Applications for partial reimbursement of compensation for reduced working time have started

The Slovenian government has begun accepting applications for partial reimbursement of wage subsidies under the shortened working hours scheme, following the adoption of a decree on the implementation of this measure. The State Employment Service of Slovenia started receiving applications from employers on July 20, 2026, after the government passed the decree on July 16, 2026. This initiative aims to support employers in maintaining employment and adapting work organization during periods of reduced demand. Employers who meet the conditions outlined in the Law on Partial Reimbursement of Wage Subsidies for Shortened Working Hours and the government decree can submit their applications electronically through the Employer Portal of the State Employment Service. These applications are part of the second activation of the permanent shortened working hours scheme, which was designed to help businesses retain jobs and avoid layoffs while allowing them to adjust their operations to lower levels of activity. The new measure is intended to assist companies facing temporary reductions in workload by enabling them to reduce working hours instead of laying off employees. Employers can apply for financial assistance to cover a portion of wages paid to workers whose hours have been cut. This approach helps maintain workforce stability and supports business continuity during economic downturns or other disruptions. The government’s decision follows a broader strategy aimed at preserving employment and ensuring economic resilience. By implementing the shortened working hours scheme, policymakers hope to provide a buffer for businesses affected by fluctuating market demands. The scheme allows employers flexibility in managing their labor costs while retaining skilled workers, which could prove crucial during uncertain economic times. The process for submitting applications involves accessing the designated portal managed by the State Employment Service. Employers must ensure they fulfill all eligibility criteria, including meeting specific thresholds related to company size, sector, and the extent of reduced working hours. Once submitted, applications will be reviewed to determine whether the employer qualifies for the subsidy. The introduction of this program marks a continuation of efforts to stabilize the labor market amid ongoing challenges. Previous activations of the shortened working hours scheme were implemented during similar periods of economic uncertainty, and the current activation reflects a proactive response to potential future disruptions. The government has emphasized the importance of maintaining employment and preventing long-term unemployment by offering targeted financial support to businesses. Industry representatives have welcomed the move, noting that such measures provide much-needed relief during times of economic stress. Some employers expressed optimism that the scheme would help them navigate difficult periods without resorting to layoffs. However, others cautioned that the success of the program depends on timely processing of applications and sufficient funding availability. The State Employment Service has confirmed that it will process applications as they come in, with a focus on ensuring transparency and efficiency in the review process. Officials have urged eligible employers to take advantage of the opportunity to secure financial support for their workforce. The service has also indicated that additional information and guidance will be made available to applicants through its website and customer support channels. As of July 20, 2026, the first wave of applications has begun arriving at the State Employment Service. The exact number of submissions remains undisclosed, but officials anticipate a steady flow over the coming weeks. The government has committed to monitoring the program's effectiveness and making adjustments as needed to ensure it meets its intended goals.