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Slovakia

Employment Agreement Essentials

Understand the key elements of employment contracts in Slovakia

Types of employment agreements

In Slovakia, employment agreements are primarily divided into two categories: employment contracts and non-employment agreements. Each type offers unique advantages and benefits, tailored to the nature of the work and the requirements of both the employer and the employee.

Employment Contracts (Pracovná zmluva)

An employment contract, or 'trvalý pracovný pomer' in Slovak, is the prevalent agreement for full-time or part-time employment. It forms a long-term working relationship between the employer and the employee, with no specific end date unless mentioned in the contract or terminated according to the Slovak Labour Code.

Key characteristics of employment contracts include:

  • Indefinite term: These contracts are the standard type and remain valid until terminated by either party following the procedures in the Labour Code.
  • Employee benefits: Employees under employment contracts are entitled to various benefits, including social and health insurance contributions paid by the employer, paid holidays, sick leave, and potential severance pay upon termination.
  • Negotiable terms: While the Labour Code sets minimum requirements, many aspects of the employment contract, such as working hours, salary, and benefits, can be negotiated between the employer and the employee.

Fixed-Term Employment Contracts

The Labour Code also permits fixed-term employment contracts, which are valid for a predetermined period not exceeding two years. These contracts can be extended or renewed twice for a maximum of two years each, but only under specific circumstances outlined in the Labour Code, such as covering for maternity leave or absences due to illness.

Non-Employment Agreements

Non-employment agreements are suitable for situations where a traditional employer-employee relationship might not be necessary. These agreements offer more flexibility for both parties but generally provide fewer benefits for the worker compared to employment contracts.

There are three main types of non-employment agreements in Slovakia:

  • Agreement on Work Performance: This agreement is suitable for short-term projects or one-time tasks with a maximum duration of 350 hours per calendar year. The employer is not obligated to provide social or health insurance for the worker under this agreement.
  • Agreement on Work Activity: This agreement allows for more regular work activities, with a maximum of 10 working hours per week. Similar to the agreement on work performance, the employer is not required to contribute to social or health insurance for the worker under this agreement.
  • Temporary Student Job Contract: This agreement is specifically designed for students and allows them to work a maximum of 20 working hours per week. Employers are required to contribute to social insurance for students working under this agreement, but not health insurance.

Essential clauses

Employment agreements in Slovakia should adhere to the Slovak Labour Code to ensure a legally sound working relationship between employer and employee. The core aspects of the employment relationship must be outlined in the contract itself.

Identification and Start of Employment

  • Parties involved: The full names and contact details of both the employer and the employee should be included.
  • Start Date: The exact date on which employment commences should be clearly specified.

Job Description and Workplace

  • Job Description: A concise description of the employee's duties and responsibilities should be provided.
  • Place of Work: The primary location where the employee will perform their duties should be specified. If the role involves multiple locations, the method for determining the workplace should be outlined.

Remuneration and Benefits

  • Salary: Unless determined by a collective agreement, the employment contract must specify the amount of salary, including the currency and payment method.
  • Benefits: The contract can outline any additional benefits offered, such as health insurance, bonuses, or vacation pay, although this is not mandatory.

Working Hours and Leave

  • Working Hours: Slovakia mandates a maximum of 40 working hours per week. The specific working schedule can be established in the contract or a separate document referencing the Labour Code.
  • Leave: Minimum annual paid leave is 20 days, with the possibility of extension based on collective agreements or reaching a certain age.

Probationary period

In Slovakia, the Labour Code permits the inclusion of a probationary period in employment contracts. This period acts as a trial phase, allowing both the employer and the employee to evaluate their suitability for the role.

Maximum Duration

The maximum length of the probationary period is determined by the employee's role:

  • Standard Positions: The probationary period for most employees cannot exceed three months.
  • Managerial Positions: For employees under the direct managerial competence of a statutory body or those under their managers (second-level managers), the probationary period can be up to six months.

Termination During Probation

During the probationary period, both the employer and the employee have the right to terminate the employment relationship for any reason, or even without providing a reason. However, a minimum notice period of three days before the intended termination date is required during this phase.

End of Probationary Period

If the employment relationship extends beyond the agreed probationary period, the contract automatically becomes an employment contract for an indefinite period. The rights and obligations associated with this are outlined in the Slovak Labour Code.

Additional Considerations

  • The probationary period cannot be extended.
  • If an employee is absent from work for a legitimate reason during the probationary period, the probationary period is extended by one day for each day missed.

Confidentiality and non compete clauses

In Slovakia, employment agreements can incorporate confidentiality and non-compete clauses to safeguard an employer's legitimate business interests.

Confidentiality clauses are strongly upheld by Slovakian law to protect trade secrets. Employers are entitled to include such clauses to secure confidential business information. The employee is thereby restricted from revealing any work-related information to unauthorized third parties.

Several Slovakian laws form the legal foundation for confidentiality clauses, including The Slovak Civil Code, The Labor Code, The Intellectual Property Law, and The Arbitration Law. Section 81 of the Labor Code reinforces an employee's legal obligation to maintain confidentiality of any information or facts learned during their employment. This provision enables employers to include confidentiality clauses in contracts, protecting their business interests even after an employee leaves the company.

Non-Compete Clauses

Slovakian legislation has recently adopted a more flexible approach to non-compete clauses. The Labor Code now expressly acknowledges the concept of non-competition provisions. However, these clauses come with certain limitations:

  • Maximum Time Limit: The non-compete clause can restrict an employee's competitive activity for a maximum of 12 months following termination.
  • Employee Scope: These clauses are most enforceable for employees who have access to confidential information or knowledge that is not readily available elsewhere.
  • Protection of Employer Interests: The non-compete clause can only limit activities that would cause significant harm to the employer's business if exploited by the employee in a competitive role.
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