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Many employment agencies skirt fair-play rules

There are more than 1,000 employment agencies in Slovakia employing a total of 30,000 people, but many of them do not observe the rules of fair-play vis-a-vis employees and the state, the TASR newswire learned at a round-table discussion organised by the Association of Personnel Agencies in Slovakia (APAS) on Monday, May 13.

There are more than 1,000 employment agencies in Slovakia employing a total of 30,000 people, but many of them do not observe the rules of fair-play vis-a-vis employees and the state, the TASR newswire learned at a round-table discussion organised by the Association of Personnel Agencies in Slovakia (APAS) on Monday, May 13.

The discussion was attended by representatives of the Labour Ministry, the Labour Inspectorate, the Centre of Labour, Social Affairs and the Family (ÚPSVaR), trade unions, employers and several NGOs. The law in Slovakia stipulates that employees provided to companies by employment agencies should enjoy similar salary conditions as ordinary employees. However, agencies frequently provide only minimum wage to their employees, while the rest of the difference is paid in the form of 'travel compensation'. These employees may receive the same amount as ordinary staff, but their pension savings are calculated only from the minimum salary, while the taxes and payroll deductions are also based only on this amount. These agency employees also receive less money for sick-time and holidays, and after dismissal they are only entitled to lower unemployment benefits.

According to director of the Adecco agency Beata Bruna Jakub, as many as 15,000 people are employed under these conditions – with the state losing around €22 million on taxes annually. Meanwhile, the profit margins of agencies that engage in such illicit practices are three to four times higher compared to honest agencies, said Jakub. Employment agencies provide staff mainly to engineering factories, logistics centres, construction companies, retail chains and for seasonal work.

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