Employmeng Agency

Abstract

In Slovenia employment agencies are a relatively new institution, since it has been in existence since 1998. At the moment there are 69 agencies serving as agents procuring employment for emplo yees. The institution is the result of the search for balance in the area of the Employment and Industrial Relations Theory, i.e. to enable organisations to adapt as easily as possible to the situation on the global markets and to preserve the security of employment for the employees, the stability of the economic and the social situation, as well as the conditions for the employees’ professional and personal development. In their contribution the two authors present the results of a research on the basis of which in comparison to Italy, Austria and Germany Slovenia has a disadvantagous relation as far as taxes are concerned, since the companies are bound to pay the VAT on the full amount and not only on the agency’s commission. Due to this fact for those companies which are not able to realize the input VAT the service price increases by up to 30% (the commission, the VAT). The authors suggest a modification of the tax law so that following the example of the above-mentioned countries the VAT should only be charged on the commission or the government shall return it through the input VAT. Key words: flexibility, employment agency, concessionary agent