Compensation for damage in the economy

Provided that budget funds are available, the Natural Disaster Recovery Act enables the drafting of the Programme for the elimination of the consequences of damage in the economy, under which the affected companies will be able to receive aid in the amount of:

• up to 60 per cent, if they suffered damage that is eligible for aid and are insured,
• up to 50 per cent if they did not have insurance.

The payment of indemnity is deducted when the amount of allocated funds is calculated. This measure envisages the co-financing of the reimbursement of damage to machinery and equipment, stocks and damage related to the loss of income.

The measure is intended for:

• companies,
• sole proprietors, individuals who perform an independent activity,
• institutes and cooperatives 

with headquarters in the Republic of Slovenia. 

In accordance with the state aid scheme, companies from the following activities are excluded:

• the primary sector of agricultural production,
• the fisheries and aquaculture sector, as determined by Regulation (EU) No 1379/2013 of the European Parliament and of the Council.

Conditions

The affected entities must prove that:

• they have suffered damage in an affected municipality in accordance with the decision of the Administration for Civil Protection and Disaster Relief (URSZR). At the moment, the URSZR does not list the individual affected municipalities; it only lists the regions in accordance with the regional units of the URSZRR. It defines as potentially affected the municipalities in the following regions: Dolenjska, Gorenjska, Koroška, Central Slovenia, Notranjska, Pomurje, Podravje, Posavje, Northern Primorska, Eastern Štajerska, Western Štajerska and Zasavje. The municipalities of Ankaran, Piran, Koper and Izola are not among the affected municipalities. The affected entities can check with their municipality whether it is considered to be affected;
• they have suffered damage to machinery and equipment and/or damage caused by destruction of stocks and/or damage related to the loss of income;
• that they cannot operate due to the consequences of the August 2023 floods or that their operation has been made difficult.

Sending the damage assessment form

The affected entities who wanted an advance payment of up to 10 per cent of the assessed value were required to send a damage assessment on the prescribed form by 1 September 2023. If they failed to submit the damage assessment form by the specified date, they could still send it no later than on 20 September 2023, although in this case they are not eligible for advance payment.

From damage assessment to payment

In order to provide aid to the economy as soon as possible and prevent even greater damage to the economy following the August 2023 floods, the Government of the Republic of Slovenia enabled pre-payments of funds for the elimination of the consequences of the damage to the economy.

1. The affected entities who submitted a damage assessment by 1 September 2023 and declared that they want an advance payment will (after the required procedures are conducted) receive advance payments in the amount of up to 10 per cent of the damage assessment. Other affected entities could submit a damage assessment until 20 September 2022 and will be included in the overall damage assessment.
2. Once the Government of the Republic of Slovenia declares a natural disaster, the beneficiaries will be called upon by the Ministry of the Economy, Tourism and Sport to produce proof of actual damage (appraisal reports, insurance policies, etc.).
3. In addition to the call, forms and instructions on how to prove damage will also be available. Information on the methodology has already been published in the instructions for the completion of the damage assessment form, as this is helpful for preparing the damage assessment.
4. The submission of the proof will be followed by the examination thereof, issuance of a decision and payment (under the condition that funds are provided in the budget). Those who are not eligible for the funds will receive a decision on rejection.

Important information

• Proof of actual damage must be sent by all affected entities subsequently, at the request of the Ministry.
• For applications received by 1 September 2023, the sent damage assessment will be the basis for the issuance of a decision, calculation and payment of advance.

Damage assessment of associations and institutions

The Ministry of Economy, Tourism and Sport also called on associations and institutions that have the status of non-governmental organizations in the public interest in the fields of sports, tourism, and consumer protection to assess the damage after the August floods and landslides. They had to prepare an assessment of damage to machinery and equipment, stocks, and due to loss of income on a special form. The deadline for submitting the damage assessment was September 20, 2023.

The damage assessment for associations and institutions that are not non-governmental organizations in the public interest is submitted to the Ministry of Public Administration.

Assessment of damage to commercial buildings

Companies must submit the assessment of damage to commercial buildings to the municipality on a form published by the municipality on its website. This is Form 4 from the Decree on Damage Evaluation Methodology, which can also be found when clicking on the service of Damage Assessment after Natural Disasters (lower on the page).

The measure is intended for:

• natural persons and legal entities that incurred damage in the affected municipalities in the regions of Dolenjska, Gorenjska, Koroška, Central Slovenia, Notranjska, Pomurje, Podravje, Posavje, Northern Primorska, Eastern Štajerska, Western Štajerska and Zasavje.

Course of the proceedings

Natural persons and legal entities that incurred damage must submit the forms for the application of damage to the municipality in which they incurred damage. 

Faster employment of foreign workers

For the purpose of eliminating the consequences of floods and landslides, the act enables faster commencement of work by employees, citizens of third countries who do not require a visa to enter and reside in the Republic of Slovenia as per the act governing the entry and residence of foreigners working in professions that are already in short supply on the labour market. These are professions that are simultaneously urgently needed for the elimination of the consequences of floods and landslides. The act also enables a faster start of the implementation of services by foreign workers employed by foreign employees who will be providing services to eliminate the consequences of floods and landslides in Slovenia (so-called posted workers).

Foreign workers will be able to start working on the basis of a permit issued as per the international agreement concluded with Bosnia and Herzegovina or Serbia, which will be deemed to comply with the consent for the issue of a uniform permit. If the Employment Service of Slovenia fails to issue a permit based on the international agreement with Bosnia and Herzegovina or Serbia, it will give its consent to the uniform permit.

In the first three months or until the finality of the decision on the application for the issue of the uniform permit, a foreign worker will be able to work on the basis of the permit issued as per the international agreement with Bosnia and Herzegovina or Serbia or the consent of the Employment Service of Slovenia and the certificate on the application submitted for the issue of the uniform permit allowing the foreigner to reside in the Republic of Slovenia until the finality of the decision on the application for the issue of the uniform permit.

Unlimited scope of temporary and occasional work

No limitation of the permitted scope of temporary and occasional work of retired persons and income restrictions as determined in the Labour Market Regulation Act are in force between 1 September and 31 December 2023. During the validity of the intervention measure, retired persons will be able to implement an unlimited number of hours if they will carry out works relating to the elimination of the consequences and remediation of damage due to floods and landslides, and there will also be no restrictions with regard to income.

The measure will be in force between 1 September and 31 December 2023.