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Terms for Employees

Prindi

Lisatud 23.03.2020 | Uuendatud 04.05.2020

Which employees will be subsidized?

Only the salaries of employees working under an employment contract, whose work load or wage has been cut in accordance with the Employment Contracts Act §35 or §37, may be subsidized.
 

Can employees whose contract derives from the Law af Obligations Act (e.g. contract for services, authorisation agreement) also be subsidized?

Only the salaries of employees working under an employment contract may be subsidized.
 

Do members of the board also have the right to the subsidy?

No. Only the salaries of employees working under an employment contract may be subsidized.
 

Is the subsidy paid for the whole calendar month or only for the days an employee’s work load or salary have been reduced?

The Fund only subsidizes whole calendar months. Even if an employee’s work load has been reduced for half of the month, their employer may apply for their whole month’s salary to be subsidized.
 

Is the subsidy paid also for employees who have been on sick leave?

Yes, provided the employer has paid them a salary of at least €150 the given month.

 

Is the subsidy paid also for employees that are on unpaid leave?

No. One can apply for the subsidy in a situation where an employer is forced to apply Employment Contracts Act §35, not being able to provide work for their employees but does not cut wages, or §37, cutting wages of their employees on the grounds of not being able to provide their employees with the amount of work agreed upon in the contract.
 

Can wages be subsidized also for those employees who have voluntarily quit their jobs in March and April?

In order to receive the subsidy, the employment contract must still be valid. If the contract has been terminated and the employee has left the company, it is not possible to apply for their salary to be subsidized.
 

Is it possible to get salary subsidies for employees whose work load and salary have been reduced according to the Employment Contracts Act § 37, but whose salary remains above €1000?

The subsidy does not depend on the size of the employee’s salary. What matters is that their wage be cut by at least 30% as compared to what was agreed upon in their employment contract. The Unemployment Insurance Fund will pay 70% of the average salary an employee has received during the last 12 months, but not more than €1000 gross. Thus, if your employee’s salary has been €3000, they will not be subsidized with more than €1000. Their employer must pay them a salary of at least 150 euros but, if possible, they are allowed to pay more. If the employer pays them a salary of, e.g. €1000, the employee’s salary for that month will be €2000 (gross) – 1000 euros from their employer and 1000 euros from the Unemployment Insurance Fund.

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