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Social Benefit Fund – rules more flexible

Since 1 January 2017 come into force changes to the Act on the Company Social Benefit Fund. The aim of the legislator is progressively moving towards a more flexible compulsory nature of the legal regulation. Changes to rely mainly on the fact that from 1 January 2017 years the duty to create the Fund will fall on employers who hire will be at least 50 employees in FTE. (earlier this obligation rests on employers employing at least 20 employees).

While for employers who employ hundreds of employees formalized mode of Social Benefit Funds is not something extraordinary or excessively absorbing attention, so much for smaller employers, employing few employees, it might be a problem. Small businesses will try to bring as much as possible to reduce its formal obligations or to prevent their formation. Amendments to the Social Fund which comes into force on 1 January 2017 years meet these demands.

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