Minister Mihal is Satisfied with Draft Labor Code Revision

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BRATISLAVA, April 19, (WEBNOVINY) — The Federation of Employers‘ Associations of the Slovak Republic (AZZZ) is not satisfied with the outcome of Monday discussion of social partners on changes to the Labor Code, AZZZ Vice President Rastislav Machunka said for SITA news agency. “The tabled amendment to the Labor Code does not come up to our expectations,” he said. He pointed out that the Ministry of Labor and Social Affairs abandoned its intention to omit the so-called minimal wage entitlements from the Labor Code, which was one of employers’ requirements. These represent different level of minimal wage depending on the level of work qualification demands. He also said that employers failed to push through their demand that employers should not longer need approval from the Office for Labor and Social Affairs to lay off a severely disabled person. AZZZ also disapproves of the employees’ entitlement to a five-month notice period if the period of employment in a company exceeds twenty years. Machunka opines that a four-month period after employment of ten and more years would suffice.

Minister of Labor, Social Affairs and Family Jozef Mihal is almost hundred percent satisfied with the outcome of Monday’s tripartite meeting of social partners discussing the draft amendment to the Labor Code. ‘I think that social partners were also satisfied. I could feel satisfaction of all three partners,” said Mihal at a press meeting on Tuesday. He opines that the tabled draft amendment to the Labor Code met everything he expected it. The minister believes that the suggested changes will boost flexibility of the Labor Code and contribute to the creation of new jobs.

The length of a trial period at the start of employment in the amended Labor Code will not depend on the employee’s wage after all. The Labor and Social Affairs Ministry made several concessions and gave up on its plan to introduce a one-month trial period for employees with monthly wage of up to 1.7 fold the minimum wage, which is approximately EUR 539. Every employee will have a three-month trial period at maximum as it is at the moment. The only exception will apply to the managerial staff whose trial period could potentially last six months. The trial period of both groups can possibly be extended by additional three months, based on a collective agreement.

The tabled amendment to the Labor Code quashes the currently effective concurrent entitlement to the notice period and drawing severance payment. The notice period will be cut from the minimum two months to one month with employment lasting less than a year. The current two-month notice period will apply to employees employed for at least one year and less than five years. Employees who work for the employer for at least five and maximum of ten years will be entitled to at least a three-month notice period. Employees who work in a company for ten to twenty years will be eligible to at least a four-month notice period and if the period of employment exceeds twenty years, the notice period should last for at least five months.

The Ministry of Labor also gave up its intention to omit so-called minimal wage claims from the Labor Code. The definition of dependent work will not be revised either. Alternative possibilities of financing employees’ meals will not change either after all as the Cabinet has not included the possibility of replacing meal vouchers with financial contributions in its draft amendment to the Labor Code.

The amendment to the Labor Code preserves the automatic entitlement to a five week holiday for all employees older than 33. Provisions regulating employment for a definite period will also be revised. It will be possible to extend such employment relation three times at most, while the summation of temporary employment periods cannot exceed three years. Based on the currently effective legislation, the employment for a definite period can last maximum of two years while it can be extended or repeatedly arranged twice at most.

SITA

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Viac k osobe Jozef MihálRastislav Machunka