Upcoming Changes of Labor Code

An amendment to the Labor Code by the Ministry of Labour and Social Affairs introduces some important changes.

 Delivery rules

The current inconsistency between the Labor Code and the delivery conditions of the Czech Post office causes serious problems in the delivery of termination notices. This often leads to legal disputes. The amendment shall now bring the delivery process in compliance with the delivery conditions of the Czech Post office. In particular, the period for collection of a document deposited at the post office as the addressee has not been reached, shall be adjusted. Further, an acceptance rejection of a document shall no longer be recorded in writing. Finally, the employee will be responsible for the delivery address notified to the employer.

Transfer of Employees

Clarity shall also be enhanced in the transfer of employees as part of the sale of the enterprise of a company. Currently, the transferee has no certainty regarding the number and composition of transferred employees prior to the effective date. The employees are entitled to serve a termination notice at any time before this date. Should the employee in the future wish to terminate the employment agreement he or she will have to serve a termination notice within 15 days as of the information about the transfer. As a result, a smooth continuation of business operation shall be facilitated.

Further Interesting Changes

The employer may temporarily transfer the employee to another employer already one month after commencement of the employment relationship instead of the current 6 months.

A fixed mechanism for the valorisation of the minimum wage and determination of the guaranteed wage shall be established.

A shared working position shall be introduced for part-time employees at the same working position. Such employees could rotate on the working position according to their arrangement. They may fill the respective working position on a shared basis.

Effectiveness

The effectiveness of most of the changes has been proposed to be as of July 1, 2019. However, the amendment is still subject to the legislative process. It is currently in the parliamentary consultation proceedings. Therefore, its final wording might substantially change. We will keep you posted.

JVa

Mgr. Ing. Jan Valíček