Czech Republic: Flexible Amendment to the Labour Code

Author: Klára Sleglova

The Czech Ministry of Labour and Social Affairs has recently introduced an amendment to the Labour Code, aimed at enhancing the flexibility of employment relationships to better align with the evolving demands of the labour market. The proposed amendment is expected to come into effect in January 2025.

The Ministry presented the key points of the significant revision of the Labour Code addressing the concerns and suggestions submitted by representatives from both employers’ and employees’ representatives.

 

Notice and probation period

Under the revised provisions, if an employee is terminated due to a breach of employment obligations or a loss of the necessary qualifications to perform their job, the notice period will be shortened to one month, down from the previous two months. Additionally, the notice period will now commence immediately upon delivery to the relevant party, rather than waiting until the first day of the following month.

As for the probationary period, the maximum length of the probationary period is proposed to be extended from three to four months. For managerial positions, this period may be extended up to eight months.

 

Family and work life

The discussed amendment is further designed to enhance work-life balance for parents of young children. It seeks to enable parents on parental leave to enter into an agreement on work performed outside of employment with their employer for the same type of work agreed in their employment contract. This option is currently unavailable, as the law stipulates that the employee cannot engage in the same work through both an employment contract and an agreement on work.

In addition, the legislative proposes to encourage employees to return from parental leave sooner by guaranteeing that they can resume working in the same job position if they return within two years of their child’s birth. In the Czech Republic, parents are entitled to take parental leave until their child reaches the age of three.

 

Changes in working hours

The amendment extends the possibilities for flexible scheduling of working hours. Employees will be able to schedule their working hours on their own, provided this is supported by an agreement with their employer, both when working on-site and when working remotely.

 

Pay

The amendment also broadens the scope for parties to agree on salary payments in currencies other than the Czech one under various circumstances.

Key Action Points for Human Resources and In-House Counsel

• The amendment aims to enhance flexibility in employment relationships.
• Notice periods will be shortened, and probationary periods will be extended.
• Legislative changes should motivate parents to return from parental leave earlier.