26. 10. 2023

Changes in the Czech Labour Code

What Still Needs to be Adjusted

After a long period of preparation and discussion, the Labour Code has finally been amended. We bring you the most important changes that employers have to apply from 1 October 2023.

The Amendment will affect both employment contracts and agreements for work performed outside the employment relationship (known in Czech as DPP and DPČ). There are also new regulations on home office and delivery in the Labour Code. We bring you the most important changes that employers will have to apply.

What do employers have to change?

I. Employer’s information obligation

With regard to employment contracts, the Amendment broadens the information that employers must provide to employees in the context of their employment relationship. Employers are now required to inform employees about various aspects, including professional development opportunities, the termination procedure, and the specific social security entity to which social security contributions are paid.

The period within which employees must be informed has also been reduced from 30 days to 7 days from the start of employment.

As regards agreements for work performed, the Amendment has expanded the employer’s obligations as well. Employers who hire employees under Agreements for Work Performed (DPP/DPČ) are now required to provide the employee with information about the employment relationship within the same time-frame. The scope of this information is essentially identical as that required for employment agreements.

In view of the shortened time limit, we therefore recommend that all existing employment agreements and internal regulations be reviewed and, if the new information has not been included, the missing information should be added.

II. Agreements for Work Performed (DPP and DPČ)

Employers are required to create a written working time schedule for their employees in advance and provide the employee with this schedule or any changes to it at least 3 days in advance. This requirement applies unless employer and employee mutually agree on a different notification period or the employee schedules their own working hours. If the working time has been agreed upon on a ‚fixed‘ basis, the employer must also inform the employee whether the working hours are spread evenly or unevenly.

For this reason, it will also be necessary to amend the wording of the agreement.

The Amendment now provides for an employee to request in writing to be employed in an employment relationship if the employee has worked for at least 180 days in the previous 12 months. If the employee makes a written request, the employer must provide a reasoned written reply within one month at the latest.

Additionally, the Amendment has established the right of an employee to request a written justification for the termination of their employment. This right can be exercised if the employee believes that the termination was based on their assertion of rights to information, requests related to the employment relationship, or requests for changes in working conditions, including situations involving maternity, paternity, or parental leave.

There is also a new obligation to pay employees extra pay/extra time off – e.g. for working on public holidays, night work, etc.

As of 1 January 2024, employees who work under one of the Agreements for Work Performed are entitled to holiday if they have worked the required number of hours.

III. Home Office regulation

The Amendment stipulates that the agreement to work from home must be concluded in writing. If work from home is agreed only verbally, a written agreement must be concluded.

The Amendment establishes rules for determining compensation for work from home, but also allows the employee to agree not to be compensated. The Amendment also introduces regulations regarding the termination of remote work arrangements. According to the law, terminating remote work is now permitted for any reason or no reason at all, with a 15-day notice period from the day of delivery (unless otherwise agreed upon). Additionally, the employer has the right to require the employee to work from home for a period strictly necessary in the event a public authority requests this.

By Mgr. Dagmar Junková

Download

G&P Newsletter 2/2023 (PDF)

Author

Mgr. Dagmar Junková

Mgr. Dagmar Junková

News & Publications

Martin Holler als Referent: Anwaltsfehler – und wie man sie vermeiden kann

Martin Holler als Referent: Anwaltsfehler – und wie man sie vermeiden kann

Martin Holler wird im Rahmen der Tagung "Anwaltsfehler - und wie man sie vermeiden kann" in Hamburg zum Thema Kommunikation mit Mandanten über anwaltliche Fehler refereieren.

The Legal 500 EMEA 2024: Giese & Partner Among Czech Leading Law Firms

The Legal 500 EMEA 2024: Giese & Partner Among Czech Leading Law Firms

According to The Legal 500 Europe, Middle East & Africa 2024 edition, which has just been released, Giese & Partner continues to be one of the leading law firms in the Czech Republic in the areas of real estate projects and banking, finance and capital market law.

Gesetz über präventive Restrukturierung in Tschechien in Kraft getreten

Gesetz über präventive Restrukturierung in Tschechien in Kraft getreten

Gegenstand dieses Beitrags ist die Darstellung der wesentlichen Leitlinien des PrevRestG und ein Vergleich mit dem StaRUG, soweit sich dieser anbietet.