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Union leader warns revival of “Švarc system” would mean death of social state

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One of the government’s suggestions for combating the economic crisis is to revive the so-called “Švarc system”. It’s named after Miroslav Švarc, a Czech building contractor who laid off all his employees in 1990 and immediately re-hired them on a self-employed basis, thus saving both him and them lots of money in tax and social and health insurance.

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