The reactivation of the scheme is an important signal

The Slovenian government has reintroduced a subsidized shortened workweek program to help preserve jobs in ten manufacturing sectors affected by a temporary decline in orders. The measure, which will last six months, aims to prevent layoffs and maintain employee income while supporting businesses facing reduced production levels due to external circumstances. According to officials, approximately 1900 workers are expected to benefit from this initiative, ensuring their employment and social security during periods of reduced activity. The decision follows the expiration of the initial six-month period of the scheme on June 5. The government announced the extension of the program on July 20, with the new measures set to take effect until January 20 of next year. This move comes amid concerns over the impact of economic fluctuations on certain industries, particularly those reliant on fluctuating demand and global supply chains. The subsidy applies to ten specific manufacturing activities, including textile production, wool processing, wood and timber processing, paper and paper product manufacturing, printing, chemical production, metal production, metal products, electrical equipment, and furniture manufacturing. These sectors have been identified as being temporarily affected by a drop in orders and available work, rather than long-term structural weaknesses. The government’s intervention seeks to stabilize these areas by providing financial support to employers who reduce working hours for their employees. Under the scheme, companies that can provide less than 90 percent of normal working time for at least 30 percent of their workforce are eligible to apply. Employees whose hours are cut will receive state compensation equivalent to 60 percent of their gross salary. This allows firms to retain skilled labor while reducing operational costs, thereby avoiding potential layoffs. Employers must ensure that employees are not left idle for more than 20 hours per week, maintaining some level of engagement even during periods of reduced output. The policy was first introduced by the previous government on December 5 of last year, initially planned to last three months before being extended to June 5. It covered similar sectors, including clothing and textile manufacturing, non-metallic mineral products, metals, metal products, motor vehicles, vehicles, furniture, and printing. However, the uptake of the subsidy was lower than anticipated, with relatively few employers utilizing the program despite its availability since mid-July of last year. The current extension reflects the ongoing need for targeted support in response to evolving economic conditions. Officials emphasized that the temporary nature of the crisis necessitates flexible solutions to protect both jobs and business continuity. By offering financial assistance directly to employers, the government hopes to mitigate the risk of permanent job losses in vulnerable sectors. The implementation of the program involves collaboration between the Ministry of Economy, Labour, and Sport and relevant industry stakeholders. Detailed guidelines outline the eligibility criteria, application process, and duration of support. Businesses interested in participating must submit formal requests outlining their plans for reduced working hours and the number of affected employees. Once approved, they receive funding to cover the portion of salaries that would otherwise be lost due to shorter shifts. Industry representatives have welcomed the renewed initiative, noting that it provides much-needed relief during uncertain times. They stressed the importance of maintaining stable employment levels to avoid long-term damage to the workforce and local economies. At the same time, some employers expressed cautious optimism, acknowledging the challenges of managing reduced operations while keeping staff engaged and motivated. The government expects the measure to contribute significantly to preserving jobs in the targeted sectors. With the program set to run through early next year, officials remain vigilant about monitoring its effectiveness and making necessary adjustments based on real-time data and feedback from participants. The ultimate goal is to ensure that the temporary support translates into sustained stability for both workers and businesses navigating the current economic landscape.