Slovak Financial Law News 2004

New Act on Employment Services

Act No. 5/2004 Coll. on Employment Services and amending and supplementing certain other acts

The new Act on Employment Services with effects from 1 February 2004 fully repeals and supersedes the previously valid Act No. 387/1996 Coll. on Employment, as amended, and is amending certain provisions of the Labour Code, Act on Social Insurance and other related regulations.

The aim of the Act is particularly to determine a legal framework for provision of employment services, their structure and content of the activity of individual parts of the structure, to simplify administration, to improve and make more flexible the performance of provided employment services and contribute to the increase of flexibility of the labour market thereby, the increase of efficiency and transparency of the usage of public funds and funds from the resources of the European Union.

The Act creates a legal framework for provision of employment services by the entities other than state administration authorities and for co-operation between the state administration authorities in the area of employment services and other entities that provide employment services, within the scope agreed upon in concluded written agreement.

Under the new Act, the term ``employment services'' shall mean a system of institutions and instruments of support and assistance to the parties in the labour market in (i) seeking employment, (ii) change of employment, (iii) filling of vacancies, and (iv) application of active measures in the labour market with special respect to assertion of handicapped job applicants exactly defined by the Act.

The Act enumerates and defines the participants to legal relationship in the provision of employment services.

The Act also defines new terms, such as a job applicant, disadvantaged job applicant and a handicapped citizen. The powers of the Headquarters of Employment, Social Matters and Family (the ``Headquarters'') and the Office of Employment, Social Matters and Family (the ``Office'') as state administration authorities in the area of employment services are regulated separately.

The Act also separately regulates employment of foreigners and granting of a work permit related thereto.

A citizen of the member state of the European Union and his/her family member have in principle the same legal status in legal relationships established pursuant to this Act like a citizen of the Slovak Republic.

The Act also regulates an authority to adopt national measures in the area of employment, according to which if the member state of the European Union applies towards citizens of the Slovak Republic and their family members under conditions stipulated by the Treaty of Accession of the Slovak Republic to the European Union a national measure, or suspends, fully or partly, application of Articles 1 and 6 of Council Regulation (EEC) on freedom of movement for workers within the Community, the Government of the Slovak Republic can stipulate the application of identical (equal) measures and their extent towards this member state by a decree.

The Act defines active measures in the labour market as well.

Mediation of employment performed by the Headquarters and the Office in the territory of the Slovak Republic is free-of-charge. Mediation of employment particularly includes keeping of the register of job applicants, employers, vacancies, information and consulting services, education and training for the labour market, projects, programmes and allowances for the purposes stipulated by this Act.

The Act also regulates mediation of employment for remuneration, medical examining activity and separately employment of handicapped citizens as well.

This Act also declares the right of a citizen to the access to employment without any limitations, direct or indirect discrimination. Pursuant to the Act, an employer may not in the process of selection of an employee require information relating to nationality, race or ethnic origin, political attitudes, membership in professional organisations, religion, sexual orientation, information being in conflict with good behaviour (manners) and personal data which are not necessary for the fulfilment of obligations of the employer stipulated by a special regulation. The employer is obliged to prove at the request of a citizen why it is necessary to obtain the requested personal data. The criteria for selection of the employee must guarantee the equality of opportunities for all citizens.

In connection with the amendment to the Labour Code, the Act on Employment Services is amending and stipulating in more details the institute of a temporary assignment of an employee to another natural person or legal entity for work performance, including the rights and obligations of the employer as well as of the employee during such temporary assignment.

This Act came into force on 1 February 2004, save for selected provisions which became effective as of the validity date of the Treaty of Accession of the Slovak Republic to the European Union.

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