- Overview: Slovakia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Slovak Republic
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Slovakia Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Slovakia and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Slovakia as well as in other countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Slovakia instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Slovakia .
We are experts in global workforce employment in Slovakia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Slovakia.
See Hiring and Firing Workforce in Slovakia Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Slovakia or would like to get more details.
Hiring and Firing Workforce in Slovakia Guide
# Employment Contracts
An employment may be concluded for a fixed-term or for an indefinite period of time. In any case, contracts of employment must be drawn up in Slovak language. The maximum duration of a fixed-term contract is 2 years. An employer may renew a fixed-term contract twice within the statutory term of the contract. As a rule, all contracts of employment must have the following contents: job specification, place of work, commencement date, salary and date of payment, working time, vacations, terms of notice of termination. An employer must make a duplicate copy of an employment contract for himself and the employee.
# Minimum statutory employment rights
# Hours of work
The normal working hours in Slovakia is 8 hours a day and 40 hours a week. Employees are entitled to 2 rest days per calendar week. Rest days may be taken on Saturdays and Sundays or on Sundays and Mondays.
# Probation period
Generally, employees may be placed on probation for up to a maximum period of 3 months. Employees of certain managerial positions may be given up to 6 months’ probation period.
# Annual leave
Any employee who works for the same employer constantly for at least 60 days in a calendar year is entitled to annual paid leave on a proportionate basis.
Employees are entitled to no fewer than 4 weeks of paid vacation annually. Employees who are 33 years old or more are entitled to 5 weeks’ paid leave. Employees whose working conditions are hazardous must be given an extra day of paid vacation.
# Parental leave
Employees are entitled to maternity leave which must be paid by the Social Insurance. Birth mothers of new babies are eligible to take 34 weeks of paid maternity leave for the birth of any single baby. Women who have multiple births have the right to 43 weeks of paid maternity leave. Single parents are entitled to 37 weeks’ paid maternity leave for every new born child. Parents (mothers or fathers) have the right to take a parental leave after the end of their maternity leave until the day the child turns three years old.
# Sick leave
Employees need a document proving that them or their family member are sick and that they need sick leave from work. The first 10 calendar days are paid by the employer: the first three days it’s 25 percent of the daily salary basis and then seven days with 55 percent. The salary basis is calculated based on the employee income in the past year. From the day 11 on, the social insurer pays the sick leave at 55 percent. For a leave to care for a family member, social insurance pays from the first day, 55 percent. However there is a daily limit what maximum can be paid from social insurance.
The maximum hours, including overtime an employee is permitted to work is 48 hours per week. Employees working in health care sector may work up to 56 hours a week, including overtime. In any calendar year, employees have the right to willingly work for a maximum of 400 hours overtime.
Based on the type of work as defined by the Labour Code you get a percentage of your average salary for working:
- at night (between 10 pm and 6 am, minimum 20 percent bonus)
- during national holidays (minimum 50 percent bonus)
- overtime, which means working more than 8.5 hours per day (30 min paid break included) or working during weekends (25 percent bonus).
# State minimum salary
Employees are entitled to receive the minimum wage in amount of €480 ($577) per month, or €2.75 ($3.3) per hour.
# Employment termination
The employment contracts in Slovakia can be terminated in writing by both parties as follows:
- mutual agreement
- immediate termination, while in this case, the employer must terminate the employment within two months since becoming aware of the grounds for the immediate termination, and at least at the latest within one year of the day on which those ground arose. This method of termination of employment relationship can be used only in exceptional circumstances stipulated by the Labour Code
- termination in the probationary period by both the employer or employee who may terminate the employment during probationary period without providing any reason for termination by a written notice that should be given and delivered to the other party at least 3 days before the day of stipulated termination
- notice, in this case both employer and employee may terminate an employment contract by a written notice. The employee may terminate the employment contract for any reason or without stating any reasons. On the other hand, the employer may terminate the employment contract only in the situations expressly stipulated in the Labour Code
The employment contract terminates also:
- by lapse of time in case of the employment contract concluded for definite period
- expiry of residence permit in case of foreign employees, either by virtue of time or revocation
The general length of the notice period for a Slovak labour contract is:
- the statutory minimum notice period is 1 month (unless longer notice period is agreed by the parties)
- 2 months, if the employee was employed for at least 1 year but less than 5 years
- 3 months, if the employee was employed for at least 5 years
Longer statutory notice period depends on the length of employment, as stated above.
In normal circumstances, employees are entitled to receive at termination a severance pay that is equivalent to the following:
- average monthly pay if they have stayed with the company for a minimum of 2 years, but less than 5 years;
- two times the average monthly pay if they have stayed with the company for a minimum of 5 years and less than 10 years;
- three times the average monthly pay if they have stayed with the company for a minimum of 10 years and less than 20 years.
- four times the average monthly pay if they have stayed with the company for a minimum of 20 years.
In case an employee is terminated because the company is downsizing its workforce so as to improve efficiency, relocating or closing down; because of change in employee’s contractual duties; the employee cannot perform his duties due to sickness; or other important organizational changes, the employee will be entitled to get a severance pay that is equivalent to:
- average monthly pay if they have stayed with the company for a minimum of 2 years;
- two times the average monthly pay if they have stayed with the company for a minimum of 2 years and less than 5 years;
- three times the average monthly pay if they have stayed with the company for a minimum of 5 years and less than 10 years;
- three times the average monthly pay if they have stayed with the company for a minimum of 10 years and less than 20 years;
- four times the average monthly pay if they have stayed with the company for a minimum of 20 years.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Slovakia by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.