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Overview of employment protection measures in force as at 1 October 2020

Overview of employment protection measures in force as

We provide an overview of currently active measures with the goal of preserving jobs affected by the (COVID-19).

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Due to frequent changes and difficulty in finding the currently valid employment protection measures, we provide an overview of currently active measures with the goal of preserving jobs at employers whose businesses have been negatively affected by the Coronavirus (COVID-19).

1. Job preservation grant for certain sectors affected by COVID 19 – September to December 2020

Eligible employers
 
An employer operating in the following sectors:
— transport and storage, service activities incidental to air transportation
— accommodation services, food and drink preparation and service,
— administrative and auxiliary services industry,
— arts, entertainment and recreation,
— translation activities and interpreter services,
— organizers of cultural, business and sporting events etc.
— all employers, regardless of the sector, that have been prohibited from performing their business activities by the Decisions of the Civil Protection Headquarters or whose business activity have been restricted in any way by the Decisions of the Civil Protection Headquarters

which experienced a decrease in revenue due to COVID-19 of at least 60% in the month preceding the one for which the grant is sought, compared to the same month in 2019, may submit an application for a job preservation grant. Those employers that have been prohibited to perform their activity by the Decisions of the Civil Protection Headquarters, do not have to prove sector or income criteria.
 
Value of the grant
 
— The value of the grant is HRK 4,000 monthly for each full time employee, a proportional value for each part-time employee, and HRK 250 for toward pension insurance contributions based on individual capitalized savings for any such employee.
— For employers which are closed by the decision of the Civil Protection Headquarters for less than 14 days, the value of the grant is up to HRK 2,000 per month.

2. Grant to support reduced working hours during June to December 2020

Eligible employers may receive a grant to offset an eligible employee’s potential loss of employment income if such an employee's working hours are temporarily reduced in one or more months in the period between June and December 2020.

Eligible employers
 
— employers with between 10 to 50 employees must submit a grant request for at least 20% of all employees;
— employers with 51 or more employees must submit a grant request for at least 10% of all employees.
 
Value of the grant:
 
— an eligible employer may receive a grant of up to HRK 2,000 per month per eligible employee
— an eligible employee is an employee whose working hours have been temporarily reduced by no more than 50% of her/his contracted monthly working hours.
 
Eligibility period of the grant:
 
between 1 June and 31 December 2020.
 
Eligibility criteria for receipt of the grant
 
— expect a decrease of at least 10% in the total monthly working hours of all eligible employees, during the month for which the grant is sought.
— prove that the COVID-19 epidemic has had a negative effect on its business thereby justifying the need for the expected decrease in total monthly working hours by:
o proving a decrease in turnover of at least 20% in the month for which the grant is sought, compared to the same month of the previous year (to be determined based on VAT returns submitted to the Tax Authority), and
o providing a reason for the decrease, such as decrease in orders, inability to deliver finished products etc.
 
3. Job preservation grant for micro-entrepreneurs -September to December 2020

Employers with less than 10 employees which can prove a decrease in turnover of at least 50% in the month preceding the one for which the grant is sought compared to the same month in 2019 may receive a grant of HRK 2,000 monthly per full-time employee or a proportional part for each part time employee, and HRK 125 for toward pension insurance contributions based on individual capitalized savings for any such employee.
 
4. Grant for the preservation of jobs in sheltered workshops, integrative workshops and employment units for people with disabilities during July to December 2020
 
Eligible employer
 
Eligible employers are sheltered workshops, integrative workshops and work units for the employment of people with disabilities, regardless of the sector in which they operate.
 
Value of the grant
 
An eligible employer may receive a grant of up to HRK 4,000 per month per eligible employee and HRK 250 for toward pension insurance contributions based on individual capitalized savings for any such employee
 
Eligibility criteria for receipt of the grant
 
Eligible employers must prove a decrease in turnover of at least 50% in the month preceding the month for which the grant is sought, compared to the same month of the previous year (to be determined based on VAT returns submitted to the Tax Authority).
 
Restrictions and limitations
 
An eligible employer receiving the grant must abide by certain restrictions and requirements, for example, payment of the agreed or prescribed salary, no distribution of profits, shares, stock options or management bonuses within a certain period.
 
It is important to understand all of the criteria and obligations related to the particular grant. To determine how these measures may suit your business, KPMG is available to review your circumstances and support you in the grant application process.
 
Please contact KPMG’s Legal Team for further advice and assistance.
 

Hrvoje Pajtak 
Attorney at Law
Tel. + 385 1 5390 062
hpajtak@kpmg.com

Suzana Delija 
Attorney at Law
Tel. + 385 1 5390 252
sdelija@kpmg.com

Nevena Arar
Legal Trainee
Tel: +385 1 5390 275
narar@kpmg.com 

 

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EUROTOWER, Ivana Lučića 2A/17
Tel: +385 (0)1 5390 000
Fax: +385 (0)1 5390 111
info@kpmg.hr
home.kpmg/hr

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