Labour law lags as AI reshapes workplaces

While artificial intelligence (AI) promises short-term gains through automation and increased productivity, it presents serious long-term challenges to the labour market, including job displacement and the emergence of legal grey areas in recruitment, experts are warning.

“Both employers and policymakers must urgently adapt to new forms of work,” says Daniel Grigeľ, partner at the Bratislava law firm Credis Law, highlighting persistent legal rigidity in Slovakia’s employment system.

In an interview with The Slovak Spectator, the labour law specialist discusses the implications of AI for the country’s labour market, recent changes in employment legislation, notable court cases, ongoing dysfunction in the Foreigners’ Police system, and legal reforms expected in 2025.

What impact do you expect artificial intelligence (AI) to have on labour law and employment relationships? 

This is a highly debated and complex issue, about which we could talk for hours. Nevertheless, we can say that in the short term both employees and employers are likely to benefit from the rise of automation and AI, which will increasingly take over routine tasks traditionally performed by humans. This is expected to boost productivity through a positive collaborative relationship between humans and machines. In the longer term, however, the outlook is less optimistic. The development of AI will likely enable increasingly sophisticated processes which may gradually displace traditional employees. As AI systems take on more autonomous roles, human-machine cooperation may no longer be necessary for certain decisions. For instance, AI might begin to handle recruitment processes in place of HR departments. This will likely require legislative responses – such as a review of the current legal framework governing pre-contractual employment relations. 

Which professions are most at risk? 

Relevant international studies have shown implementing AI is economically advantageous, particularly because of cost savings on labour. As a result, the professions most at risk due to automation, robotics and AI include: administrative roles, such as finance, accounting and clerical work, customer service roles, such as call centres, sales assistants, receptionists, transport-related jobs, postal services and agriculture. It is highly likely that AI will lead to a transformation of traditional occupations – either through collaboration with AI or through the emergence of entirely new job categories. These new roles will likely focus on skills that AI is unable to replicate, such as those required in health care, scientific research and IT. In particular, employees who specialise in solving complex problems and tasks will remain in demand. 

What are the most pressing labour law issues for companies and employees in Slovakia at the moment? Are they different from the issues people raised with you in the past? 

Today’s legal challenges do not differ significantly from those of the recent past. Employers often complain about the rigidity of the current legal framework. They would welcome greater flexibility in employment relationships – not only in relation to termination of employment, but also with regard to changes in working conditions or job duties. Frequent and significant shifts in the labour market require employers to react quickly to new challenges. However, they are constrained by the fact it is not legally possible to unilaterally change an employee’s job description without their consent, as well as by the overall inflexibility of labour legislation. New technologies and the evolving expectations of the younger generation – who increasingly demand greater freedom and autonomy in their work – will also require a different approach from employers to working conditions. At the same time, a fresh legal perspective is needed to address dependent work performed through new formats, such as platform work and digital labour.

Have you dealt with any interesting labour law cases recently that could serve as studies for other companies?

Two recent litigation cases stand out.

The first concerns a Supreme Court ruling from November 2024, which supported our arguments and firmly rejected the practice of “forced sole traders”. The court found that if an employer ends an employment contract to avoid legal obligations – such as paying social contributions – and replaces it with a freelance or commercial arrangement, this may be deemed unethical, especially if the work remains essentially the same.

The second case involved the dismissal of an employee who tested positive for THC [tetrahydrocannabinol, a cannabinoid found in cannabis] three times during random drug testing at work. An independent lab test also confirmed the presence of cannabinoids. Although the employer relied on these results, the employee argued the substances could have been legal. The court ruled that the 1.7 percent margin of error in the tests’ accuracy worked against the employer, who must prove serious misconduct beyond reasonable doubt. We believe this was an excessively strict interpretation.

The case serves as a warning: employers should not rely solely on workplace drug tests but should seek confirmatory tests in certified laboratories – or involve the police where safety risks are present.

What significant labour law changes were adopted in the past year?

Although 2024 brought fewer legislative changes than in previous years, some are worth highlighting.

A new Labour Code provision introduced wage payment obligations in certain subcontracting arrangements. From January 2025, the rules for claiming the employee recreation allowance have changed, allowing certain costs incurred by an employee’s parent to be reimbursed. Meanwhile, there were amendments to the Act on the Promotion of Tourism allowing recreational vouchers to be transferred to a parent – although several practical questions remain around implementation.

Another notable change is the shift from voluntary to mandatory employer contributions for children's sports activities. The Collective Bargaining Act was amended to revive the framework for higher-level representative collective agreements, which had been in place until March 2021. Finally, the Act on Travel Allowances was updated to clarify provisions for electric and plug-in hybrid vehicles.

How do you view recent changes in the process for employing workers from third countries?

The changes so far are largely inadequate, especially given the longstanding dysfunction in the Foreigners’ Police system for dealing with residence permits. The booking system is outdated, unreliable and frustrating for both HR professionals and job seekers from outside the EU. Problems include a lack of available appointments, system limitations (e.g. only two bookings per phone number), and the use of Facebook for official updates.

These are more than technical issues – they present a serious barrier to business. The system affects not only service centres and major investors but also essential foreign manufacturing firms, many of which employ 100+ staff and are critical to regional economies. Often under foreign or dual management, these companies face delays in hiring and management rotation due to understaffing and system inefficiencies. In turn, this discourages new investment.

What could be done to improve the situation?

A practical solution would be to create a separate system and dedicated offices within the Foreigners’ Police for large companies – those with over 100 employees or an annual turnover of €40 million. Appointment slots should be pre-arranged in coordination with HR departments, avoiding the current “trial and error” method.

We also recommend dedicated appointments for members of the Investment Support Association (ISA), which works closely with the Slovak Investment and Trade Development Agency (SARIO). Both organisations play a crucial role in attracting and supporting foreign investors and business service centres in Slovakia.

How do you view labour legislation in terms of work flexibility?

For traditional office-based roles, Slovak labour law allows sufficient flexibility – provided both parties agree. However, there tends to be less flexibility when it comes to manufacturing roles.

The real challenge lies in adapting to new forms of work, such as platform-based employment. Legal frameworks will need to evolve. A welcome step in this direction has been the clarification of rules around home office arrangements.

Are any major changes to labour law expected soon?

Yes, several important changes are on the horizon: Slovakia is set to adopt a new EU directive aimed at strengthening the principle of equal pay for men and women doing the same or equivalent work. The focus will be on making pay more transparent and easier to enforce.

Another is related to platform work – a new EU directive aims to improve working conditions for people working through digital platforms, such as ride-sharing and food delivery apps. 

Internships will also see a change. A proposed directive will seek to improve protections for interns and prevent employers from using internships to avoid offering proper employment contracts.