News - Slovakia

Slovakia - March 2014

Extension of applicability of sector collective bargaining agreements

At the end of 2013 the Slovak National Council finally approved an amendment to the Collective Bargaining Act which came into effect on 1 January 2014. The most significant change is an elimination of the requirement for employers to provide their consent to  the applicability of sector collective bargaining agreements (SCBA).

Provided the relevant statutory conditions have been met, the Slovak Ministry of Labour, Social Affairs and Family now has the power to extend the application of an SCBA to other employers within the sector for which the respective SCBA (or a part thereof) was concluded without first obtaining consent of the affected employer(s).

The scope of an SCBA can be extended based on a written application of one or more of its contractual parties. However, the proposal to do so must be submitted at least six months before the expiry of the SCBA.

An SCBA’s applicability can only be extended if the employers to whom it is to be extended employ within the relevant sector more employees than other employers who are members of another employer organisation that entered into another SCBA within the same sector. The same approach applies accordingly to extending an SCBA to a part of an economic sector.

Notwithstanding the above, an SCBA cannot be extended, for example, to an employer who (as of the date of effectiveness of the extension): (i) is bound by another sector collective bargaining agreement, (ii) is insolvent, (iii) is under liquidation, (iv) employs less than 20 employees, (vii) has been carrying out business activity for fewer than 24 months, etc.

Commentary

Extensions of an SCBA’s applicability are published in the Collection of Laws of the Slovak Republic. We recommend that employers who are not bound by any SCBA regularly review the Collection of Laws to check whether an extended SCBA applies to them

Resources

Act No. 2/1991 Coll. on Collective Bargaining

Act No. 416/2013 Coll. amending Act No. 2/1991 Coll. on Collective Bargaining

Government Regulation No. 321/2013 Coll. stipulating the amount of minimum salary for 2014

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 232PRK Partners, Bratislava - www.prkpartners.com.

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