You may be, in two ways. The law prohibits accepting work or services supplied through illegally employed people, for all supplies of labour and longer cross-border service provision; the customer faces a fine of up to EUR 200,000. If a statutory representative or managerial employee is proved to have known of the supplier's practices, a fine that could not be recovered from the supplier may also pass to the company. Protection comes from documents the supplier must provide by law and a properly drafted contract.
A subcontractor’s crew works on a building site, agency staff help in production, or a Polish company performs part of a contract through posted workers. If these people work illegally, the problem extends beyond their employer. In two situations, the law also places liability on the company that ordered the work or service.
The prohibition on accepting labour from an illegal employer
Act No. 82/2005 Coll. on Illegal Work and Illegal Employment prohibits the customer from accepting such work or services at all:
A legal entity or a natural person conducting business must not accept work or a service supplied or provided to it under a contract by a legal entity or natural person (the “service provider”) through a natural person whom the provider employs illegally, where this involves […] a domestic supply of labour or cross-border supply of labour.
— Section 7b(5) of Act No. 82/2005 Coll. (unofficial English translation)
A supply of labour means temporary assignment of employees, whether from a Slovak agency or abroad, and posting between a controlling and controlled company. The prohibition applies from the first day of cooperation. For cross-border services, it applies once the service exceeds 30 days within 12 months of its first provision. Breaching the prohibition exposes the customer to a fine with an upper limit of EUR 200,000.
When someone else’s fine passes to you
The second mechanism targets supply chains. If a fine for illegal employment or additional payments cannot be recovered from the supplier through enforcement, the payment duty passes to the company to which it supplied labour, goods or services, or to other companies involved in the supply (Section 7b(2) of Act No. 82/2005 Coll.).
Knowledge must be proved: the customer’s statutory body or managerial employee knew the supplier had breached the prohibition on illegal employment. This is why inspections examine emails, meeting records and whether the supply price could even have covered lawful labour costs. “We had no idea” stands up only if it matches how the relationship actually operated.
How to protect yourself
The strongest tool comes from the law itself: on request, the service provider must promptly supply documents and personal data concerning the people through whom it supplies the work or service, enabling the customer to check that they are employed legally (Section 7b(6) of Act No. 82/2005 Coll.). Refusal or delay in providing documents is a serious signal even before signing.
In supplier contracts, we therefore recommend combining a declaration of lawful employment, a right to request documents at any point during performance, a contractual penalty and a right to withdraw immediately on breach. For temporary employment agencies, also verify a valid licence for the activity; for foreign suppliers, check who actually directs and pays the workers.
How we can help
We review supplier and agency contracts and add protective mechanisms through contract review. If production relies on sole traders, our working with self-employed contractors service addresses the boundary between commercial cooperation and dependent work. If an inspection is underway, we represent you before the labour inspectorate.
Checking a supplier before signing costs a fraction of defending the position after an inspection.
This answer provides general information on the law as at 29 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
