Disability employment quota

What it means

The mandatory quota for employing people with disabilities is an obligation on employers with at least a statutory number of staff to employ a certain proportion of people with disabilities. It is governed by the Employment Services Act, and the required number is calculated from the average registered headcount.

The employer can meet the obligation in three ways, which may be combined. It can employ people with disabilities directly, buy goods or services from a sheltered workshop or a self-employed person with a disability as alternative fulfilment, or pay a levy to the labour office.

Compliance is assessed per calendar year. The employer reports it to the Office of Labour, Social Affairs and Family, ÚPSVaR, in an annual statement by the statutory deadline. Disability is evidenced by a Social Insurance Agency invalidity decision or another document recognised by law.

How it works in practice

We warn clients approaching the headcount threshold in advance. They often do not realise it applies to them until a notice arrives from the office, and by then little time is left for the cheaper option, such as alternative fulfilment.

An employee with recognised invalidity counts towards the quota. Employees are not obliged to tell their employer about their health, however. It is worth sensitively asking whether anyone would like to provide the decision, stressing that it is used only for this purpose.

Alternative fulfilment through orders from sheltered workshops is usually more advantageous than the levy, because the money buys goods or services the company would purchase anyway, such as office supplies, cleaning or printing. Invoices from these suppliers must contain the required details.

What to watch out for

Failing to meet the obligation or to file the statement can lead to a fine, and the levy still has to be paid. Employers near the threshold often miss the change, so the average headcount should be tracked throughout the year, not just at year-end.

With alternative fulfilment, make sure the supplier genuinely holds sheltered workshop status or is a person with a disability, and that the invoice is paid within the year. An unpaid invoice does not count.