The upcoming “flexible” amendment to the Labour Code will introduce significant changes to the Czech employment landscape in 2025. Although originally planned for January 2025, it is more likely that the amendment will not take effect until summer 2025. This amendment aims to create a more flexible, modern, and balanced work environment. As these changes will impact the core aspects of employment relationships, it’s time to buckle up and prepare for what lies ahead. Join us for our webinar on 21 January 2025, where we will guide you through these changes.
Key Changes
Probation Period
The amendment will revise the probation period for both managerial and non-managerial employees. It allows for a longer probation period and extensions to it, giving employers and employees more time to assess their cooperation and compatibility.
Dismissals
The amendment introduces a shorter notice period for terminations due to the employee’s fault. While the length of the notice period remains unchanged for other cases, the start date will be adjusted to improve efficiency while maintaining fairness and clarity for all parties.
Health-Related Terminations
Termination for health-related reasons will be consolidated to prevent the invalidity of termination due to the incorrect determination of the cause of unfitness for work. In cases where unfitness results from a work injury or occupational disease, employees will be entitled to a one-time reimbursement instead of severance pay. The costs will be covered by statutory employers’ liability insurance.
Enhanced Work-Life Balance for Parents
The amendment introduces several measures to support parents with young children. Employees on parental leave will be allowed to perform the same type of work for their employer based on agreements on work performed outside the employment relationship (“DPP” and “DPC” agreements). Employers will also need to “save the employee’s seat” for a longer period, ensuring they can return to the same position after parental leave.
Transparency in Salary and Payment Processes
The amendment updates the rules governing salary statements, increasing salary transparency and flexibility in delivery. Paying salaries in foreign currencies will also be permitted in more situations, reflecting the realities of a global workforce. Additionally, the amendment prioritises bank transfers over cash payments.
Other Changes
The amendment also permits minors aged 14 and over to work during summer holidays, clarifies the rules for calculating average monthly earnings, refines regulations for starting a trade union activity at an employer, and introduces several other changes.
Dismissal Without Cause?
Some anticipated changes, such as dismissal without cause, have not made it into the current draft bill. However, the proposed changes still represent a significant step forward in creating a more supportive and flexible work environment.
Join Us for a Deeper Dive
Our employment law experts, Jakub Kabát and Jana Turečková, will guide you through these changes. Join our English-language webinar on 21 January 2025 to learn more about the amendment, its impact on your business, and how we can support you. Don’t miss this opportunity to stay ahead of the curve!
Register for the webinar here.
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