Ready to send your employees on a business travel from Slovakia? Then you should pay extra attention to compliance. In this infographic we provide a basic overview of definitions, requirements and details to help you better understand the scope of work around traveling for business.
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Definition of business travel
Each employee has their place of work defined in the Slovak employment contract. If the employee performs the agreed work in another place upon the employer’s order, it is considered as travel for business, if the specified conditions are met.
Consent for business travel
In case the business travel doesn’t arise directly from the nature of the agreed type of the work or the business travel isn’t agreed directly in the employment contract and the employee is supposed to be sent to a business travel outside the municipality, the employee needs to grant consent to the employer.
Duration of business travel
The Slovak legislation does not specify a maximum duration for business travel. In general, it lasts for the time strictly needed, e.g., defined as the time from the start of the employee´s business travel to the specified place of work performance, including the work performed by the employee in the given location, and until the time of arrival back to the regular workplace.
Getting started with posting employees
Before sending the employee to a business travel, the employer should specify in writing:
- The place where the business travel begins
- The travel destination (i.e., the place of work)
- The duration of the business travel
- The place where the business travel ends
- They type of transportation
- Other necessary conditions or details of the business travel
Private vehicle for business travel
The employee can agree in writing with the employer that they will use their own motor vehicle during the business travel. In such cases, the employee is entitled to compensation for the used-up fuel and basic compensation for every 1km of the ride.
Meal allowance for domestic business travel in Slovakia
For each calendar day of the business travel, the employee is entitled to a meal allowance. The amount depends on the duration of the business travel, which is divided into time zones:
- First time zone: 5 to 12 hours
- Second time zone: 12 to 18 hours
- Third time zone: over 18 hours
Meal allowance for business travel abroad
When traveling abroad (i.e., to a destination outside of Slovakia), the right to compensation arises when the employee crosses the border, their plane departs or arrives, or when their ship departs or arrives to the port. The meal allowance may be compensated in euros or foreign currency.
In case the employee visits 2 or more countries within one calendar day, the meal allowance is compensated for the location where they have spent the longest time. If the employee spent the same amount of time in each country, they are entitled to the highest meal allowance.
Again, the amount of meal allowance depends on the duration of the travel, divided into time zones as stated previously.
Reduction of a meal allowance
In case the employer provides meals for the employee during the business travel, the meal allowance is reduced, or they are not provided at all. The reduction depends on the type of meal:
- 25% reduction when the employer provides breakfast
- 40% reduction when the employer provides lunch
- 35% reduction when the employer provides dinner
This is reduced from the amount of meal allowance for the third time zone, or from the highest agreed amount of allowance.
Advances for meal allowance
For a business travel abroad, the employer can provide the employee with financial means in advance in home or foreign currency. The amount can be up to 40% of the meal allowance, however, it is subject to taxation.
Advances for business travel compensation
When sent abroad for a business travel, the employee is entitled to advance payment for per diems up to the amount of anticipated compensation. This advance can be provided by check, borrowing company bank card or transfer of money to the employee’s bank account. Based on the destination of travel, the advance compensation can be provided in euros or foreign currency.
Declaration of expenses and refund of payments
Within 10 working days from the end of the business travel, the employee must submit a written document to the employer for the calculation of per diems and return the unbilled advance if the employee and the employer didn’t agreed on a longer period (until the end of the following month at the latest). The employer is obliged within 10 working days after the date of submission of written document to prepare the per diems´ summary and satisfy the employee´s claims, if the employee and the employer didn’t agreed on a longer period (until the end of the following month at the latest).
The employer is obliged to reimburse the following items, when sending the employee on a business travel abroad:
- Travel expenses (train ticket, plane ticket, taxi, public transport ticket, etc.) or reimbursement of expenses for fuel, if the employee is using their own car
- Accommodation expenses
- Secondary expenses (e.g., phone fee, internet fee, parking fee, tolls and highway fees, tunnel fees, etc.)
- Travel expenses for trips to visit family (if the business travel lasts more than 7 consecutive calendar days, every week of the month, but maximum one month)
- Commercial insurance and mandatory recommended vaccinations for business travel abroad
The employee is obliged to keep an evidence of all the above mentioned expenses and submit the necessary documents to the employer within the above mentioned period.