This article was published in Investment Advisory Guide - Your key to understanding the Slovak business environment.
What does an employee contract need to include in Slovakia? What types of employment contracts should you consider, and what do you need to keep in mind when terminating an employee or granting sick leave. Read below to find out what you need to do to maintain positive employment relations in Slovakia.
Detailed breakdown:
Employment contract
Working relations must always be based on a written employment contract with at least two signed copies – one for the employer and one for the employee. In the contract, the employee commits himself or herself to performing the tasks defined by the employer, and the employer commits to paying wages for the performed work.
The contract must contain at least the following conditions and provisions: job description, location of the work, the starting date, the amount of the salary and the date it is paid, the working hours, the number of days off and the notice period for the termination of the contract.
Types of employment contracts
Slovak law allows employers and employees to agree upon one of two basic types of job contracts:
Fixed-term employment contract is limited to up to two years. The fixed-term contract can be prolonged or renewed, but only twice within two years.
Employment contract for unlimited does not state a fixed period for the contract’s validity.
In addition to these, two basic forms of employment contract, there are other agreements which can serve as the basis for employment relations in an agreement on performing certain tasks; an agreement on working activity; and an agreement on seasonal work for students.
An agreement on performing certain tasks can be signed between an employer and a natural person, provided the performance of the tasks stated in the contract does not exceed 350 hours in a year.
An agreement on working activity can serve as a basis for performing work not exceeding 10 hours per week.
An agreement on seasonal workfor students can be signed between employers and a natural person who is a student. This contract can be used for performing tasks that do not require, on average, more than half of the standard weekly working hours and the agreement must be accompanied by proof that the employee is a student.
These three types of agreement must be in written form and be signed in order to become valid.
Sick leave
In the event of a temporary sick leave, an employee is entitled to sickness insurance benefits only beginning from the 11th day of the leave, at 55 percent of the daily assessment basis. Until that point, the employee is entitled to an income substitute as defined by the law.
The income substitute is paid by the employer from the first day until the end of the temporary sick leave, up to the 10th day. For the first three days, it is 25 percent of the daily assessment basis and from the fourth until the 10th day, it is 55 percent of the daily assessment basis. In order to receive the income substitute, the employee is required to provide confirmation of temporary sick leave.
Terminating an employment relationship
By mutual agreement between the employer and the employee. A termination notice from either the employer or the employee. In the case of the employer, the reason must be stated in the notice. If an employer terminates an employee on the basis of redundancy, the employer is not allowed to fill the same position during the following two months.
Immediate termination of an employment relation. The employer is entitled to do so if the employee was sentenced for committing a crime or for severely violating working rules. An employee can terminate a contract immediately for personal health reasons, if an employer does not pay the salary, or if the employee’s life or health is at risk at work.
Termination of the fixed-term employment contract is automatic after the term passes if the contract is not extended.
Terminating an employment contract in the probationary period can be done by either party for any reason.
A mass layoff is when an employer issues termination notices or agrees on the termination of employment relations with 10 or more employees (or 10 percent or more of the total workforce depending on the size of the company) within a 30 day period.
