BRATISLAVA, September 21, (WEBNOVINY) — The latest revision of the Labor Code, which took effect in September of this year, placed Slovakia in an international comparison among ten countries with least strict protection of employees within OECD countries. The Finance Ministry’s Financial Policy Institute states this in its latest commentary. According to the institute, the reform strengthens flexibility of hiring for a limited period, while reducing the strictness of rules in using temporary labor. “A more flexible Labor Code should contribute to formation of new jobs,” the institute opines. According to analysts, it should bear fruit in particular during production expansion. Flexibility on the labor market helps in particular to low-income groups, the think-tank adds.
The Financial Policy Institute ascribes the reduction of overall rigidity to softening of rules applying to both indefinite and definite employment contracts. For instance, the notice period has been cut from the minimum of two months to one month with employment lasting less than a year. The concurrent eligibility to notice period and severance pay has been canceled for a laid-off employee. The maximum length of a definite employment contract has been prolonged from two to three years.
The institute, however, points out that there is still space for positive changes in the Labor Code. It suggests canceling the minimum wage entitlements for employees on certain positions.
SITA
