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Employers' associations want change in Labour Code to boost job creation

The Federation of Employers' Associations of Slovakia (AZZZ) is demanding that the government of Prime Minister Robert Fico, through an amendment to the Labour Code, enable employers to terminate employment contracts of people who reach retirement age and are entitled to a retirement pension.

The Federation of Employers' Associations of Slovakia (AZZZ) is demanding that the government of Prime Minister Robert Fico, through an amendment to the Labour Code, enable employers to terminate employment contracts of people who reach retirement age and are entitled to a retirement pension.

AZZZ President Rastislav Machunka presented this idea at a press conference after the tripartite meeting of social partners (government, labour unions, employers) on Monday, April 22. According to him, this would free up jobs for the younger generation. "It would be optional, an option to terminate employment of a current employee," he said as quoted by the SITA newswire.

As a way to support employment of the long-term unemployed, AZZZ calls for a reduction of payroll levies for people with low income. This is one of the five proposals to tackle unemployment which the opposition Slovak Democratic and Christian Union (SDKÚ) unveiled in parliament last week. "We will have lower costs with their employment and the benefits from their work that we have will be sufficient to cover expenses that will be associated with hiring them," said Machunka. According to Machunka, this group of unemployed individuals mostly has low education and many lost their jobs due to increases in the minimum wage in recent years, whereby they mostly do not produce sufficient added value for the employer.

"Unless our economy starts growing sufficiently, at least by 3 to
4 percent, it will be very difficult to create new jobs," said Machunka.
Labour Minister Ján Richter said after the tripartite meeting that the proposals “will be the subject of further assessment by experts at the Labour Ministry”. According to him, this is not a new idea, as it was already considered by the previous government. The minister considers these proposals realistic, as they are based on the actual situation of Slovakia in terms of unemployment.

(Source: SITA)
Compiled by Zuzana Vilikovská from press reports
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