Posting employees - new rules for employers
On 18th of June, 2016, new legislation concerning cross-border co-operation in the posting of employees within the framework of the provision of services, came into force (the Act). The Act brings into effect EU Directive 96/71/EC and also amends the Slovak Labour Code in this regard.
1. Meaning of “hosting” and “home” employer
The Act identifies the posting of employees according to “hosting” and “home” employers. The “hosting employer” is the employer situated outside of the Slovak Republic (in other states of the European Economic Area (“EEA”)) and which is posting its employees to the Slovak Republic to provide the services there. The EEA includes all European Union states, Iceland, Norway and Liechtenstein.
The “home employer” is the employer situated within the Slovak Republic which is posting its employees to perform work in other Member States of the EEA.
2. Identifying posted employees
The hosting employer is required to identify whether its employees working in the Slovak Republic are really posted employees, or merely visitors on a cross-border business trip.
The distinction between posted employees and visitors in this context is drawn as follows:
- in the case of a cross-border business trip, an employee is undertaking work on behalf of the employer and for its benefit, for example through business meetings abroad. Work carried out on the business trip is accordingly incidental to the provision of service
- in the case of posting, the employee provides the service for the benefit of the recipient of the service
As there is no definition of the term “provision of services”, it is necessary to consider each case individually.
3. What should a hosting employer do to comply with the Act?
In the case of posting employees to the territory of the Slovak Republic for the provision of services, the Act requires the hosting employer to provide the National Labour Inspectorate with the following information:
- identification data - commercial name, residence in the case of a legal person, and name and surname and residence in the case of a natural person
- identification number and the register in which he/she is registered
- expected number of posted workers, including name, surname, date of birth, place of residence and citizenship of the posted worker
- date of start and end dates for the posting
- place of work and type of work performed by the posted worker during the period of posting
- name of service or services which the hosting employer shall provide via the posted employee in the Slovak Republic
- contact person, who is required to be present in Slovakia during the posting
This obligation can be completed electronically or in paper form.
In addition, the hosting employer is required to retain the employment contract or other documents certifying the employment relationship with the posted worker, evidence of working time, documents regarding the paid salary during the posting at the place of work performance.