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๐Ÿ‡ธ๐Ÿ‡ฐ Slovakia /Economy & Trade

SaS Proposes Allowing Family Aid in Companies with Multiple Partners

From SME · () Slovak

Translated from Slovak and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Slovakia's opposition party SaS proposes amending the law on illegal work to allow family members to assist in limited liability companies without employment contracts, even if there are more than two partners.
  • The proposed change aims to resolve conflicts with current law where natural family assistance can become illegal during generational company transfers.
  • SaS plans to submit the proposal next week, emphasizing it will significantly help family businesses without impacting the state budget.

The Freedom and Solidarity (SaS) party is championing a practical solution to a growing problem for Slovak family businesses. Currently, the law on illegal work creates a bureaucratic hurdle, preventing natural family assistance within companies that have more than two partners. This is particularly problematic during generational transitions, where parents might want to help their children manage the family firm but are blocked by outdated regulations.

SaS's proposal, presented by Monika Naฤovรก Kroลกlรกkovรก, focuses on allowing close relativesโ€”those who are pension-insured, pensioners, or students under 26โ€”to help out without a formal employment contract. This isn't about circumventing labor laws for profit; it's about enabling the organic transfer of knowledge and support within family enterprises. Many founders, having passed ownership to their children, wish to remain involved in a mentoring capacity, and this change would facilitate that.

Today, the law allows family assistance only in companies with a maximum of two partners. But if during generational change the company passes to three children, suddenly the natural help of a parent in the company can come into conflict with the law.

· Monika Naฤovรก KroลกlรกkovรกExplaining the current legal limitations that the proposed amendment seeks to address.

This initiative highlights a key difference in how family businesses are viewed and supported in Slovakia compared to some Western economies. Here, the family unit is often intrinsically linked to the business's continuity and success. The SaS's proposal recognizes this reality, aiming to remove legal obstacles that hinder this natural progression. It's a common-sense measure that directly addresses concerns raised by entrepreneurs themselves, promising significant benefits for family firms without imposing any cost on the state budget.

This is a measure that does not affect the state budget, but it will significantly help family businesses.

· Monika Naฤovรก KroลกlรกkovรกHighlighting the economic benefit of the proposed amendment for family firms.
About this summary

Originally published by SME in Slovak. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.