News - Slovakia

Slovakia - November 2013

New fines for illegal employment

An amendment to the Act on Labour Inspections came into effect on 1 November 2013 (the Amendment).

Probably the most significant change introduced by the Amendment relates to the imposition of fines. The Amendment stipulated that the Labour Inspectorate must impose a minimum fine of EUR 5,000 if a company illegally employs two or more employees. The minimum fine for the illegal employment of one employee is EUR 2,000. The maximum fine of EUR 200,000 remains the same as under the former legislation.

Illegal employment is where, for example, work is carried out by a person who is not employed in accordance with Slovakian law or by a person who is a non-EU, EEA or Swiss citizen or is stateless and does not have any requisite residency or work permit.

The Amendment increased the limits of procedural fines which may be imposed on natural persons (such as employees, authorized representatives of the employer or other natural persons who are entrepreneurs but not employers) in breach of the obligations set out in Labour Inspections legislation including if they try to obstruct one of their requisite inspection procedures. These fines may now range between EUR 100 and EUR 1,000 (previously EUR 65 to EUR 650).

Commentary

The above described amendments do not trigger any need to revise employment contracts or other steps by employers.   

To avoid the risk of fines for illegal employment, employers must thoroughly follow the requirements of labour law and immigration law (e.g. concluding written employment contracts with employees and ensuring that a work permit is obtained). Procedural fines may also be avoided if organisations duly cooperate with the labour inspectors and fulfil their legal obligations including, inter alia, reporting serious accidents at work or major industrial accidents to the Labour Inspectorate.  

Resources

Act No. 125/2006 Coll. on Labour Inspections

www.prezident.sk (the official website of the president of the Slovak Republic)

www.nrsr.sk (the official website of the National Council of the Slovak Republic)

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.

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