Payment of Salaries

Reporting on employee withholding tax: with effect from January 1, 2016, employers reporting the levying of the employee withholding tax in relation to insured persons and those entitled to pension and disability benefits must, when processing the payment of salaries through “iREK forms”, also report the underlying data (i.e. the data used to generate the wage and potential charges).
Action required:
(1) Employers must be acquainted with the new “iREK forms”.
(2) Data, used for generating the wage formula should be carefully collected and stored in accordance with data privacy and personal information legislation.

Parental leave

New rules for Parental Protection and Family Benefit: with effect from January 1, 2016, no more than 15 calendar days of parental leave can be transferred from one parent to another. Additionally, as a temporary measure, the compensation for full absence from work must not exceed the sum of two average monthly salaries.
Action required:
(1) Employers should review and amend any existing internal regulations on parental leave.
(2) Employers should consider amending employment contracts that provide for compensation for the full absence.

Employment of Foreigners

New Rules on Employment, Self-employment and Work of Aliens: with effect from September 1, 2016, there will be changes to the procedure for obtaining work permits for foreigners and also to the conditions for obtaining certain types of permits. The new procedure will be on a unified, one stop shop basis.
Action required:
Employers should familiarise themselves with the new procedures when employing new foreign workers.