On 16 April, the Minister of Labour and Social Affairs, Marian Jurečka, presented an amendment to the Labour Code, aimed at improving the flexibility of labour relations and enhancing the competitiveness of companies, without neglecting the protection of employees’ rights and support for work-life balance.
During the presentation of the reforms, Minister Jurečka said: “We want the Czech Republic to be competitive and not second-rate in Europe. To achieve this, a modern and flexible labour market is essential”. The proposed changes are inspired by models and practices adopted in other countries such as Germany, Austria and Denmark, and are designed to meet the new needs of the national labour market.
Reconciliation of work and family life
The new Labour Code provides for making it easier for employees to return to work after parental leave, guaranteeing them the possibility of resuming their previous positions and employment with the same employer if the return takes place before the child turns two (hitherto, this right was only reserved for return from maternity leave). In addition, there are more possibilities for renewing fixed-term contracts for those replacing workers on leave.
Terminal notice
In the new legislation on dismissals, the notice period will now be linked to the date of delivery of the communication by the other party. This change aims to facilitate a smoother transition for the employee to other employment opportunities, and allows the employer to make replacements more quickly by reducing the notice period. For employees who break the code of labour conduct or legal regulations, the notice period will be reduced to one month.
In the case of termination with notice or agreement with the employee due to occupational illness or long-term injury, the employee will no longer receive the traditional severance pay, but a special indemnity equivalent to 20 times the average monthly salary. This compensation will be covered by the employer’s occupational injury insurance policy.
Organisation of working time
Another change is related to working time management, which allows employees to plan their shifts independently in agreement with the owner. In emergency situations, a significant reduction in daily rest periods of up to 6 hours is allowed, with compensation on the following day. However, this flexibility is reserved exclusively for cases where a rapid response is required or the public interest is involved.
Probationary period
The probationary period will also be subject to variations, with the possibility of extending the term up to four months for ordinary employees and up to eight months for senior employees, with the option of further extensions (previously the probationary period was three months for the former and six months for the latter). This is necessary because, for certain positions, the current terms have proven to be insufficient.
Further updates include the possibility for minors from the age of 14 to perform some light work during the main summer holidays, providing an opportunity to gain experience and earn money, despite the fact that they have not yet completed their primary education. At last, a modification has been introduced that allows the payment of salaries in euros or other currencies different from the Czech crown, a possibility previously reserved only for those working abroad.
More changes to come
Further future adaptations affecting various aspects are planned:
- some public sector employees will be able to run their own business while being part of bodies of entrepreneurial legal entities;
- delivery of pay slips;
- calculation of average remuneration in the event of a change in weekly working hours;
- equal treatment of partners, especially with regard to the employee’s impediments to work.
In conclusion, as emphasised by the Vice-President of the Confederation of Industry of the Czech Republic, Bohdan Wojnar, the suggested changes reflect the current conditions of the Czech labour market and its progressive digitisation process. These reforms represent a significant step towards a more favourable working environment and more effective social dialogue, contributing to the simplification of business processes and the reduction of administrative burdens.
Source: https://www.mpsv.cz/web/cz
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