Types of Employment Contracts

The principal legislation regulating employment relationships in the Slovak Republic is the Act No. 311/2001 Coll. Labor Code, as amended (hereinafter as the “Labor Code”).

An employment relationship is established by a written employment contract concluded between an employer and an employee. The parties have to agree on a job description, place of work, date on which employment commences and remuneration (unless agreed in a collective bargaining agreement).

Pursuant to the Act No. 82/2005 Coll. on Illegal employment, it is prohibited for an employer to employ persons without an established employment relationship or without a working/temporary residence permit, unless the person is a citizen of the EU, or contracting states of the Agreement on the European Economic Area and Switzerland.

There are two types of employment contracts in Slovakia:

1)    employment contract for definite period 

2)    employment contract for indefinite period

The Labor Code contains certain limitations in respect to the employment contract concluded for definite period of time. Such contracts can be concluded for a maximum of two years and it is possible to extend them or conclude them again only twice within these two years. The limited duration (i.e. definite period of time) of the contract must be agreed upon in writing, otherwise the contract is deemed to be concluded for indefinite period.

Temporary Employment Arrangements

In addition to the employment contract, the Labor Code recognizes flexible temporary employment arrangements, such as the contract on performance of certain work task not exceeding 350 hours in calendar year, contract for student’s work and contract on work activity up to 10 hours per week.

The parties can agree in employment contracts on an initial probationary period of maximum of 3 months for general employees. For certain managerial positions, the initial probationary period may be extended up to 6 months.

 Probationary Period

The parties can agree in employment contracts on an initial probationary period of maximum of 3 months for general employees. For certain managerial positions, the initial probationary period may be extended up to 6 months.

Termination of Employment Contracts

The employment contracts can be terminated in writing by both parties by mutual agreement, immediate termination, termination in probation period, notice or contract expiry.

Immediate termination

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 Labor Code.

Termination in the probationary period

Both the employer and employee 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

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 Labor Code, e.g.:

• if the employer’s business or a part thereof is wound-up or relocated and the employee does not agree with the change of agreed place of work
• if the employee is made redundant due to change in its business scope, technical equipment, reduction in the number of employees with the aim of increasing work efficiency, or other organizational changes
• if there is an ongoing but less serious breach of working discipline, the employee may be dismissed, provided he/she has been warned in writing within the previous six months as to the possibility of dismissal, etc.

The statutory minimum notice period is at least 1 month (unless longer notice period is agreed by the parties). Longer statutory notice period depends on length of employment. Notice periods for contracts are:

a)  2 months if the employee was employed for at least 1 year but less than 5 years.

b)  3 months if the employee was employed for at least 5 years.

Expiry of a contract concluded for definite period

In case of a foreign national the date of expiry of his/her residence permit (either by virtue of time or revocation).

Social Security Insurance

The employer is obliged to pay monthly contributions to health insurance, social insurance and advances on the income tax.

The amounts of contributions are presented in the table below. Please note that as of January 1, 2016, the minimum monthly wage is 405 EUR.

Working Time and Vacation

Maximum working time

The maximum weekly working time is 40 hours, employees working on the basis of a two-shift system may work up to 38.75 hours per week and employees working on a three-shift system or who are involved in continuous operation may work up to 37.5 hours per week. It is also possible to agree on uneven distribution of working time with the representatives of the employees.

Overtime work

Upon agreement with the employer, employees may perform overtime work. Overtime work may reach up to 400 hours per calendar year, of this time, the employer may order the overtime work in the extent of up to 150 hours per calendar year, the remainder of overtime work shall be agreed with the employee. For the work performed in excess of the standard working time, the employee is entitled to an allowance, specifics of which are regulated in the Labor Code.

Annual paid 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. The basic annual leave entitlement is at least 4 weeks, rising to 5 weeks for employees 33 years old or older.

Severance Payment

If the employment contract is terminated for organizational or health reasons (in cases of termination of contract by notice of termination or by a mutual agreement), the employees are entitled to severance allowance in the amount calculated depending on the length of employment and the employee’s average monthly salary (the severance payment might amount to up to five-times the average monthly salary). The employer and the employee may agree on a combination of notice period and severance payment.