UPDATED: Adapting to change: navigating the flexible amendment to the Czech labour code

The Senate has passed the draft of the upcoming “flexible” amendment to the Labour Code, which now requires the President's signature. This amendment introduces significant changes to the Czech employment landscape, and is slated to take effect from 1 June 2025. The amendment aims to create a more flexible, modern, and balanced work environment.

As these changes impact the core aspects of employment relationships, it is time to prepare for what lies ahead. Read the summary of the changes below and contact our employment law experts for a deeper understanding of the implications of these changes and how to ensure your organisation complies with them.

Key Changes

Probation Period

The amendment extends the probation period for both non-managerial and managerial employees, to up to eight months depending on the employee’s position, and allows for extension of the agreed probation period, giving employers and employees more time to assess their cooperation and compatibility.

Dismissals

The amendment introduces a shorter notice period for terminations for cause, while the length of the notice period remains unchanged for other cases. Additionally, the start date of the notice period 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 employers’ statutory 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 have to “keep the employee’s seat” up to the child’s second birthday, ensuring the employee can return to the exact same position after parental leave.

Transparency in Salary and Payment Processes

The amendment updates the rules governing salary statements. The employer will have to provide them to the employee before they start working, which increases salary transparency. Additionally, the rules on the electronic delivery of salary statements will be made more flexible. Paying salaries in foreign currencies will also be permitted in more situations (e.g. for third-country nationals), to reflect the realities of a global workforce. Additionally, the amendment prioritises bank transfers over cash payments.

Ban on Employee Salary Confidentiality Clauses

The amendment introduces significant changes regarding salary transparency. It will be prohibited to restrict employees from disclosing their salaries.

Extension of Period for Termination for Breach of Obligations

The amendment extends the periods within which an employer can terminate employment for a breach of obligations. The employer will have up to three months from the day they become aware of the breach, and up to 15 months from the day the breach occurred, to take action.

Cancellation of Mandatory Entry Medical Checks

Another significant change is the cancellation of mandatory entry medical checks for employees working jobs in the lowest-risk category.

Other Changes

The amendment also permits minors aged 14 and over who have not completed mandatory education to work during summer holidays, clarifies the rules for calculating average monthly earnings, refines the regulations for starting a trade union at an employer, and introduces several other changes.

Dismissal Without Cause?

Some debated changes, such as dismissal without cause, are not included in the final draft bill due to insufficient political support. However, the proposed changes still represent a significant step forward in creating a more supportive and flexible work environment.

Contact CMS to Ensure Compliance

As some of the changes may impact your daily employment practices and employment documentation, we encourage you to consult our employment law experts to understand the implications and ensure compliance.