Slovakia Employment Guide

Slovakia, a landlocked country in Central Europe, has a population of around 5.5 million and a well-developed industrial and service economy, with strong sectors in automotive, electronics, and IT. The country’s labor market is governed by the Slovak Labor Code, which outlines employment contracts, working hours, minimum wage, paid leave, and termination procedures. Employers must comply with social security and health insurance contributions. Employee rights and protections are emphasized, and foreign workers must adhere to the same legal requirements as local employees, ensuring fair and compliant employment practices.

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Currency

EUR

Capital

Bratislava

Official language

Slovak

Salary Cycle

Monthly

Our Employment Guide in Slovakia

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Navigating Employment Termination in Slovakia: A Guide for Global Employers

Terminating an employment relationship in Slovakia requires careful adherence to a complex legal framework. The process involves collaboration between the employer and key stakeholders, and may include specific procedures and potential costs depending on the termination scenario.

Permissible Grounds for Termination

Slovak labor law provides flexibility, allowing either party to terminate the employment contract with or without a stated reason, provided it is done via written notice. The legally recognized methods for ending an employment relationship are:

Voluntary resignation by the employee.
Mutual agreement between the employer and employee.
Unilateral termination by the employer, justified on grounds such as:
- Probationary period.
- Organizational reasons (e.g., redundancy).
- Disciplinary dismissal.
- Termination due to unsatisfactory performance or incapacity.
Expiration of a fixed-term contract.

Understanding Notice Periods

The required notice period is a critical component and varies significantly based on the employee's length of service and which party initiates the termination.

Termination Initiated By	Length of Service	Notice Period
Employer	Less than 1 year	30 days
Employer	1 to 5 years	60 days
Employer	More than 5 years	90 days
Employee	Less than 1 year	30 days
Employee	More than 1 year	60 days

Severance Pay Obligations

Severance pay is a statutory right for employees in Slovakia, but it is only mandated in cases of termination due to redundancy. The amount is calculated based on the employee's tenure.

2 to 5 years of service: 1 month's average earnings.
5 to 10 years of service: 2 months' average earnings.
10 to 20 years of service: 3 months' average earnings.
Over 20 years of service: 4 months' average earnings.

For instance, a company like SailGlobal, when managing a restructuring that leads to redundancies for employees with 7 years of service, must budget for a severance payment equivalent to two months' salary for each affected individual.

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