News - Slovakia

Slovakia - May 2013

Change in the status of supply of agency workers

An important amendment has been made to the law in the Slovak Republic relating to temporary employment agencies and secondment of their employees. This amendment came into force on 1 May 2013.

Before the amendment, a practice had grown up of temporary employment agencies providing the services (which in fact consisted of "hiring out" of employees) under commercial contracts with clients rather than seconding their employees in compliance with the agency employment rules on labour law secondment. Although this approach was considered as evasion of the Labour Code, the legislation was not sufficiently strong to effectively prevent this practice.

Under the new legislation, where a temporary employment agency provides a service to another legal entity or natural person (whether within a civil law or commercial law relationship) and such a service meets the definition of secondment as set out in the amendment, such relationship is considered as secondment and it automatically becomes a secondment under labour law.

The amendment defines secondment as being an activity provided by a temporary employment agency through its own employees to the user employer, if

  • the user employer assigns to the employees of a temporary employment agency work tasks, and organises, manages and controls their work and instructs them for that purpose;
  • those activities are performed mainly at the premises of the user employer using its work equipment or they are performed mainly on the facilities of the user employer; and
  • those activities correspond to the user employer's business as registered in the relevant register.

Commentary

The amendment will probably require legal relationships between temporary employment agencies and their user employer clients to be amended in particular to prevent the risk of potential sanctions which can be imposed if the above described automatic reclassification of a legal relationship occurs.

Resources

Act no 311/2001 Coll. the Labour Code, as amended

Act No. 5/2004 Coll., on Employment Services, as amended

For further information or to discuss any of the issues raised, please contact Andrea Olšovská on +421 (0) 232 333 232 or Veronika Hrušovská on +421 (0) 232 333 232 at PRK Partners, Bratislava - www.prkpartners.com

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