Tomas: Labour Ministry Plans to Tighten Rules for Social Enterprises

Bratislava, 28 October (TASR) - In order to tighten the rules for social enterprises, the Labour, Social Affairs and the Family Ministry has submitted an amendment to the Act on social economy and social enterprises for interdepartmental review, Labour Minister Erik Tomas (Voice-SD) told a press conference on Tuesday. According to him, the amendment could take effect as early as on 1 January 2026 because the ministry plans to submit it to Parliament under a fast-tracked legislative procedure in November. "The aim of this amendment is to set new conditions for the functioning of social enterprises so that we can drive cheaters away from the market — and we admit they do exist — while at the same time not stifling enterprises that employ people who would otherwise find a job with great difficulty," said Tomas, adding that more than 600 social enterprises are currently operating in Slovakia. The changes that the labour ministry proposed in cooperation with the Alliance for Social Economy in Slovakia (ASES) have also been consulted with the Supreme Audit Office. One of the changes is that in case social enterprises fail to integrate employees internally or on the labour market in general, they will have to return a proportional part of the compensatory contribution they received from the state. Also, the maximum contribution from the state per such employee will be capped at the minimum wage level at €915. A newly-established social enterprise will have to meet the quota for the placement of disadvantaged employees within four months, as opposed to the currently applicable period of one year. Profits can be retained by social enterprises in a special fund for two years, instead of five, and if the profit is not used within the set time limit, it will be forfeited to the state. Also, social enterprises will be able to outsource the contracts only up to 20 percent of their value. Oversight will also be significantly strengthened, with the ministry planning to inspect between five and ten percent of all enterprises annually. Furthermore, the value-added tax rate should be increased from 5 to 19 percent. "We expect the number of social enterprises to decline, as I believe this will deter cheaters. Some enterprises may also cease to exist if they are unable to meet the new conditions," concluded Tomas. jrg