The business environment in Slovakia again slightly worsened in the second quarter of 2007, especially due to the approved amendment of the Labour Code and the amendment to the Social Insurance Act that is under preparation, according to a survey released on August 28 in Bratislava.
The survey was carried out by the Business Alliance of Slovakia (PAS), which regularly publishes the value of business environment index (IPP).
Currently, the IPP value is 123.4 points, which represents a decrease of 0.7 percent compared to 1Q07, representing the fourth consecutive quarterly decrease. According to PAS, the steepest decline in 2Q07 was recorded in 'labour legislation', namely by 9.19 percent of respondents, and its current value is 112.6 points.
According to the report, the doubling of expenses for lay-offs, strengthening of trade unionists in companies, and limits on temporary work have ushered in a doubling of expenses for entrepreneurs, and thus created obstacles to increasing hiring. Another serious problem is the legal uncertainty of employers, which is a result of the unclear formulation of dependent labour. TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
