Atypical Employment in Slovakia: Past Atypical Employment in Slovakia: Past and Recent Trendsand Recent Trends

Hanzelova, EnekeHanzelova, Eneke

Kostolna,ZuzanaKostolna,Zuzana

Institue For Labour and Family ResearchInstitue For Labour and Family Research

Slovak Republic Slovak Republic

ContentContent

► Historical context of atypical forms of workHistorical context of atypical forms of work

► Theoretical concept of atypical employment Theoretical concept of atypical employment

► Statistical data sources of atypical employmentStatistical data sources of atypical employment

► Current legal regulations of atypicalCurrent legal regulations of atypical employment inemployment in Slovakia Slovakia ► Recent development in atypical employment in Slovakia Recent development in atypical employment in Slovakia

► How onward in atypical employment: an open issuesHow onward in atypical employment: an open issues

Historical context of atypical forms of workHistorical context of atypical forms of work

Labour market features in the late 80´s and during 90´s :Labour market features in the late 80´s and during 90´s :► rigid labour regulationrigid labour regulation► prevalence of permanent employment and full-time workprevalence of permanent employment and full-time work► modest presence of non-standard employment such as modest presence of non-standard employment such as

flexible working time and part-time, flexible working time and part-time, ► absence of atypical types of work such as temporary agency absence of atypical types of work such as temporary agency

work, work from home, on-call work work, work from home, on-call work ► low liberty of labour contractlow liberty of labour contract► low level of work organization adjustment to employees life low level of work organization adjustment to employees life

cycles, their needs relating to family duties, education and cycles, their needs relating to family duties, education and care of dependent or aged family members as well as care of dependent or aged family members as well as employers requirementsemployers requirements

► rising tension between labour demand and labour supply rising tension between labour demand and labour supply

Unemployment development in Slovakia 1990 - 2002Unemployment development in Slovakia 1990 - 2002

Figure Registred unemployment in Slovakia (1990-2002)

0

100000

200000

300000

400000

500000

600000

´90 ´91 ´92 ´93 ´94 ´95 ´96 ´97 ´98 ´99 ´00 ´01 ´02

0%

4%

8%

12%

16%

20%

► Slovakia has experienced high Slovakia has experienced high unemployment rate since 1990; unemployment rate since 1990; unemployment rate has unemployment rate has increased from 1,6% in 1990 to increased from 1,6% in 1990 to 18,6% in 200118,6% in 2001

► Unemployment rate is double the Unemployment rate is double the European average European average

► Youth unemployment is Youth unemployment is extremely high; about 40% of extremely high; about 40% of total number of people at the total number of people at the age of 15-24 are unemployed age of 15-24 are unemployed

► High unemployment incidence in High unemployment incidence in Slovakia associates with low Slovakia associates with low level of labour market flexibility level of labour market flexibility including insufficient atypical including insufficient atypical employment expansionemployment expansion

Employment rates in Slovakia and V-4 (Eurostat, 2005 q2)Employment rates in Slovakia and V-4 (Eurostat, 2005 q2)

► Employment rate Employment rate in in Slovakia Slovakia is under is under European averageEuropean average

► Significant gender gap in Significant gender gap in employment rates; gender employment rates; gender disparity between male and disparity between male and female employment rates is female employment rates is more than 14%more than 14%

► Employment rate is below Employment rate is below Lisbon and Stockholm Lisbon and Stockholm employment targets to employment targets to 20102010

► Enhancing labour market Enhancing labour market flexibility is one of the flexibility is one of the tools to rise employment tools to rise employment raterate To

tal 6

4,1Me

n 71,8

Wom

en 56

,5

Total

65,2

Men 7

3,8W

omen

56,5

Total

57,3

Men 6

3,7W

omen

51,2

Total

53,7

Men 5

9,9W

omen

47,6

Total

58

Men 6

5,3W

omen

50,8

0

10

20

30

40

50

60

70

80

EU-25 Czech Republic Hungary Poland Slovakia

Theoretical concept of atypical employmentTheoretical concept of atypical employment

► Slovak legislation doesn't strictly determine an atypical work conceptSlovak legislation doesn't strictly determine an atypical work concept► Legal framework recognize atypical employment as departure from what Legal framework recognize atypical employment as departure from what

is considered to be ”typical” or normal. is considered to be ”typical” or normal. ► Employment situation that are typical in this sense are those where the Employment situation that are typical in this sense are those where the

workers:workers:

a) a) sell labour to an employer for a remuneration which depends on hours sell labour to an employer for a remuneration which depends on hours worked or the work done;worked or the work done;

b) work full time, according to a known schedule;b) work full time, according to a known schedule;

c) work continuously for one employer;c) work continuously for one employer;

d) are protected by labour legislation, collective agreements or laws with d) are protected by labour legislation, collective agreements or laws with social security guarantees;social security guarantees;

e) work in a place of work and with schedule determined by employer within e) work in a place of work and with schedule determined by employer within the terms of contract of employment.the terms of contract of employment.

Statistical sources of atypical employmentStatistical sources of atypical employment

Statistical data of atypical forms employment are provided by Statistical Statistical data of atypical forms employment are provided by Statistical Office of the Slovak RepublicOffice of the Slovak Republic

Main sources are:Main sources are:

1. Business Reporting - quarterly employment and wage reports monitoring 1. Business Reporting - quarterly employment and wage reports monitoring inter alia number of employees working on fixed- term contract, part-inter alia number of employees working on fixed- term contract, part-time basis and amount of hours workedtime basis and amount of hours worked

2. Labour Force Sample Survey - quarterly reports mapping atypical 2. Labour Force Sample Survey - quarterly reports mapping atypical employment since year 2003 (part-time work, temporary, occasional, employment since year 2003 (part-time work, temporary, occasional, seasonal work, shift work, night work, work from home)seasonal work, shift work, night work, work from home)

3. Ad hoc module “Work organization and working time arrangements” - 3. Ad hoc module “Work organization and working time arrangements” - single shot survey of atypical work curried out in the year 2004single shot survey of atypical work curried out in the year 2004

CurrentCurrent legal regulations of atypical employment in Slovakialegal regulations of atypical employment in Slovakia

► Responding to requirments of labour market flexibility and in order to alleviate Responding to requirments of labour market flexibility and in order to alleviate unemployment and boosting employment Slovak Government entered into unemployment and boosting employment Slovak Government entered into force (on 1 April 2002) New Labour Code ( further amended in July 2003). New force (on 1 April 2002) New Labour Code ( further amended in July 2003). New Labour Code replaced previous one of 1965. Labour Code replaced previous one of 1965.

► The most important changes brought by new Labour Code may be summarized The most important changes brought by new Labour Code may be summarized as follows:as follows:

1. Liberalization of labour relations - several types of non standard labour relations 1. Liberalization of labour relations - several types of non standard labour relations was legally designated:was legally designated:

• part-time contract concluded for less than 40 hours per weekpart-time contract concluded for less than 40 hours per week• part-time employment contract concluded for less than 20 hours per weekpart-time employment contract concluded for less than 20 hours per week• agreement on performance of work concluded for less than 20 hours per weekagreement on performance of work concluded for less than 20 hours per week• agreement on performance of work with a student for less than 100 hours per agreement on performance of work with a student for less than 100 hours per

weekweek

2. The overtime limits was increased up to 400 hours per year (previous regulation - 2. The overtime limits was increased up to 400 hours per year (previous regulation - 150 hours)150 hours)

CurrentCurrent legal regulations of atypical employment in Slovakia legal regulations of atypical employment in Slovakia (contunue)(contunue)

3.3. LLegal definitions of working time, shift work (morning, afternoon and night shift egal definitions of working time, shift work (morning, afternoon and night shift work), continuously working time and working readinesswork), continuously working time and working readiness

4. Legal regulation of temporary assignation was introduced (relationship among 4. Legal regulation of temporary assignation was introduced (relationship among employer, temporary employment agency and employee)employer, temporary employment agency and employee)

5. New ceiling for weekly working time up to 58 hours including overtime was 5. New ceiling for weekly working time up to 58 hours including overtime was established (previous overtime ceiling -150 hours)established (previous overtime ceiling -150 hours)

6. Legal stipulation work from home and home workers claims specification6. Legal stipulation work from home and home workers claims specification

Recent development of atypical employment in SlovakiaRecent development of atypical employment in Slovakia

The more common forms of atypical employment in Slovakia are:The more common forms of atypical employment in Slovakia are:► Temporary employmentTemporary employment► Part-time workPart-time work► Flexible working time Flexible working time ► Overtime workOvertime work► Shift workShift work

The less common forms are:The less common forms are:► Working from homeWorking from home► TeleworkingTeleworking► On-call workingOn-call working► Remote workingRemote working► E-workingE-working

Temporary employmentTemporary employment ► Employment in Slovakia can be constantly seen as uniform permanent Employment in Slovakia can be constantly seen as uniform permanent

employment; 94,6% of total employees holding indefinite duration employment employment; 94,6% of total employees holding indefinite duration employment contractscontracts

► Merely 5,4% of total number of employees are temporarily employed;Merely 5,4% of total number of employees are temporarily employed;► Slovakia has a lowest rate of temporary employment among Visegrad countries Slovakia has a lowest rate of temporary employment among Visegrad countries

(e.g. HU-7,6%,CZ-8,8%,PL-26,4%)(e.g. HU-7,6%,CZ-8,8%,PL-26,4%)► Temporary employment has a moderate gender dimension (5,6% for men and Temporary employment has a moderate gender dimension (5,6% for men and

5,1% for women)5,1% for women)► Temporary contracts are considerably concentrated among young peopleTemporary contracts are considerably concentrated among young people (one of (one of

three temporary employed is person at the age of 15 - 24 )three temporary employed is person at the age of 15 - 24 )► The proportion of employees with temporary contracts is highest for the lower The proportion of employees with temporary contracts is highest for the lower

educational level educational level ► A majority of temporarily employed individuals report that their status is A majority of temporarily employed individuals report that their status is

involuntary (65% of temporary employed report they unable to find permanent involuntary (65% of temporary employed report they unable to find permanent job)job)

► More than 80% of all temporary contracts have a duration under one yearMore than 80% of all temporary contracts have a duration under one year

Share of employees with temporary employment in Slovakia and V- 4 Share of employees with temporary employment in Slovakia and V- 4 (Eurostat, 2005 q3)(Eurostat, 2005 q3)

To

tal ;

14,

9

Men

; 14,

5

Wo

men

; 15,

4

To

tal ;

8,8

Men

; 7,9

Wo

men

; 10

To

tal ;

7,6

Men

; 8,4

Wo

men

; 6,7

To

tal ;

26,

4

Men

; 27

Wo

men

; 25,

7

To

tal ;

5,4

Men

; 5,6

Wo

men

; 5,1

0

5

10

15

20

25

30

EU-25 Czech Republic Hungary Poland Slovakia

Part-time workPart-time work

► Persisting extremPersisting extremeely low level of part-time work (2,6% of total ly low level of part-time work (2,6% of total employment) in Slovakiaemployment) in Slovakia

► Strong gender dimension of part-time work: two of three part-time Strong gender dimension of part-time work: two of three part-time workers are womenworkers are women

► High proportion of old workers among part-time workers (around 40% High proportion of old workers among part-time workers (around 40% for workers aged more than 50 years)for workers aged more than 50 years)

► Part-time work is typical for workers with lower secondary and upper Part-time work is typical for workers with lower secondary and upper secondary education (70% among part-time workers attained secondary secondary education (70% among part-time workers attained secondary education)education)

► The proportion of part-time employment is highest in service sector The proportion of part-time employment is highest in service sector (80% of part-time workers are involved in services sector) (80% of part-time workers are involved in services sector)

Total 2,8%Men 1,3%

Women 4,7%

Total 2,1%Men 1,2%

Women 3,2%

Total 2,8%Men 1,6%

Women 4,2%

Total 2,6%Men 1,5%

Women 4,1%

0% 1% 2% 3% 4% 5%

1994

1999

2004

2005q3

Part-time employment in Slovakia as share of total employment

Part - time work in EU-25 and V-4Part - time work in EU-25 and V-4

► Slovakia has a Slovakia has a lowest rate of part-lowest rate of part-time work among time work among EU -25 countries EU -25 countries and Visegrad and Visegrad countriescountries

► Moreover 40% Moreover 40% part-time part-time employees are employees are working on part-working on part-time basis time basis involuntary and involuntary and prefer full-time prefer full-time employmentemployment

Tota

l 18

,0

Men

7,2

Wom

en 3

1,8

Tota

l 4,9

Men

2,1

Wom

en 8

,5

Tota

l 4,1

Men

2,6

Wom

en 5

,9

Tota

l 10,

8

Men

7,5

Wom

en 1

4,9

Tota

l 2,6

Men

1,5

Wom

en 4

,1

0

5

10

15

20

25

30

35

EU-25 Czech Republic Hungary Poland Slovakia

Reasons for accepting part-time jobReasons for accepting part-time job

satisfying for part-time job; 21%

health reasons; 20%

forced by employer; 21%

unable to find full-time job; 20%

other reasons (taking care of kids, school

attendance); 18%

Flexible working timeFlexible working time

► According LFS data 80% of employed in Slovakia work under steady According LFS data 80% of employed in Slovakia work under steady schedules ( fixed working time)schedules ( fixed working time)

► 20% of employed work under flexible working time e.g. flexi working 20% of employed work under flexible working time e.g. flexi working day, flexi week or month, working time by individual arrangement with day, flexi week or month, working time by individual arrangement with employer or working time determined by own work scheduleemployer or working time determined by own work schedule

► Flexible working time is one of widespread and common form of non-Flexible working time is one of widespread and common form of non-standard work in Slovakia standard work in Slovakia

► Surprisingly slightly more men work under flexi working time than Surprisingly slightly more men work under flexi working time than women (21% of employed men against 19% of employed women) women (21% of employed men against 19% of employed women)

► Flexi working time is more frequent among workers in the public Flexi working time is more frequent among workers in the public administration sector (37%), construction (31%) and transport and administration sector (37%), construction (31%) and transport and communications (24%); on the other hand flexi working time is less communications (24%); on the other hand flexi working time is less frequent in education sector (12%)frequent in education sector (12%)

Working time arrangement (LFS, 2004 2q)Working time arrangement (LFS, 2004 2q)

80%

4,4%

6,5%

3,7%

3,8%

1,6%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Fixed working time

Flexible working day

Flexible working week ormonth

Working time by individualarrangement

Determines own workschedule

Another

Shift workShift work

► Analogous to flexy working time the shift work is more common type of Analogous to flexy working time the shift work is more common type of atypical work in Slovakiaatypical work in Slovakia

► The proportion of employees with shift work represents 24% of total The proportion of employees with shift work represents 24% of total employedemployed

► No gender differences in shift work: 24% men and 24 % women are No gender differences in shift work: 24% men and 24 % women are working on shift workworking on shift work

► Shift work directly connect to sector profile therefore the significant Shift work directly connect to sector profile therefore the significant number of employees with shift work is concentrated in hotels and number of employees with shift work is concentrated in hotels and restaurants (almost one in two employees), in heath sector and restaurants (almost one in two employees), in heath sector and manufacturing sectormanufacturing sector (two in five employees)(two in five employees)

► Typical shift worker in Slovakia is at the age of 25-49, with lower Typical shift worker in Slovakia is at the age of 25-49, with lower secondary or upper secondary educational attainment working as a secondary or upper secondary educational attainment working as a technician, craftwork or machine operatorstechnician, craftwork or machine operators

Shift work by sector (LFS, 2004 q2)Shift work by sector (LFS, 2004 q2)

12%

41%

2,3%

25%

45%

30%

6,7%

23%

15%

7,6%

40%

11%

0% 10% 20% 30% 40% 50%

Agriculture

Manufacturing

Construction

Trade

Hotels

Transport

Finance

Real estate

Public administration

Education

Health

Social services

Length of working week, overtime and night workLength of working week, overtime and night work

► Working hours worked weekly in Slovakia are considerably longer than in Working hours worked weekly in Slovakia are considerably longer than in the EU -15; the length of working week in Slovakia is longer for 3,4 hours the EU -15; the length of working week in Slovakia is longer for 3,4 hours compared to the EU-15 ( 41,2 hours in SK against 37,8 in the EU -15)compared to the EU-15 ( 41,2 hours in SK against 37,8 in the EU -15)

► While Slovak men are usually work weekly about 50 minuteWhile Slovak men are usually work weekly about 50 minuteeses longer than longer than their colleagues in EU-15, Slovak women work weekly about 7 hours longer their colleagues in EU-15, Slovak women work weekly about 7 hours longer than their counterparts in the EU -15 than their counterparts in the EU -15

► The longest working week in Slovakia is recorded in construction sector The longest working week in Slovakia is recorded in construction sector (43,9), hotels and restaurants (42,9) and transport (42,7) ; on the other hand (43,9), hotels and restaurants (42,9) and transport (42,7) ; on the other hand the shortest working week is in education sector (37,6)the shortest working week is in education sector (37,6)

► According LFS data 165 thousands workers worked overtime in 2005(q3), According LFS data 165 thousands workers worked overtime in 2005(q3), which represent 7,3% of workforce. Men are more exposed than women to which represent 7,3% of workforce. Men are more exposed than women to overtime work (9,1% men and 5,6 % women with overtime work).overtime work (9,1% men and 5,6 % women with overtime work).

► Share of overtime work slightly fell down since 2003, nevertheless the Share of overtime work slightly fell down since 2003, nevertheless the share of men with overtime work increased about 2,6% while the share of share of men with overtime work increased about 2,6% while the share of women with overtime practically remains unchanged women with overtime practically remains unchanged

Length of working week, overtime and night work (continue)Length of working week, overtime and night work (continue)

► According LFS data in 2005 every second worker in Slovakia work at According LFS data in 2005 every second worker in Slovakia work at night (22,5% of total workforce)night (22,5% of total workforce)

► Men are more exposed than women to night work (26,5% against 17,6%)Men are more exposed than women to night work (26,5% against 17,6%)

► Proportion of workers work at night of total workforce increased from Proportion of workers work at night of total workforce increased from 19,4% in 2003 to 22,5% in 200519,4% in 2003 to 22,5% in 2005

► While share of men working at night increased by 2,4% (from 24,1% in While share of men working at night increased by 2,4% (from 24,1% in 2003 to 26,4%in 2005); share of women working at night grew by 3,8% 2003 to 26,4%in 2005); share of women working at night grew by 3,8% (from 13,8% in 2003 to 17,6% in 2005)(from 13,8% in 2003 to 17,6% in 2005)

► 70% of those working at night perform its regular and 30% occasionally70% of those working at night perform its regular and 30% occasionally

Futher types of atypical workFuther types of atypical work

► According LFS data (2005 q3) 8,4 % of workforce work from According LFS data (2005 q3) 8,4 % of workforce work from home; of which 4% work form home regular and 4,4 % home; of which 4% work form home regular and 4,4 % occasionallyoccasionally

► Insufficiency of statistical data and information concerning Insufficiency of statistical data and information concerning such types of atypical working schemes as job- sharing, on- such types of atypical working schemes as job- sharing, on- call working, teleworking, e-working call working, teleworking, e-working

How onward in atypical employment: an open issuesHow onward in atypical employment: an open issuesAn examination of various aspects of atypical employment in Slovakia leads An examination of various aspects of atypical employment in Slovakia leads

to following conclusions:to following conclusions:

1. Improved legal regulations of atypical employment only slightly 1. Improved legal regulations of atypical employment only slightly contributed to increase labour market flexibility. For what reason?contributed to increase labour market flexibility. For what reason?

2. It seems that obctacles of non standard employment widespreading lie not 2. It seems that obctacles of non standard employment widespreading lie not only in legislation field however in the broader conditions i.e. wage, only in legislation field however in the broader conditions i.e. wage, working conditions, social security provisionsworking conditions, social security provisions

3. Employees are often suspisious considering atypical work synonymous 3. Employees are often suspisious considering atypical work synonymous with degrading of work or with precarious job with degrading of work or with precarious job

4. Atypical employment often associates to low wage, less favourable 4. Atypical employment often associates to low wage, less favourable working conditions, less access to training opportunities and less working conditions, less access to training opportunities and less chances for promotion chances for promotion

5. Atypical employment often connect to female work what bring potential 5. Atypical employment often connect to female work what bring potential risk of rising gender inequality on the labour marketrisk of rising gender inequality on the labour market

6. Futher atypical work schemes expansion in Slovakia will depend on 6. Futher atypical work schemes expansion in Slovakia will depend on improving working, social and pay conditions of non standard improving working, social and pay conditions of non standard employment.employment.