weekly rest and hours worked over the full-time, whereby full time work may take (i) a maximum of 20 hours per week, or 80 hours per month, or (ii) with the consent of the civil servant for a longer period.

Employment due to urgent work needs during the epidemic:

  • the employer may conclude a fixed-term employment contract without a public vacancy announcement, if:
  • this is necessary because of urgent work needs; and
  • only by concluding a fixed-term employment contract (with term no later than 30 September 2020).

Reduction of salaries and salaries compensations of high official:

  • 30 percent reduction of certain high official’s salaries for the duration of the SARS-CoV-2 virus epidemic (COVID-19) – among other high officials within the executive branch, the President of the Republic of Slovenia, the National Assembly of the Republic of Slovenia, the European Parliament, the Court of Audit, Supreme the Public Prosecutor’s Office, the Fiscal Council, the Ombudsman of the Republic of Slovenia and other bodies. The judicial branch is exempt from the Act.

Salary compensation due to the epidemic:

  • a civil servant and high official (i) who, due to a quarantine, cannot perform work in accordance with a contract of employment or perform function, and the employer cannot organize them work at home, or (ii) who, due to force majeure, do not perform work or function, have the right to salary compensation in amount of 80 percent of the average monthly full-time salary from the last three months or from the period of work in the last three months before the start of absence (or the corresponding adjustment of the basis for the assessment of salary compensation in accordance with seventh paragraph of Article 137 of the Employment Relationships Act (ZDR-1);
  • when it is impossible to perform work due to an epidemic a civil servant may be temporarily laid-off by written notice until no later than 31 May 2020.

Allowance for danger and special burdens during an epidemic:

  • the allowance is granted to (i) an employee who is above average exposed to the risk to his health, or (ii) is overburdened with managing the epidemic;
  • the allowance cannot exceed 100 percent of the hourly rate of the employee’s basic salary;
  • a public sector employee may receive (i) an allowance from the Act for the work during the epidemic and (ii) an allowance for work in risk situations (from item 39 of Article 39 of the Collective Agreement for the Public Sector) for a total value of no more than 100 percent of the hourly rate of the employee’s basic salary;
  • employees posted to work abroad are also eligible for the allowance;
  • funds for financing the allowance from the Act and the allowance for work in risk situations (from item 39 of Article 39 of the Collective Agreement for the Public Sector) are provided by the state.

Providing of public services

Public authorities, local authorities, public bodies and public service operators who do not provide public services during the epidemic, shall not allowed to charge for such services.

Wage compensations of employees employed with the employers mentioned above, and other costs incurred as a result of a failure to provide public services, are covered by the budget of the Republic of Slovenia.

Public procurement

The Act provides for the temporary raise of thresholds for the application of Public Procurement Act (ZJN-3) in the general field of procurement. For goods or service contracts or project contests the threshold is raised from EUR 20,000 to EUR 40,000, whereas for public works contracts the threshold is raised from EUR 40,000 to EUR 80,000. These changes are valid until 15 November 2020.

Article 66(4) ZJN-3 for public tenders for the needs of subdivisions of municipalities is inapplicable until 15 April 2021.

During the epidemic, the provisions on the contractual penalty for the delay contained in contracts concluded between private and public entities that do not relate to the supply of goods representing protective equipment required for fighting the epidemic, are not applicable. Additionally, contractually agreed deadlines are prolonged for the duration period of the epidemic.

Environmental protection

Deadlines regarding reporting obligation as provided by the Environmental Protection Act (ZVO-1) and by the Water Act (ZV-1) and the regulations issued on their basis, are prolonged so that they run out on a 60th day after the cancellation of the epidemic.

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Our law firm is actively following the latest COVID-19 developments. As always, you can contact us via e-mail or telephone +386 (0)1 2445500, or you can directly contact the lawyer you are generally in contact with.

Law Firm Kavčič, Bračun & Partners, o.p., d.o.o

Ljubljana, 3 April 2020

 

All information contained herein is based on applicable law or obtained from publicly available data or other sources believed to be reliable. This document is for general information purposes only, may be subject to change and may not be used instead of a legal opinion/advice. KBP does not guarantee the accuracy of the information and shall not be liable for any damages or costs in connection with the use of, or reliance on, the information contained herein.