Agreements on work performed outside employment: DoPČ, DoVP, DoBPŠ

Besides standard employment, the Labour Code also allows people to be engaged on the basis of agreements. Agreements on work performed outside employment are a flexible tool for seasonal, occasional or student work, but they have their own rules on scope, pay and contributions. Knowing the differences between the individual types is key to choosing the right form and avoiding problems in an inspection.

What types of agreement are there

The law distinguishes three basic types of agreement, each with its own use, limits and range of persons with whom it may be concluded. Confusing them can lead to invalidity or to penalties.

• Agreement to perform work (dohoda o vykonaní práce, DoVP) – for a task defined by its result,
• Agreement on work activity (dohoda o pracovnej činnosti, DoPČ) – for regular activity of limited scope,
• Student temporary work agreement (DoBPŠ) – for students only.

When to use which agreement

The DoVP is suited to one-off work defined by its result, with a limited annual number of hours. The DoPČ is suitable for repeated, regular activity, with a limit on hours per week. The DoBPŠ is intended exclusively for students with a confirmation of study and, if the conditions are met, also gives them a contribution exemption. Choosing the right type depends on the nature of the work, how regular it is and who will be doing it.

Pay and contributions under agreements

Pay under an agreement must not be lower than the minimum wage converted to an hourly rate, and agreement workers are also entitled to certain wage supplements in the same way as employees in employment. Contributions to the Social Insurance Agency (Sociálna poisťovňa) and to the health insurance company are generally paid on agreements, and for students and pension recipients a deductible allowance for contributions can be applied. As the limits and amounts change, always check the current figures before concluding an agreement.

The employer’s obligations under agreements

Even with agreements, the employer must conclude a written agreement, register the agreement worker with the insurance institutions, keep records of hours worked and comply with the rules on annual leave and pay, which have become noticeably stricter for agreements in recent years and have moved closer to those for employment.

1. conclude a written agreement with all the required particulars,
2. register the agreement worker with the Social Insurance Agency,
3. keep working time records,
4. pay the remuneration and contributions on time.

What to watch out for

Agreements on work performed outside employment must not be used to disguise permanent employment that has the characteristics of dependent work. Exceeding the hour limits, incorrect registration with the insurance institutions and neglected records are among the most common failings that an inspection uncovers and penalises.

Termination and records of agreements

Agreements are concluded for a fixed term or for the performance of a defined task, and their termination must likewise be properly recorded and the agreement worker deregistered from the insurance institutions. Throughout the entire term, the employer should keep records of hours worked, which serve as the basis for pay, contributions and any annual leave. When the same person is repeatedly engaged under an agreement, it is advisable to consider whether the nature of the work already amounts to employment. Thorough administration and correct registration protect the company against penalties and at the same time give the agreement worker certainty that their insurance and entitlements are settled correctly. It therefore pays to have the processes around agreements set up just as precisely as for core employees.

If you engage people under agreements and want your administration and contributions in order, Bilvao’s payroll team will set up the whole process for you.

Related articles: The minimum wage and its impact on the employer’s costs, Wage deductions and enforcement: how to proceed, Travel allowances for domestic and foreign business trips.

Frequently asked questions

Are contributions paid on an agreement?

In most cases, yes. For students under a DoBPŠ and for recipients of certain pensions, a deductible allowance for contributions can be applied. Check the current limits and amounts, as they change regularly.

Are agreement workers entitled to annual leave?

Yes, since the rules were tightened, agreement workers are entitled to annual leave in the same way as employees, provided the conditions are met. The extent depends on the hours worked, which is why accurate records are important.