Government approves limiting the duration of work on agreement

Another limiting draft amendment to the Labour Code was introduced by the Labour Ministry seeking to alter the Act on Pension Savings. It introduces restrictions of the work on agreement performed outside regular employment. It is particularly designed to address payment of pensions from the private second pension pillar and was approved by the government February 26. The duration of work on agreement should be limited for a maximum of one year to avoid misusing it by avoiding paying for social insurance.

Another limiting draft amendment to the Labour Code was introduced by the Labour Ministry seeking to alter the Act on Pension Savings. It introduces restrictions of the work on agreement performed outside regular employment.

It is particularly designed to address payment of pensions from the private second pension pillar and was approved by the government February 26. The duration of work on agreement should be limited for a maximum of one year to avoid misusing it by avoiding paying for social insurance.

“In the case of unlimited duration of work on agreements, employers often avoid paying insurance,” explains the ministry, as quoted by the TASR newswire. Changes should also affect students who often work on agreement. Originally, the ministry proposed to change the duration of work on agreements for students so that it always ended at the end of the calendar year in which the contract was signed. But instead, under the new amendment, employers will be able to conclude agreements with employees for 12 months only.

“We accepted the comments of employers,” Labour Minister Ján Richter said. “Employers themselves will be happy with the amendment and we will also avoid the misuse of these agreements.”

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