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The principal legislation regulating employment and labour law in Slovakia is the Labour Code. According to the Labour Code, employment relations shall be established by written employment contracts between an employer and employees. Besides an employment contract, the Labour Code recognizes three other contract types: work performance contract, work activities contract and temporary student job contract.
Pursuant to the Act on Illegal employment, it is prohibited for an employer to employ persons without without establishing either an employment relationship or, in exceptional cases, an agreement on work performed outside the employment relationship. This is applicable for all types of individuals bellow:
A third-country national has the same right to use employment services as a citizen of Slovakia, with the following restrictions:
EU or EEA citizens are entitled to stay in Slovakia without any conditions or formalities for three months after the date of entry into the territory of Slovakia. Their only obligation is to notify the police department relevant to their place of residence or intended residence of the start of their residence within 10 working days from the date of entry. In the case of accommodation in a hotel, for example, this obligation passes to the hotel as the accommodation provider.
EU or EEA citizens staying in Slovakia for more than three months are, in addition to notifying their residence, also required to apply for registration of residence in Slovakia, while one of the reasons under which an EU or EEA citizen is authorized to stay in Slovakia is, for example, an employment in Slovakia.
Citizens of other countries than the EU or EEA are also obliged to notify their residence in Slovakia. Unlike EU or EEA citizens, they must notify their residence within three working days of entering Slovakia. Likewise, if they are staying in a hotel, for example, the obligation to notify their residence passes to the hotel as the accommodation provider.
Regarding their employment, it is necessary to distinguish whether they will stay in Slovakia for up to 90 days or for more than 90 days within a 180-day period, as this relates to the issue of temporary residence. The employment procedure also depends on the type of employment, whether based on an EU Blue Card, a confirmation on the possibility of filling a vacancy, or an employment permit.
As of July 2024, the Act has entered into force, introducing a number of changes to the employment of non-EU and non-EEA citizens, specifically regarding the Blue EU Card, temporary residence, and the related application process with the police department and the competent labour office.
The employment contract contains the employer’s and employee’s identification details. In order to conclude an employment contract, the employer and the future employee need to agree on the following minimum specifications that will be included in the contract:
job description
place of work or places of work, if more than one, or the rule that the place of work shall be determined by the employee
date on which employment commences
the salary (unless this has been agreed in a collective bargaining agreement)
With regard to other essentials, such as the method of determining the place of work in the case of multiple workplaces, the scheduling of working time, the amount of leave, the payment of wages and pay dates, the employer may decide whether to specify them in the employment contract or to provide them to the employee in the written form (or in electronic form, if this is possible under the law) or by reference to the relevant provisions of the Labour Code. In case the information is not directly contained in the employment contract, the employer is obliged to provide the employee with given information within the period of 7 days or 4 weeks, depending on the type of information to be provided.
Upon taking up the employment, the employer is obliged to acquaint the employee with work rules, health and safety regulations, collective agreements, if any, the provisions of the legislation relevant to the work being performed, with the provisions on the principle of equal treatment and with the internal rules regarding the reporting of crime or other anti-social activities.
Pursuant to the Act on Illegal work and illegal employment, it is prohibited for an employer to employ persons without an established employment relationship.
The employment contracts in Slovakia can be concluded for:
Definite period
Indefinite period
The Labour Code contains certain limitations in respect to the employment contract concluded for definite period of time. Such contracts can be concluded for a maximum of two years, and it is possible to extend them or conclude them again only twice within these two years. The limited duration (i.e., definite period of time) of the contract must be agreed in writing in the contract, otherwise the contract is deemed to be concluded for indefinite period.
The parties can agree on an initial probationary period of:
The employment relationship in Slovakia can be terminated in writing by both parties as follows:
mutual agreement
immediate termination
by both the employer and employee, while the employer must terminate the employment within two months since becoming aware of the grounds for the immediate termination, and at the latest within one year of the day on which those grounds arose
this method of termination of employment relationship can be used only in exceptional circumstances stipulated by the Labour Code
termination in the probationary period
by both the employer and employee who may terminate the employment during probationary period without providing any reason for termination
by a written notification that should be given and delivered to the other party at least 3 days before the date of termination
notice
both employer and employee may terminate an employment contract by a written notice
the employee may terminate the employment contract for any reason or without stating any reasons
the employer may terminate the employment contract only in the situations expressly stipulated in the Labour Code
The employment contract terminates also:
by lapse of time in case of the employment contract concluded for definite period
expiry of residence permit in case of foreign employees, either by virtue of time or revocation.
Both employer and employee may terminate an employment contract by a written notice. As mentioned above, the employee may terminate the employment contract for any reason or without stating any reasons. On the other hand, the employer may terminate the employment contract only in the situations expressly stipulated in the Labour Code:
The length of the notice period depends on the duration of the employment relationship and the reason for giving notice.
In the case of a notice given by an employee, regardless of the reason, the notice period shall be
In the case of a notice given by an employer, the notice period shall be
The employer is obliged to pay monthly contributions to health insurance, social insurance and advances on the income tax. The amounts of contributions are presented in the table below.
| Payrolls and Contribution | Employee rate | Employer rate | Maximum monthly assessment base |
| Sickness insurance | 1.40% | 1.40% | EUR 15,730 |
| Pension contribution | 4.00% | 14.00% | EUR 15,730 |
| Disability insurance | 3.00% | 3.00% | EUR 15,730 |
| Unemployment insurance | 1.00% | 0.50% | EUR 15,730 |
| Insurance to finance support during short-time work | – | 0.50% | EUR 15,730 |
| Guarantee insurance | – | 0.25% | EUR 15,730 |
| Accident insurance | – | 0.80% | unlimited |
| Reserve fund | – | 4.75% | EUR 15,730 |
| Health insurance | 4.00% | 11.00% | unlimited |
| TOTAL | 13.40% | 36.20% |
Please note that as of January 1st, 2025, the minimum monthly wage in Slovakia is EUR 816 in case of the 1st degree of labour difficulty. The minimum wage depends on the degree of labour difficulty rating. Minimum hourly wage is EUR 4.69.
An individual’s tax liability is derived from the taxable income. Slovak tax residents are liable to personal income tax on their worldwide income, subject to provisions under applicable double taxation treaties. The tax year is the calendar year, and the income is taxed at a progressive tax rate of 19 % and 25 %.
The tax rates applicable for income derived in 2025 are:
The maximum weekly working time is 40 hours, employees working on the basis of a two-shift system may work up to 38.75 hours per week and employees working on a three-shift system or who are involved in continuous operation may work up to 37.5 hours per week.
In general, upon agreement with the employer, employees may perform overtime work. Overtime work may reach up to 400 hours per calendar year. Of this time, the employer may order the overtime work in the extent of up to 150 hours per calendar year, the remainder of overtime work shall be agreed with the employee. For the work performed in excess of the standard working time, the employee is entitled to an allowance, specifics of which are regulated in the Labour Code.
Any employee who works for the same employer constantly for at least 60 days in a calendar year is entitled to annual paid leave, or a proportionate part of it, if the employment relationship did not last continuously for the whole calendar year. The basic annual leave entitlement is at least 4 weeks and at least 5 weeks for employees who are 33 years old or older (already in the year in that the employee reaches the age of 33, regardless of the birth date of the employee) and an employee who is permanently taking care of a child.
From 2022, employees who permanently take care of a child are entitled to an aliquot of 365 days, according to the number of days counting from the date they permanently take care of a child and date of its written announcement to their employer. For example, if the child was born in the 200th day of the year and its parents announced it to the employer at the exact day of its birth, they are then entitled to: 200/365 days * 5 = 2.75, which is 3 days of extra time off after rounding.
Benefits include cash benefits and non-cash benefits provided by the employer to the employee.
The cash benefit refers to the financial bonus on top of the standard wage or salary.
The most common non-cash benefits in Slovakia are:
company cars also for private use
meal tickets with the remittance of the employer
extra holiday
company computers or mobile telephones also for private use
flexible working hours or optional home working
reimbursement of sporting and cultural events
contribution to old-age pension scheme
premium health care
Meal allowance up to the statutory limit is exempt from tax. As of March 2021, the employer is obliged to allow his employees to choose between a meal voucher or a financial contribution for meal. As of January 2023, the employer can only provide meal voucher to employees in electronic form. Paper meal voucher may only be used if the use of a gastro-card (electronic form of meal voucher) at or near the employee’s workplace during the work shift would not be possible. The amount of the financial contribution for meal should be the same as the amount in which the employer contributes to the meal voucher to other employees (on the comparable job positions).
Effective from January 1, 2022, there is a new type of exemption from personal income taxation applicable. Specifically, benefits in kind, i.e., non-cash benefits (e.g., team-building activities, firm events, gifts to employees etc.) provided to an employee of up to EUR 500 from all employers in a calendar year can be exempt from taxation, provided that costs of such benefits in kind are treated as tax non-deductible costs for the purpose of employer’s corporate income tax.
As of January 2024, non-cash benefit in form of the employee shares or in the form of a business share in an LLC are exempt from income tax, if the company has not paid dividends so far; and these employee shares have not been/are not listed on a regulated market until the end of the tax year in which the benefit was acquired by the employee.
Besides an employment contract, the Labour Code recognizes three other contract types: (a) Work performance contract, (b) Work activities contract and (c) Temporary student job contract.
As of November 2022, the work conditions have to be transparent, which means in case of mentioned contracts that the employee must be informed about the days and time periods during which the employer may require him/her to perform work. Also, it will be no longer possible to require these persons to come to the workplace as soon as possible, if necessary, since the amendment introduced a period of at least 24 hours prior notice by which the employer will be obliged to inform the employee about assigned work task. Even in this case, the employee will need to be informed in writing of any change at the latest on the day it takes effect. If the employer fails to comply with these conditions, the employee will be entitled to refuse to perform such work. On the other hand, if the employer cancels the work without giving less than 24 hours’ prior notice, the employee will be entitled to a refund of at least 30% of the remuneration he would normally receive.
The work performance contract may be concluded if the anticipated extent of work (work tasks) for which the agreement is concluded is not in excess of 350 hours in a calendar year. It can be concluded for maximum 12 months.
Under the work activities contract the working period may not exceed 10 hours per week and the contract can be concluded for maximum 12 months.
As of January 2023, in the case of the performance of seasonal work under Annex 1b of the Labour Code, a new type of work activities contract may be concluded, which for these purposes is referred to as a work activities contract for the performance of seasonal work. The working period may not exceed 520 hours per calendar year and the weekly average working time for the duration of that contract, up to a maximum of four months, may not exceed 40 hours. The contract can be concluded for maximum 8 months.
The temporary student job contract can be concluded only with a person with the status of student, who is under the age of 26 years. Work performance may not exceed 20 hours per week and the contract can be concluded for maximum 12 months.
Temporary assignment (personnel leasing) is also one form of employing individuals. This is a flexible form of employment where employees are temporary assigned to a so-called user employer, while the employee is in employment relationship with another employer or a temporary employment agency.
A temporary employee cannot be assigned to a particular user employer for more than 24 months. Subject to that 24-month limit, a temporary assignment of a temporary employee to a particular user employer can be extended or renewed up to four times. A temporary employee is entitled to be paid at the same reasonable wage as the user employer’s similar employees. If there is a difference between those wages, the user employer is obliged to pay any shortfall to the temporary employee. The user employer is not permitted to assign a temporary employee on to another user employer.
Understanding and applying labour law in Slovakia is essential to maintaining a compliant and productive workplace. At Accace, we provide expert labour law consultancy and payroll services in Slovakia to help you manage employment relationships, contracts, internal policies, and day-to-day HR administration. With our support, you can confidently handle your employer obligations while staying aligned with local regulations.
In the Slovak Republic, there are two types of proceedings for companies in financial difficulties:
Both types of proceedings are governed by the law, which ensures transparency and a significant role for the Slovak court. Therefore, it may occur that a company that has initiated restructuring proceeding becomes insolvent, which subsequently leads to the initiation of bankruptcy proceeding.
Other proceedings that lead to the liquidation of a company, for example:
Bankruptcy and restructuring proceedings are applied in the case of a company’s insolvency and are therefore discussed in detail in the following sections.
There are two tests to determine insolvency (“úpadok”):
a company is deemed insolvent if it is unable to pay at least two monetary obligations to more than one creditor within 90 days after their due date
a company that is required to keep accounts under a special regulation is over-indebted if it has more than one creditor and the value of its obligations exceeds the value of its assets.
If a company isinsolventand/or over-indebted, it is in a state of insolvency under Slovak law. Bankruptcy proceedings shall be initiated by the company (as the debtor) or may be initiated by its creditor.
If a debtor does not have debts or assets worth more than €1,000,000 according to the last five financial statements and if the other legal conditions are met, the court may declare the so-called small bankruptcy. This proceeding is quicker and simpler than regular bankruptcy.
A company (as debtor) shall file a petition for bankruptcy within 30 days of the date on which it became aware, or should have become aware with due diligence, of its insolvency. In addition to the debtor, the obligation to file a petition for bankruptcy on behalf of the debtor also extends to
statutory body as well as the member of the statutory body of the debtor, liquidator of the debtor and the debtor’s legal representative
in the event of breach of the obligation to file a petition for the bankruptcy on time there is a penalty in the amount of EUR 12,500.
The company (as the debtor) is required to submit a list of assets, a list of liabilities, a list of related parties, and the most recent regular individual financial statement, along with any extraordinary individual financial statements prepared after the most recent regular financial statement. If the individual financial statements have been audited, the auditor’s report must also be attached to the petition.
Bankruptcy proceedings may be initiated by the creditor, and the petition shall (i) describe the nature of the debt, which is 90 days overdue and the reasoning by which the creditor believes that the debtor is insolvent and (ii) identify another creditor of the debtor with a claim that is 90 days overdue.
The creditor filing a petition for bankruptcy should attach documents to the petition that prove his claim, for example:
acknowledgment of the debt by the company (as the debtor) with the verified signature of the company (as the debtor),
final and non-appealable decision of a court or another authority,
confirmation of an auditor or of a court expert that the creditor accounts the receivable in accounting in accordance with accounting regulations.
The creditor who files a petition for bankruptcy is not obliged to prove their claim as described above if the creditor can reasonably assume the insolvency of their debtor, or if the debtor’s insolvency is presumed due to the publication of a notice in the Commercial Gazette pursuant to a special regulation. The debtor’s insolvency may reasonably be presumed if the debtor is more than 90 days in arrears with at least two monetary obligations to more than one creditor and the debtor has been requested in writing to pay at least one of those creditors.
In general, if a bankruptcy petition is filed by a debtor or a creditor, the petitioner (whether the debtor or the creditor) must also pay an advance payment of EUR 1,500 to cover the expected remuneration and expenses of the insolvency practitioner; however, there are exceptions to this obligation. The advance payment shall be paid into the court’s bank account. If the court rejects the bankruptcy petition or the petitioner withdraws the petition before the insolvency proceedings are commenced, the advance payment will be refunded.
In the case of restructuring proceedings, the proceedings can be initiated by the company (as the debtor) or by its creditor.
If the company´s (as the debtor) bankruptcy is impending or already is bankrupt, it may authorize an administrator to draw up the Restructuring Opinion in order to ascertain, whether the criteria for the restructuring of the company are met, or not (it does not affect the duty of the company to file a petition in bankruptcy in due time, if conditions for obligatory bankruptcy are met).
One or more creditors may authorize an insolvency practitioner to prepare a restructuring opinion if they agree with the debtor to provide the necessary cooperation.
In both situations, the insolvency practitioner may recommend the restructuring of the debtor if the debtor meets the statutory conditions, which include, for example:
A petition for restructuring must be filed with a competent court. The restructuring petition may be filed by either the company (as the debtor) or the creditor. Along with the petition, the petitioner shall submit the restructuring opinion.
Bankruptcy and restructuring proceedings are formally initiated by a court decision published in the Commercial Gazette. The date of publication of the decision is also the date from which creditors may file their claims against the debtor.
In both cases, there is no fee for submitting an application. Each application will be examined by an insolvency practitioner. If the insolvency practitioner determines that a claim is disputed (regarding its title or enforceability), the insolvency practitioner shall deny the claim to the extent that it is considered disputed. The creditor of a denied claim may contest the decision by filing an action in court.
The purpose of bankruptcy proceeding is the liquidation of the company and the redistribution of its assets. An insolvency practitioner should convert the debtor’s assets into cash in order to satisfy creditors. The proceeds from the sale of assets should be distributed to creditors with claims against the debtor, based on a distribution scheme that must be approved by the competent authority in the bankruptcy proceedings.
Other decisions in bankruptcy proceedings may be, for example:
a rejection of a petition for bankruptcy if it does not contain the elements required by law and the defect has not been removed within the specified time limit,
a dismissal of a bankruptcy proceedings due to lack of assets if it finds that a debtor’s assets are worth less than EUR 6,500.
A restructuring plan is prepared in restructuring proceedings and contains two main sections: a descriptive part and a binding part. The binding part contains the identification of all rights and obligations that the parties to the plan are to incur, change or terminate.
The restructuring plan is approved by a creditor’s committeeand must be confirmed by the court. In certain circumstances, a plan may be submitted to the court for confirmation even if it has not been accepted by the creditor’s committee.
The court may also reject the plan, for example, if:
the plan was not adopted by the approval committee; this does not apply if the court replaced their approval with its own decision.
The assets of the bankrupt debtor constitute the bankruptcy estate and are divided as follows:
general assets
separate estate of secured creditors.
The creditors are then satisfied from the proceeds of the sale of the assets according to the relevant estate.
In general, the receivables are satisfied in the following order:
In a restructuring proceeding, the assets are distributed according to the proposal in the restructuring plan, which is approved by the creditors and subsequently confirmed by the court. The restructuring plan must provide unsecured creditors with satisfaction of their claims at least 20% higher than they would receive in a bankruptcy.
The company, as the debtor, is obliged to file a petition for bankruptcy within 30 days from the date it became (or should have become) aware of its insolvency (over-indebtedness), while maintaining professional care; this obligation also applies to the statutory body or a member of the statutory body of the debtor, the liquidator and the legal representative.
For breaching the duty to file a petition for bankruptcy on time, the law stipulates a fiction that the contractual penalty of EUR 12,500 is agreed upon between the company (as debtor) and the person obligated to file the bankruptcy petition. Any agreement between the company and person responsible for filing a bankruptcy petition in time on its behalf that excludes or limits the right to the contractual penalty is prohibited.
The right to a contractual penalty does not affect the entitlement to claim damages exceeding the contractual penalty
Failure to file a petition for bankruptcy on time may result in the disqualification of a person from performing the functions of a member of the statutory body or supervisory body in a commercial company or cooperative, for a period determined by the court decision, or for three years from the date the decision becomes final. The person will then be registered in the Register of Disqualifications; a public register maintained by the District Court of Žilina.
There are several relevant criminal offenses under the Slovak Criminal Code concerning actions in insolvency status or in relation to bankruptcy or restructuring proceedings, such as:
All third persons are obliged to cooperate under the Act of bankruptcy and restructuring. The cooperation shall be provided promptly and free of charge. If any third person fails to provide collaboration as required by the law, the court may penalize such person by a fine up to EUR 3,300.
Legal regulation:
Slovak or foreign investors entering the Slovak market may choose between several corporate forms. The fundamental law in this area is the Slovak Commercial Code. The Commercial Code regulates the corporate forms and business (entrepreneurial) activities that are defined as systematic activities conducted independently by an entrepreneur (either an individual or legal entity), in their own name and under their own responsibility for the purpose of making a profit.
Foreign persons may conduct entrepreneurial activity in the territory of the Slovak Republic under the same conditions and to the same extent as Slovak persons, unless stipulated otherwise by law. A foreign natural or legal person may establish any form of company either together with other foreign or Slovak persons or alone as a sole shareholder. In this respect, foreign natural and legal persons enjoy the same rights and bear the same responsibilities as Slovak persons and may not be discriminated against.
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Corporate forms introduced by the Slovak Commercial Code are:
Slovak: “verejná obchodná spoločnosť” or the abbreviation “v. o. s.” or “ver. obch. spol.”
A General Partnership is a company in which at least two persons carry out business activities under a common business name and bear joint and several liabilities for the obligations of the partnership with their entire property. There is no requirement of a minimum registered capital.
Slovak: “komanditná spoločnosť” or the abbreviation “k. s.” or “kom. spol.”
A company in which one or more partners are liable for the partnership’s liabilities up to the amount of their unpaid contributions (limited partners), and one or more partners are liable for the partnership’s liabilities with their entire property (general partners). The minimum contribution of the limited partner is in the amount of EUR 250.
Slovak: “spoločnosť s ručením obmedzeným” or the abbreviation “spol. s r.o.” or “s.r.o.”
This is the most common form of doing business in Slovakia. The company exists independently of its members and it may be established either by one person, a natural or legal person (with statutory restrictions described hereunder), or by two or more persons (up to 50).
According to the Commercial Code, minimum registered capital of EUR 5,000 is required. The minimum contribution of each shareholder is in the amount of EUR 750. The Commercial Code also requires that at least 30% from each contribution of the shareholder, but altogether at least 50% of the minimum registered capital stipulated by the Commercial Code shall be paid before the application for the registration of the company is filed with the Commercial Register.
A Limited Liability Company is liable for the breach of its obligations with all its assets, while shareholders guarantee for the breach of the obligations of the Limited Liability Company only up to their committed but unpaid contributions to the registered capital registered with the Commercial Register.
As of February 1, 2023, the shareholders may establish a limited liability company in addition to the standard method of incorporation also by using a simplified method, which consists in filling in a special electronic form for the drafting of the memorandum of association.
The simplification also consists in the elimination of one of the steps prior to the registration of company in the Commercial Register, which is the obligation to apply to the Trade Licensing Authority for a trade licence. The trade license is acquired on the date of registration of the company in the commercial register. On the other hand, it is important to mention that the registered court shall be obliged to verify the integrity of the executive director. The regime for verifying the integrity of executive director is set more strictly for the incorporation of a company established by simplified method compared to the regime set in the Trade Licensing Act, as in this case absolute integrity is required, i.e. an executive director cannot be legally convicted of any criminal offence or have his/her convictions expunged.
Due to the fact that this is a simplified method of incorporation, the law stipulates certain limitations, resp. conditions according to which it is possible to use this method of incorporation over the standard method.
These restrictions, in particular, relate to
With this method of incorporation, the shareholders are largely bound by the pre-prepared wording of the memorandum of association within the electronic form, from which they cannot deviate.
Slovak: “akciová spoločnosť” or the abbreviation “a. s.” or “akc. spol.”
The company may be established by a sole founder (provided that the founder is a legal entity), otherwise by two or more founders. A joint-stock company may be established either on the basis of a call for subscription of shares or without such a call. In the case of no call for subscription, the founders agree to pay up the entire share capital in a specified ratio
The minimum registered capital is of EUR 25,000.
Slovak: “jednoduchá spoločnosť na akcie” or the abbreviation “j.s.a.”
The Simple Joint-Stock Company is a corporate form, introduced in Slovakia in 2017. It represents a simpler version of Joint-Stock Company with minimum registered capital of EUR 1 and minimum nominal share value of Cent 1.
Simple Joint-Stock Company can provide greater flexibility comparing to Limited Liability Company or Joint-Stock Company in relation to unlimited number of shareholders (although the Simple Joint-Stock Company cannot be formed by call for subscription of shares), minimum registered capital, or the possibility to issue several different types of shares with different rights of shareholders (e.g. more voting rights or greater profit share).
Slovak: “družstvo”
The purpose of a Co-operative is to undertake business activities or to ensure the economic and social or other benefits of its members.
The Co-operative is liable for obligations of the Co-operative with its entire property, however the members do not bear liability for the obligations of the Co-operative.
Minimum registered capital of EUR 1,250 is required. The Co-operative must have at least 5 members; this does not apply if the members are at least 2 legal persons
The Co-operative can provide certain level of anonymity to its owners (members) comparing to the other corporate forms, as the owners (members) are not registered within the Commercial Register, only listed internally within the Co-operative.
Slovak: “podnik” or “organizačná zložka podniku zahraničnej osoby”
Foreign persons may conduct business in Slovakia provided that they have their business or branch offices located in Slovakia, registered with the Slovak Commercial Register, from the day of its registration.
However, there are exceptions to the obligation to establish business or branch offices located in Slovakia for persons established in EU member states, as stipulated by the principle of free movement of services guaranteed by the EU.
As of February 1, 2023, in addition to the standard method of establishing an enterprise or an organizational branch of a foreign company with its registered office in an EU or EEA state, the simplified method for their establishment has been introduced.
It is not possible to use this simplified method in all situations, but only if the conditions stipulated by law are fulfilled. The simplification consists in the elimination of one of the necessary steps prior registering an enterprise or an organizational branch of a foreign company in the commercial register, which is the obligation to apply to the Trade Licensing Authority for a trade licence certificate.
Consequently, on the basis of data from the information systems of public administration authorities, the Trade Licensing Authority shall issue a trade licence immediately after the registration of the enterprise or organizational branch of the foreign company in the commercial register. Registered persons may use this method of establishment only if they seek to register an object of business which is included in the relevant list according to the law.
The last but not least, it should be underlined that even in this simplified method of establishment it is necessary to verify integrity of a head of the enterprise or the organizational branch of the foreign company. In addition, foreign company needs to have a bank account at a bank, which has its registered office in one of the EU or EEA member states.
As of 1 February 2023, the exchange of information on enterprises and organizational branch of foreign and Slovak legal entities between the Slovak Republic and EU and/or EEA Member States has been introduced through the system of interconnection of registers.
Legal forms of business entities primarily regulated by EU regulations, which are legally binding for all EU Member States:
A Limited Liability Company (in Slovak: spoločnosť s ručením obmedzeným) is the most used corporate form and is therefore dealt with in detail in the following parts.
The procedure consists of the following phases:
It is important to stress that a limited liability company acquires legal personality status upon its registration in the Commercial Register.
The incorporation time is approximately 2 weeks after the receipt of duly executed establishment documentation.
The citizens of the EU, EEA or another country (except Slovak citizens) who will form the statutory body have to prove their integrity by obtaining and submitting the criminal record from the state of citizenship or residency (if residing for longer than 6 months in other country than country of their citizenship).
Persons who are not citizens of the EU or a member state of the Organisation for Economic Co-operation and Development (OECD) and intend to become members of the statutory body must have residence in Slovakia.
Under Slovak law, the company shall have registered seat in the territory of Slovakia. The document proving the seat (confirmation with the seat in the premises) is the obligatory annex to the Registration application.
A Limited Liability Company may be established by a sole shareholder or by more shareholders, in both cases it is irrespective of whether they are a legal or a natural person. In respect of one shareholder there are the following restrictions:
The maximum number of shareholders is limited to 50.
The registered capital must be at least of EUR 5,000 with a minimum contribution of EUR 750 of each shareholder. Contributions can be monetary or non-monetary, while an official appraiser must value a non-monetary contribution.
At least 30% of each shareholder’s monetary contribution and at least 50% of the amount of the registered capital, must be paid up before the application for the registration of the Limited Liability Company is submitted at the Commercial Register. The contributions do not have to be paid to the bank account and for the purposes of registration, the person administering the contributions will issue an affidavit declaring that the respective contributions have been paid up. If the Limited Liability Company is founded by a single entity, the registered capital must be paid up in full.
A general meeting is composed of all shareholders and decides on all major issues as the appointment and dismissal of the executive directors, modification of the statutes and Memorandum of Association/Foundation Deed, increases and decreases of the registered capital.
The statutory body of the Limited Liability Company is formed by one or more executives (executive directors). Only a natural person can be appointed as an executive director. In the event that there are several executive directors, each of them is entitled to act individually on behalf of the company unless stipulated otherwise in the Memorandum of Association/Foundation Deed. Establishment of a supervisory board is optional. If it is established, the supervisory board must be composed of at least three members appointed by the shareholders’ meeting.
A natural person or a legal entity that carries out business activities without a trade license, when the activity is subject to free trade, is subject to a fine of up to EUR 1,659. In the case of unauthorised operation of a craft or a regulated trade, a fine of up to EUR 3,319 is imposed.
In the case of a serious violation, the unauthorised business may constitute a criminal offence of unauthorised business.
The Slovak tax system comprises the following taxes:
The tax rates applicable for income derived in 2024 are:
Moreover, an additional tax of 5% is to be paid by the representatives of constitutional bodies (e.g. the President, Members of Parliament) on their employment income.
Certain types of income are not aggregated but are subject to a final withholding tax of 19%, 10% or 7%, in the case of dividends paid out by domestic company.
Corporate income tax is levied at a rate of 21%. However, since January 1st, 2021, taxpayers with taxable revenues not exceeding EUR 60,000 per tax period (note: in 2020 the threshold was EUR 100,000; between 2021 – 2023 the threshold was EUR 49,790) are entitled to apply reduced tax rate of 15%. This is the final tax burden on 2024 corporate profits in some cases because dividends paid out of 2024 profits are not taxed in the hands of shareholder if the shareholders are corporate and based in other than non-cooperating state.
Starting from the 2024 tax period, the minimum corporate tax (commonly known as tax licenses) has been reinstated in the tax legislation, following its abolition from 2017 to 2023. Legal entities are required to pay a minimum corporate tax of between EUR 340 and EUR 3,840 based on the amount of taxable income. Only a limited number of exceptions from the payment of the minimum tax are allowed, such as companies in bankruptcy, companies in their initial taxable period, non-profit organizations, etc.
Export of goods and services is zero rated.
Intra-Community supplies of goods are zero rated under certain conditions.
Excise duties are levied on mineral oil, beer, wine, spirits, electricity, coal, natural gas and tobacco products.
Levied on motor vehicles and trailers in categories L, M, N, and O if registered in Slovak Republic and used for business purposes.
Special taxes cover special duty paid by regulated industries and special levy on non-life insurance premium. Further, in 2023 and 2024, companies operating in the oil, gas, coal and refinery sectors shall pay a special solidarity contribution.
Moreover, there are local taxes to be paid, e.g. real estate tax.
For more details about taxation in Slovakia, download our free 2025 Tax Guideline!
Investment incentives are a serious argument in favour of Slovakia. As an EU member country, Slovakia must ensure compliance with EU rules. In general investment incentives (or state aid) are linked to the region where the investment takes place and the European Commission has determined which regions are entitled to receive aid and the amount of aid each of those regions may receive. The connection with a certain region is one of the fundamental characteristics of the incentives and their provision shall serve to support not only foreign, but also Slovak investments.
In general, there are four categories of projects that can be supported by the investment incentives:
Each category has specifically defined conditions which shall be met in order to apply for the investment incentives. The incentives are provided in general in the form of:
The provision of the state aid is governed in particular by the European Union law that forms the basic legal framework also for the Slovak authorities.
The real estate market in Slovakia was fully liberalized in May 2014, when the transition period negotiated between Slovakia and the European Union ended (European law requires EU member states not to restrict acquisitions of real property by nationals of other member states, however during EU accession negotiations the Slovak Republic negotiated from this rule the temporary exemption concerning agricultural and forest land).
In general, Slovak citizens, Slovak companies (also with foreign owners), foreign citizens and foreign companies are allowed to purchase and sell real estates in Slovakia, however
All real estates located in Slovakia are registered in the Real Estate Registry and pursuant to the Cadastral Act, information registered in the Real Estate Registry is deemed reliable and binding unless the contrary is proved.
Real estate is evidenced on the respective Ownership Certificate, which includes following information: (i) information on real property; (ii) information on the owners and eventual co-ownership shares; and (iii) information on any encumbrances, pledges, easements and other rights of third persons to the real property.
The extract from Ownership Certificate may be obtained by everyone:
The acquisition of real estate in Slovakia requires two obligatory steps:
execution of a written agreement,
registration of the title in the Real Estate Registry.
The ownership of the real estate may be transferred by written purchase agreement concluded under the Slovak law. The demonstration of will to transfer the real estate of both the transferor and the transferee must be on the same document and the signature of the transferor shall be verified.
The purchase agreement can be drafted by either party and it does not need to be drafted by a public notary or certified attorney. The purchase agreement must include all the particulars required by the Civil Code and must also comply with the requirements of the Cadastral Act specifying more precisely its content.
The purchase agreement must be in Slovak language (or Czech language). Any other language version must be translated into Slovak by a certified translator, making it eligible to be registered in the Real Estate Registry.
Prior to the execution of the purchase agreement, the parties may conclude a preliminary agreement in which they undertake to enter a purchase agreement within the agreed time period. Based on the preliminary agreement, either party can sue for the performance of the purchase agreement if the other party breaches the obligation to enter in the purchase agreement.
The title to real estate is acquired by the registration in the Real Estate Registry upon the Resolution of the competent Real Estate Administration.
The registration process starts by the submission of the Application to the respective Real Estate Administrator and should be completed by the Resolution of the Real Estate Administration.
In line with the established practice
It is prohibited to create a new land as a result of the splitting up of existing land with an area of less than 3 000 m2 in the case of agricultural land and less than 5 000 m2 in the case of forest land.
The table below provides a brief overview of fees and taxation with respect to the real estate transfer in Slovakia
| Taxation | Seller | Buyer | ||
| Individual | Company | Individual | Company | |
| Real estate transfer tax | As from 1 January 2005 a real estate transfer tax is not levied in Slovakia. | |||
| Real estate tax | Real estate tax is levied on Slovak property, which comprises land, buildings and flats (apartments). In all cases, the tax liability arises on 1 January of the year following the year in which the property is acquired and ends on 31 December of the year in which the ownership ends. | |||
| Value added tax | The delivery (sale) of construction or a part thereof in Slovakia by taxable person, including the supply of building land, on which the structure is constructed is subject to 20% VAT rate. Reduced VAT rate of 5% is applicable from January 1, 2023 in case of delivery of construction of a part thereof if special conditions for state-assisted rental housing are fulfilled. Exemption from VAT applies, if the delivery is carried out after laps of five years from the first use of the building. The VAT registered person may opt to charge the VAT. The seller is only entitled to a full input VAT deduction for services received related to the acquisition of real estate and the acquisition costs when the sale is subject to VAT. If input VAT was deducted, a VAT-exempt sale within 20 years leads to a pro-rata reversal of input VAT deduction. Supply of land except for supply of building land by a taxable person is tax exempt. As long as the land is supplied along with the construction, the rules for the sale of construction applies. | |||
| Income tax | Tax residents are subject to Slovak personal income tax on their worldwide income, including income from real estate. If real estate transaction qualifies as business activity, capital gains from selling the real estate would be fully taxable. If the activity is not qualified as a business activity, the sale of real estate within a period of 5 years is taxable. The tax base is the difference between sales price and acquisition costs (note: a loss cannot be claimed). A sale after expiration of the five-year holding period is not taxable. The 19% or, as the case may be, the 25% tax rate applies. For non-residents, income from transactions concerning domestic real estate is considered to be a Slovak sourced income and thus, they have to file tax returns. The 19% or, as the case may be, the 25% tax rate applies. | Tax resident company is subject to Slovak corporate income tax on its worldwide income, including income from real estate. The income of corporations is to be regarded as business income in any case, regardless of the nature of the income (e.g. income from real estate). Capital gains from selling the real estates are taxable. The 21% flat tax rate applies. The loss upon a sale of some buildings and land cannot be claimed. For non-residents, income from transactions concerning domestic real estate is considered to be a Slovak sourced income and thus, they have to file tax returns. The 21% tax rate applies. | Upon payment of purchase price for the Slovak real estate, generally no withholding tax applies. Some exceptions may apply if the recipient of the income is a foreign person from other than EU Member State or from outside the EEA. If the purchased real estate will become part of the business assets, the acquisition costs must be generally capitalized and for buildings such acquisition costs can be according to the Slovak Income Tax Act depreciated over the period of 20 or 40 years (20 years period applies e.g. for industrial buildings, 40 years’ period applies e.g. for administrative buildings, hotels). Land plots are not depreciable. Similar rules applies for non-residents as for tax residents. | Upon payment of purchase price for Slovak real estate, generally no withholding tax applies. Some exceptions may apply if the recipient of the income is a foreign person from other than EU Member State or from outside the EEA. The acquisition costs must be generally capitalized and for buildings such acquisition costs can be according to the Slovak Income Tax Act depreciated over the period of 20 or 40 years (20 years period applies e.g. for industrial buildings, 40 years’ period applies e.g. for administrative buildings, hotels). Land plots are not depreciable. Similar rules applies for non-residents as for tax residents. |
Slovak law does not recognize the principle according to which the ownership of a land includes the ownership of a building located on it. Consequently, the owner of a land may be different form the owners of the buildings on it.
The real property ownership is registered in the Real Estate Registry. A Resolution of the respective Real Estate Administration approving an entry in the Real Estate Registry and the registration of the transfer in the Real Estate Registry may not be considered as a guarantee that the ownership title was validly transferred, as there are several circumstances under which the transfer was in compliance with law.
The rapidly developing area of e-commerce is regulated on European level as well as by Czech legislation. If you want to operate eShops in the Czech Republic, you shall comply with all relating legal conditions. What are the most important you should be aware of?
Ready to start a business in the Czech Republic? Our local tax experts have summarised 10 key facts you should consider when it comes to the Czech tax system. For a more complex overview, we recommend to take a look on our Tax guideline for 2025.
5% is the rate of basic investment funds
0% is the rate of pension funds
*The new CIT rate applies to all tax periods starting from 1 January 2024
Income from sale of participation in a subsidiary (CZ or another EU Member State resident).
Dividends and income from sale of participation in a subsidiary if the subsidiary is a non-EU resident from a “double tax treaty” country and is subject to corporate income tax which is not lower than 12%.
35% for payment outside EU/EEA
Note: Dividends paid by a subsidiary to parent company, that holds 10% share uninterrupted in the past 12 months, are exempt from taxation. Interest and Royalties could be also a tax exempt under the implemented EU directive.
21%
12% is the reduced VAT rate which applies to specific goods, such as food and infant nutrition, drinking tap water, animal feed, selected dairy drinks, plants, special healthcare products or pharmaceutical products etc.
It also applies to selected types of services: water and sewer charge, public transportation including non-regular passenger transport, hotel accommodation, catering or entry to cultural and sport events etc.
15% is the rate on personal income up to CZK 1,676,052 (approx. EUR 67,050), which monthly equals an employment income up to CZK 139,671 (approx. EUR 5,590).
23% is the tax rate in 2025 on income exceeding CZK 1,676,052 (approx. EUR 67,050).
33.8% in total:
24.8% for social security, applied up to annual cap (2025: CZK 2,234,736, approx. EUR 89,390/employer)
9% for health insurance
11.6% in total
7.1% for social security, applied up to annual cap (2025: CZK 2,234,736, approx. EUR 89 390)
4.5% for health insurance
Losses generated from independent activities and rental activities may be set off against all types of income, except the employment income.
2 years: standard carry-back period, max. amount of CZK 30 million (approx. EUR 1,250,000)
5 years: standard carry-forward period
Within the personal income tax base, losses generated from independent activities and rental activities may be set off against all types of income, except the employment income.
Sale of house or flat, if the seller has a permanent residence for min. 2 years before the sale.
Sale of immovable property when the period of ownership exceeded 5/10 years before the sale (10 years is applicable for property gained as of 1 January 2021).
Sale of immovable property (if the above conditions are not met), if the taxpayer uses the funds for his/her own housing needs (until the end of the following tax year). The exemption is conditional upon notification to the tax authorities by the deadline for filing the tax return for the relevant year in which the funds were raised.
Sale of movable property, with exceptions (e.g. car owned more than 1 year).
Sale of a share in a LLC, if the share was held for at least 5 years before the sale.
Sale of securities, if held for min. 3 years before sale or if total income is less than CZK 100,000, i.e. EUR 4,160.
Pensions up to CZK 748,800, i.e. EUR 29,950.
Are you sending your Czech employee on a business trip? If so, you need to consider the business travel legislation in the Czech Republic and some other crucial aspects in order to stay compliant. In this infographic we outline a basic overview of definitions, requirements and details to help you better understand the scope of work around traveling for business.
Wish to have a time-saving and transparent system for your business travel and settlement of related expenses? Discover our Payroll and HR portal that allows you to handle employee travel requests, approvals and reimbursements, with automated data collection, notifications, custom workflows – and beyond.
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.
1. the employee is provided with an advance up to the expected amount of travel allowances, or
2. the employee receives a traveler’s check or borrows a company card.
1. Meal allowance (subject to specific conditions)
2. Travel expenses
3. Accommodation expenses
4. Secondary expenses
5. 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)
These compensations are not subject to self-employment tax.
The current amendment to the Czech Labour Code, which is commonly referred to as Flexinovela and will be referred to as such in this text, represents a significant legislative change in the labour law of the Czech Republic.
The Flexinovela brings several major changes in the field of employment relations, from changes in the regulation of probationary periods, through new rules on notice periods to new conditions for working parents and some other partial changes.
The following summary provides a detailed description of all the key changes that the Flexinovela brings and their practical implications for employers and employees.
After several months of waiting, the Flexinovela went through the complete legislative process and was signed by the President of the Republic on 25 April 2025 and published in the Collection of Laws on 29 April 2025.
Under the established procedures, it will take effect on the first day of the second month after promulgation, i.e. 1 June 2025. All changes described below will take effect on that date, unless otherwise specified for specific chapters.
In several cases, the Flexinovela encroaches on areas that have long been unchanged and are so entrenched that change is met with some degree of reluctance.
One such change is the extension of the maximum length of the trial period. Whereas traditionally for decades the maximum was 3 months for regular employees and more recently 6 months for managerial employees, these limits have now been increased to:
(within the meaning of Section 11 of the Labour Code)
An important novelty is also the possibility of an additional extension of the already agreed trial period, which was not possible before.
Under the new regulation, the employer and the employee can agree in writing to extend the trial period until the maximum limits (4 or 8 months) are reached. Thus, for example, if a trial period of two months was initially agreed, it can be extended by an amendment to the employment contract for a further two months before the trial period ends. Alternatively, if the employee has been promoted to a managerial position during the agreed four-month trial period, the trial period may be extended to eight months.
The Flexinovela also brings clearer rules for the extension of the trial period, which occurs by law.
The trial period is extended by law by the employee’s working days on which they have not worked a full shift during the trial period due to:
Obstacles at work (e.g. temporary incapacity for work, caring for a dependent person, attending a wedding)
Use of leave
And newly also for unexcused absence from work
However, if the employee works part of the shift, the trial period is not extended. In the case of a statutory extension, the trial period shall be extended by the employee’s working days, not by calendar days.
According to the transitional provisions, the decisive moment is when the trial period was agreed, i.e. when the employment contract was concluded. According to the transitional provisions of the Flexinovela, the trial period agreed before 1 June 2025 (i.e. before the Flexinovela comes into force) is governed by the existing (i.e. ‘old’) wording of the Labour Code. The transitional provisions thus link the new regulation not to the start of the employment relationship or the start of the trial period, but to the moment of its negotiation (which does not seem very practical).
The extended trial period and the possibility of its additional extension can therefore only be used for employment contracts concluded no earlier than 1 June 2025.
The Flexinovela brings a major change for parents on parental leave. It will now be possible for an employee to perform the same type of work for their employer during parental leave as agreed in their employment contract, through agreements on work outside the employment relationship (“DPP” or “DPČ”). Please note that this option is not available during maternity leave, which, according to the explanatory memorandum, has a clear aim and purpose, namely the recovery of the mother and the healthy development of the baby in the first days and weeks.
This provision responds to the practical needs of the labour market, as until now employees on parental leave could only work for their employer in a different position than the one specified in their employment contract. If they wanted to maintain their relationship with the employer and the work team and earn extra money, they had to look for a different job and this often led to circumvention of the law in practice.
The regulation remaining in place states that if there is no longer such a matching position with the employer, the employer must place the employee in the position according to their employment contract (i.e. the agreed type of work and the agreed place of work).
Significant changes also affect fixed-term employment relationships in the context of parental leave:
Substitutes for employees on parental leave: It will now be possible to renegotiate fixed-term employment relationships without limitation on the number of renegotiations if the employee is a substitute for a temporarily absent employee during maternity, paternity or parental leave. The current ‘three times and enough’ rule (once to agree, twice to repeat) will no longer apply in these cases
Maximum total duration: although there will be no limit on the number of repetitions, the individual duration of fixed-term employment relationships so negotiated may not exceed 3 years and the total duration may not exceed 9 years.
Another important change is the extension of the period for which the employer must place the employee in the same position (‘same chair’) when returning from parental leave. While previously the employer had to allow the employee to return to the original position only during the maternity leave, this obligation now applies until the child is 2 years old.
The new legislation introduces special compensation for employees in the public sector who work abroad when taking maternity or parental leave abroad. These employees will be entitled to reimbursement of accommodation expenses for 14 weeks at the same rate as before taking maternity or parental leave.
The condition is that the employee gives notice of the intention to take maternity or parental leave abroad at least 10 weeks before the expected date of the birth.
The transitional provisions are completely silent on the changes concerning parents, which means that all these changes must be applied automatically as from the entry into force of the Flexinovela, i.e. from 1 June 2025.
Among other things, this means and is confirmed by the interpretation of the Ministry of Labour and Social Affairs, that the extended entitlement to the ‘same chair’ also applies to parental leave commenced before the Flexinovela takes effect, if the return falls between the effective date of the Flexinovela and the child’s 2nd year of age. To qualify for this entitlement, the employee must return to work from parental leave no later than the day before the child’s second birthday.
A very important change brought by the Flexinovela is the adjustment of the start of the notice period. The notice period will now start on the date of delivery of the notice and not, as was previously the case, on the first day of the calendar month following the delivery of the notice.
The notice period will then terminate at the end of the day that coincides numerically with the date of delivery of the notice in the following month(s). For example, if notice is given on 15 June, the notice period will end on 15 August (with two months’ notice). If there is no such calendar day in the month (e.g. if the notice is delivered on 31 December), then the notice period will end on the last day of the relevant month (i.e. 28 February).
The Flexinovela introduces different minimum notice periods depending on the reason for termination:
However, it is also possible to agree on a different length of notice period or a different way of running it, both for ‘normal’ and for sanctions grounds. If you are not interested in having the notice period start on delivery, which may cause different termination dates for individual employees, e.g. in the case of major organisational changes, then it is possible to keep the current arrangement. For new contracts, you will need to include a special provision in the contracts to set out the start of the notice period. The correct procedure for existing contracts will then depend on how you have contracts of employment currently set up.
The decisive moment is the moment of delivery of the notice. This means that if the notice was delivered at the latest on 31 May 2025, the shortened notice period for penalty grounds cannot be applied, nor can the notice period be calculated from the moment of delivery of the notice. The new rules will then apply to notice served from 1 June 2025 (i.e. after the Flexinovela comes into force), provided that you do not explicitly state in your employment contract with the employee how long the notice period is and how it runs (see the following section on this).
The crucial factor is how you have set the notice period:
In the case of new employees, it is advisable to include the length of the notice period and how it will run in the written information pursuant to Section 37 of the Labour Code, and therefore not to negotiate it in the employment contract.
The Flexinovela merges the existing termination grounds relating to the employee’s loss of medical ability. While until now the Labour Code distinguished between:
There will now be a single ground: long-term loss of capacity to perform the existing work for health reasons. This change responds to previous case law according to which a notice of termination was invalid if the employer used an incorrect reason for termination, even if in fact the reason for termination existed, but at the time the notice was given it was not certain whether the loss of medical capacity was caused by an occupational disease or accident at work (§ 52 písm. d)) or was not directly related to the performance of the employment (§ 52 písm. e)).
The existing termination ground relating to the maximum permissible level of exposure (§ 52(e)) will be recast as a separate termination ground.
A major new feature is the replacement of severance pay with a one-off compensation upon termination of employment due to long-term loss of medical capability as a result of:
Work injury
Occupational diseases (including the risk of occupational diseases)
The one-off compensation will be equivalent to 12 times the employee’s average monthly earnings and represents satisfaction – a one-off compensation provided to an employee whose employment has ended for work-related health reasons.
Key characteristics of a one-off compensation:
In the event of termination of employment due to reaching the maximum permissible level of exposure, the employee will remain entitled to severance pay in accordance with Section 67(3) of the Labour Code (also equal to 12 times the average earnings).
The decisive date is the date of termination of employment. Only employees whose employment ends on or after 1 June 2025 will be entitled to a one-off compensation. Employees whose employment ends due to loss of medical capacity due to an occupational injury or disease at the latest on 31 May 2025 are entitled to a severance payment under the current legislation.
The Flexinovela extends the time limits within which an employer may give notice or immediately terminate an employee’s employment for breach of employment obligations:
This change reflects the requirements of practice, as in many cases it is difficult for employers to obtain all the necessary information and fully assess the case within the current short timeframe.
The decisive point is the moment when the employee’s breach of their duties occurred. Therefore, the extended time limits apply only to breaches of employment obligations occurring from the date of effect of the Flexinovela. If the employee has breached their employment obligations before 1 June 2025, the subjective and objective time limits are governed by the original regulation.
The Flexinovela explicitly provides that in the event of an invalid termination of employment, the employee is entitled to compensation for untaken leave in addition to wages or salary.
This change responds to the development of case law in the European and subsequently also in the Czech environment and reflects the fact that court proceedings to determine the invalidity of an employment relationship are often quite lengthy.
The current wording of the Labour Code already allows the court to reduce (i.e. moderate) the wage compensation that will be paid to the employee in the event of success in the litigation. The Flexinovela extends the demonstrative list of facts that the court takes into account when reducing the wage compensation. A reduction of up to 6 times average earnings is possible not only if the employee had other employment during the litigation (and thus generated the income meant to be replaced by the wage compensation), but now also explicitly if the employee was engaged in other gainful activity (e.g. as a self-employed person). This is a logical change that is consistent with the intent of the provision and removes the apparent inequality between the forms of gainful activity of the employee.
Newly, an employee who considers the termination of the employment relationship invalid does not have to notify the employer that they insist on continued employment without undue delay. It is sufficient for them to do so at any later time, e.g. even in the course of (timely initiated) litigation, which is in line with previous case law.
The Flexinovela introduces a very specific method of electronic delivery of wage statement. The wage statement is included among the documents that must be delivered to the employee by hand (similar to a notice of termination or other forms of unilateral termination of employment). Thus, its electronic delivery was also subject to strict conditions, which, however, are contrary to the needs of practice.
It will now be possible to deliver the wage statement to an electronic address other than the employee’s private address, which the employee has designated for the delivery of unilateral documents, provided that the following conditions are met:
If the above conditions are met, it will therefore be possible to deliver the wage statement to the employee’s company email, or by storing it in the employer’s internal system (which will allow confirmation of reading by the employee).
Another change is that the employer is obliged to provide the employee with a wage statement before the commencement of work. Therefore, it will not be sufficient, as it was before, to hand over the wage statement on the day of commencement of work). The wage statement is delivered at the moment (i.e. not on the date) of acknowledgement of receipt. This is a consequence of the principle that the employee should be made aware of the pay conditions before commencing work.
The other options for delivery of the wage statement (including electronic delivery to the employee’s designated address) and their terms and conditions remain unchanged.
It is almost unbelievable that until now the basic method of payment of wages has been cash at the workplace. The Flexinovela finally responds to practice and establishes non-cash payment of wages as the primary method. Only in the following cases will wages be paid in cash during working hours and at the workplace:
Employee does not have a bank account
Employee does not agree to non-cash payment of wages or salary
Employee did not provide cooperation (did not provide account number)
Wages or salary are normally paid in Czech crowns to a bank account in the Czech Republic. The employee must have the money in the account on the pay date.
An important novelty is the extension of the possibility to pay wages in foreign currency. It will now be possible to pay wages in foreign currency in the presence of a so-called foreign element in the employment relationship, particularly in the following cases:
The employee’s consent is required for payment of wages in a foreign currency (it must be an agreement). Only the currency for which the Czech National Bank announces the exchange rate can be used. For the conversion, the Czech National Bank’s rate for the first working day of the month following the month for which the wage entitlement arose is used.
The Flexinovela introduces the possibility to employ minors from the age of 14, even if they have not yet completed compulsory schooling. These minors will be able to do so-called light work during the main holidays, which will not compromise their health, education or moral development. The main holidays are the summer holidays, i.e. July and August, with the exact dates of the holidays being determined annually by the Ministry of Education, Youth and Sports (e.g. this year Saturday 28 June – Sunday 31 August 2025).
To conclude an employment contract or agreement with a person under 15 years of age, the consent of the legal guardian is required in accordance with the Civil Code.
Light work means work falling within the first category under the Public Health Protection Act which does not require special authorisation.
According to the explanatory report, the permitted activities include, for example:
Work of camp leaders and animators
Help in the kitchen
Hospitality service without selling alcohol
Manual car washing
Distribution of flyers
Help in administration
Social network management
Tutoring or translating
On the opposite, work in construction, operating machinery, in forestry or on night shifts is forbidden.
For minors under the age of 15 or those who have not completed compulsory schooling, working hours are limited to a maximum of 7 hours per day and 35 hours per week. These employees are not allowed to work between 20:00 and 6:00 and cannot work overtime.
For minors, the length of the weekly working time is assessed cumulatively for all employment relationships. Daily rest must be at least 14 hours.
Before starting work, minors must undergo an initial medical examination, which is paid for by the employer. This obligation applies to both employment and agreements for work performed outside the employment relationship (“DPP”, “DPČ”).
The Flexinovela introduces the possibility of reducing the daily rest period to 6 hours in the event of an emergency, which means:
This refers to situations that the employer is unable to control even with all due diligence, such as network outages, cyber and hacker attacks, leaks of hazardous substances, effects of storms, floods, etc.
In the event of a reduction in daily rest, the employer shall provide the employee with extended compensatory rest at the earliest possible time.
If the employee is providing long-term care, the employer will now have to excuse the employee’s absence despite the existence of serious operational reasons on the employer’s side with which the employee’s absence conflicts.
The possibility of transferring leave is now introduced also in the event of a change in the basic employment relationship, i.e. in the event of a change in the employment relationship to an agreement on the performance of work or an agreement to complete a job, and vice versa, in the event of the replacement of one form of agreement by another.
The Flexinovela regulates the conditions for proving the existence of a trade union in the employer. The trade union will now have to prove at the employer’s request that at least 3 employees of the employer are organised with it. This proof does not have to be part of the initial notification of the presence of a trade union with the employer.
Proof of membership is in the form of a notarial record, which is the result of the cooperation between the trade union and the employer. The costs of the notarial deed shall be borne by the employer.
The amendment explicitly prohibits so-called confidentiality clauses on wages/remuneration and their components. Violation of this prohibition may be punishable as an offence with a fine of up to CZK 400,000.
If you have clauses in your contracts of employment, you must remove them from the documents for incoming employees altogether. If it applies to existing employees, then the best solution is to sign amendments to remove (delete) the confidentiality clauses from the employment contracts.
However, the Ministry of Labour and Social Affairs admits that where it would not be feasible to conclude amendments or would be excessively administratively demanding, employers may cancel the concluded clauses by unilateral declaration addressed to the employees, by which the clauses will be declared null and void.
The Flexinovela clarifies the definition of a single person, who is:
The rules for calculating average earnings are also clarified for cases where average earnings are determined after termination of employment (for example, for severance pay purposes) and for cases where there is a change in hours of work:
Finally, rather surprisingly, the Flexinovela also brought the abolition of entry medical examinations, although these were originally part of another amendment.
As of 1 June 2025, it is therefore no longer necessary to carry out initial medical examinations for non-hazardous work classified as Category 1. This applies to all types of employment relationship, i.e. employment contract and agreements on work outside the employment relationship.
In case of agreements on work outside the employment relationship, employees classified in non-risk category 2 did not need to undergo an entry medical examination. However, the Flexinovela abolishes this rule, therefore from 1 June 2025, all employees on a agreements on work outside of employment relationship classified in category 2 will be required to undergo the entry medical examinations, regardless of risk.
However, the legislation allows employers to send applicants for an entry medical examination where the employer considers it appropriate.
After many weeks of discussions, adjustments and negotiations, the long-awaited amendment to the Czech Labour Code was finally approved.
On 13 September 2023, the House of Representatives overruled the Senate’s proposals to the amendment to Act No. 262/2006 Coll., the Labour Code (the “Labour Code”) and therefore approved the amendment as submitted to the Senate by the House of Representatives.
The Act was signed by the Czech President on 17 September 2023 and published in the Collection of Laws on 19 September 2023 as Act no. 281/2023 Coll.
The amendment is intended to enter into effect generally on the first day of the month following its publication in the Collection of Laws. The amendment will thus enter into force on 1 October 2023.
The provisions concerning the introduction of the right to annual leave for employees working under agreements on work performed outside the employment relationship are to take effect from the first day of the year following the publication of the amendment in the Collection of Laws, i.e. 1 January 2024.
This also applies to the amendment of Section 92 regulating continuous weekly rest and the modifications to Section 303 Subsection 3 limiting the activities defined therein for selected groups of public sector employees.
The amendment brings the following changes:
All changes concerning agreements outside the employment relationship (i.e. agreement on work performance or “DPP” and agreement on work activity or “DPČ”) are related to the underlying change of concept, according to which the working time provisions will now apply to these agreements.
As a result of the application of the working time provisions, the employer will be obliged to:
The schedule will need to be communicated to the employee at least 3 days in advance unless the parties agree on a longer or shorter reasonable period of time. The extent to which this period can be shortened is debatable; in special, justified cases, for example, a period of 1 day could be considered; however, until sufficient interpretative practice develops, we recommend that, in order to uphold the principle of predictability of the terms of the employment relationship, the three-day period is generally kept unless special circumstances of the work or operation are present.
All provisions concerning the scheduling of working time must be complied with:
This is also linked to the employer’s obligation to record working time.
Unless the employer is able to schedule working hours so that no work is performed during these times, DPP and DPČ workers will now be entitled to additional premiums for work on public holidays, weekends or night work.
From 1 January 2024, an employee working based on DPP or DPČ agreements will be entitled to annual leave.
In order to be entitled to annual leave, the employment relationship will have to last at least 4 weeks and the employee will have to work at least four times the notional (fictionally stipulated) working time (i.e. 80 hours; including any compensatory time).
The calculation of annual leave will be based on the notional working time of 20 hours per week, regardless of the actual agreed scope of work or work tasks. The principle for calculating the length of annual leave will be the same as to date, e.g. since the weekly working time for leave purposes is always 20 hours per week, an employee with a 4-week basic leave entitlement will be entitled to 1/52 of 80 hours, i.e. approximately 1.5 hours of annual leave, for every 20 hours worked (including compensatory time).
If the annual leave is not fully used up by the end of the employment, it will have to be compensated, similarly to employees working under employment contracts.
As a result of the application of the working time provisions, employees will be entitled to obstacles to work on their side, i.e. their absence will have to be excused by the employer.
Employees working on the basis of these agreements will not be legally entitled to salary compensation (remuneration), but it will be possible to agree on its provision or to establish such entitlement in the employer’s internal regulations. The period of obstacles to work will not count towards the legal limit for agreements (i.e. a maximum of 300 hours for DPP or half of the agreed working time in the case of DPČ), as this relates to the actual performance of work. Thus, if the employee takes annual leave or there are obstacles to work on his/her side, for example, this will not count towards these annual limits. However, according to the explanatory memorandum to the amendment, it should be noted that these compensatory periods will be counted in for the purposes of annual leave calculation according to the same rules as with standard employment contracts.
The employee will be able to request, within 1 month of receiving a termination notice, written specification of the reasons for employment termination, specifically if the employee believes to have received the notice as a result of asserting his/her rights, e.g.:
The employer will be obliged to provide such written justification of the notice without undue delay.
Employees will now be able to make a written request for employment under an employment contract instead of DPP/DPČ, if their relationship with the employer under such agreements outside of the employment relationship has lasted for a cumulative period of at least 180 days in a period of 12 consecutive months. However, the amendment does not establish an obligation to comply with such a request and only provides for the obligation of the employer to respond in writing to such a request within 30 days.
The Labour Code newly stipulates that the agreed work must be specified in DPP, as is already the case for DPČ.
Salary compensation from the agreement (as well as the advance on such compensation) is explicitly included among other income that may be subject to salary deductions under Section 147 of the Labour Code.
More significant changes are to be made to the employer’s information obligation under Section 37 of the Labour Code, both at the commencement of the employment relationship (or DPP/DPČ) and at the time of posting. These changes consist both in shortening the time limit for compliance with this obligation and in expanding the scope of information that must be provided to employees, which is also extended to cases where the employee is posted abroad by the employer.
The time limit for fulfilling this obligation is to be reduced from the current 30 days to 7 days from the beginning of the employment relationship. A significant part of the information obligation may be fulfilled by reference to information contained in internal regulations, so attention should be paid to their wording. The employer is obliged to inform the employee of any changes to the information without undue delay, at the latest on the day on which the change takes effect.
The employer will thus have to inform the employee in writing of the following (i.e. beyond the current scope of the information obligation):
The information obligation will have to be fulfilled regardless of the duration of the employment relationship, i.e. also for employment relationships shorter than 1 month. At the same time, the Ministry promised to develop a template information form pursuant to Section 37 of the Labour Code meeting the new statutory conditions. However, according to the information available to us, the Ministry has not yet prepared such a template.
As far as existing employees are concerned, if the information obligation was fulfilled before the amendment to the Labour Code came into effect, the employer is obliged to provide information according to the extended list of information only upon the employee’s written request within 7 days from the date of receipt of such a request.
Additional information beyond Section 37 must be provided in advance to employees posted abroad for a period exceeding 4 weeks, with a special category of data requested for employees posted in the context of the transnational provision of services in the EU. This includes data on:
The information obligation also applies to agreements on work performed outside the employment relationship in the newly inserted § 77a and § 77b of the Labour Code, which essentially reiterate the above provisions on information on the employment relationship and posting.
If the information is provided in electronic form, the information must be accessible to the employee in such a way that the employee can save and print it; the employer must keep proof of the provision of the information to the employee.
Changes also await us in the regulation of remote work, although compared to the originally published and widely media-hyped text of the amendment, the changes are ultimately of a rather minor nature, with the exception of the lump sum amount of reimbursement of expenses, which will hopefully bring clarity to the issue of reimbursement of expenses and its taxation.
The amendment distinguishes between remote work unilaterally ordered by the employer and remote work agreed between the parties.
It will now be possible, on the basis of the experience of the Covid era, to order remote work unilaterally. However, the possibilities for such order are very limited. It will only be possible to order remote work on the basis of a decree issued by a public authority and for a strictly necessary period of time if the nature of the work allows it. At the same time, the employee will have to indicate the location of the remote work site suitable for such work, or to state that no such site is available.
In other cases, remote work will only be possible by written agreement with the employee. The agreement may be separate but may also be a part of an employment contract or DPP and DPČ. The amendment no longer provides for any mandatory requisites of such an agreement and therefore leaves its content to the will of the parties. However, this also means that remote work can no longer be regulated exclusively as a benefit in the employer’s internal regulations but must always be subject of an agreement between the parties. In this context, the transitional provisions stipulate that if a written agreement on the conditions of remote work has not been concluded before the amendment entered into effect, the employer shall conclude such a written agreement no later than 1 month after the amendment enters into effect, i.e. by the end of October 2023.
The concluded agreement may be terminated by both parties in writing with 15-day notice period, which may be shortened or extended at will by agreement of the parties but must be of equal length for both parties. The period of notice shall commence on the date of delivery. The notice does not have to be justified in any way.
The termination of the agreement shall not affect the duration of the employee’s employment.
The possibility to terminate the agreement may be contractually excluded.
A pressing topic is the reimbursement of costs related to the performance of remote work.
The amendment presumes that costs will primarily be reimbursed in the amount actually incurred by the employee. However, it is possible to agree with the employee, or stipulate in an internal regulation, that these costs will be fully reimbursed by a lump sum. The amount of the lump sum compensation is no longer stipulated by the Labour Code and the regulation is left to a decree of the Ministry of Labour and Social Affairs (proposed amount of CZK 4,60 per hour is expected based on the latest Ministry decree proposal, subject to regular indexation). The lump sum reimbursement is payable by the end of the following calendar month. In the private sphere it will be possible to provide a higher lump sum compensation, but according to the explanatory memorandum it should constitute taxable and insurable income of the employee. The lump sum compensation is granted for each hour of working remotely (shorter periods are added together for the purposes of compensation) and is rounded up to the nearest cent decimal.
Rather surprisingly, the Labour Code will now provide for the option to agree that the employee is not entitled to any reimbursement of expenses in connection with remote work. However, this requires an explicit (written) agreement (e.g. it cannot be set out in an internal regulation), which is something employers must bear in mind when drafting remote work agreements.
Persons working on the basis of DPP and DPČ agreements should only be entitled to reimbursement if this has been expressly agreed with them.
The originally planned and widely criticized entitlement of some employees to remote work has been completely abolished and only the possibility to request remote work has been enacted.
The employer does not have to approve such request (or demonstrate serious operational reasons or other circumstances of non-approval) but must give reasons in writing for refusing such a request.
The same group of employees can request remote work as can request a reduction in working time under the current legislation. The only difference is that the child age limit in case of remote work is set at 9 years, whereas for shorter working hours it is 15 years. The employer should word the refusal carefully to avoid discrimination, unequal treatment or other unlawful practices.
See the section on Carers’ rights: set out under 8 below for more information.
For the first time, the Labour Code contains an explicit legal regulation according to which it is possible to conclude (selected) employment documents in electronic form. This applies to the employment contract, the agreements on work performed outside the employment relationship as well as the agreements on their amendments or termination thereof. This is a change that practice has long called for.
For these purposes, it will be necessary to obtain from the employee his or her private electronic address (i.e. usually a private email address, possibly the employee’s private cloud storage address or the employee’s electronic address within a communications application) in writing.
Generally, the employee will be given the opportunity to withdraw from documents so executed within 7 days. However, this will not apply to termination agreements (i.e. termination of employment or DPP and DPČ). Furthermore, withdrawal will not be possible in those cases where the employee has already started acting according to the concluded document (e.g. the employee has started performing work according to an electronically concluded employment contract). Withdrawal will cancel the contract thus concluded from the outset, i.e. it will be treated as if it had never occurred.
Following the introduction of the possibility of electronic conclusion of certain employment documents, the range of documents that must be delivered to employee´s own hands has been logically narrowed down and other conditions of delivery have been adjusted.
Only unilateral documents, i.e. in particular termination of employment during the probationary period, notice of termination, immediate termination of employment, warning letter and salary assessment, are to be delivered into one´s own hands.
The employer will primarily deliver:
Delivery by post shall be secondary, if delivery cannot be made at the workplace.
In the delivery methods area, electronic delivery will be significantly simplified.
Electronic delivery will require the following:
However, the employee will no longer have to confirm receipt of the electronic message using his/her recognised electronic signature, which made this method of delivery effectively unusable in reality. The written acknowledgement can therefore take any form, provided that if the employee does not acknowledge receipt within 15 days, the document is deemed to have been delivered on the last day of that period.
Delivery to the employee’s and employer’s data box is also simplified:
The amendment refines the existing legislation by replacing the existing term “rest between shifts” with the term “daily rest“.
The Explanatory Memorandum adds that the decisive criterion for granting this continuous rest is a cycle of 24 consecutive hours and not the total time between the end of one shift and the start of the next shift. This intends, among other things, to help prevent possible circumvention of this regulation through overtime work.
The 24-hour daily rest cycle must include both the scheduled shift and any overtime work, on-call work and a continuous daily rest of at least 11 hours, or a reduced rest of at least 8 hours.
The wording is also clarified so that the employer is obliged to actually provide this daily rest and not just schedule it. A corresponding change in wording is also applied to the regulation of continuous weekly rest. The obligation to provide both longer daily rest (24 hours) and weekly rest (48 hours) to juvenile workers remains.
Parental leave is one of the important personal obstacles to work on the part of the employee.
In addition to the existing general regulation that the employee must notify the employer of an obstacle to work known to him in advance, the amendment provides that:
For reasons of legal certainty, a written form of the request is necessary. The employee’s right to apply for parental leave repeatedly, or to extend or terminate it and return to it again, remains.
The provisions of Section 241 et seq. of the Labour Code regulating the rights of those caring for others have been amended to a relatively significant extent:
The request should now be in writing and the employer’s reasons for not granting the request should also be in writing.
The Explanatory Memorandum further clarifies the intended application practice by stating that the request should be seen as the initiation of a dialogue on the change of the employment contract. Where the employer is willing to approve the request (agreeing in principle to shorter working hours or remote work), the employer will enter into negotiations with the employee and subsequently conclude an amendment to the employment contract, agreeing on all relevant matters. This should resolve previous disputes as to whether this constitutes an agreement on changed conditions or a unilateral approval (decision) by the employer, which the employer is then also entitled to change unilaterally. For the sake of completeness, it should be added that the parties are not restricted in their ability to agree on such changes only for a fixed time period (e.g. 6 months, 1 year, etc.).
From our point of view, the new regulation of the possible modification of working time and other conditions is rather unclear. However, in brief, the following applies:
Request for reinstatement or partial reinstatement of the original scope of working hours:
Request for further reduction of working time:
Request for other appropriate adjustment of working time:
In the context of shorter working hours, the Labour Code now provides for an express obligation to agree on shorter working hours in writing. In addition, for persons caring for a child under the age of one, the law also prohibits overtime order by the employer.
Despite considerable criticism from health professionals, the amendment reintroduces the possibility of additional agreed work in the health sector beyond the scope of generally permissible overtime. Its maximum scope is set at an average of 8 hours, or (in the case of ambulance service employees) 12 hours per week. This overtime work must be agreed in writing and comply with the statutory requirements. Employees shall not be pressured to conclude the agreement. The employer must keep a list of the employees with whom the agreement has been concluded and must also inform the competent labour inspection body of the application of the additional agreed overtime work.
The institute is introduced for a fixed period, from 1 October 2023 to 31 December 2028.
In connection with the amendment to the Labour Code, the employer should take the following factual/practical steps:
Are you planning to send your employee on a business trip to or from Romania? In that case, it’s important to pay attention to the business travel legislation in Romania to ensure that you are compliant with all legal regulations. To help you better understand the scope of business travel demands, we’ve created an infographic with a basic overview of definitions, requirements and details.
Wish to have a time-saving and transparent system for your business travel and settlement of related expenses? Discover our Payroll and HR portal that allows you to handle employee travel requests, approvals and reimbursements, with automated data collection, notifications, custom workflows – and beyond.
Delegation is the temporary performance by an employee of work or tasks corresponding to the duties of his or her job outside his or her place of work at the employer’s instructions.
Delegation may be ordered for a maximum of 60 calendar days in any 12-month period and may be extended for successive periods of up to 60 calendar days only with the employee’s agreement.
According to the Romanian legislation, the calculation of a business travel’s duration is based on the calendar days starting from the departure date and time until the date and time of the return. Each 24-hour period of the trip is considered as one day of business travel.
For domestic travel in Romania, the number of calendar days on which the person is on secondment shall be calculated from the date and time of departure to the date and time of return of the means of transport from and to the place where he/she has his/her permanent place of work, each 24 hours being considered a day of secondment.
In order to benefit from the tax facilities, the employee must be delegated to a locality more than 5 km from the locality where he or she has his or her permanent place of work and the duration of the secondment is at least 12 hours.
For delegations abroad, the period for which the daily allowance is granted in foreign currency is determined according to the means of transportation used, taking into account:
1. the time of take-off of the aircraft, on departure abroad, and the time of landing of the aircraft, on arrival in the country, from and at airports considered crossing points of the State border of Romania;
2. the moment of crossing Romania’s State border crossing points by train or car, both on departure abroad and on return to the country.
In order to benefit from the tax facilities, for time periods not totaling 24 hours, the daily allowance is granted as follows: 50% up to 12 hours and 100% for the period exceeding 12 hours.
Foreign daily allowances are granted according to the amount establishes by law in the destination country of the business travel, and in this situation the Government’s decision must be verified for Romanian personnel sent abroad for temporary assignments. In the EU, the daily allowance is typically EUR 35 per day, with a fiscal maximum of EUR 87.5 per day and within the limit of 3 base salaries corresponding to the job held.
The ceiling of 3 basic salaries corresponding to the post held is calculated separately for each month by dividing the 3 salaries by the number of working days in that month and multiplying the result by the number of days corresponding to each month of the period of delegation secondment / work in another locality, in the country or abroad.
The period for which the foreign daily allowance is granted is determined based on the means of transport used, considering when the employee crosses the border, when their train or car crosses the border or when their plane departs or lands.
If the private employer grants and bears all the expenses incurred in connection with business travel, and this is the agreement of the parties, then the employee may no longer be granted a delegation allowance, but in our opinion, this should be stipulated in the individual employment contract, internal regulations, collective agreement and/or other internal procedures of the employer and made known to the employee.
Nevertheless, since the practice is not uniform, in order to avoid possible risks, our recommendation is that private employers to grant employees the delegation allowance and take into account the provisions of the government decisions establishing the conditions for granting the daily allowance for staff in public institutions.
If the private employer grants and bears all the expenses incurred in connection with business travel, and this is the agreement of the parties, then the employee may no longer be granted a delegation allowance, but in our opinion, this should be stipulated in the individual employment contract, internal regulations, collective agreement and/or other internal procedures of the employer and made known to the employee.
Nevertheless, since the practice is not uniform, in order to avoid possible risks, our recommendation is that private employers to grant employees the delegation allowance and take into account the provisions of the government decisions establishing the conditions for granting the daily allowance for staff in public institutions.
1. Travel expenses (travel ticket, plane ticket, taxi, public transport ticket);
2. Accommodation expenses;
3. Incidental expenses (phone fee, fax fee, Internet fee, parking fee, highway fee).
If an employee goes on vacation following a business travel and returns to the workplace, the cost of return transportation is not covered and will not be reimbursed.
Do you know that in Romania, every employer is required to set up a general register of employees in electronic format, known as REGES-ONLINE, according to Article 34 of Law no. 53/2003 on the Labor Code, republished with subsequent amendments and additions? Also, do you know what deadlines do employers have to meet for reporting in REGES-ONLINE in Romania?
REGES-ONLINE is regulated by the recent Government Decision no. 295/2025, which has replaced the former regulations established by Government Decision no. 905/2017.
User identification data, in the case of temporary employment contracts;
2. According to H.G. no. 295/2025, changes in certain information must be reported by the day before the day on which the change takes effect (except in cases where the change is made as a result of a court decision, when the transmission to the Register is made within 10 working days from the date on which the employer became aware of its content).To be more specific, the following are targeted:
3. Information to be submitted on the date the effects occur
4. Information to be reported within a maximum of three working days from the date the document reflecting the change is registered with the employer
5. Information to be reported within a maximum of five working days
In the case of a transfer or takeover by transfer within the public system, reporting in Revisal/REGES-ONLINE must be done within five working days from the effective date of the transfer or takeover. At the same time, the identification details of the employer to/from whom the transfer is made must also be submitted.
6. Information to be submitted within a maximum of 20 working days from the date of the change/modification
An exception applies in cases where the modification results from a court decision, in which case the registration must be made within 10 working days from the date the employer became aware of its content.
Accace Romania specialists can offer you support and consultancy in managing personnel files and salary reporting, through payroll and HR administration services.
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