22.12.2022 Labour law

[Slovak] Hiring the employees in Slovakia by foreign employer

In recent years – mainly thanks to globalization – the trend of global employment has increased. Foreign companies can thus employ employees abroad, and thus also in Slovakia – without the establishment of the legal entity in a given country. Very often, the first employees are sales representatives whose task is to research the market and offer the product of the given foreign company here. Alternatively, it can be an IT specialist who works for a foreign company from home. Since such international employment is becoming more and more popular, we provide a brief summary of the most important points that properly ensure the activity according to the law without the need to create a branch or company in the country.

The process of registration at Social insurance, health insurance and the Tax office

Social insurance company, health insurance company and the tax office are the most important authorities from the point of view of employment, towards which companies have a reporting obligation.

Before an employee starts an employment relationship, the company must register itself and its first employees at the Social Insurance Agency no later than the day before the start of the employment relationship. In the case of the Social Insurance Company, it is necessary to fill out 3 forms, namely the Employer’s Registration Form, the Employee’s Registration Form and the Agreement on the Use of e-Services, which will provide electronic access, through which all necessary submissions are processed.

In the case of a health insurance company, the procedure is similar, but the employee has the option of choosing an insurance company from three possible ones (Všeobecná zdravotná poisťovňa – state owned, UNION, Dôvera – private). The employer must first register with the insurance company chosen by the employee, and then register his employees, at the latest within 8 working days of the employment. Before the employer registers the employee, it is important that the employee is insured at the same health insurance company.

The third institution which shall be approached is the Tax office. The employer needs to register there for the “dependent activities” so that it can deduct the tax from its employees and submit it the Tax office.

With a certain type of employment, the risk of a permanent establishment may arise.

Since these steps are rather complicated, many foreign companies find a local service provider to perform these activities. The representation requires a notarized power of attorney and an extract from the company’s commercial register. The registration itself can then take place electronically, which will simplify and speed up the entire process. Usually, the employee is registered within one week of the delivery of the necessary documents.

If you have questions or need to help with registration, please contact us.

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