Employment Law Overview 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 the employment relationships‘ participants. The Labour Code is quite strict when it comes to key points in employment relationships, mainly establishment and termination. The Czech employment laws can be in general described as quite protective of the employee, as the employee is considered the weaker party in the relationship. Equal treatment and restriction of any type of discrimination are considered the main principles of the Labour Code.

Key Points

• Termination of employment is only possible due to the reasons stated in the Labour Code and statutory notice period is 2 months (longer period can be agreed).
• The law and the labour courts usually tend to protect employees.
• The written form with a handwritten signature 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 (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 market standard.
• Trade unions might be established if there are more than 3 employees in the company and Trade union representatives are protected (mainly 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

Parliament is now debating a new, so-called flexible amendment to the Labour Code. It is scheduled to come into effect on 1 January 2025.. Among other things, the notice period, which is currently two months and starts on the first day of the following month after the notice is delivered, should commence immediately upon delivery. Additionally, the amendment plans to allow for a shorter, one-month notice period in cases of breaches of discipline or failure to meet job requirements.

The amendment also extends the maximum trial period from three to four months for regular employees, and from six to eight months for managerial positions. Flexibility is further introduced for employees returning from parental leave. Employers should be obligated to offer the same job to those who return within two years of their child’s birth (as parents in Czechia are entitled to parental leave until the child is three years old). Employees will also be allowed to work for the same employer during their parental leave under different contracts than the employment contract, such as a DPP or DPČ (agreements on work performed outside an employment relationship), without restrictions on the type of work.

Moreover, the amendment introduces new opportunities for youth employment, permitting 14-year-old students to work part-time during summer vacations under specific conditions. It also allows employees to have more control over their work schedules, with a provision that permits them to arrange their own work hours if agreed so with the employer, a privilege that was previously limited to remote workers.