Temporarily assigned employees should have the same remuneration, including benefits, as regular staff

Labour and Immigration law

By: Veronika Odrobinová, Tereza Pitterlingová

In its judgment 21 Cdo 351/2024, the Supreme Court found that an agency employee’s claim for additional contributions to supplementary pension insurance during his temporary assignment was justified. The court reached the rather groundbreaking conclusion that pension insurance contributions are also part of the working and wage conditions within the meaning of Section 43a(6) of the Labor Code and are therefore subject to the principle of equal treatment between temporarily assigned employees and the user’s permanent employees. This contradicts, for example, the opinion of the expert panel of the Association for the Development of Collective Bargaining in Labor Relations and the methodology of the State Labor Inspection Office.

According to the Supreme Court, working and wage conditions cannot be interpreted solely as conditions narrowly defined in labour law regulations, but as all monetary payments and benefits that employers have undertaken to provide, for example, in their internal regulations. The decision represents a significant shift in the interpretation of the rights of agency workers and will have an impact on the widespread practice of employers using agency employment. It will therefore be necessary to reconsider the relatively established approach to what benefits to provide to agency employees and what benefits may no longer be necessary.

Strengthening the rights of agency employees in relation to employee benefits will result in higher wage costs for employers (agencies) who provide the relevant employee benefits to their agency workers. In any case, the same conditions for exemption from income tax apply to benefits for agency employees as for permanent employees, and agencies will have the same administrative obligations in their payroll records (e.g., reporting such benefits in a single monthly report, etc.) as regular employers.