SLP 02 (2013)

never reach social security and employee benefits schemes. 1372 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. 1373 It’s no wonder because the administrative demands for starting an enterprise, 1374 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 1375 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. 1376 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 1377 linked with measures aiming at a higher protection of 1372 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. 1373 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. 1374 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). 1375 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. 1376 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. 1377 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-

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