279 / 284
277
never reach social security and employee benefits schemes.
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If these second class
workers won’t receive help, then there is the threat that the continuously growing
number of such second class workers will, from some point onwards, lead to lower
social standards also in the case of the “real” workers.
In everyday life, the agreements to complete a job are being favoured – especially due
to tax and insurance reasons.
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It’s no wonder because the administrative demands
for starting an enterprise,
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running it further and the price of own workers (both
wages and other expenses) is very high in the Czech Republic. Both employers and
sometimes also highly qualified employees
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are looking for legal (and illegal) ways
to save money and not to “give the emperor his due amount”. In Europe, as well as
on other continents, the liberalization of business, investments and capital as well
as the ongoing demographic shifts linked with work migration put an ever growing
emphasis on the respective countries’ and national employers’ competitiveness. Thus,
it is very important to balance the protection of a nation’s income and the labour law
position of an unqualified and less paid worker through the concept of illegal work on
the one hand and innovations in employer sphere and entrepreneur relations on the
other hand.
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Strengthening the employment protection of second-generation of pseudo self-
employed people would certainly lead to a decrease in this self-employment activity’s
(the so-called second generation) popularity. A demonstrably negative impact on
business life in Germany
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linked with measures aiming at a higher protection of
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Abroad, the notion of „permatemps“ is coming into use to describe this category. It is a combination
of two English collocations, “a permanent employee” on the one hand and „a temporary one“, i.e.
permanently temporary employer.
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Compare the finding of the Supreme Administrative Court enlarged senate’s finding from 16. 11. 2010,
reference number 6 Ads 48/2009-87, published under Nr. 2216/2011 Sb. NSS, and especially pt. 21 of
this finding.
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According to the Doing Business ranking that evaluates how easy entrepreneurship is in within different
countries, the Czech Republic gained rank 64 out of 183 evaluated countries. As far as the easiness
to start of a business is concerned, the Czech Republic even ranked only at the 138. place delivering
thereby the worst result of all EU member states. Doing Business 2012. Regional Profile: European
Union. The World Bank, Washington. 94 p. Available at
http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Profiles/Regional/DB2012/DB12-European-Union.pdf
(Cit.: 23. 5. 2012).
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Especially because they cannot deduce from the personal income tax base the expenses incurred in
the acquisition, safeguarding and maintenance of taxable income; they cannot deduce from the tax
base their tax losses (§ 34 zákona o daně z příjmů
[Act on Income Tax]
) nor can they determine the tax
via a flatrate-amount. Compare: judgement of the Supreme Administrative Court from 19. 11. 2009,
reference number 5 Afs 108/2008-48.
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For further information on the legality of outsourcing, see e.g. The Czech Constitutional Court’s finding
from 31. August 2004, file number II. ÚS 69/03.
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For comparison, see the following report: BVK, CDH, DIHK Practical experience report on
Economically dependent work/Parasubordination: legal, social and economic aspects, Bonn, Berlin
18. 7. 2002. A more general approach can be found in: Perulli, A.: Economically dependent / quasi-