A social and economic phenomenon. How did the employment of tradesmen work on a massive scale? P. Varga for TA3

In the early 90s. years, a new phenomenon has emerged, the so-called employment of freelancers. It was exploited on a massive scale in Bohemia by the construction entrepreneur Švarc. The name Švarc system derives from his actions. Peter Varga, partner and attorney at Highgate Law & Tax, spoke about this system on Studio TA3.

You can watch the show here: https://www.ta3.com/relacia/958031/spolocensky-a-ekonomicky-fenomen-ako-fungovalo-v-masivnej-miere-zamestnavanie-zivnostnikov

We also organised a conference on this topic, which also made a lot of noise in the media.

Yet this is a complex and partly controversial topic, which can:

• save employers double digits in “wage” costs,
• but also expose some to criminal liability.

Marketing for this conference was also created by the government, which announced tougher penalties for illegal “employment” of tradesmen. However, some such arrangements are fully legal and we tried to explain when and why at the conference. However, you need a comprehensive legal and tax perspective on this.

A recording of the conference can be found here: https://highgate.sk/produkt/videozaznam-z-konferencie-svarc-system-18-4-2024-cela-konferencia/

If you are interested in this topic, please do not hesitate to contact us:

• Peter Varga, e-mail: peter.varga@highgate.sk

For more on the Švarcsystem in the legal, regulatory and tax and tax area, please see this section of our website: ‘Employing’ sole traders (Švarc system)

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Alternatively, you can address your specific questions in a consultation with our partner Peter Varga, who specializes in financial regulation (including cryptoassets) and tax law. You can book a consultation here: