News - Slovakia

Slovakia - September 2012

Employment Law News Round-up - Slovakia

Deductions from salary paid under agreements on work performed outside of an employment relationship

On 10 August 2012, the Slovak Parliament approved an amendment to Act No. 461/2003 Coll. on Social Security Insurance. The key change brought by this amendment is that effective from 1 January 2013 social security insurance contributions will also need to be deducted from payments received for work performed outside of the employment relationship.

Increase of the minimum catering allowances provided in connection with business trips

On 20 August 2012, the Ministry of Labour, Social Affairs and Family of the Slovak Republic adopted measure No. 248/2012 Coll., stipulating new tariffs for catering allowances. The measure increased the catering allowances as follows:

  • EUR 4.00 for business trips lasting 5 to 12 hours,
  • EUR 6.00 for business trips lasting 12 to 18 hours, and
  • EUR 9.30 for business trips lasting more than 18 hours.

The measure applies only to business trips within the Slovak Republic and is effective as of 20 August 2012.

Labour Code changes planned

A new amendment to the Labour Code ("Amendment") has been prepared and submitted to Parliament, but is still awaiting final approval. If approved, the Amendment is envisaged to be effective from 1 January 2013.

The following are the most discussed changes proposed by the Amendment:

  • Concurrence of the notice period and severance pay – contrary to the current regulation, employees will also have a right to severance pay if the employment relationship is terminated by notice for the same reasons as those connected with the right to severance pay under the current legislation.
    Please note that under the Amendment the length of the notice period and the amount of severance pay will be considered separately, i.e. the number of months of the notice period and number of average monthly earnings paid as severance do not need to correspond (contrary to the current legislation).
  • Decrease of the minimum severance pay if the employment contract is terminated by notice (applicable only under certain specific conditions).
  • Obligation to consult on employment terminations with employee representatives – subject to the termination of the employment contract being invalid, the consultation obligation will apply to terminations on notice and instant dismissals of any employee (current legislation only applies to termination of the employee representatives).

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.