Czech Republic: Overview of Labor Law and Employment Policies

Overview of Employment Law

• Key Legislation:
  • Labor Code (Act No. 262/2006)
  • Social Security Act (Act No. 589/1992)
  • Health Insurance Act (Act No. 48/1997)
• Legal Characteristics:
  • Aimed at protecting employee rights and welfare
  • Sets minimum standards for working hours, leave, wages, and severance pay

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include details on job description, remuneration, working hours, leave, and termination conditions
• Language and Currency:
  • Contracts must be in Czech
  • Currency is the Czech koruna (CZK)

Working Time Regulations

• Standard Working Hours:
  • Maximum of 40 hours per week
  • Maximum of 9 hours per day
• Rest Days and Breaks:
  • Minimum of 1 rest day per week
  • Minimum of 30-minute break after 6 hours of work per day

Leave Policies

• Annual Leave:
  • 20 days per year
• Public Holidays:
  • 13
• Special Leave:
  • Sick leave: 60% of salary paid by employer for first 14 days, then by government
  • Maternity leave: 28 weeks (37 weeks for multiple births), 70% of salary paid by social security
  • Paternity leave: 2 weeks, 70% of salary paid by social security
  • Parental leave: After maternity leave until child is 4 years old, allowance paid by government

Employee Severance and Contract Termination

• Notice Period:
  • Minimum of 2 months
• Severance Pay:
  • 1 year of service: 1 month's basic salary
  • 2 years of service: 2 months' basic salary
  • 3 years of service: 3 months' basic salary
• Protection Against Unfair Dismissal:
  • Employer must provide valid reasons for dismissal

Taxation

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 1,935,552	15%
    1,935,552 and above	23%

• Social Security Contributions:

  • Employee: 24.8%
  • Employer: 9%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in public health insurance
• Coverage:
  • Basic healthcare services

Compensation and Benefits

• Minimum Wage:
  • 17,300 CZK
• Salary Structure:
  • Monthly salary, paid on the last day of the month
  • Usually includes bonuses and allowances

Work Permits and Visas

• Permit Requirements:
  • Non-EU/EEA citizens require a work permit
• Application Process:
  • Application made by employer to the Czech Employment Office

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities
• Common Provisions:
  • Confidentiality of information
  • Non-competition restrictions

Training and Development

• Legal Requirements:
  • Safety training
  • Skills development
• Government Support:
  • Government-funded training programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, or disability
• Enforcement:
  • Equal Opportunities Commission responsible for overseeing compliance

Remote Work Policies

• Legal Framework:
  • Remote work is permitted, but must be specified in the employment contract
• Tax and Insurance Implications:
  • Tax and social security implications of remote work vary depending on the specific circumstances

Key Website Addresses

• Ministry of Labor and Social Affairs of the Czech Republic: https://www.mpsv.cz/en