Employment and Labor Law

On 7 March 2025, the Chamber of Deputies unanimously approved an amendment to the Labour Code in Czech Republic. The primary aim of the amendment is to increase flexibility in employment relationships. These changes were also approved by the Senate at the beginning of April, and therefore only the signature of the President of the Republic is missing. We predict that the amendment should enter into force on June 1, 2025. And because it is necessary to thoroughly prepare for many of the new features, in the following article we provide an overview of the changes that should not go unnoticed.

Probationary Period 

• The maximum length of the probationary period will be extended to 4 months for regular employees and 8 months for managerial staff. However, the probationary period must not exceed half the agreed duration of the employment relationship. 
• It will now be possible to extend the probationary period through a written agreement between employer and employee, provided the legal maximum length is not exceeded. 
• There is a new clarification regarding extension of the probationary period due to obstacles to work: it will be automatically extended by working days during which the employee did not work their full shift due to obstacles at work, paid leave or unexcused absence. Only scheduled working days are counted, not calendar days. 
• Breaches of obligations during the probationary period may now be subject to a fine of up to CZK 2,000,000. 
• These changes do NOT apply to probationary periods agreed before the amendment comes into effect. 

Fixed-term Employment for Qualified Substitutes 

The amendment introduces an exception to the ban on unlimited chaining of fixed-term employment contracts in cases where an employee is hired as a substitute for another employee who is absent due to maternity, paternity or parental leave, or long-term caregiving. 

• The general "twice and enough" rule (i.e., a fixed-term employment can be extended only twice, each time up to 3 years) will not apply in these cases. 
• However, the total duration of fixed-term employment in such cases must not exceed 9 years from the date of the first such contract. 

Termination of Employment 

Several important changes are introduced regarding notice periods: 

• The notice period will newly begin on the date of delivery of the notice and will end on the day of the same number two months later (or on the last day of the last month if such a date does not exist). As before, it does not matter whether the final day falls on a weekend or public holiday. 
• For example, if notice is delivered on 3 June, the employment ends on 3 August. 
• If delivered on 31 July, it ends on 30 September. 
• The basic notice period remains two months, except for dismissals under Section 52(f) to (h) of the Labour Code (gross or repeated breach of work discipline), where it is shortened to one month. 
• A change has also been made to the grounds for dismissal under Sections 52(d) and (e) concerning long-term loss of medical fitness. This is now classified solely under Section 52(d), and the employer no longer needs to specify the reason in detail. 
• The subjective and objective time limits under Section 58 for dismissals or immediate termination due to employee misconduct are extended: from 2 to 3 months (subjective), and from 1 year to 15 months (objective). 
• Under the proposed amendment to Section 69, an employee who wins a court case for invalid termination will also be entitled to compensation for unused leave, in addition to wage compensation. 
• As employers and employees will be able to deviate from the statutory rules on the commencement and duration of the notice period by mutual agreement, we recommend reviewing your current employment contracts and internal regulations. 
• These changes do NOT apply to notice periods agreed before the amendment comes into effect. 
• The amendment does NOT introduce termination without cause. 

Compensation for Work Injuries and Occupational Diseases 

• Under current legislation, employment can be terminated if the employee is medically unable to perform their job due to a work injury or occupational disease. In such cases, the employee is entitled to severance pay equal to 12 times their average monthly wage, paid by the employer. 
• The amendment partially abolishes this right to severance pay but introduces a new lump-sum compensation for non-pecuniary damage amounting to 12 times the average monthly wage, paid upon termination or after a final decision confirming loss of fitness. This compensation is covered by the employer’s statutory insurance (e.g. Kooperativa or Česká pojišťovna). 
• If the employer’s liability is reduced, the compensation will be proportionally reduced. 
• Employers can still offer higher compensation (e.g. via a collective agreement), but the excess over the statutory amount must be paid from the employer’s own funds. 
• The existing severance pay entitlement under Section 67 (termination due to excessive exposure in hazardous environments) remains unaffected. In such cases, no new lump-sum compensation applies. 

Benefits for Working Parents 

• The employer will now be required to reinstate the employee to their original position and workplace if they return before the child reaches 2 years of age (previously this was only for returns within 6 months). 
• After this period, the employer must place the returning employee according to the employment contract. If a position is specified in the contract, the employee must be assigned to that exact position, even after 2 years. 
• This obligation also applies to employees who took parental or maternity leave before the amendment comes into force. 
• Employees on parental leave may now perform the same type of work under a different type of contract (e.g. an agreement outside their regular employment). 
• The age limit for requiring consent for business trips outside the municipality of the workplace/home for employees caring for children has been raised from 8 to 9 years. 

Employment of Minors 

Minors may now be employed from the age of 14, even before completing compulsory schooling, under the following conditions: 

• Only during main (summer) holidays 
• Only for light work in risk category 1 
• Maximum working time of 7 hours/day, 35 hours/week 
• Rest time between shifts extended to 14 hours 
• No work after 8 p.m. 
• Mandatory initial medical check-up 
• Parental/legal guardian’s consent required 

Confidentiality of Wage Conditions 

The Labour Code now explicitly prohibits confidentiality clauses regarding the amount and structure of remuneration in employment-related documents. 

• While these clauses were previously unenforceable, employers often included them to discourage employees from discussing wages. 
• Violations of the new rule may now result in penalties, thereby strengthening employees’ rights to transparent and fair pay. 
• This does not affect confidentiality obligations under GDPR, for example, for HR staff. Employees retain the right to freely discuss their own wages and wage components. 

Wage Assessment and Delivery 

• The employee must now receive their wage assessment before starting work under new wage conditions. 
• Electronic delivery of wage assessments is now permitted under these conditions: 
• Signed with the employer’s qualified electronic signature; 
• Can be sent to the employee’s work email without requiring consent; 
• The employee must confirm receipt within 15 days, or it will be deemed undelivered; 
• The system used must allow for saving and printing the document. 

Wage Payment 

• The default method of wage payment is now a bank transfer. An employee can opt out in writing or withhold their account details, in which case payment will continue in cash. 
• Wages may now be paid in foreign currencies (not calculated in them), provided: 
• The currency has an official exchange rate set by the Czech National Bank; 
• The employer and employee mutually agree (It is not a legal entitlement.); 
• There is a foreign element (e.g. the employer is a foreign national, works abroad, or the employee resides abroad); 
• The exchange rate is based on the rate on the first working day of the following month. 

Other Minor Changes 

• Leave – uninterrupted employment will now include a change from one contract to another (e.g. from a DPP to a regular employment contract) with the same employer, preventing payout of unused leave in such cases. 
• Death of an Employee – wage entitlements now also pass to a registered partner. 
• Entry Medical Examinations – requirement abolished for risk category 1 jobs, including drivers of company vehicles (but not for professional drivers). 

If you need to discuss specific steps or incorporate necessary changes related to the flexible amendment to the Labour Code, our payroll team will be happy to assist.