CMS Expert Guide on discrimination in the workplace in Czech Republic

1. What are the main laws on discrimination in the workplace in your jurisdiction and what type of conduct does it cover?

In the Czech Republic, discrimination in the workplace is covered by two main laws: the Act No. 198/2009 Coll., Anti-Discrimination Act and the Act No. 262/2006 Coll., the Labour Code. The Anti-Discrimination Act sets out a general legal framework and defines the key types of conduct – direct and indirect discrimination, harassment, sexual harassment, stalking, instruction to discriminate and incitement to discriminate.

The equal treatment in the workplace and the prohibition of discrimination are the guiding principles of Czech labour law and all provisions of the respective laws must be interpreted and applied in accordance with such principles. The Labour Code also emphasises the need of equal treatment of all employees in connection to their working conditions, remuneration for work and the provision of other financial benefits, training and opportunities for promotion or other development in their job.

2. Which characteristics are protected by these laws (is sexual orientation a protected characteristic?), and what type of employment relationships are covered – employee, worker, platform worker?

Yes, sexual orientation is one of the respective criteria. The Labour Code prohibits any and all types of discrimination in the employment relationships but especially discrimination on the grounds of gender, sexual orientation, racial or ethnic origin, nationality, citizenship, social origin, affiliation, language, health, age, religion or belief, property, marital and family status and family relationships or obligations, political or other opinions, membership and activity in political parties or political movements, trade unions or employers’ organisations. Discrimination on the grounds of pregnancy, maternity, paternity or gender identity shall be deemed to be discrimination on the grounds of gender.

These anti-discrimination and equal-treatment rules apply to all types of employment contracts where there is an employer-employee relationship and to agency workers assigned to the employer by an external staffing agency.

3. What remedies are available to an individual if they are subject to discrimination in the workplace, and what level of compensation might be awarded?

Generally, if the right to equal treatment or the prohibition of discrimination is violated, whoever has been affected by such conduct has the right to seek a court decision requiring that the discrimination be stopped, that the consequences of the discriminatory interference be eliminated, and that they are given adequate compensation. If the reputation or dignity of a person or their esteem in society is diminished, they shall also be entitled to financial compensation for moral damage. The amount of the compensation always depends on the court’s decision based on the specific circumstances of each case. (There is no minimum or maximum amount).

Violation of the principle of equal treatment is a breach of the employer’s legal obligation and thus the employer must compensate the employee for the damage caused by such conduct. The employer may also be held responsible for the behaviour of other employees in the workplace. Again, there are no maximum or minimum limits for compensation since this always depends on the case-by-case assessment of the court.

Moreover, the discriminated employees may go to court to challenge the validity of the employer’s legal acts by which the employer committed discrimination or unequal treatment. Typically, if the employer terminates the employment relationship with an employee due to one of the protected characteristics (e.g. pregnancy or race), the employee can claim invalidity of such termination in court.

Employees can also turn to competent labour inspectorates or the ombudsman, who would typically initiate an audit or investigation and impose respective corrective measures or sanctions, if the employee’s allegations are proven. 

4. What steps such as policies, training etc (if any) are employers required to put in place to prevent discrimination in the workplace?

There are no mandatory steps required by applicable laws. The employer has a general obligation not to discriminate against employees and to treat all employees equally with an exception that there is a legitimate reason for unequal treatment and the requirements applied are proportionate to this reason. The employer is free to decide how to meet with the aforementioned legal requirements. The employer can adopt specific policies or just train and educate the employees.

Currently, the decision about setting and applying a D&I Policy is left to the discretion of the employer. While it is not required by applicable law, it is the best practice. It is recommended that all employers have their own D&I Policy. Many employers, especially international companies, set their own D&I policy.

6. Are there any risks in not having a local D&I policy? Any reputational risks and ESG consequences?

Reputational risks may arise from medialised legal disputes between the employees and the employers rather than from not having the D&I Policy. However, it is generally recommended that employers have and enforce their own D&I Policy. Setting out a D&I Policy minimises discrimination and unequal treatment and may be used as evidence that the employer was enforcing anti-discrimination and equal-treatment rules. 

7. Are employers required to report on pay transparency or gender/ethnic/disability pay gaps?

No, there are no such requirements under Czech Law. However, in the event of an audit by public authorities (typically the labour inspectorate), employers may be required to disclose data regarding equal pay to the extent they are allowed to process such data due to privacy limitations.

8. Are there any data protection rules that affect the processing and retention of diversity data, and what do they say?

Limitations regarding diversity data are regulated by both data protection laws (mainly GDPR) and the Czech Labour Code.

The employer must not request information from an employee that is not directly related to the performance of work and the employment relationship. In particular they must not process information on pregnancy, family and property, sexual orientation, origin, membership in a trade union, membership in a political party or movement, membership in a church or religious society and information included in the employee’s criminal record. The employer may be entitled to collect the information concerning pregnancy, family and property, and information included in an employee’s criminal record if there is a legitimate reason (i.e. it is necessary due to the nature of the work performed and this collection is proportionate to the reason).

Processing employee diversity data such as sexual orientation, racial or ethnic origin etc is generally not possible under Czech law.

9. Are there any quotas at board level or below, and if so what do they relate to?

No, currently there are no quotas under Czech law. Adoption of the new EU legislation, known as the “Women on Boards” EU Directive, is expected soon at the EU level and implemented in the Czech Republic in the following years. This Directive should bring women equal opportunity and access to positions in corporate bodies.

10. Are there any corporate governance rules that relate to D&I, and what do they say?

No, currently there are no statutory corporate governance rules relating to D&I Policy.