Substitute Fulfilment – A Way to Comply with the Law and Save Money
Pay contributions to the state or save money and still receive a service in return? This is a question every company with more than 20 employees asks itself if it is not yet familiar with the concept of substitute fulfilment. We have a solution — but let’s start from the beginning.
According to § 63, paragraph 1, letter d) of Act No. 5/2004 Coll. on Employment Services, an employer (private or state-owned company) with 20 or more employees is required to employ people with disabilities in a number equal to at least 3.2% of its total workforce. If the employer fails to do so, it is obliged to pay an annual contribution to the state for each unfilled position in the amount of €1,423.
Not Every Company Can Employ People with Disabilities
That’s why the law allows companies to meet the required quota of employing people with disabilities through what is known as substitute fulfilment — in simple terms, by purchasing products or services from a sheltered workshop. This way, your company fulfils its legal obligation while saving money compared to the contribution you would otherwise have to pay to the state. For each such unfilled position, you can save up to €158 in 2022 through substitute fulfilment. Moreover, not only do you save money, but you also receive a service in return.
At the Anatex Sheltered Workshop, You Bring Joy Twice
We will supply you with promotional products featuring your company logo or slogan and issue an invoice that fully meets the requirements for substitute fulfilment. This way, you bring joy twice – first by giving promotional gifts, and second by supporting a sheltered workshop, thus helping people with disabilities.
We are a fully Slovak sheltered workshop. We have been selling promotional products since 1994, so you can be sure we’ll choose the ones that set you apart from the competition. Thanks to the most modern marking technologies, your investment will be not only cost-effective but also long-lasting.
Substitute Fulfilment Saves You Money Depending on the Number of Employees
In 2022, for each person with a disability your company does not employ, you would have to pay the state €1,423. However, with our sheltered workshop, you only need to place an order worth €1,265 and you immediately save up to €158 for each unfilled position. You save money and also receive promotional products in return.
With us, you are guaranteed to receive 100% of the substitute fulfilment value for the supplied promotional products and services. The confirmations we issue have been fully recognised by the Labour, Social Affairs, and Family Office (ÚPSVaR), exactly as agreed with our clients. The administrative process is simple, and we provide all the necessary documents.
Please note that substitute fulfilment cannot be applied retroactively, and the invoice must be paid by the end of the calendar year. Therefore, do not leave the purchase of promotional products until the last moment.
ANATEX Sheltered Workshop
When we hear the term “person with a disability,” most of us imagine someone in a wheelchair, missing a leg or an arm, and dependent on the help of others.
Out of compassion, we try to avoid the thought that something similar could happen to us. However, that is only an initial fear. Upon deeper reflection, we realise that disability encompasses a wide range of physical and mental conditions which may limit individuals in performing certain activities, but do not necessarily make them dependent on others.
Work Is a Very Important Part of a Person’s Life
It allows people to improve their standard of living, provides a sense of dignity, and gives meaning to life. The same applies to people with disabilities. Through work, they experience self-fulfilment and become integrated into everyday life among healthy individuals.
Society should change its perspective on people with disabilities. They should not be viewed as individuals who cannot take care of themselves, lack independence, or are reliant on the help of others. In many cases, the opposite is true — they are capable of taking care of themselves and managing their own lives. What they need is a fair chance.
We applied for the status of a Sheltered Workshop in 2009. Why did we apply for it? Because we wanted to give people with physical disabilities the opportunity to work — and we are proud of that.
Thanks to your support, people with disabilities working in our sheltered workshop can live full and meaningful lives.
Substitute Fulfilment – Frequently Asked Questions
Unfortunately, it is not possible. The service must be ordered and paid for within the calendar year for which you are claiming the substitute fulfilment.
The documents can only be issued by a sheltered workshop, and they must be submitted to the Labour, Social Affairs and Family Office together with the following:
- a photocopy of the order or contract confirming the placement of the order
- a photocopy of the invoice issued by the sheltered workshop
- a photocopy of the proof of payment (bank statement, cash receipt, or expenditure voucher)
- a photocopy of the certificate confirming the status of the sheltered workplace
- a completed confirmation form for the employer
The main activity of the sheltered workshop is the key factor in determining whether services, products, or goods can be included in the 100% or 10% eligibility rate for substitute fulfilment. Our sheltered workshop operates in a field that allows for 100% substitute fulfilment.
A product (eligible for 100% substitute fulfilment) is defined as an item that was primarily created through the activity of the sheltered workshop or significantly altered (in shape, purpose, or functionality) by its work. Everything that has been purchased and cannot be considered a semi-finished product, raw material, or component is treated as goods, and its value is counted at 10%.
With us, you receive a guarantee that your substitute fulfilment fully complies with current legislation, ensuring that you can defend your confirmation without any objections during any inspection.
Yes, if the promotional items were purchased through a sheltered workshop. However, there is one difference – you can include only 10% of the total value of the promotional products in substitute fulfilment.
Law on Sheltered Workshops and Substitute Fulfilment
Contribution for Non-Compliance with the Mandatory Employment Quota of Persons with Disabilities
According to § 63, paragraph 1, letter d) of Act No. 5/2004 Coll. on Employment Services and on Amendments to Certain Acts, as amended, an employer is obliged to employ persons with disabilities under § 9, paragraph 1 of the Act if they employ at least 20 employees and if the Labour Office has, in its register of job seekers, a sufficient number of persons with disabilities under § 9, paragraph 1, letter a) of the Act, representing 3.2% of the employer’s total number of employees.
Person with a Disability
For the purposes of this Act, a person with a disability is defined as an individual recognised as disabled under § 71 of Act No. 461/2003 Coll. on Social Insurance, as amended by Act No. 310/2006 Coll., and Act No. 328/2002 Coll. on Social Security of Police Officers and Soldiers, as amended. A person with a disability proves their disability and the percentage reduction in their ability to work due to a physical, mental, or behavioural disorder by presenting a decision or notification from the Social Insurance Agency or an assessment from the Social Security Department under Act No. 328/2002 Coll.
Employer’s Obligations When Employing Persons with Disabilities
The employer is required to:
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provide suitable working conditions for employees with disabilities,
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ensure training and preparation for work, and focus on increasing their qualifications,
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maintain records of employees with disabilities,
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employ persons with disabilities in a number representing 3.2% of the total workforce if they employ at least 20 people and if such individuals are available in the Labour Office registry.
An employer who employs a person with a disability whose ability to work is reduced by more than 70% due to a long-term adverse health condition may count this employee as three persons for the purposes of meeting the required quota.
The total number of employees for this calculation is the average annual number of physical employees. Employees working abroad are not included.
The calculated and actual numbers of persons with disabilities are rounded up from 0.5.
The employer must prove compliance with the quota for the previous year by 31 March of the following calendar year using the prescribed form (“Annual Report on Compliance with the Employment Quota of Persons with Disabilities”).
Placing Orders to Meet the Employment Quota
An employer may also meet this obligation by assigning suitable work or orders to sheltered workshops or self-employed persons with disabilities.
To count as one person with a disability, the order must equal at least 0.8 times the total labour cost based on the average wage in the Slovak economy for the first to third quarters of the preceding year.
Employers who are not VAT payers include VAT in the price; VAT payers exclude the deductible portion.
Proof of compliance must be submitted by 31 March of the following calendar year.
Purchasing Goods or Services for the Quota
The obligation may also be met by purchasing products or services from:
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sheltered workshops or protected workplaces,
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self-employed persons with disabilities,
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employers whose disabled employees were directly involved in the work.
To count one person, purchases must reach 0.8 times the total labour cost as defined above.
Contribution for Non-Compliance
Employers who do not meet the 3.2% quota must pay a contribution of 0.9 times the total labour cost per missing person by 31 March of the following year.
If the Labour Office had persons with disabilities registered for only part of the year, the contribution is reduced accordingly.
If an employer fails to comply, the Labour Office will issue a decision requiring payment. Employers can meet their obligation through any combination of the above methods.
