Culture of the world of work

Institute of employment together with the Friedrich Ebert Foundation is implementing a project „Culture of the world of work." Phenomena such as „forced self-employment" and the abuse of work on an agreement (a specific type of labor relation in Slovakia) in recent years show more and more, as proved statistics from the Social Insurance. The reason for the increasing number of (forced) self-employer and employees working on an agreements are mostly lower labor costs per employee – the employer in this form of employment is valid only accident insurance and surety bond in the amount of 1.05 % (together) in case of the employees working on an agreement and self-employers pay anything.

Another reason for the occurrence of these phenomenon is the economic and financial crisis, which pushed the profits of employers – they are therefore trying to save on costs, even at the disadvantage of its employees. Workers who work in the form of agreements brings this form of employment considerable disadvantages compared to employees on a regular basis. They are not as protected against dismissal and the employer may at any time to cancel cooperation with the employee without any severance or without notice and does not state the reason. Another disadvantage for self-employers and working on an agreement is non-existent right to minimum wage and furlough, and hours of work of these employees is also not defined in the Labor Code. Such abuse of the labor force is difficult to prove, and workers often have no choice.

Employment in the form of agreement or forced self-employment have for the employees also some benefits, the lower paid duties. Employee working on an agreement does remit to the Social Insurance no insurance and pays only income tax, while the self-employer is able to adjust the assessment base to pay the minimum payments. Net income is higher, but at the cost of lack of social protection in the event of old age, illness or other unforeseen events.