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Entrepreneurs critical of planned changes to Labor Code

The Slovak Association of Entrepreneurs (ZPS) is disappointed by the Labour Code changes proposed in the government's program statement.

ZPS chairman Ján Oravec assumes that employment and labor market policy modifications will eventually result in increased unemployment. He warns that employers will be put off hiring new people if plans elaborated in the government's program statement are put into practice.

Oravec in particular has in mind the greater protection granted employees against dismissal, restrictions on flexible forms of labor relations and the higher minimum wage.

Businesspersons see the government's program statement as lacking a commitment not to raise total tax and social insurance payment rates, the newswire SITA wrote.

Moreover, the ZPS opposes the reintroduction of progressive income taxation. Instead, they support preserving the current tax system, chiefly the flat income tax rate, the flat VAT rate and the simplicity of the system.

The Labour Ministry has said that it plans to modify the country's labour legislation by including demands of the Confederation of the Trade Unions, which called for strengthening the position of the employee towards its employer.

Compiled by Martina Jurinová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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