Czech Republic: Major Contributions of the “Flexible Amendment” to the Czech Labour Code
Author: Klára Sleglova
The Czech Parliament has finally approved the so-called Flexible Amendment to the Czech Labour Code. The remaining final steps of the legislative process are for the President to sign the Amendment and subsequently, its official publication. It is meant to take effect on 1 June 2025. It brings significant changes to the Czech Labour Code, with the goal of increasing the flexibility of employment relationships.
Probation Period
Under the current legislation, the probation period is limited to a maximum of 3 months for regular employees and a maximum of 6 months for managerial employees. The Flexible Amendment extends these maximum limits to 4 and 8 months, respectively.
Notice Period
The Flexible Amendment further changes the commencement of the notice period. Under the current regulation, the 2-month notice period commences on the 1st day of the calendar month following the delivery of the notice and ends upon expiry of the last day of the 2nd month. The Flexible Amendment sets the beginning on the day when the termination notice was delivered and the end on the day that corresponds numerically to the date on which the notice period starts. Moreover, in cases of serious employee misconduct or failure to meet job requirements, the notice period is shortened to 1 month.
Parental Leave
The Flexible Amendment brings changes to statutory provisions concerning parental leave. Whilst on parental leave, employees will be able to enter into an agreement to complete a job or agreement to perform work for the same type of work for the same employer. Furthermore, if an employee returns to work before their child reaches 2 years of age, they are guaranteed the same job position as before. Employers may also re-hire temporary substitutes for employees on paternal leave for an unlimited number of repeating fixed-term contracts, provided the total duration does not exceed 9 years.
Other Important Changes
- The Flexible Amendment further extends the possibility to pay salary in a different currency if the employee has a substantial connection to a foreign country.
- Furthermore, employers will no longer pay the severance pay to employees terminated due to long-term work incapacity due to an occupational injury or disease. Instead, they will receive compensation from the employer’s insurance company.
The Flexible Amendment also introduces the possibility of children aged 14 being hired for so-called light work during the summer, subject to certain statutory conditions.
Key Action Points for Human Resources and In-House Counsel
- Soft skills deficiencies require clear, documented evidence for termination.
- Employers must substantiate claims with specific instances of performance issues.
- Subjective assessments of soft skills cannot justify dismissal.
