Employment law update – Slovakia
Minimum wage to increase in 2015
Subject to Government agreement, from 1 January 2015 the minimum wage will increase to:
- monthly minimum wage – EUR 380 (currently EUR 352)
- hourly minimum wage – EUR 2.184 (currently EUR 2.023).
Minimum wage rates for more complex jobs will also be increased.
Improved regulation of seconded (agency) workers
Subject to approval by Parliament, from 1 January 2015 the regulation of seconded (agency) workers will become stricter:
– The secondment period may be no longer than 24 months, during which it may be prolonged or renewed up to five times;
– Failure to comply with the above limits will automatically result in an unlimited contract of employment between the seconded employee and the employer, subject to the conditions set out in the original secondment agreement. A seconded employee may be made redundant if his or her secondment ends before the expiry of the agreed secondment period;
– Employers (apart from employment agencies dealing with temporary workers) may only second employees to end users after they have completed three months’ continuous service;
– Secondment may not be used to carry out ”4th category” (hazardous) work;
– Seconded employees who do not receive a salary comparable to that of a permanent employee in the company to which he or she is seconded will be entitled to receive a supplementary payment.
The new rules should prevent the abuse of agency employees and ensure they receive standard employment conditions during their secondment. Most significant is the introduction of a minimum payment for the seconded employee, to ensure they are not unfavourably treated. Companies will need to ensure that they keep full and accurate records of all seconded staff to manage their liabilities under these new regulations.
Draft amendment to Act No. 311/2001 Coll., the Labour Code
Draft government regulation stipulating the amount of minimum salary for 2015
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 – www.prkpartners.com.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.
Circular 230 disclosure
To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.