In brief
Following the issue of previous corresponding Regulations on this matter, and exercising her powers, the Minister of Labour, Welfare and Social Insurance issued on 23rd June 2020 new Regulations to mitigate the effects of COVID-19 for the period 13th June 2020 up to 30th June 2020.
A summary of the key features of the above measures is outlined in the paragraphs below.
In detail
- General Information
(a) The Special Unemployment Benefit for employees of Hotels and Tourist accommodation units is granted to employees of the above businesses which have yet to recommence their operations or have or estimate a reduction of more than 40% in their turnover for the period from 13/6/20 to 30/6/20, compared to the corresponding period of 2019. In case the business was not operating in 2019, then the comparison will be made against the period preceding 13/6/2020, without taking into consideration the period 16/3/20-12/6/20. It is noted that the reduction in business' turnover should be exclusively a result of the COVID-19 pandemic outbreak.
(b) The Special Unemployment Benefit for employees of businesses engaged in economic activities related to the tourism industry or to tourism or to businesses subject to Mandatory Full Suspension is granted to employees of the above businesses which estimate a reduction of more than 55% in their turnover for the period from 13/6/20 to 30/6/20 compared to the corresponding period of 2019.
In case the business was not operating in 2019, the comparison will be made against the period preceding 13/6/2020, without taking into consideration the period 16/3/20 to 12/6/20. It is noted that the reduction in business' turnover should be exclusively a result of the COVID-19 pandemic outbreak.
A business will be considered linked with the above economic activities, if at least 40% of its turnover arises from such economic activities.
The Special Unemployment Benefit for employees of businesses under a full suspension of their activities is granted to employees of businesses that are subject to mandatory suspension based on the recent Decrees of the Minister of Health and the relevant Regulations of the Council of Ministers, provided that their business activities and the way they operate remain unchanged.
The Special Unemployment Benefit for employees of certain business activities is granted to employees of businesses that do not carry out any economic activities defined in the Schedule of the Regulation and suffered a reduction of more than 40% in their turnover.
The reduction in turnover beyond 40% is estimated for the period from 13th June 2020 to 30th June 2020, compared to the corresponding period of 2019. In case the business was not operating in 2019, then the comparison will be made against the period preceding 13/6/2020, without taking into consideration the period 16/3/20-12/6/20. It is noted that the reduction in a business' turnover should be exclusively a result of the COVID-19 pandemic outbreak.
During the implementation of the Special Plans, in the case of groups of companies (in the context of parent and subsidiaries or related entities with a common shareholder), engaged in the same economic activity but with a separate Employer Social Insurance Number, the applications that will be submitted will be treated as a single application, and the terms and conditions of the above Plans will be applied as if they concern one business or one employer.
A business that has multiple Employer Social Insurance Numbers for one legal entity, regardless of the applications it submits for each Employer Registration Number, will be treated as a single application of the business under the same terms and conditions of the above Plans that would apply if a single Employer Insurance Number was granted.
A key condition for businesses to participate in the above plans is for them not to have laid-off any of its employees for the period 1st March 2020 to 31st October 2020, unless a dismissal is made for reasons justifying the non-granting of notice. Businesses will not be able to proceed with any employee lay-offs for financial reasons throughout the above period.
For the period the Special Unemployment Benefit is payable, the employer is not required to pay the balance of the salary to its employees who receive the relevant benefit, provided that they do not work in the business.
The businesses which will participate in the plan, have the opportunity to employ their staff who will receive the Special Unemployment Benefit, providing to the said staff the balance of their salary with the corresponding contributions to the Social Insurance Fund.
The employee may be employed by the business by settling the difference of the salary from the Special Unemployment Benefit or by adjusting the above difference, depending on the hours of employment.
The relevant electronic application for the participation in the above plans should be submitted by a person binding the business as per the relevant legislation for the period from 13th June 2020 to 30th June 2020.
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Originally published 30 June 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
