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TILL 30 JUNE
2017
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FROM 1 JULY 2017
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1.
TYPES OF THE EMPLOYMENT CONTRACT
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Types
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- non-term employment contract;
- fixed term employment contract;
- remote work employment contract;
- additional work employment contract.
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- non-term employment contract;
- fixed-term employment contract;
- temporary work employment contract;
- employment
contract for project work;
- job-sharing
employment contract;
- employment
contract with several employers;
- apprenticeship
employment contract;
- seasonal
work employment contract.
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1.1. FIXED TERM EMPLOYMENT CONTRACT
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Duration term
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- 2 years (with several exceptions where
the maximum duration is 5 years).
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Notice period for expiration
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- 5 working days (work relation lasts
more than 1 year);
- 10 working days (work
relation lasts more than 3 years).
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Compensation
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- upon expiration of
fixed-term contracts exceeding 2 years, employees will be entitled to
severance compensation in amount of 1
average monthly salary (hereinafter – AMS).
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For the permanent positions
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- can not be concluded (unless other laws or the collective agreement allowed).
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- fixed-term contracts
for permanent positions can be
concluded but they must not exceed 20% of all employment contracts
concluded at the company.
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- the double rate (i.e.
3,2%) of Unemployment Social Security for the fixed term employment contracts
(such as temporary, apprenticeship,
project work, seasonal work, job-sharing) will be applied.
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- the information
regarding fixed term contracts shall be submitted to the State Social Insurance
Fund Board till 30 July 2017.
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1.2. TEMPORARY WORK EMPLOYMENT CONTRACT
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Main touch points
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- there was no
temporary work employment contract.
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- contract is concluded
between the employer and the temporary work agency;
- could be fixed-term or
non-term term;
- agency shall inform
the employee of the first working day before two working days, unless the
employee agrees to start work earlier.
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- the employee shall
have a right to refuse the proposal upon 1 working day notice from the day of
the submission of the proposal.
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Notice on termination of employment contract
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- 5 working days. This
term may be prolonged by collective agreement, but may not be longer than 14
working days.
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- the maximum term for
fixed-term temporary work employment contract is 3 years.
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1.3. EMPLOYMENT CONTRACT FOR PROJECT WORK
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Main touch points
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- no employment
contract for project work at the moment.
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- only fixed-term;
- concluded for a
specific project;
- the employee sets the
working time mode by himself and works in the work or other place;
- expires upon reaching
the pre-agreed results;
- hourly/monthly salary
is paid to the employee (it may be agreed to pay the additional remuneration
at the end of the project depending on the successful results);
- maximum period:
- up to 2 years for new
employee or in case the employment contract of other type is valid, or
- up to 5 years
provided the valid employment contract of other type is being replaced.
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1.4. JOB-SHARING EMPLOYMENT CONTRACT
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Main touch points
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- there was no
job-sharing employment contract.
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- two employees can
agree with the employer on sharing one job position;
- it can be agreed upon
conclusion of a new employment contract or change of valid employment
contract of other type;
- the employer is
obligated to consider a request to temporary change valid employment contract
to job-sharing when it is submitted by the employee caring for a child under
7 years of age;
- each employee will be
able to agree with other employee about the
work time (according to work and rest obligations);
- if the employment contract with one of the employee is terminated, the
employment contract of the other employee is valid for one month. After one
month, if a partner is not found, the contract of the latter employee may be
terminated provided he refuses to work full-time, except for the employee
caring for a child under 7 years of age provided he stays for a part-time
work;
- in case of termination, notice period is 3 business days, and a
severance compensation – 0,5 of the employee’s AMS.
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1.5. EMPLOYMENT CONTRACT WITH SEVERAL EMPLOYERS
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Main touch points
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- there was no
employment contract with several employers.
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- should indicate the primary employer who establishes the employee’s
schedule, pays remuneration, takes care of payroll taxes and is responsible
for other obligations to the employee on behalf of all employers of the
contract. All other employers compensate all costs in proportion of working
time to the main employer.
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1.6. APPRENTICESHIP EMPLOYMENT CONTRACT
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Main touch points
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there was no apprenticeship employment contract
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- this contract may be concluded when the employee is recruited for the
purpose of acquiring skills and qualifications necessary for a certain
profession;
- the maximum duration of the contract is 6 months, except for the
apprenticeship employment contract concluded alongside with training contract;
- other terms related to concluding the contract and its termination,
reimbursement of training costs are
also important.
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1.7. SEASONAL WORK EMPLOYMENT CONTRACT
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Main
touch points
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- there was no seasonal
work employment contract
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- it is concluded for a work of seasonal character:
- works of seasonal character shall be inscribed into the list of
seasonal works;
- these works may not continue longer than 8 months in a row.
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FEE FOR PAYMENT FUND OF LASTING WORK
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Main touch points
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- 0,5 % from the salary shall be paid for the State Social Insurance Fund
Board.
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2.
TERMINATION OF THE
EMPLOYMENT CONTRACT
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2.1. ON THE INITIATIVE OF THE
EMPLOYER WITHOUT THE FAULT OF THE EMPLOYEE
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Reasons of termination
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- reasons are indicated
in the Labour Code:
- changes in the
employer’s work organization (obligation to offer another position);
- employee did not
reach the results according to the plan of work results improvement;
- employee refused to
work under the different necessary conditions of the employment contract;
- employee refused to
work after a transfer of business;
- court or employer
adopts a decision regarding expiration of the employer.
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Notice period
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- 2 months (in special cases – 4
months).
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- 1 month – standard notice
period;
- 2 weeks – when the duration
of employment is less than 1 year;
- double notice period - for the
employee who has less than 5 years remaining until retirement age;
- triple notice period – for the
employee who cares for a child under 14 years of age or a disabled child
under 18 years age, or if the employee is disable or has less than 2 years
until retirement age.
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Severance pay
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The employer pays: - from 1 to 6 employee’s AMS
(depending on the duration of the employment with the company).
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The employer pays:
- 2 AMS – standard severance payment;
- 0,5 AMS – if the duration of employment
is less than 1 year.
The special state fund pays:
- 1 AMS - when the duration of
employment is from 5 to 10 years;
- 2 AMS - when the duration of
employment is from 10 to 20 years;
- 3 AMS - when the duration of
employment is 20 or more years.
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2.2. DISMISSAL ON THE EMPLOYER’S WILL
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Reasons and compensation
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- the employer is not
able to dismiss the employee without substantial reason for termination.
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- the employer has the
right to dismiss the employee with the notice
period of 3 days paying compensation which shall be not less than 6 AMS. The employer cannot
terminate the employment contract for discrimination reasons, also during the
pregnancy, maternity, paternity or child care leave. Noteworthy, that the
employer seeking to terminate the employment contract under this article
shall indicate the termination reason.
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2.3. UNDER THE MUTUAL AGREEMENT OF THE PARTIES
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Period to make a decision
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- 7 calendar days to accept the offer
on termination.
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- 5 working days to accept the offer
on termination.
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2.4. ON THE INITIATIVE OF THE EMPLOYEE WITHOUT ESSENTIAL REASONS
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Notice period
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- statement shall be
submitted before 14 working days
to the employer.
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- statement shall be
submitted before 20 calendar days
to the employer;
- the employee may withdraw
his request within 3 working days, later only having the consent of the
employer.
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2.5. ON THE INITIATIVE OF THE EMPLOYER ON THE FAULT OF THE EMPLOYEE
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Reasons
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- the employee breached
the work responsibilities 2
times per year;
- other reasons
indicated in the Labour Code.
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- the work duties have
been breached roughly;
- the employee breached
the same Internal Rules 2
times per year;
- other reasons
indicated in new Labour Code.
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- the employer has a
right to terminate the employment contract in 1 month from the date the
breach has turned out but no later than 6 months after it has been done.
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3.
NON-COMPETE
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3.1. THE NON-COMPETITION AGREEMENT
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Main touch points
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- the Labour Code does
not regulate the rules of non-compete.
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- the parties can agree
that the employee will not compete with the employer during the period of
employment and / or after the employment contract was terminated;
- agreements may be
concluded only with employees who have specific skills and knowledges;
- maximum period of
non-competition is two years after termination of the employment contract;
- during the period of
non-competition, the compensation to the employee should be at least 40% of
AMS;
- forfeit may not
exceed the amount of compensation for 3 months;
- the employee has a
right to terminate the non-competition agreement provide the employer does
not pay the compensation for 2 months.
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4.
MATERIAL LIABILITY OF THE
EMPLOYEES
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The Full Material Liability Agreement
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- the Labour code
allows to conclude the full material liability agreements with the employees.
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- the new Labour Code
eliminates a possibility to conclude the full material liability agreements.
Therefore, the employee’s liability will be unlimited under certain
circumstances provided in the new Labour Code (e.g. the damages is made on
purpose, the confidential information agreement is breached, etc.);
- all material
liability agreements concluded before the new Labour Code shall cease to be
valid.
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Limits of employee’s liability
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- standard - 3 AMS of
the employee;
- damage is caused
regarding gross negligence – 6 AMS of the employee;
- in the collective agreement,
the higher liability limit could be indicated, however, maximum amount could
be 12 employee’s AMS.
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5.
REPRESENTATION OF THE EMPLOYEES
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5.1. WORK COUNCIL
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Establishment of the Work Council
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- the Labour Code
indicates that the work council could be established on the initiative of the
employees. It is not obligatory to
have the work council or trade union in the company.
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- the new Labour Code
regulates that in the companies with 20
or more people, the employers have an obligation to initiate an establishment
of the work council in the company. The election commission of the
work council shall be established until 1 January 2018. The election
commission shall start the organization of the election of the work council
no later than 7 days after its formation. The election of the work council
shall take place in 2 months after the formation of the election commission.
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Functions
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- the employer has to
inform and consult with the work council due to the following:
- before the
termination of the group of employees;
- once a year to submit
an information regarding the fixed term agreements in the company (e. g. how
many employees works under the fixed term agreements, etc.);
- on the procedure of
compiling the work schedules for the employees;
- once a year to submit
an information about the salaries of the company (by the groups of profession
and gender). The work council announces this information to the employees;
- and other
obligations.
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6.
WORKING TIME, REST TIME,
PAYMENT SYSTEM
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Holidays
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- 28 calendar days per year of annual
leave.
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- 20 working days per year of annual
leave (if an
employee works 5 days per week);
- 24 working days per year of annual leave (if an employee works 6 days per
week).
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Holiday pay
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- annual leave shall be
paid at least 3 calendar days
before the commencement of annual leave.
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- annual leave shall be
paid no later than the last working
day before the commencement of annual leave.
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Overtime
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- overtime shall not
exceed 120 hours per year.
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- overtime shall not
exceed 8 hours per 7 days or 12 hours provided there is a written consent of
the employee but the average working time including overtime and excluding
the extra work time may not exceed 48 hours per 7 days. The working time
including overtime and extra work time may not exceed 12 hours per day
(shift) and 60 hours per 7 days. The maximum amount of overtime is 180 hours per year, unless
longer term is agreed by the collective agreement.
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Pay for overtime during public
holidays
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- the overtime pay
during public holiday shall be at
least the double rate
of the hourly pay/monthly wages established for the employee.
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- the overtime pay
during public holiday shall be at
least double and a half rate of the hourly pay/monthly wages
established for the employee;
- for overtime pay during
night or days off shall be at least
double rate of the hourly pay/monthly wages established for the employee.
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- upon request of the
employee the time worked during the days off and public holidays also
overtime may be added to annual holidays. In such case the mentioned work
time is multiplied by corresponding coefficient.
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Working time mode
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- a five-day or six-day
working week;
- no possibility of
flexible working schedule.
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- the employer for one,
several or all employee has a right to establish:
- flexible working
schedule, appointing the fixed working hours. An employee may set the beginning
and the end of working day;
- constant duration of
the work day and number of work days per week;
- summary working time
accounting;
- divided working day
time mode;
- individual working
time mode.
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Teleworking
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- the opportunity to
work from home for pregnant women, women who have recently given birth,
employees who are taking care of children under 3 years of age, are solely
raising a child under 14 years of age or a disabled child under 18 years of
age. The employer must allow those employees to telework at least one fifth
of the total working time unless it would lead to excessive costs.
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Limitation of working time on night
shifts
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- the average working
time on night shifts may not exceed 8 hours per day (shift) within a 3 months
accounting period.
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Minimum wage
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- minimum wage could be
paid only for unskilled labour. Unskilled labour is treated as labour which does
not require professional skills.
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7.
SUMMARY RECORDING OF
WORKING TIME
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Period
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- the duration of a
reporting period may not exceed 4
months.
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- the duration of a
reporting period may not exceed 3
months.
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Working time schedules
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- working time
schedules shall be announced not later than 2 weeks in advance.
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- working time
schedules shall be announced not later than 7 working days in advance.
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Pay for Idle time
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- the pay for idle time
which is not the employee's fault shall be paid at least two-third of the AMS
but not less than the minimum hourly pay approved by the Government for each
idle hour.
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- if idle time does not
exceed 1 working day – the employee is paid the AMS;
- if idle time is
announced for a period up to 3 working days – the employee is paid the AMS
while he is at work, for the rest of the time he gets two thirds of the AMS;
- if idle time is
longer than 3 days or non-term – for the time exceeding 3 days the employee
is paid 40 % of his AMS.
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8.
ADDITIONAL AGREEMENTS IN THE EMPLOYMENT CONTRACTS
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Compensation of training expenses
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- for period of 2
years, unless the collective agreement establishes other period that may not
exceed 3 years;
- only those expenses
related to acquiring of knowledge and abilities which exceed the requirements
of the particular work activity are compensated;
- there may be agreed
in the employment contract that training expenses include the expenses of
business trip (traveling, accommodation, etc.).
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Confidentiality agreement
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- there may be agreed
on forfeit for the breach of the confidentiality obligation. The amount of
the forfeit is not regulated, still it shall comply with the principle of
reasonableness.
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Agreement on different work conditions
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- the employer and the
employee paid the salary exceeding 2 average gross salaries of the country
economy (approx. 1 600 EUR) may agree on different work conditions, the
balance between the parties shall be maintained though.
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Agreement on passive duty
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- the parties may agree
on the passive duty at home. The employee shall be paid at least 20 % of his AMS per month for each week of duty.
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