Slovak Employment Law Update: Temporary Residency Permits and Termination of Employment

Temporary Residency Permits

As of [date], a new administrative fee has been introduced for issuing temporary residency permits in Slovakia. The fee ranges from €232 to €1,500 depending on the type of permit, with the majority falling within the €232-€800 bracket. This development is expected to have a significant impact on individuals seeking temporary residency in Slovakia, particularly those in the business and entrepreneurial sectors.

Termination of Employment

Employment termination in Slovakia is regulated by the Labour Code, which outlines specific procedures for terminating employment contracts. Employees are entitled to prior consultation with employee representatives if the termination is based on the employer’s notice or immediate employment termination. In addition, employers must offer suitable alternative positions to employees who are terminated due to organisational changes.

Fair Dismissal

The Labour Code does not distinguish between grounds for dismissal that are considered fair and those that are unfair. However, eligible grounds for dismissal are specified in the code, including:

• Cancellation of the employer’s business or part of it
• Relocation of the employer or part of it
• Redundancy resulting from organisational changes
• Long-term incapacity to perform work due to health reasons
• Serious misconduct

Redundancies and Mass Termination

Mass redundancies in Slovakia are triggered if the employer terminates employment contracts within a period of 30 calendar days due to organisational (economic) reasons or other reasons not attributable to the employees themselves. The process requires formal steps, including:

• Prior information and consultation duties with employee representatives or directly with the employees

Taxation

In Slovakia, employment income is subject to taxation if it is deemed Slovak-source income. This includes income earned by individuals who are tax residents in Slovakia or have a permanent residence or home in the country. The tax rate applicable to employment income varies depending on the individual’s tax residency status and the type of income earned.

Key Takeaways

• A new administrative fee has been introduced for issuing temporary residency permits in Slovakia, ranging from €232 to €1,500.
• Employees are entitled to prior consultation with employee representatives if termination is based on the employer’s notice or immediate employment termination.
• Mass redundancies in Slovakia require formal steps, including prior information and consultation duties with employee representatives or directly with the employees.
• Employment income earned by individuals who are tax residents in Slovakia or have a permanent residence or home in the country is subject to taxation.