Labour and employment law in the Czech Republic

Introduction

 There are numerous laws governing employment relationships in the Czech Republic. The main one is the Labour Code, which establishes the rights and obligations of parties involved in employment relationships. The Labour Code is quite strict when it comes to key points in employment relationships, mainly the establishment and termination. The Czech employment law reflects a protective stance towards employees, acknowledging their relatively vulnerable position in the relationship. Czech employment law primarily upholds the fundamental principles of equal treatment and the prohibition of any form of discrimination.

Key Points

• Termination of employment is only possible for reasons stated in the Labour Code and statutory notice period is 2 months or exceptionally 1 month in specific cases (longer period can be agreed).
• The law and the labour courts usually tend to protect employees.
• The written form is generally required for the most important documents.
• What was agreed in the employment contract or other type of agreement cannot be unilaterally changed by the employer.
• The employees are entitled to numerous paid leaves and allowances arising from the Labour Code, including sick leave, maternity/paternity leave, wedding leave, etc., and overtime allowance, allowance for work on weekends and public holidays, etc.
• Minimum annual leave is 4 weeks, but 5 weeks is currently the market standard.
• Trade unions might be established if there are more than 3 employees in the company with trade union representatives enjoying protection, particularly from termination.

Legal framework

• The Constitution of the Czech Republic and the Charter of Fundamental Rights and Freedoms
• The Labour Code
• The Employment Act
• The Anti-Discrimination Act
• The Collective Bargaining Act
• Decree on certain obstacles to work on the part of the employee
• The Labour Inspection Act
• Laws regarding statutory social security/health insurance

New Developments

The Unified Monthly Employer Report has been introduced in the Czech Republic. It is a significant digitalization initiative aimed at replacing up to 25 separate forms previously submitted to various state institutions with a single consolidated electronic filing submitted on a monthly basis. The report is submitted through the Czech Social Security Administration between the 1st and 20th day of the month following the reporting period — the first submission covers April 2026, with a deadline of 20 May 2026. The obligation applies to all employers regardless of their size or legal form, and also covers employment under agreement-based arrangements. Employers are additionally required to submit retroactive reports for January, February and March 2026, with a deadline of the end of June 2026. Notably, the system does not cover health insurance — reporting obligations towards health insurance companies remain unchanged.

As of 1 January 2026, employers are required to contribute to employees’ pension savings if their work falls into the third risk category with respect to selected workplace risk factors. These include exposure to vibrations, cold stress, heat stress, or overall physical strain, where it involves dynamic physical work performed by large muscle groups. The classification of a job into the third risk category for the relevant factors is determined by the Regional Public Health Authority.

Furthermore, in the context of the implementation of the EU Pay Transparency Directive, a debate is currently underway regarding a proposed amendment to the Labour Code in this area. The draft amendment introduces, for example, a prohibition on employers inquiring about a job applicant’s remuneration in their current or previous employment, an obligation for employers to inform applicants about the salary and other monetary benefits that would be due in the event of concluding an employment contract, and a duty to establish a remuneration system specifying, in particular, the form, components, and structure of employees’ pay.