The Labor Code amendment approved by the Slovakian government and Parliament last year came into force on January 1, 2013. It provides for a stricter definition of the employment relationship, toughens conditions to renew fixed-term contracts, reforms termination benefits in case of a layoff, and reviews time savings accounts and the overtime system. By Premysl Marek and Elena Chorvatova, lawyers at the Peterka & Partners law firm in Bratislava. (Ref. 130232)
Defining self-employment. Since January 1, 2013, self-employed labor – which by essence cannot be based on a commercial contract – is defined as any job performed: when the employer is in a position of superiority and the employee is subordinate; for the employees themselves and for the employer; following the employer’s orders; in the name of the employer; in return for pay; during hours determined by the employer. Since definition criteria are stricter (e.g. whoever owns the equipment used to perform the job isn’t a key factor anymore), there are greater chances that commercial contracts will become labor contracts. In order to prevent negative consequences for the company, auditing these contracts is recommended.
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