PROBATIONARY PERIOD (Section 35 of the Labour Code)
The maximum length of the probationary period is extended to 4 months for regular employees, and to 8 months for managerial employees. It may be extended additionally within these limits by written agreement and it will be automatically extended also by working days of unexcused absences of the employee. For definite term employments, please do not forget that the maximum limit for probationary period of half the definite term of employment still applies.
ATTENTION: The probationary period agreed before the date on which the FlexiAmendment takes effect will be governed by the current provisions of the Labour Code.
NOTICE PERIOD (Section 51 of the Labour Code)
The notice period will commence on the day on which the notice is delivered and will end on the day which number corresponds to the commencement day. In cases of terminations for the reasons set out in Section 52 (f), (g), and (h) of the Labour Code, the notice period will be only 1 month. Longer notice period or different commencement of notice period can be agreed. Therefore, it’s crucial to check the wording of current contracts and other employment documents.
ATTENTION: For notices that were delivered prior to the FlexiAmendment’s effective date, the notice period will commence and run under the current provisions of the Labour Code.
PERIODS FOR TERMINATION OF EMPLOYMENT DUE TO BREACHES (Section 58 of the Labour Code)
The time limits in which the employer is entitled to give termination notice to an employee or immediately terminate the employment for breach of obligations are extended to 3 months (the subjective period) and 15 months (the objective period).
ATTENTION: If the grounds for termination or immediate termination occurred before the date on which the FlexiAmendment takes effect, the employer must proceed to terminate or immediately terminate the employment relationship within the existing time limits (prior FlexiAmendment).
“HEALTH-RELATED” GROUNDS FOR TERMINATION AND RELATED COMPENSATION (Section 52 and Section 271ca of the Labour Code)
Cases of loss of capacity to perform work due to a work injury or occupational disease and due to general health reasons are merged. Reaching the highest permissible level of harmful exposure remains to be separate reason for employment termination.
The severance in case of employment termination due to long-term incapacity to perform work caused by work injury, occupational disease, or the threat of such a disease is replaced by a compensation in the amount of 12-months’ average earnings which is tax-exempt and reimbursed by the employer’s insurance company.
ATTENTION: If the employee’s right to a 12-month severance payment under the existing regulations arose, he or she is not entitled to the mentioned one-time compensation.
CLAIMS IN CASE OF INVALID TERMINATION OF AN EMPLOYMENT RELATIONSHIP (Section 69 of the Labour Code)
In the event of an invalid termination of employment, the employee is entitled explicitly also to annual leave for the period of such invalid termination.
The court will be allowed, when deciding on reducing the amount of compensation due to invalid termination, to consider other gainful activities (i.e. typically self-employment).
CAREGIVING EMPLOYEES (Section 34b and Section 47 of the Labour Code)
Employees on parental leave will be allowed to perform the same type of work based on an Agreement on Work Activity (DPČ) or an Agreement to Perform Work (DPP) concluded alongside their employment contract.
The employer will have to place employees back in their original work position upon their return from parental leave if they return before their child reaches 2 years of age.
ATTENTION: This rule applies as well to employees who are already on parental leave, provided that 2 years from the child’s birth have not yet passed.
FIXED TERM RULES EXCEPTION (Section 39 of the Labour Code)
A new exception from the standard fixed term rules is added for “stand-ins” covering employees on maternity, paternity or parental leave. It will be possible to repeat the fixed-term employment with these “stand-in” employees more than three times.
ATTENTION: This rule will apply even to fixed-term employment contracts concluded before the FlexiAmendment’s effective date.
SALARY PAYMENT (Section 142 and Section 143 of the Labour Code)
Salaries will automatically be paid by cashless bank transfer. Employee can require a cash payment.
Employee’s salary may be paid in foreign currency to:
- employees with place of work abroad;
- foreigners holding one of the work permits (i.e. a blue card, employee card, or employment permit);
- foreigners who aren’t required to have any of the work permits;
- citizens of EU Member States, provided they are not also Czech citizens or do not have permanent residence in the Czech Republic;
- employees who permanently live abroad or pay their living expenses there for themselves or their family members.
The exchange rate declared by the Czech National Bank on the first working day of the month following the month in which the salary entitlement arose will be used, unless different effective date is agreed.
DELIVERY OF THE SALARY STATEMENT (Section 335 of the Labour Code)
The employer will be obliged to hand over the salary statement to the employee no later than before the beginning of work performance.
The FlexiAmendment further introduces a new specific method of electronic delivery of the salary statement which serves as an additional alternative to the current methods and leaves room for the interpretation which would allow using internal HR systems for it.
WORK OF MINORS (Section 244a of the Labour Code, Section 34 paragraph 2 of the Civil Code)
It is newly be permitted to employ minors from the age of 14 and those who are 15 but who have not yet completed compulsory education, subject to strict conditions – such work may only be performed during the main summer holidays, the minor must have the consent of the statutory representative, and it must not be heavy work that harms health, education or moral development, is classified in the first risk category, or has specific health requirements. In addition, stricter limits on working time and rest periods will apply.
REDUCTION OF UNINTERRUPTED DAILY REST (Section 90 of the Labour Code)
If it is necessary to prevent an accident, natural disaster, another emergency event, or to eliminate their immediate consequences, then the uninterrupted daily rest may be exceptionally reduced down to 6 hours within any 24 consecutive hours for employees older than 18.
ENTRY OCCUPATIONAL MEDICAL EXAMINATIONS
Entry medical examinations are not obligatory for so-called “fully risk-free professions” (work classified in the first category that does not include activities for which the conditions of health capacity are set by another regulation). However, both the employer and the employee will have the right to request an entry medical examination.
All employees under 18 years old (including those with agreement to perform work or an agreement to complete a job) must undergo an entry medical examination before the employment begins.
BAN OF NON-DISCLOSURE CLAUSES ON REMUNERATION (Section 346a of the Labour Code)
Agreements and clauses prohibiting the employees to disclose their own salary, remuneration, or its structure are forbidden. A fine of up to CZK 400,000 may be imposed for breaching this ban. Therefore, it is crucial to revise existing contracts and other documents to make sure that they don’t include any such prohibition.