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Guarantee insurance

Guarantee insurance benefit

The benefit of guarantee insurance is a benefit paid out of the basic guarantee insurance fund after the statutory conditions are met. It serves to satisfy claims resulting from employment due to insolvency of the employer.

 

Who is eligible

The entitlement to the benefit of guarantee insurance is vested with an employee of an employer with guarantee insurance, who is or was in the employment relationship with the employer that became insolvent and was not satisfying the employee´s claims resulting from the employment relationship (employment relationship, work performance agreement, agreement on students' brigade work, agreements on working activity, member of cooperative who is in the employment relationship with the cooperative).

The employer is insolvent if:

  • petition for declaration of insolvency was filed at the competent court or
  • court initiated bankruptcy proceedings without petition for declaration of insolvency under the Law on Bankruptcy and Restructuring.

The commencement date of the employer´s insolvency is:

  • delivery date of petition for declaration of insolvency to the competent court;
  • on the date of order of the court to initiate bankruptcy proceedings if the court initiates bankruptcy proceedings without petition for declaration of insolvency pursuant to special regulation.

The employee is not entitled to the benefit of guarantee insurance if the employee:

  • entered into the employment relationship after commencement of the employer´s insolvency;
  • was made aware of the employer´s insolvency in writing;
  • is statutory body of the employer and has shares in the employer´s property of not less than 50% or is a member of the employer´s statutory body and has shares in the employer´s property of not less than 50%.

Employee’s outstanding claims resulting from the employment relationship are as follows:

  • entitlement to wage and replacement for time of standby duty,
  • entitlement to income for a member of cooperative resulting from his/her employment relationship with the cooperative,
  • entitlement to remuneration agreed in the agreement on works performed outside employment relationship,
  • entitlement to wage replacement for public holidays and at obstacles to work,
  • entitlement to wage replacement for leave, which was accrued during the calendar year, in which the employer´s insolvency commenced, as well as for the preceding calendar year,
  • entitlement to severance payment, which is due to an employee at termination of his/her employment relationship,
  • entitlement to wage compensation at immediate termination of the employment relationship,
  • entitlement to wage compensation at invalid termination of the employment relationship,
  • entitlements to travel, moving and other expenses incurred in the pursuit of his/her duties,
  • entitlement to compensation of material damage related to accident at work or occupational disease,
  • entitlement to wage compensation during an employee's temporary incapacity for work,
  • court costs in respect to asserting claims resulting from the employee´s employment relationship before the court inclusive of costs of legal representation.

Claiming

The employee should submit his/her claim for benefit of guarantee insurance at the Branch Office of the Social Insurance Agency competent according to the place of the employer´s unit keeping wage records, or according to the registered office of the employer or its establishment if wage records are kept by a different legal person or natural person, or if the unit keeping wage records is outside the territory of the Slovak Republic. The employee should submit his/her claim within 60 days after commencement of the employer´s insolvency or after termination date of the employment relationship.

The employee is entitled to claim his/her benefit of guarantee insurance also after expiry of this period.

The employee should claim his/her benefit of guarantee insurance based on written application. Forms for applications to grant benefits of guarantee insurance are available in relevant branches of the Social Insurance Agency and on the internet site of the Social Insurance Agency (Forms).

Employer, temporary administrator in bankruptcy or administrator in bankruptcy shall confirm, in the relevant form, claims from the employment relationship for the last three months of employment prior to commencement of the employer´s insolvency, or for the last three months prior to termination of the employment, which the employer has not been satisfying. In the event of shortcomings/discrepancies in certified forms, the relevant branch office of the Social Insurance Agency communicates with competent entities.

The applicant may claim his/her benefit of guarantee insurance at the most to the extent and for the period of three months of last 18 months of his/her employment duration preceding the

commencement of insolvency, or as of the termination date of his/her employment relationship by reasons of the employer´s insolvency.

 

Amount of benefit

The guarantee insurance benefit is provided in the amount of entitlement decreased by:

  • contributions for health insurance, sickness insurance, old-age insurance, disability insurance, unemployment insurance, which an employee is obliged to pay,
  • and by advance tax or employee income tax and perquisites thereof calculated based on conditions valid in the relevant calendar month under consideration, for which the mentioned entitlement resulted.

The maximum amount of guarantee insurance benefit is three times one twelfth of the general assessment basis determined as of the commencement date of the employer´s insolvency.

 

Concurrence of claims payment

If an employee did not have his/her claims from his/her employment relationship satisfied by several insolvent employers, entitlement to benefit of guarantee insurance and determination of its maximum amount are considered separately.

 

Provision of benefit

The benefit of guarantee insurance shall be paid to an employee upon the satisfaction of conditions laid down by law no later than within 60 days after delivery of application for granting this benefit.

The branch office of the Social Insurance Agency shall issue a decision on benefit of guarantee insurance.

The guarantee insurance benefit is a one-time benefit and is transferred to the account of benefit recipient in bank, branch of foreign bank or in cash.

 

Obligation to notify

The employee is obliged to notify employer, temporary administrator in bankruptcy or administrator in bankruptcy, upon their request, of all information needed in connection with certification of claims from the employment relationship.

 

Entitlement to benefit of guarantee insurance at insolvency of employer with its registered office, address of its establishment in the territory of the Slovak Republic and at the same time with address of its establishment or with registered office in the territory of at least one other member state of the European Union or of the European Economic Area

 

In mentioned cases, the institution responsible for satisfying employee´s claims from guarantee insurance is an institution of the member state of the European Union or of the European Economic Area, in whose territory the employee performs or usually performs his/her activity.

If the employee performed activity in the territory of the Slovak Republic, the Social Insurance Agency will decide on entitlement to the benefit of guarantee insurance. The same applies even in case if the insolvent employer is a natural person with permanent resident status, temporary residence permit or with permit for permanent residence in the territory of the Slovak Republic and with domicile in the territory of at least one other member state of the European Union or of the European Economic Area.

In these cases, in its proceedings on guarantee insurance benefit, the Social Insurance Agency is bound by the employer´s petition for declaration of bankruptcy filed in another member state of the European Union or of the European Economic Area.