Posting of workers

What it means

Posting of workers is where an employer temporarily sends an employee to work in another EU state as part of providing services, such as installation, construction or servicing for a foreign customer. The employee remains employed by the Slovak employer but works abroad.

Posted workers are covered by the host state’s core working conditions: minimum wage, working time, leave, health and safety and supplements. With long-term postings, the range of host-state rules that apply widens further.

Social insurance generally continues to be paid in Slovakia during a posting if an A1 form confirms it. Income tax is assessed under double taxation treaties and the 183-day rule, so the employee may pay contributions at home and tax abroad.

How it works in practice

Before a posting we check with the client whether it is really just a business trip, and prepare the necessary steps: applying for the A1 form, notifying the posting to the host state’s authorities, documents that must be available on site, and comparing pay with the host country’s requirements.

In payroll we check that pay meets the host state’s minimum wage and supplements and how travel allowances count. Some countries do not count allowances towards pay, in which case pay must be topped up.

On longer projects we also assess the risk of the Slovak company creating a permanent establishment abroad, which would make the company itself liable to tax there. For construction projects this depends on how long the site lasts.

What to watch out for

Failing to notify in the host state or paying less than local rules require leads to heavy fines and sometimes a ban on providing services. Inspections on building sites and in industry are frequent in neighbouring countries.

Posting must be distinguished from agency work and from work the employee does for a foreign company under its direction. Different rules apply in those cases, and misclassification can mean paying contributions abroad retroactively.