Employment update

Employment update Temporary assignment under the amended Labour Code As of 1 January 2012, the new Section 43a of the Labour Code enables employers to temporarily assign their employees without having to become an employment agency, i.e. obtaining an employment agency licence. This possibility existed before April 2004 and now it has been reintroduced by the amendment to the Labour Code No. 365/2011 Coll. Under the principle of temporary assignment an employee performs work for another employer – the user – while remaining employed and paid by the assigning employer. The user is obliged to assign work to the employee, organize, direct and review his/her work and give binding instructions for this purpose, create favourable working conditions for the employee, as well as ensure health and safety at work. However, the user is not entitled to make legal acts towards the employee on behalf of his/her employer. In order to use the non-agency temporary assignment option, the following conditions have to be fulfilled: The employee to be temporarily assigned must be employed by the assigning employer for at least six months before the temporary assignment is agreed. The temporary assignment must be carried out free of charge – the Labour Code explicitly limits the amounts paid by the user to the employer for the temporary assignment to only salary and travel allowances provided to the assigned employee. Nevertheless, we believe that this provision can be interpreted to include reimbursements of bonuses, salary supplements, salary c ...