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Mobility control (not only) after the corona crisis

The COVID-19 pandemics significantly affected the place of work of many employees. Home office has become a „new normal“ in many companies but it also brings several risks and the respective legislation and its interpretation is being constantly amended.


Remote work brings several risks, especially if performed from a country other than the employer‘s registered. Many assignments have been stopped, canceled or extended. The obligations need to be re-assessed after each change.

Legislative regulation in cross-border situations is complex. It includes the income tax legislation, labor law, social and health security, EU legislation and local legislation in home and host country.

The legislation is being constantly amended and the obligations are still increasing.

What are the risks of non-compliance?

  • Fines levied to the company or employee, in case of audits/inspections
  • Higher or lower net income paid to the employees
  • Cash flow issues
  • Impact on employees’ trust and their dissatisfaction
  • Potential impacts on corporate income taxes („PE“ risks)

We recommend that you check out your obligations via the quick review:

  1. Do you have posted/assigned employees to Slovakia/ from Slovakia?
  2. Do you have employees with responsibilities in several countries?
  3. Do you have employees residing outside the territory of Slovakia, for example in the border areas of
  4. Austria, Hungary or The Czech Republic?
  5. Due to COVID-19, do some of your employees work from a different country than it was originally agreed?
  6. Does the company have foreign directors, head of PE or branch, etc.?

Should you say Yes to any of the above question we recommend review of your obligations. In order to avoid any inconveniences we state the following solutions:

  • Review the set up of assignments or home office in cross-border situations and itscompliance with the legislation
  • Assistance in review of annual tax clearing option for the employees
  • Review calculation of taxes, contributions or travel allowances
  • Assist with other payroll and reporting obligations
  • Make sure that you keep payroll for all individuals where it is needed (even if they legally employed by another entity)
  • Assist with set up of prepayments in more complex situations
  • Preparation of documentation, employment contracts, assignment letters
  • Assistance in case of audits or inspections
  • Training of your HR or payroll department

If you are not sure whether your company complies with the respective legislation, please contact us and we will be glad to advise you.


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