Government plans to reintroduce an entitlement to severance pay which might be paid alongside a standard notice period will increase the costs of terminating a work contract and this might in turn result in the hiring of fewer employees by companies, according to the German, Austrian, Spanish and Swedish chambers of commerce in Slovakia, the SITA newswire reported.
The chambers, which represent the interests of 500 companies employing over 80,000 people, warn of a threat of layoffs, as employers could use the old rules to get rid of redundant workers. Moreover, the chambers do not like the planned reduction in overtime work planned by the government.
“Given the current economic situation it would be dangerous,” reads the statement, as quoted by SITA, adding that it will mainly “concern those companies that in general face considerable seasonal turbulence in orders”.
The chambers are also concerned about the suggested flexible model of working time which they say might make firms cautious about creating new jobs, SITA wrote.
They propose creating a rule by which achievement of retirement age can be used as a reason to terminate an employment contract. This, according to the chambers, might allow firms to employ more young people.
Labour Ministry State Secretary Branislav Ondruš defended the changes, saying that the Labour Code will neither create nor destroy jobs, since this only depends on the state of economy. He added that employers would not be harmed by the new rules since the ministry would try to make it balanced for both sides, the Sme daily wrote.
Sources: SITA, Sme
Compiled by Radka Minarechová from press reports
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