Czech Republic – Flexible amendments to the Labour Code

What’s new?

A draft bill regarding changes to the Labour Code in the Czech Republic has recently been published. The draft bill amends a range of significant provisions such as the probationary period, termination of employment, working time and pay. The amendment aims to increase flexibility in employment relationships and is anticipated to come into force in January 2025.

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What are the main proposed changes?

Some of the key proposed changes include (but are not limited to):

  1. Probation period – Under the new rules, employers can agree a longer probationary period of up to 4 months (increased from 3 months) with non-managerial employees, and up to 8 months (increased from 6 months) with managerial employees. The probationary period can be extended up to these maximum periods, provided it has been agreed in writing.
  2. Notice – An employee’s statutory notice period can be shortened to 1 month (from 2 months) if an employee is dismissed due to a breach of employment obligations which falls short of gross misconduct (such as in relation to poor performance, failing to meet work requirements, breach of sickness absences procedures) or loss of the necessary qualifications to perform the job. In addition, the notice period will immediately commence from the day the notice is delivered rather than the first day of the following month.
  3. Return from parental leave – Employers must guarantee reinstatement of an employee’s role and workplace if an employee chooses to return from parental leave within 2 years. This is aimed at encouraging employees to return from parental leave sooner (since they are entitled to take it until their child reaches 3 years’ old).
  4. Change in working hours – Employees will be granted the ability to schedule their working hours and rest periods through mutual agreement with the employer, aimed at increasing flexibility. This is currently only applicable to remote workers, but it will be extended to office workers / those under other modalities too.
  5. Pay in other currencies – Employers can agree with employees to pay salaries in other currencies (i.e. different to the Czech Koruna) in more circumstances under the new rules.

So, what should employers do now?

Employers should monitor the bill and prepare themselves should any of the above amendments be approved. If the bill is passed, employment contract and policies should be reviewed and revised to reflect these changes where necessary. If you need support with this, or would like any further information in preparation, please get in touch with a member of the MDR ONE team.

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