Text file: 5197.txt
author: nussaa
downvotes: 1
end consideration date: 2013-12-04
id: '5197'
number comments: 34
number views: 3324
proposal type: Competent authority response
response: "Response by the Ministry of Labour, Family, Social Affairs and Equal Opportunities\n\
  Analysis of the status quo:\nThe incentive for the employment of younger unemployed\
  \ persons is regulated by the Act on Intervention Measures in the Labour Market\
  \ and Parental Care (Official Gazette of the Republic of Slovenia, No 63/13 - ZIUPTDSV),\
  \ according to which the right to exemption from the payment of employer's social\
  \ security contributions may be exercised by employers who, in the period from 1\
  \ November 2013 to 31 December 2013, have paid the employer's social security contributions.\
  \ December 2014 for an indefinite period of time, employ an unemployed person under\
  \ the age of 30 who has been registered in the register of unemployed persons (but\
  \ not in the register of jobseekers or in other registers maintained by the Employment\
  \ Service of the Republic of Slovenia ex officio in accordance with the law) for\
  \ at least three months prior to the employment. These employers are entitled to\
  \ exemption from employer contributions for pension and invalidity insurance, health\
  \ insurance, parental care insurance and unemployment insurance for the first 24\
  \ months of employment.\nThe conditions for the employer to benefit from the relief\
  \ described above are as follows:\n the employer has not initiated dismissal proceedings\
  \ or terminated the employment of employees for business reasons in the last three\
  \ months prior to the conclusion of the employment contract, the employer has not\
  \ had a blocked transaction account for 30 or more consecutive days prior to the\
  \ conclusion of the employment contract, and the employer has regularly paid wages\
  \ and social security contributions to the employees in the last six months prior\
  \ to the conclusion of the employment contract.\nIf, after the conclusion of the\
  \ employment contract, the employer terminates the employment contract of a person\
  \ before the expiry of 24 months of employment for business reasons or in the event\
  \ of an extraordinary termination of the employment contract by that person before\
  \ the expiry of 24 months of employment, the employer is liable to pay the employer's\
  \ social security contributions for the entire period of that person's employment,\
  \ whereas no penalty is imposed by law for such a case after the expiry of that\
  \ period.\nThe incentive described is incompatible with certain other employment\
  \ incentives (Article 2(4) of the Social Security Act), notwithstanding the provisions\
  \ of the laws governing compulsory social security (i.e. Act on Pension and Disability\
  \ Insurance, the Act on Health Care and Health Insurance, the Act on Parental Care\
  \ and Family Benefits and the Act on the Regulation of the Labour Market), a person\
  \ is entitled to the same scope of rights under the above-mentioned social insurance\
  \ schemes as if the employer's contributions had been paid, notwithstanding the\
  \ non-payment of employer's social security contributions.\nThe above-mentioned\
  \ relief does not have to be claimed by way of an application, but the employer,\
  \ who meets all the conditions described above, is only obliged to calculate the\
  \ contributions within the time limit and in the manner prescribed by the legislation\
  \ governing taxes and contributions (Form REK-1). More detailed instructions on\
  \ calculating contributions are published on the website edavki.durs.si/openportal/pages/Notices/NoticeDetail.aspx.\n\
  \ Analysis of the proposal and reasons for its (in)appropriateness:\nThe (continuous)\
  \ registration in the unemployment register is a condition laid down in the ZIUPTDSV\
  \ in order to encourage the employment of younger unemployed persons who have not\
  \ yet managed to find a job even after three months of registration in the unemployment\
  \ register; the legislator therefore considered that, from the point of view of\
  \ the (un)employability of young unemployed persons, this period was the most appropriate\
  \ milestone for assessing the employment prospects of a young unemployed person,\
  \ and that no such incentive was needed for the employment of unemployed persons\
  \ who manage to find a job earlier than three months. However, given that the measure\
  \ is intended exclusively to promote the employment of young unemployed persons\
  \ and not of already employed workers, the existence of a condition of registration\
  \ in the unemployment register is necessary to ensure the achievement of the described\
  \ legal purpose (i.e. the employment of young unemployed persons who do not manage\
  \ to find a job even within three months from the date of registration in the unemployment\
  \ register). The State budget cannot provide generalised, permanent employment incentives\
  \ for all jobseekers due to insufficient financial resources (especially not in\
  \ the current public finance situation); consequently, such measures focus on a\
  \ specific target group of unemployed persons each time, and the same approach is\
  \ ensured in the preparation of active employment policy programmes to promote the\
  \ recruitment and training of unemployed persons; the same approach is used in the\
  \ preparation of active employment policy programmes to promote the recruitment\
  \ and training of unemployed persons.\nWhile we are aware of the possibility of\
  \ using this measure in the sense outlined by the proposer, we believe that it should\
  \ not be used to the absolute extent envisaged (i.e. 'replacing' all workers employed\
  \ by fixed-term employers with younger unemployed persons); in our experience, employers\
  \ are mostly in need of skilled and good workers.\nIn addition, we would like to\
  \ clarify that, under the IUPTDSV, an employer who, in the three months preceding\
  \ the date of conclusion of an employment contract with a young unemployed person,\
  \ has terminated the employment contract of any of the workers employed by that\
  \ employer for business reasons is not eligible for this incentive; the above-mentioned\
  \ condition therefore protects, to a certain extent, the workers already employed\
  \ by that employer, whereas the decisions of employers before and after the expiry\
  \ of fixed-term contracts are hardly influenced by State measures. In the light\
  \ of the above, we do not consider the proposal to remove the condition of registration\
  \ in the unemployment register at least three months prior to the recruitment of\
  \ a younger unemployed person to be reasonable.\nWe also consider that a proposal\
  \ whose implementation would give a temporary worker an advantage over a younger\
  \ unemployed person, as defined in the IUPTDSV, is not feasible in the context of\
  \ this intervention law. In our view, such a solution could only be implemented\
  \ as a systemic solution within the framework of the generally applicable labour\
  \ law.\n "
response date: 2013-12-31
response due date: null
sent date: 2013-11-05
title: Youth employment on a permanent basis
upvotes: 29
url: https://predlagam.vladi.si/predlog/5197
