1. Dismissal of employees

1.1 Reasons for dismissal

The employer may dismiss an employee with notice for statutory reasons, including the winding-up or relocation (when the employee does not agree with the relocation) of the employer or a part thereof, the redundancy of the employee, inability to perform work due to health reasons, unsatisfactory performance, or disciplinary breaches. 
An employer may terminate an employment relationship with immediate effect if the employee is lawfully sentenced for committing an intentional crime (a crime not caused by negligence),or has committed a serious breach of work discipline (for more information see “Summary dismissal”).

1.2 Form

Termination notice (as well as immediate termination) must be given in writing and signed by the employer’s representative in order to be valid. The law stipulates the strict rules regarding delivery of these termination documents. (They cannot be delivered via e-mail or fax).

1.3 Notice period

The general notice period is one month. In case of dismissal where the reasons are the winding-up or relocation of the employer or a part thereof, redundancy of the employee, or inability to perform work due to health problems, the notice period is two months if the employment has lasted for at least one year and less than five years; and three months, if it has lasted for at least five years. 

Where the dismissal is due to reasons other than those stated above, the notice period is two months if the employment has lasted for at least one year. If the notice is given by the employee, the notice period is two months if the employment has lasted for at least one year.

The employer and the employee may agree on different (e.g. longer) notice period in the employment contract. 

The notice period starts on the first day of the calendar month following receipt of notice.

If the dismissal occurs during a probationary period, a written notification (not a formal notice) should be delivered to the other party at least three days before the intended termination date. (If the employer does not follow this notification period, the termination is still valid, but the labour inspectorate can impose a fine to the employer).

The parties can agree on the probationary period in writing in the employment contract. The maximum statutory probationary period is three months, and in the case of managing employees is six months. 

1.4 Involvement of employee representatives

Dismissal of a member of the works council (or employee trustee) is invalid without the prior approval of the respective employees´ representatives. Employee representatives are protected against dismissal during the term of their office and for six months following the expiry of their term of office.

In cases of termination by notice and immediate termination, the employer is obliged to consult with employee representatives before dismissing the respective employee; otherwise, such a dismissal is invalid. However, the consent of the employee representatives to the particular dismissal is not a precondition for its validity.

If there are no employee representatives, then the obligation of the previous consultation does not apply.

1.5 Involvement of a union

Dismissal of a trade union member is invalid if the trade union’s prior approval has not been obtained. Trade union officers are protected against dismissal during the term of their office and for six months following the expiry of their term of office.

In cases of termination by notice and immediate termination, the employer is obliged to consult with trade unions before dismissing the respective employee; otherwise, such a dismissal is invalid. However, trade union consent to this particular dismissal is not a precondition for its validity.

If there are no employee representatives, then the obligation of the previous consultation does not apply.

1.6 Approval of state authorities necessary

Obligatory for disabled employees.

1.7 Collective redundancies

A collective redundancy occurs when the employer dismisses at least ten employees within 30 days, if the employer employs fewer than 100 but more than 20 employees. If it employs at least 100 but fewer than 300 employees, termination of at least 10% of the workforce is considered a collective redundancy. If the employer employs at least 300 employees, then termination of at least 30 employees is considered a collective redundancy. At least one month prior to commencement of collective redundancies, the employer must negotiate measures to avoid or limit collective redundancies, and measures designed to mitigate the unfavourable consequences of collective redundancies with employee representatives. If there are no employee representatives, the employer must negotiate directly with the employees.

The employer must provide employee representatives, or employees directly, with all the information necessary to facilitate these negotiations in writing. A transcript of the written information must also be provided to the respective Office of Labour, Social Affairs and the Family. Following the negotiations, the employer must provide written information on the results of the negotiations to the Office of Labour, Social Affairs and the Family, as well as to the employee representatives, or directly to employees.

1.8 Summary dismissals

Immediate termination of employment by the employer is possible only for a serious breach of work discipline by the employee or if the employee is lawfully convicted of an intentional crime.

The employer may immediately (with effect upon delivery to the employee) terminate the employment only within two months of learning the reason for immediate termination, but not later than one year from the occurrence of the respective reason.

The immediate termination must be done in writing and delivered to the employee, with the merits of the reason for immediate termination being specified in such a way that prevents confusion with any other reason for termination.

The employer may not immediately terminate employment with a pregnant employee, an employee on maternity or parental leave, a lone employee taking care of a child younger than three years of age or with an employee taking care of a close person who is severely disabled. However, if there is a reason for immediate termination, the employment of these employees may be terminated by notice for that reason except for employees (mothers) on maternity or (fathers) on parental leave (i.e. “paternity leave”).

1.9 Consequences if requirements are not met

Should mandatory statutory obligations not be followed, the employee can challenge the validity of the employment´s termination with the respective court. If the court finds the employment termination invalid, the employer will be obliged to pay salary compensation to the employee, and might be obliged to continue employing the employee. In addition, the respective labour inspectorate may impose a fine for breaching the statutory rules. 

1.10 Severance pay

Severance pay must only be paid if the employment has been terminated  by notice of the employer or by agreement between the employer and  the employee for the reasons of winding-up or relocation of the employer or a part thereof, the redundancy of the employee, the employee’s long-term medical inability to perform work, or the inability to perform work due to accident at work, occupational disease or its threat or due to reaching the maximum exposure at work set by the public-health authority.

In case the employee is dismissed for the reasons of winding-up or relocation of the employer or a part thereof, the redundancy of the employee or the employee’s long-term medical inability to perform work, the employee is entitled to severance pay equal to the average monthly earnings of the employee if the employment lasted at least two years and less than five years, two times the average monthly earnings if the employment lasted between five and ten years, three times the average monthly earnings if the employment lasted between ten and 20 years and four times the average monthly earnings if the employment lasted at least 20 years.

If the employment is terminated by agreement for the same reasons as stated in the previous paragraph, the employee is entitled to severance pay equal to the average monthly earnings of the employee if the employment lasted less than two years, two times the average monthly earnings if the employment lasted between two and five years, three times the average monthly earnings if the employment lasted between five and ten years, four times the average monthly earnings if the employment lasted between ten and 20 years and five times the average monthly earnings if the employment lasted at least 20 years.

Duration of employmentTermination NoticeTermination Agreement
0-1 year01
1<<2 years01
2<<5 years12
5<<10 years23
10<<20 years34
20+ years45

 

If the employee is dismissed for reasons of winding-up or relocation of the employer or a part thereof, the redundancy of the employee or the employee’s long-term medical inability to perform work, the employee is entitled to severance pay in multiples of the employee's average monthly earnings. The actual amount also depends on the (i) duration of employment, and (ii) the form of termination (different payment for the termination by notice and agreement).

If the employee is dismissed or the employment is terminated by agreement for the reason of the employee’s inability to perform work due to an accident at work, occupational disease or its threat or due to reaching the maximum exposure at work set by the public health authority, the employee is entitled to severance pay of at least ten times the average monthly earnings of the employee, unless the accident at work was caused by the employee’s breach of health and safety rules or took place while he/she was under the influence of alcohol, narcotics or psychotropic substances provided that the employer could not prevent the accident at work.

1.11 Non-competition clauses

The employer may agree with the employee in the employment contract that following termination of employment, the employee will not perform a gainful activity competitive to the activity of the employer for a certain period of time, but no longer than one year. Conclusion of such a non-competition clause is possible only if during the employment, the employee is able to gain information or knowledge that is not commonly accessible, and could cause substantial harm to the employer if used.

The employer is obliged to compensate the employee for complying with the non-competition clause by paying at least 50% of the employee’s average monthly earnings for each month of compliance with the obligation of the non-competition clause. The employer may only withdraw from a non-competition clause during the employment relationship.

The employee may terminate the non-competition clause if the employer fails to provide them with the above stated compensation for their compliance with the non-competition clause within 15 days of compensation becoming due.

1.12 Miscellaneous

An employer cannot dismiss an employee within a protected period. This is a period during which the employee is acknowledged to be temporarily incapable of work: during sick leave due to a disease or an accident, during pregnancy, maternity or parental leave or, for a lone parent taking care of a child younger than three years of age, during extraordinary military service, while having been released to perform a public function, or if the employee is medically acknowledged to be temporarily unable to perform night shifts.

2. Dismissal of managing directors

2.1 Reasons for dismissal

A company may dismiss its managing director as a statutory body or a member of a statutory body of an entity (i.e. not as an employee) without cause.

2.2 Form

A valid shareholder resolution is required for revocation of the managing director and for termination of any agreement setting out the terms of appointment. The managing director is to be provided with a copy of the resolution, or information regarding the dismissal.

The company has only to inform the managing director that the general meeting of shareholders (or the sole shareholder as the case may be) has decided on the dismissal.

2.3 Notice period

Dismissal is possible without notice and will be valid from the date of adoption of the shareholders’ resolution. 

2.4 Involvement of employee representatives

No involvement.

2.5 Involvement of a union

No involvement.

2.6 Approval of state authorities necessary

Not necessary.

2.7 Collective redundancies

Not applicable.

2.8 Summary dismissals

Not applicable.

2.9 Consequences if requirements are not met

If a shareholders’ resolution has not been adopted, then the revocation of appointment will be invalid.

2.10 Severance pay

There is no statutory severance payment. Severance pay is subject to negotiation.

2.11 Non-competition clauses

Under Slovak law, a managing director is bound by a non-competition clause during the performance of his/her duties. A post-contractual non-competition clause is also common in practice. However, the specifically agreed-upon terms usually differ from case to case. Setting good terms may reduce the risk of the managing director challenging their validity with the court, and of the court finding such a clause invalid. 

2.12 Miscellaneous

Not applicable.