Do you know what your obligations are when an employee travels abroad to provide services?
It is increasingly common for Slovak companies to send their employees to work in other European Union Member States. Whether for construction work, IT services, or service interventions, the posting of an employee abroad is subject to several legislative rules.
When are we talking about the posting of an employee?
Posting refers to a situation where a Slovak employee temporarily (for a maximum of 24 months) performs work in another EU Member State under the direction of a Slovak employer and following the employer's business activities.
The posting is therefore carried out under the direction and responsibility of the posting employer based on a contract between the posting employer and the recipient of this service.
A posted Slovak employee performing work on behalf of the employer abroad will continue to be insured in the Slovak Republic (for both social and health insurance).
What must you, as an employer, not forget before the posting?
- Application for a PD A1 form: This form is issued by the Social Insurance Agency and confirms that the employee remains insured under the Slovak social insurance system while working abroad. Without this form, the employee may be required to pay contributions in the host country. The PD A1 form also applies to company executives, contractors, and other persons considered employees for social insurance purposes.
- Health insurance: The employee should have a European Health Insurance Card (EHIC) or arrange for commercial travel/accident insurance, especially for non-EU countries or when performing hazardous work.
- Notification of posting in the host country: Some Member States require a specific notification to their institutions of the employee's posting. This is a notification obligation, and it is necessary to verify the particular requirements of the country in question.
- Working conditions during the posting: During the posting, the employee is subject to the minimum working conditions applicable in the host country. This includes, for example, minimum wage, length of working time and breaks, holiday entitlement, occupational health and safety conditions, and protection against discrimination. If the Slovak working conditions are more favourable, Slovak rules may continue to apply in some cases.
What about foreign business trips?
A foreign business trip is not the same as a posting. These are situations where an employee travels to a conference, training, meeting, or business negotiation. They are not performing services that would be the subject of a contract between two business entities.
Even in such a case, however, it is necessary to apply for a PD A1 form, ensure health insurance (EHIC or commercial), and issue a travel order for the foreign business trip from the employer.
Failure to comply with these obligations may result in penalties from the host state's institutions.
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