ROWAN LEGAL

1

GENERAL PRINCIPLES

Forums For Adjudicating Employment Disputes

In the Slovak Republic, no special labour courts have been established. However, for proceedings in individual labour disputes and in disputes arising from collective labour relations, strikes and exclusions, the special causal jurisdiction of the specific eight general courts is determined in accordance with section 23 of the Civil Dispute Code. Employment disputes are settled by civil courts applying the Civil Dispute Code where applicable.


The Main Sources Of Employment Law

In the Slovak Republic, Labour Law is an independent branch of law based upon the Labour Code. Employment matters are also governed and regulated by the Constitution of the Slovak Republic, the Civil Code, the Anti-Discrimination Act, the Collective Bargaining Act, the Occupational Safety and Health Act, but also by special laws, such as the Act on Employment Services, the Act on Execution of Work of Public Interest, the Act on the Civil Service or the Act on Residence of Aliens etc. together with international agreements and EU law.


National Law And Employees Working For Foreign Companies

Employment relations between employees performing work in the territory of the Slovak Republic and foreign employers are regulated separately in Section 5 of the Labour Code, which generally states that such relations are governed by the Labour Code, unless otherwise provided by private international law.

In the case of an employment relationship with a foreign aspect (i.e. in the event that the employer´s and the employee´s nationality is different), the law applied would be determined based on the rules of international private law. Under the Regulation of the European Parliament and Council EC no. 593/2008 on the law applicable to contractual obligations (Rome I), an individual employment contract is governed by the law chosen by the parties. Such a choice of jurisdiction may not, however, have the result of depriving an employee of the protection afforded to him by provisions that cannot be derogated from him/her by agreement under the law that would have been applicable in the absence of the choice. In the absence of any choice of law, a contract shall be governed:

  • by the law of the country in which or, failing that, from which the employee habitually carries out his work in performance of the contract;
  • by the law of the country where the place of business through which the employee was engaged is situated;
  • List item

Where it appears from the circumstances as a whole that the contract is more closely connected with a country other than that indicated above, the law of that other country shall apply.


National Law And Employees Of National Companies Working In Another Jurisdiction

In the event that an employment contract is governed by Slovak national law, this law also applies to individuals working for Slovak entities abroad. Where the place of work is located abroad, i) the work period abroad; ii) the currency of remuneration; iii) other benefits and bonuses made in cash or in kind in connection with working abroad; and iv) potential terms and conditions regulating the employee’s return back home shall additionally be specified by the employer in the employment contract.


Data privacy

The Labour Code stipulates that the employer may only process personal data about the employee related to the employee's qualifications and professional experience and data that may be relevant to the work that the employee is performing / going to perform or has performed.

Furthermore, Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) also applies directly to employment relationships as the employer is a controller for the purposes of this Regulation in the context of the protection of the employee's personal data.

The employer as the controller is responsible for compliance of personal data processing with the principles of personal data processing and the employer is thus obliged not only to comply with the principles of personal data protection, but must also be able to demonstrate this compliance in reality.

An example of personal data that the employer processes about the employee which must comply with the rules of their processing are, in particular, identification data, contact data, operational data, location data or even sensitive data of the employee, which are e.g. health data of an employee.

2

HIRING THE EMPLOYEE

Legal Requirements As To The Form Of Agreement

The employment relationship is established between the employee and the employer in writing. However, failure to conclude a written contract does not make an employment relationship void. The foregoing implies that an employment relationship may be established orally. An employment contract concluded orally for a fixed period of time is legally considered as to be indefinite. If there is no written employment contract, an employee is to receive a written notification from the employer, within one month of starting employment, containing the following information: payment terms, working hours, holidays and the notice period, and, additionally, in the event that the place of work is located abroad the period of work to be performed abroad; the currency of remuneration; other benefits or bonuses made in cash or in kind in connection with the work abroad; and the potential terms and conditions regulating the employee’s return home back from abroad.


Mandatory Requirements
  • Trial Period

    • The trial period must be agreed separately in writing, otherwise it is not agreed. In addition, a trial period may be agreed in writing by the parties for a maximum period of three months; and in the case of a senior employee, who falls under the direct supervision of a statutory body or a member of a statutory body, for a maximum period of six months. With regards to already stated above, the trial period is invalid if it is not agreed in writing and in that case the trial period has not been agreed at all. Trial periods can only be extended if an employee has caused delay to the trial period due to reasons on his part (i.e. the employee´s sick leave). A trial period cannot be agreed on with an employee who repeatedly is employed under a fixed term contract.

  • Hours Of Work

    • Employees may be required to work up to 40 hours per week. Where a two-shift pattern rota is operated, the employee may be required to work up to 38.75 hours per week; employees working a three - shift pattern rota or in uninterrupted operation can work a maximum of 37.5 hour per week. In specific cases, a strict regulation of working hours applies (e.g. employing minors, handling hazardous material). The average weekly working hours – including overtime – may not exceed 48 hours.

  • Special Rules For Part-time Work

    • The special rules for a part-time work are as follows. At first, for an employee with reduced working time, as an overtime work is already considering a work that exceeds his/her weekly working time, and such an employee cannot be ordered to overtime work by his/her employer (this could be only agreed with him/her).A special feature is also adjustment in relation to the recreation of employees and the allowance for sports activities of the employee's child as follows. For an employee who has an agreed part-time work, the highest amount of recreation allowance per calendar year is reduced in proportion to the reduced working time and the amount of the child's sports allowance per calendar year will also be reduced by the same way.

    Another special rule is the adjustment of working time in a way that if a pregnant woman and a woman or a man permanently caring for a child under the age of 15 request reduced working time, the employer is obliged to comply with their requests, unless serious operational reasons prevent this procedure.

    One of the specifics is also the adjustment of the break for breast-feeding. If the employee (mother) works for reduced working time, but at least half of the specified weekly working time, this employee (mother) has only one half-hour break for breast-feeding for each child until the age of the end of the sixth month.

    Otherwise, the basic rights and obligations in the employment contract for reduced working time are regulated in line with the Labour Code, as well as other employment contracts that are agreed for the determined weekly working time.

    Reduced working time do not have to be spread over all working days. An employee in a part-time work is entitled to a salary corresponding to the agreed reduced working time.

    An employee on a part-time work may not be favoured or reduced in comparison with a comparable employee.

    The employer shall inform employees and employees´ representatives in a comprehensible manner about the possibilities for part-time works and also for works with determined weekly working time.

  • Earnings

    • Unless defined in the collective agreement, pay terms and conditions shall be specified in the employment contract. The wage in any case cannot be lower than the statutory minimum wage rates that are set annually by the government of the Slovak Republic. Specification of the wage is an essential part of the employment contract; therefore, in the case that the wage is not agreed upon in the employment agreement nor is the collective agreement regulating the wage referred to in the employment agreement, then the employment agreement is void.

  • Holidays/Rest Periods

    • The employee is entitled to a minimum of 4 weeks holiday per year. Employees that reach the minimum of 33 years of age in the respective calendar year and employees who are constantly caring for the child, are entitled to a minimum of 5 weeks holiday per year. In particular, an employee is entitled to a minimum of 8 weeks holiday in a calendar year in the case of a pedagogical and professional staff, a university teacher, a researcher and an artist of a public or state university, or an employee who carries out research - pedagogical activity or scientific activity in line with section 103 par. 3 letter d) of the Labour Code.

    In addition, employees are entitled to obligatory breaks at work, uninterrupted daily rest and bank holidays.

  • Minimum/Maximum Age

    • Employees must be at least 15 years old and must have completed compulsory school attendance. People older than 15 years who are still attending school and persons under 15 years may be able to undertake only light work (i.e. activities of a scope and character as to not affect their health, safety and future development and/or school attendance) in i) cultural and artistic performances; ii) sport activities; and iii) advertising activities upon the approval of state authorities. No maximum age is defined.

  • Illness/Disability

    • Employers are obliged to take measures to protect the life and health of their employees at work. Under the Labour Code, the employer is liable for damages incurred by employees as the result of an industrial accident or illness. Employees are entitled to maintenance and support (benefits) during an absence from work which is a result of their incapacity to work, old age, pregnancy or parenthood (in compliance with the social security legislation). Employers have to provide disabled employees with appropriate working conditions which provides for their participation in and development of their work-related skills and abilities. Employees who are absent from work because of an accident or illness are protected against dismissal during the absence provided their incapacity to work is not a result of their intentional action or drug or alcohol intoxication. Employees are also protected against dismissal during the period after filing an application for clinical treatment or after commencing a spa treatment until the completion of this treatment. The protective period ensures that the employee is not dismissed because of his disability or illness.

  • Location Of Work/Mobility

    • The employee’s place of work should be specified in the employment contract and cannot be unilaterally changed by the employer. Where the work needs to be performed at a number of places, this is required to be specified directly in the employment contract. The employee may be sent by the employer on a business trip outside the municipal district of his/her regular workplace only if, and when, the employee agrees; this general consent can already be obtained in the employment agreement.

  • Pension Plans

    • Slovak labour legislation does not provide for compulsory pension plans. Pursuant to the Social Security Act, the pension insurance system in the Slovak Republic has 3 elements:

    • State pension insurance; a pay- as-you-go system (statutory levies paid by both the employer and employee each month) with levies paid to the Social Insurance Agency used for pension benefits.
    • Savings (statutory contributions of the employer and employee) managed by special companies, i.e. pension management companies. Saved in a private pension account, these contributions become the saver’s property.

    Voluntary savings: contributions paid from net earnings in an amount defined by the employee themselves.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)

    • Pregnant and nursing employees, employees on maternity or parental leave and single parent employees who look after a child under the age of three years are afforded special protection under the labour laws. Employees are entitled to up to 34 weeks of maternity leave, and parental leave until the child reaches 3 years of age. Where an employee’s child has a long-term illness, parental leave may be extended up to the time when the child is six years of age.

    A special form of protection is the prohibition of dismissal of an employee who is in the protected period.

    As a protected period, it is also, inter alia, when the employee is pregnant, on maternity leave, and when the employee is on parental leave. Nor immediate termination of employment contract can be applied in the case of an employee on maternity leave or an employee on parental leave, and this also applies for breaches of work discipline.

    If an employee (pregnant woman, mother by the end of the ninth month after childbirth or breast-feeding woman) performs work which in the given state is not allowed to perform or according to medical opinion the work endangers pregnancy or maternity mission of the employee, the employer is obliged to reassign such employee to another suitable job. In addition, the employer may terminate the employment contract in trial period with a pregnant woman, mother by the end of the ninth month after childbirth and breast-feeding woman only in writing, in exceptional cases unrelated to her pregnancy or maternity, and must duly justify it in writing, otherwise it is invalid. The special conditions of women and men caring for children are regulated by the Labour Code in its section 160 et seq. and thus regulates which special regime applies to this category of employees. For example, the abovementioned maternity and parental leave is also in this part of the Labour Code.

  • Compulsory Terms

    • Any employment contract failing to include the following agreed essential elements is void: the type and a brief description of the work; the place of work – city, area or any place defined in other manner; starting day and pay terms and conditions (unless defined in the collective agreement).

    If there is no written employment contract, the employee is to receive a written notification from the employer, within one month of starting employment, which contains the following information: payment terms, working hours, holidays and the notice period.

  • Non-Compulsory Terms

    • In an employment contract, the parties may agree on any additional terms and conditions that are of the interest to the participants, in particular material benefits. The items of the employment contract, which, in the sense of the Labour Code, are no longer marked as the substantial items of the employment contract, are also the pay dates, working hours, the amount of holiday or the length of the notice period. Other optional / voluntary contractual conditions in employment contracts, which, however, are included in the contracts by default, are the provisions about a competition clause, granting consent to post an employee on a business trip, consent to reassignment to another suitable job in the future, consent to processing personal data, arranging overtime, monitoring the employee's e-mail communication, copyright arrangements etc.


Types Of Agreement

In addition to ordinary employment contracts, the employer and the individual may conclude a specific agreement to provide extra work or services required. Employers can conclude:

  • an Agreement on Performance of Work - the scope of work shall not exceed 350 hours in a calendar year;
  • an Agreement on student work - this can be concluded with a high school student or college student who has not reached 26 years of age; the scope of work shall not exceed 20 hours a week;
  • an Agreement on work activities – the scope of work shall not exceed 10 hours a week.

In addition to the above, an employer and employee can conclude a labour contract for a fixed term. The law requires this contract to be executed in a written form, and limits its maximum duration to 2 years (this employment contract can be repeatedly concluded, or be prolonged by 2 years, twice). The Slovak Labour Code also allows for part-time labour contracts, i.e. contracts concerning less than 40 working hours per week which is already mentioned above.


Secrecy/Confidentiality

Under the Labour Code, the employee undertakes not to disclose any information they receive or obtain during the course of or as a result of their employment which, in the interest of the employer, cannot be disclosed to third parties. Employers can define the scope and content of confidential information, for instance in the employment contract or in a separate non-disclosure agreement. Breach of this fundamental obligation by the employee may amount to gross misconduct resulting in instant dismissal. Employees can be held liable for damage as a result for the foregoing. Damages payable by the employee are limited by the Labour Code in an amount of up to four times an employee’s average pay and they cover damages for breach of contract as well as compensation for loss of profit. Pursuant to the Labour Code, the obligation to maintain confidentiality usually ends with the termination of employment. If the employer and employee have expressly concluded a non-disclosure agreement, the obligation to maintain confidentiality may continue even after employment is terminated. However, it should be noted that legal literature suggests that such agreements are not valid after an employment contract has ended, and, as such, the information can be used by the employee freely even in order to pursue their own business purposes. That does not apply in the case of a trade secret which is protected under the Commercial Code regardless of the duration of the employment.


Ownership of Inventions/Other Intellectual Property (IP) Rights

Under the Copyright Act, works created by an employee in the course of his employment are considered to be „the employee’s works“. Unless agreed otherwise, employers will claim copyright over the employee´s work in their own name and on their behalf. It is presumed that the employee gives the employer his consent when the employer exercises copyright over the work. When the employment ends, the rights and duties relating to the employee’s work remain unaffected, i.e. they continue to be exercised by the employer.


Pre-Employment Considerations

Before concluding the employment contract, the employer is obliged to inform a person (applicant) about the rights and obligations arising for him/her from the employment contract, about the working conditions and salary conditions under which this person (applicant) is going to perform the work. If a certain health state of an employee is required to perform a certain job, the employer may conclude an employment contract only with a person (applicant) who meets such conditions. The employer may conclude an employment contract with an adolescent employee only after a previous medical examination of an adolescent employee, and in addition, the employer is obliged to request the opinion of the adolescent employee's legal representative.

Furthermore, the employer may only request information from person (applicant) applying for the first job that is relevant to the work to be performed. The employer may require a person who has already been employed to submit a work report and a certificate of employment. However, attention should be draw to the fact that the employer should not request from the applicant information on pregnancy, family circumstances, integrity (the exception is only for cases where integrity is a special requirement) or information on political affiliation, professional or religious affiliation. Thus, at this stage, the employer must not infringe the principle of equal treatment as regards access to employment. The applicant is obliged to inform the employer about the facts that hinder the performance of work or that could cause harm to the employer, and about the length of working time for another employer in the case of an adolescent employee.


Hiring Non-Nationals

EU nationals are subject to the same employment laws as national employees. EU nationals do not need a work permit (granted by the state authorities) to work in the Slovak Republic. Employers may not require a work permit in certain situations, such as when an employee holds a permanent residence permit. In Slovakia, only citizens of non-EU or non-EEC countries holding valid work and residence permits – granted by the Office of Labour, Social Affairs and Family, pursuant to a suitable application – can be employed. Employers are required to inform the Office of Labour, Social Affairs and Family in writing about the commencement and termination of the employment of EU nationals and their relatives and concerning the commencement and termination of the employment of employees who are required to hold a work permit.

 

Hiring Specified Categories Of Individuals

If it has at least 20 employees, an employer is required to employ disabled persons so as to make up at least 3.2% of the total number of its employees. The statutory obligation to employ disabled persons can also be fulfilled through granting a contract which is suitable for an employed disabled person to a to self-employed disabled person. Employers can also purchase goods and services from protected workshops (which employ the disabled), self-employed disabled persons and from other employers whose goods and services are additionally produced and provided by their disabled employees. Employers who do not meet these statutory obligations are penalised and required to pay special charges. In addition, special obligations defined by law apply to employers employing pregnant women, children under 15 years of age and persons looking after young children, etc.


Outsourcing And/Or Sub-Contracting/Temporary Agency Work

Employers and/or temporary job agencies may agree with employees on their assignment to work temporarily for other legal entities or individuals. However, a temporary assignment often can result in a temporary change in the place of work and – quite often – the type of work. The original employment relationship remains unchanged, but the employees are required to receive instructions from a third party (customer employer); however, the remuneration and travel expenses are provided by the original employer or the temporary job agency.

3

MAINTAINING THE EMPLOYEE RELATIONSHIP

Changes To The Contract

Generally, an employment contract can be amended by agreement between the employer and the employee. However, under certain conditions some temporary changes may be made without the consent of the employee (e.g. type of work, place of work).

The employer is obliged to reassign the employee to another work position if the employee has lost the ability to perform work due to his health condition, also in the case of a pregnant woman and mother under the conditions already mentioned in the section on special rights related to maternity and parental leave, and also due to a quarantine measure, due to a valid decision of a court or a competent public authority as well as due to incapacity of employee for night work.

In the case of an extraordinary event or in order to mitigate its consequences, the employer may reassign the employee without his/her consent to the time of necessary need for work other than was agreed in employment contract.


Change In Ownership Of The Business

Based on the law, if a business has a change in ownership, all rights and duties arising out of the employment relationship are transferred from the transferor employer to the transferee employer. A transfer of rights and duties occurs when the ownership of the business is changed by merger, consolidation or division of the business/employer or upon division of a part of the owner’s business or upon transfer of the employer´s tasks.

Both the transferor and the transferee employer are obliged to inform the employees concerning the date, reason, impacts of the transfer and planned measures relating to the transfer one month prior to it. At the same time, the employer is obliged to discuss the proposed transfer with the employees’ representatives with a goal as to reach an agreement one month prior to the transfer date. If the terms agreed on in the employment contract change due to the transfer, and the employee does not agree with such a change, the employment is considered to be terminated by agreement of the parties as of the date of the transfer.


Social Security Contributions

Both the employer and the employee have a duty to levy a certain percentage of the employee’s income as a contribution to the Social Insurance Agency (the amount of the contribution is set by the Social Insurance Act).


Accidents At Work

The law imposes a series of duties on the employer to ensure the occupational health and safety of the employees. When an employee starts to work the employer is obliged to provide the employee with health and safety information, as well as identify any potential risks to them. The employer is under a duty to keep employees up-to-date on health and safety regulations in the workplace every two years. The employer must notify the respective authorities of any occupational accidents that occur (respective health and safety inspectorates which are competent with respect to the registered office of the employer, etc.). It is the employer who is liable for injury occasioned upon to the employee as a result of an industrial accident. This applies even in the case where the employer has fulfilled all the duties related to ensuring health and safety protection in the workplace. The Labour Code provides relief for employers from liability for injury where the employer is only partially liable. The employer will not be held liable upon proving that the reason for the injury was that i) the injury was caused by the aggrieved employee breaching any legal regulation or instructions aimed at ensuring health and safety in the workplace and that it occurred despite she he being dully and demonstrably notified of these and their awareness were constantly requested and verified; or ii) the injury was caused by the aggrieved employee being intoxicated and the employer was unable to prevent the injury.

The employee is primarily obliged to immediately report the occupational accident to the employer.The employer is obliged to determine by internal regulations to whom and in what way the occurrence of such an occupational accident is reported, so that each employee knows how to proceed. The employer is also obliged to keep records of occupational accidents.

If, as a result of an occupational accident, the employee's incapacity for work lasts for more than three days and / or the employee dies as a result of this occupational accident (hereinafter also referred to as "serious occupational accident"), the employer is obliged to register this occupational accident, i.e. that he is obliged to find out the cause, draw up a record and take such measures as to prevent the recurrence of a similar occupational accident in the future.

It is also necessary to report such occupational accidents to the employees' representatives (if they operate at employer), and at the same time to the police, if the established facts indicate that a criminal offense has also been committed in connection with the occupational accident. In the event of a serious occupational accident, this shall also be notified to the relevant labour inspectorate or to the competent supervisory authority.

The employer is obliged to write the record of the registered occupational accident within eight days from the day when the employer knows about this occupational accident and subsequently he is obliged to send the record to the relevant labour inspectorate or supervisory authority, and also deliver the record to the employee who suffered the registered occupational accident or survivors, if the employee died as a result of this registered occupational accident.


Discipline And Grievance

The employee is obliged to maintain discipline in the workplace, i.e. to meet all legal duties following from the employment contract, collective agreement, legal regulation and other regulation they have been familiarised with. The employee is obliged to obey the in-house directions of the employer only if properly informed about them. Upon an employee breaching work rules, the employer might impose legal sanctions in the form of curtailing their period of holiday (in case of unexcused absence); terminating their employment according to the notice period, as a result of the breach; instant dismissal due to a material breach. Employees who are aggrieved can file a complaint with the appropriate body of the Labour Inspectorate (Ministry of Labour, Social Affairs and Family of the Slovak Republic, National Labour Inspectorate and individual labour inspectorates).


Harassment/Discrimination/Equal pay

The employer is obliged to comply with the equality principle laid down in the Discrimination Act and the Labour Code. It is unlawful for an employer to discriminate on grounds of marital status, skin colour, language, political or other beliefs, professional activity, national or social origin, property, descent or other status. According to the Discrimination Act, discrimination shall include harassment, unfair sanctions, cause others to discriminate and encouraging others to discriminate someone. An employer must apply the principle of equal pay to all employees. Where employees perform the same kind or work of an equal value they must receive equal pay. The rights and duties of the parties inside the labour relationship should be exercised in compliance with good morals. Employees are protected from victimisation in the workplace either from the employer or from a fellow employee. An employee is entitled to file a complaint with an employer for alleged violation of the principle of equal treatment. The employer is obliged to reply to the employee’s complaint without undue delay, remove the discriminatory behaviour and refrain from such conduct and remove its consequences. An employee, feeling they are being discriminated or persecuted against, might turn to the court and seek legal protection pursuant to the Discrimination Act.


Compulsory Training Obligations

The Act does not provide for any obligatory training. However, some occupations/professions require certain qualifications or experience. A special fulfilment of certain prerequisites must be regular retraining of each employee in the field of safety and health at work, as the employer is obliged to regularly, clearly and demonstrably inform each employee of the relevant legislation and other facts in accordance with Act No. 124/2006 Coll. on Occupational Safety and Health and on the amendment of certain laws.


Offsetting Earnings

The Slovak Labour Code allows for monthly deductions from the employee’s wage. However, the pay-as-you-earn system is subject to a statutory maximum. Further deductions exceeding the statutory minimum are only permissible with the written agreement of the employee. The Labour Code in its section 131 par. 1 and 2 exactly specify which deductions from the employee's salary can be made directly by law (especially advances for social security, health insurance and taxes). Other deductions could be performed only on the basis of a special written agreement between the employer and the employee.


Payments For Maternity And Disability Leave

Female employees provided they have paid their contributions for least 270 days during the previous two years are entitled to statutory maternity pay from the beginning of the sixth week prior to the expected day of childbirth, or as early as eight weeks prior to the birth-date. If the child is born before the due date, maternity leave can be taken from the delivery date. Employees are entitled to receive maternity pay for a period of thirty-four weeks after maternity pay was initiated. Disabled employees fulfilling statutory conditions imposed by the Social Insurance Act (an employee who i) is disabled; ii) has fulfilled the necessary requirement for the number of years of contributing to the national pension insurance scheme; and iii) as of the day of commencement of disability has not met the requirement to become entitled to an old-age pension or has not been granted an early old-age pension) are entitled to disability benefits. The purpose of the disability benefit is to provide the employee with income in case of their impaired ability to undertake work. Both maternity and disability benefits are paid by the Social Insurance Agency. Employees dismissed by the employer, either by termination on notice or by the parties’ agreement, due to their becoming incapable of performing their job as a result of medical problems are also entitled to redundancy payment in the amount of one to five months’ pay depending on the length of their employment. If the employment was terminated, on notice or by the parties’ agreement, due to an industrial accident or industrial illness, the employee is entitled to a redundancy payment amounting to ten months’ salary.


Compulsory Insurance

The employer is obliged to pay contributions to the health insurance scheme, sickness insurance scheme, pension scheme, disability scheme, unemployment scheme, and accident insurance scheme, as well as to a guarantee fund for claims arising from the employer’s possible insolvency, and the reserve solidarity fund.


Absence For Military Or Public Service Duties

The law enables the employee to hold a public office or perform military service. At the same time, it provides these employees with protection against termination of their employment during this period of service. However, it should be pointed out that compulsory military service was abolished in 2006, therefore this provision has almost no relevance anymore with regard to military service. The time off work referred to above is provided by the employer without compensation unless the law provides otherwise.


Works Councils or Trade Unions

Employees take part in the decision-making process of the employer where decisions relate to their economic and social interests. Employees become involved either directly or through their trade union (unincorporated association), works council or employee´s representative. The works council is a body representing all employees of an employer who has at least 50 employees. If the employer has between 3 and 50 employees an employees’ representative can be appointed. The members of a trade union, works council or the employees’ representative enjoy certain benefits. The employer provides such individuals with paid time to carry out their duties. The employer can only terminate the employment of such an employee with the prior consent of their employee representatives. This consent is deemed to be given if the employer does not receive a response from the employees’ representatives within 15 days subsequent to any request.


Employees’ Right To Strike

The right to strike is provided for in Article 37(4) of the Constitution. The right to strike in relation to collective labour disputes is defined separately in the Collective Bargaining Act. Some kinds of jobs are subject to certain restrictions. A legal strike does not breach an employee’s employment contract.


Employees On Strike

The employer must grant the employee time to strike; however, a striking employee is not entitled to pay. If the court decides that the strike is unlawful, continued participation in the strike is deemed as unexcused absence from work.


Employers’ Responsibility For Actions Of Their Employees

The employer is vicariously liable if the employee causes damage to a third party whilst performing work tasks. However, the employer may (in recourse) claim the respective damages from the employee. Damages payable as a result of an employee’s negligence are limited to the sum of four months’ average salary. If the employee caused damage wilfully then lost profit might also be claimed.

4

FIRING THE EMPLOYEE

Procedures For Terminating the Agreement

Employment can be legally terminated in four different ways: 1) by agreement of the parties, 2) notice of termination, 3) instant dismissal and 4) termination during the trial period. Further, the employment might be terminated by a lapse of time (in the case of a fixed-term contract), by the employee’s death, upon decision of an authority (e.g. employment of foreign nationals) or by virtue of law (e.g. university teachers).


Instant Dismissal

The employer can only instantly dismiss an employee in two cases: i) valid conviction of the employee for an intentional criminal act; and ii) gross misconduct. The instant dismissal of the employee is subject to a subjective two-month time limit and an objective one-year time limit. Pregnant employees, employees on maternity or parental leave, single parent employees nursing a child under the age of three or employees taking care of a disabled dependent cannot be instantly dismissed. Their employment, however, may be terminated on notice – employees on maternity or parental leave are exempted from this. The employee might instantly terminate employment in three cases: i) if the employee is unable to work due to work posing a danger to their health (confirmed by an expert) and the employer is unable to provide the employee with another type of work within 15 days; ii) the employer fails to pay the employee the wage, the wage compensation, travel expenses, compensation for any standby, wage compensation in the case of sick leave, in whole or part, within 15 days of it being due; or iii) the life or health of the employee is immediately endangered. The employee is entitled to a one-month subjective time limit for the termination of employment and two months’ pay. If either party is instantly terminating employment, it must do so in writing, clearly stating the statutory reason and serve it on the other party. Failing to do this will result in the termination being invalid. The employer must discuss the dismissal with the employee representative. If there is no employee representative then no such duty arises. The employee representative must then discuss the dismissal with the employee within two days of receipt of the notice. If the employee representative does not discuss the dismissal within the prescribed period, then it is deemed, in any case, that the discussion has taken place.


Employee's Resignation

The issue of resignation does not fall within the scope of Labour Law. The Labour Code does not define resignation as a means of terminating employment.


Termination On Notice

Employment can be terminated by either party upon written notice. The notice period starts on the first day of the following month in which the notice was delivered. The employee does not need to give a reason, whereas the employer is bound by statute to give a reason (organisational changes, the employee does not meet the statutory requirements for the given job, breach of discipline in the workplace etc.). The employer cannot serve notice within the so-called protected periods of employment e.g. sick leave, maternity leave, exercising a public office etc. The minimum notice period is 1 month. In the case of termination for organisational reasons or because the employee is medically certified as unable to perform his/her work on a long-term basis, the notice period is 2 months if the employment lasted for at least 1 year or 3 months if the employment lasted at least 5 years. In the other cases, as mentioned above, the notice period is at least 2 months if the employment lasted at least one year. The stated notice period of 2 months also applies if the notice is given by an employee whose employment contract with the employer lasted at least one year as of the date of delivery of the notice.


Termination By Reason Of The Employee's Age

Employment cannot be terminated due to an employee’s age, apart from in the case of university teachers (the employment of university teachers terminates with the end of the academic year in which they have reached the age of 65.

On the first termination of employment relationship after becoming entitled to an old age pension /retirement, an employee shall be entitled to discharge benefit equal to at least the amount of his/her average monthly earnings if he/she applies for the said pension before the termination of employment relationship or within ten working days of the termination of employment relationship.


Automatic Termination In Cases Of Force Majeure

Generally, the law does not regulate the consequences of force majeure. Under the Labour Law, therefore, the general rules of the Civil Code shall apply. At this point, it should be noted that the employee is liable to the employer only for the damage he/she has caused him by a breach of duty in the performance of his duties or in direct connection therewith.


Collective Dismissals

Collective redundancies arise if the employer or part of the employer terminates the employment contract for reasons clearly stated in the Labour Code or if the employment contract terminates in another way for a reason that does not lie in the person of the employee, within 30 days:

    —with at least 10 employees for an employer who employs more than 20 and less than 100 employees, i.e. that the employer employs from 21 to 99 employees;
    —with at least 10% of employees out of the total number of employees at an employer who employs at least 100 and less than 300 employees, i.e. that the employer employs from 100 to 299 employees;
    —with at least 30 employees for an employer who employs at least 300 or more employees, i.e. that the employer employs from 300 employees and more.

A special feature of collective redundancies compared to a standard termination of an employment contract (non-collective redundancies) is that written information on the outcome of the collective redundancy negotiations with the employees' representatives (and if they are no employees' representatives, the employees concerned) must be delivered by the employer to the National Labour Office, employees' representatives and to the Office of Labour, Social Affairs and Family. Otherwise, all standard termination obligations set out in the Labour Code must be met.


Termination By Parties’ Agreement

The parties may conclude a written agreement in which they agree to end the employment. If so required by the employee or if it concerns organisational changes, or furthermore, if the employer or its part is cancelled or relocated and the employee does not agree with the change of the agreed place of work, and also if the employee has lost the opportunity to perform the work (due to his health condition) the reasons for terminating the employment must be specified in the written agreement.


Directors Or Other Senior Officers

Directors and other senior officers can be dismissed in the same manner as with any other employee.


Special Rules For Categories Of Employee

The Labour Code does not provide any special rules for certain categories of employees. However, due to their status, some employees are provided with enhanced protection as discussed above.


Whistleblower Laws

In Slovak republic the subject area is regulated by Act No. 54/2019 Coll. on Protection of Whistleblowers of Anti-social Activities and on the amendment of certain laws, which, among other things, regulates the conditions for providing protection to persons in an employment relationship in connection with the reporting of crime or other anti-social activities.


Specific Rules For Companies in Financial Difficulties

The employer, interim bankruptcy trustee or the bankruptcy trustee is obliged to inform the Social Security Agency regarding the insolvency of an employer in writing within 8 days after its inception. The claims of the employees are paid from the guarantee insurance. By virtue of the Bankruptcy and Restructuring Act, rights and duties arising out of labour relationships are transferred from the employer to the bankruptcy trustee.


Special Rules For Garden Leave

Our legal system does not provide for such a special regulation and, as a standard, during the period of notice, the employee remains with the employer and continues to perform work activities for him. In the event that the employee does not remain with the employer during the notice period, the employer is entitled to monetary compensation in the amount equal to the average monthly earnings of this employee and the length of the notice period, if agreed on this compensation in the employment contract. This monetary compensation agreement must be in writing, otherwise it is invalid.

If the employer has decided not to assign work to the employee during the period of notice, this is an obstacle on the part of employer for which the employee is entitled to compensation of salary.


Restricting Future Activities

The employee’s activities after the termination of the employment can be restricted by an arrangement in the employment contract stating that the employee is obliged to refrain from the activities that are competitive to the activities of the employer for a maximum of 1 year. Such an agreement may be concluded only where the employee is to acquire, during the period of employment, information or skills that are not readily available, and their use would bring about substantial harm to the employer. If the restriction of employment agreed in the employment contract is greater than is legitimate for the protection of the employer, a court may limit or cancel the employee´s obligation. The employer is obliged to provide the employee with a reasonable monetary compensation in the amount of at least 50% of average monthly earnings per each month of the obligation. An employee and employer may agree to fair financial compensation that the employee is required to pay, if he breaches the obligation to refrain from the stipulated competitive activities. The amount of the compensation to be paid by the employee shall not exceed the total amount of the compensation provided by the employer. By paying such a financial compensation the obligation of the employee shall cease


Severance Payments

Upon notice of termination or agreement of the parties due to organisational reasons, dissolution or change of the employer’s location or the employee becoming unable to work due to his/her state of health, the employee is entitled to a severance payment amounting to one to five months’ pay depending on the length of the employment. Where the employment is terminated upon notice or agreement of the parties due an industrial accident, industrial illness or related risks, the employee is entitled to a severance payment of ten months’ pay.


Special Tax Provisions And Severance Payments

Severance payments are subject to income tax.


Allowances Payable To Employees After Termination

The employer has no duty to pay the former employees any kind of pension or similar allowance after the employment relationship has ended.


Time Limits For Claims Following Termination

Claims arising out of a void termination of employment are to be made within two months of the end of the employment.

5

GENERAL

Specific Matters Which Are Important Or Unique To This Jurisdiction

The Slovak legal order does not have any unique features.



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Josef Donat
ROWAN LEGAL
Slovakia


Michal Nulicek
ROWAN LEGAL
Slovakia


Disclaimer:

© 2021, ROWAN LEGAL. All rights reserved by ROWAN LEGAL as author and the owner of the copyright in this chapter. ROWAN LEGAL has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: June 2021