Many people believe that if they have their own IČO and issue invoices every month, this automatically qualifies as a full-fledged business. However, Slovak authorities are increasingly cracking down on the so-called “švarcsystém”—a situation where a formally self-employed individual works exactly like a regular employee.
What the Inspection Determines
According to the Labor Code, it doesn’t matter what your contract is called or whether you send invoices regularly. What matters is the actual nature of the work.
If you work in a so-called subordinate position—that is, if you must follow your supervisor’s instructions, personally carry out assigned tasks, and act on behalf of the company—these are signs of dependent employment. The law permits such activities to be performed exclusively within the framework of traditional employment relationships, not through a business license.
When Is It a Legal Business, and When Is It a Risk?
However, the mere duration of the collaboration or the fact that you invoice a single client does not automatically constitute a violation of the law.
You can have just one client. The law does not set a minimum number of clients you must have as an entrepreneur.
What matters is your independence. If you organize your work independently and negotiate deadlines and prices, this constitutes a standard business contract.
The tools themselves aren’t the deciding factor. Using a company laptop, working on the client’s premises, or being paid by the hour do not in and of themselves violate the law, provided you have the freedom to carry out your tasks.
The labor inspectorate evaluates the overall nature of the collaboration. However, if it turns out that the entrepreneurial activity is merely a means to avoid payroll deductions and conceal regular employment, fines may apply not only to the companies themselves but also to their supplier partners.
