The amendment to the Labour Code that comes into force
on May 1 2018 enshrines, among other things, a pay increase for
employees. This pay increase only concerns the wage supplement
paid to employees who work (i) on outings; (ii) on Saturdays;
(iii) on Sundays; and (iv) at night.
The changes concerning work on Saturdays, Sundays and at
night apply not only to employees under a standard employment
contract, but also to students employed under a temporary
student employment contract and to workers engaged under an
agreement to perform work or a work activities agreement.
Some of the wage supplements that have been voluntary in the
past will now be mandatory (work on Saturdays and Sundays), and
other mandatory wage supplements will be increased. In some
cases, this increase is quite substantial in comparison to the
existing legislation and as such is considered a fundamental
change that will impact the business sector.
The amendment provides for a transitional period of one
year, from May 1 2018 to May 1 2019, during which time reduced
wage supplements will be in effect. This means the increase
will effectively be implemented in two phases.
Employees were previously entitled to a supplement of 50% of
their average hourly wage for holiday work; beginning May 1
2018 the supplement will be increased to 100 % of an employee's
average hourly wage.
The wage supplement for work on Saturdays has been strictly
voluntary until now but under the new legislation, effective as
of May 1 2018, a supplement of 25% of the employee's minimum
hourly wage will be mandatory; and effective as of May 1 2019,
the supplement will go up to 50% of the employee's minimum
hourly wage. The type of work is irrelevant. In other words,
the increase applies equally to standard work and to dangerous
The amendment also provides for a wage supplement for work
on Sundays, which had previously been strictly voluntary. The
new legislation makes the supplement mandatory and it will be
phased in beginning May 1 2018. The amount will be set at 50%
of the employee's minimum hourly wage, with the full amount of
100% of the minimum hourly wage effective as of May 1 2019. The
supplement is applicable across the board, regardless of the
type of work (ie standard work, as well as dangerous work).
The wage supplement for night work is based on whether the
employee performs standard work or dangerous work. Existing
legislation provides for a night work supplement of 20% of the
employee's minimum hourly wage; for standard work, the
supplement will go up to 30% on May 1 2018 and to 40% beginning
on May 1 2019. The supplement for dangerous work will be
increased to 35% as of May 1 2018 and then to 50% of the
minimum wage effective as of May 1 2019.
Employers will be able to apply exceptions as provided by
the Labour Code for certain areas, particularly as regards
employers whose workers regularly work on Saturdays, Sundays
and at night because of the specific conditions of the business
operation or due to the nature of the work itself. For
employers, this means the ability to negotiate a collective
agreement with the trade union that provides for a wage
supplement of less than the lawful amount for work on
Saturdays, Sundays and at night. In companies with fewer than
20 employees who are not organised in a trade union, the
employer may negotiate directly with the employees for a lower
wage supplement, keeping in mind, however, that the minimum
supplement cannot be less than the amount required specifically
by law. This gives employers the opportunity to reduce wage
supplements by a maximum of 10% off the lawful amounts.
The employment contracts of managerial staff may provide for
a salary that is inclusive of any potential work on Saturdays,
Sundays or at night. In other words, these employees would not
be entitled to any wage supplements for that work.
Another noteworthy change requires employers to state the
offered pay in their job advertisements, with binding effect.
In this context, 'binding effect' means that the employment
contract subsequently presented to the selected candidate
cannot provide for a base wage lower than the amount that had
been stated in the job advertisement.
Yet another change concerns the requirement of applying
certain provisions of the Labour Code, such as the provisions
on minimum wage, annual leave, and working hours, to employees
that have been posted to Slovakia from non-EU countries to
provide services to employers. The aim is to prevent social
dumping in the posting of workers from non-EU countries.
||Byung Sung Park