The Czech Ministry of Labour and Social Affairs has published a draft bill of the amendment to the Labour Code, which will allow more flexibility in employment relationships. Both employees and employers should benefit from these changes. The new rules concern the probationary period, termination of employment, working time, salary statements and many other topics. It is anticipated that the amendment will come into force in January 2025.
One of the biggest changes is the possibility to agree a longer probationary period of up to four months with non-managerial employees (the current maximum is three months), and up to eight months with managerial employees (the current maximum is six months). The probationary period can be extended during its course to this maximum on the parties’ written agreement, which is currently not allowed.
In cases of dismissal due to the employee’s fault (not meeting requirements for work, including poor performance, misconduct or a breach of sickness regime), the notice period can be shortened from the current two months to one month. However, the two-month notice period will remain unchanged for other termination reasons. The parties can agree on a longer notice period. Notably, the notice period will commence from the day the notice is delivered to the other party, instead of from the first day of the following calendar month as it does currently.
The amendment seeks to bolster the work-life balance of parents with young children. Employees returning from parental leave within two years of the child's birth will be guaranteed reinstatement to their previous role and workplace.
Regarding working hours and rest periods, the amendment aims to grant employees the possibility to schedule their working hours through mutual agreement with the employer. Currently, this is only possible for remote-working employees. In addition, employers will be permitted to reduce employees' daily rest period to six hours in emergencies, with compensation on the next day.
Employers who determine salaries unilaterally in salary statements will be obliged to hand over the salary statement to the employees before the commencement of work (currently, it can be delivered on an agreed date of commencement of work). The rules for the electronic delivery of salary statements will be relaxed compared to the current rules.
Additionally, the amendment will allow employers and employees to agree salary payments in currencies other than Czech crowns in more situations compared to the current rules, allow minors aged 14 and above to engage in light work during the main summer holidays without completing primary education, and adjust the calculation of average earnings when altering weekly working hours.
Notably, the proposed amendment does not include one of the most anticipated and controversial changes: dismissal without cause, which was to be contingent on severance pay significantly higher than in ordinary termination cases by the employer. This change did not make it to the draft bill.
The draft is in the very early stages of the legislative process and will likely be subject to further changes. We will monitor its development and will update you in time.
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