Author: Klára Sleglova
The year 2025 was abundant with crucial new developments in Czech labour law. Major landmarks include the Flexible Amendment to the Czech Labour Code, which came into effect as of June this year, and the adoption of the Act on Uniform Monthly Employer Report which represents a further step in making the administrative system for employers´ reporting obligations more efficient. Moreover, a lot of attention has been paid to the problem of disguised employment and the transposition of the Pay Transparency Directive.
1. Flexible Amendment to the Czech Labour Code
The Flexible Amendment addressed numerous topics within Czech labour law, bringing many substantial changes to the Labour Code. Among other changes, it revised the commencement and expiry of the notice period, extended probation periods, permitted 14-year-olds to work part-time during summer holidays, prohibited confidentiality clauses regarding salary, and guaranteed new rights to employees on parental leave. These examples of changes to the Labour Code illustrate only a part of the Flexible Amendment’s broader effort to increase flexibility in employment relationships.
2. Uniform Monthly Employer Report
The Act on Uniform Monthly Employer Report will become effective as of 1 January 2026, but the system itself will start running in April 2026. The Uniform Monthly Employer Report replaces more than 20 individual reports which employers have had to regularly deliver to different institutions. The Act seeks to alleviate this administrative burden by introducing a single monthly report submitted to the Ministry of Labour and Social Affairs, which is subsequently going to automatically distribute the data to authorised institutions. Another contribution of the Act introduces pre-filled tax returns for employees provided by the Financial Administration.
3. Disguised employment
The Act on Uniform Monthly Employer Report also connects to the topic of disguised employment, which has received considerable attention this year following reports of enhanced cooperation between the Labour Inspectorate and the Financial Administration in its detection. The Labour Inspectorate is already equipped with a wide range of tools, but as of this year, inspectors may also request relevant information about employers and self-employed persons directly from tax offices when in suspicion of disguised employment. Moreover, the Uniform Monthly Employer Report will also enable near real-time data sharing between the Ministry of Labour and Social Affairs and the Financial Administration. Therefore, the Financial Administration will be able to conduct more targeted tax audits.
4. Transposition of the Pay Transparency Directive
With the transposition period for the Pay Transparency Directive fast approaching, the professional community has also been discussing how the Czech Republic will implement this Directive. There is no official proposal from the Ministry of Labour and Social Affairs yet. However, in the meantime, the Ministry has launched a pilot project called Logib. Logib offers an analytical tool that enables individual employers to calculate precise pay differences between their male and female employees, including assessing equal pay in relation to the comparability of job positions.
Finally, as of 1 January 2026, the minimum wage has been increased to CZK 22,400 per month.
