Dependent work (závislá práca): when a “self-employed” contractor must really be an employee

The definition in the law

Section 1(2) of the Labour Code says: dependent work is work performed in a relationship of superiority of the employer and subordination of the employee, personally by the employee for the employer, according to the employer’s instructions, in the employer’s name.

Section 1(3) adds an important rule: dependent work may be performed exclusively in an employment relationship, a similar working relationship or, exceptionally, in another labour-law relationship (agreements on work performed outside an employment relationship, dohody o prácach mimo pracovného pomeru). It may not be performed under a civil-law or commercial-law contract — so not under a sole trader licence (živnosť) through a contract for work or a cooperation agreement either.

How the individual features are assessed

The law does not explain the features any further, so in practice the labour inspectorate and the courts assess them according to the actual situation. The questions below are an aid, not a statutory test:

Feature	Points towards dependent work	Points towards a business
Superiority / subordination	The client sets working hours, approves time off, checks attendance	The supplier decides when and how to do the work
Personal performance	A specific person must do the work and cannot send a substitute	The supplier can use its own people or a subcontractor
Instructions	Ongoing instructions on how to do the work	An agreed result; the method is up to the supplier
In the client’s name	Presents as a member of the client’s team (e-mail, business card, uniform)	Acts under its own name and has its own clients
Supporting indicators	The client provides the tools, a flat monthly fee regardless of results, a single client	Own tools and equipment, a price for the result, several clients, business risk

A single feature does not usually decide the matter on its own — the overall picture does.

Consequences

Under Section 2 of Act No. 82/2005 Coll., dependent work performed outside a labour-law relationship is illegal employment. The labour inspectorate can fine the employer from €4,000 to €200,000; where two or more people are employed illegally at the same time, at least €8,000 (Section 19(2)(a) of Act No. 125/2006 Coll.). An individual who performs illegal work risks a fine of up to €331.

On top of the fine, the law expects the wages, taxes and insurance contributions that would have been paid under proper employment to be paid.

Exception for close relatives

Section 2a of Act No. 82/2005 Coll. exempts, under certain conditions, work by close relatives for a sole trader or a small s.r.o. (a relative in the direct line, a sibling or a spouse who, for example, is insured or receives a pension). The conditions are precise — check them in the current version of the Act before relying on the exception.