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Global employment briefing: Czech Republic, October 2018

  • Europe
  • Employment law

03-10-2018

Negotiations on changing the Czech Labour Code resume

After a pause caused by the parliamentary elections and the formation of the Czech government, the negotiations on amendments to the Czech Labour Code have resumed. If passed by the Czech Parliament the following changes can be expected:

  • Automatic minimum wage increase

The minimum wage will grow automatically in line with the average wage in the Czech Republic. According to government data, as of 1 July 2019 the minimum wage should increase from the current CZK 12.200 (approx. EUR 477) to CZK 16.200 (approx. EUR 633). In 2022, the minimum wage is estimated to increase up to CZK 19.500 (approx. EUR 762).

  • Introduction of a “shared job position”

More employees with shorter working hours will be allowed to jointly arrange their shifts to suit their schedule. However, the shared job position has to be covered to meet the employer’s needs.

  • Change in the method of annual leave calculation

The employee’s annual leave entitlement will be determined in hours (not in days) and the basis will be their weekly working hours (not days). The employee’s entitlement will be calculated as the multiple of their specified weekly working hours (typically 40 hours) and specified length of the paid leave (typically 4 weeks), i.e. the entitlement for the calendar year will be 160 hours (4 weeks x 40 hours).

  • Extension of the rights of those employees on work performance or working activity agreements

Employment agreements on work performance or activity are special agreements for a limited scope of work (up to 300 hours/year or up to four hours/day) which are regulated by the Czech Labour Code and have a simplified termination process and reduced employment protection. Such employees will be entitled to a work break, an uninterrupted rest period, and not only a minimum wage, but also a guaranteed wage depending on the work performed. Additionally, the employer will have to keep a record of employee’s shifts and ensure that the duration of the shift does not exceed 12 hours.

  • Simplification of document delivery

The delivery of the most used documents (especially documents regarding the creation, change or termination of employment) will be significantly simplified. If the employee is not reachable at the workplace for the personal delivery of the document, the employer can send the document by registered mail (without the previous obligation to deliver the document personally wherever the employee is based).

  • New definition of a TUPE/ARD type transfer

The new definition of a TUPE/ARD transfer complies with the recent development of EU and Czech case law by referring to the underlying transfer of economic entity. This amendment should clarify and significantly restrict the scope of cases which may be subject to TUPE/ARD type of employee protection under Czech labour law.

The amendment to the Czech Labour Code is expected to come into force on 1 July 2019, with the exception of the new annual leave calculation which should come into force on 1 January 2020. However, as the amendment is at the beginning of the legislative process, various changes can still be made.

For further information, please contact:

Radek Matouš
Tel: +420 255 706 554
radek.matous@dhplegal.com

 

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