'Flexible' amendment to the Labour Code

Labour & Employment law |

'Flexible' amendment to the Labour Code

The area of labour law has become an increasingly debated area of law in recent years, which is also reflected in the more frequent amendments to labour legislation. This year, the Ministry of Labour and Social Affairs issued an amendment to the Labour Code aimed at increasing the flexibility of labour relations. In particular, it concerns the reduction of the administrative workload, the development of digitalisation in the public administration and work-life balance. The term 'flexible amendment' has therefore been used in public discourse to refer to this amendment.


The changes were supposed to come into force on 1 January 2025, but the amendment was not put up for discussion until the Chamber of Deputies' session starting on 19 November 2024 and successfully passed its first reading on 4 December. Due to this delayed discussion, the planned effective date of 1 January 2025 will be postponed, probably until spring of 2025. However, the part of Amendment 230/2024 that also increases the flexibility of labour law will be effective from the beginning of this year. The main areas to be affected by the flexible amendment are reviewed in detail below in this article. The content of these may still change in the course of the legislative process, but for the time being we can anticipate the following form of the amendment.

1. Changes effective as of 1.1.2025

1.1 Self-scheduling of working time

Among the new already adopted provisions, the most important are the more flexible working hours. The amendment to the Labour Code No. 230/2024 Coll., effective from 1 January 2025, allows employees to schedule their own working hours. The only condition is that the employer and the employee conclude a written agreement on the matter. Currently, only home office regime allows self-scheduling. This will now also apply to the employer's workplace.


It is important to note that this agreement should reflect all the statutory requirements (e.g. in the field of breaks at work, continuous daily and weekly rest, records of work hours ...).

1.2 Minimum wage indexation mechanism

The minimum wage will now be calculated using the indexation mechanism introduced by the amendment to the Labour Code No 230/2024 Coll. It is the product of the average gross monthly wage (forecast by the Ministry of Finance) and a coefficient (set by government decree). The forecast is set by 31 August and the Ministry of Labour and Social Affairs announces the minimum wage for the following year by 30 September. This will improve the predictability of the minimum wage for the following year.


We expect to be presented with further new changes later this spring.


2. Changes expected in the course of 2025

2.1 Probationary period

At present, according to Section 35 of the Labour Code, a probationary period of a maximum of 3 months can be agreed upon, and 6 months for senior employees and cannot be extended subsequently.


The maximum length of the probationary period shall newly be as long as 4 months or up to 8 months for senior employees. It will also be possible to extend the probationary period additionally by written agreement between the employee and the employer (but only up to the maximum probationary period).


The probationary period cannot be regarded as unreasonably long. For example, Directive (EU) 2019/1152 of 20 June 2019 on transparent and predictable working conditions in the European Union in Article 8 allows Member States to have a probationary period of up to 6 months in the case of a regular employee.

2.2 Notice period

The notice period currently starts on the first day of the first day of the month following the month in which the notice is delivered to the other party and lasts for 2 months, according to Article 51 of the Labour Code. As of now, the notice period shall be calculated from the date of delivery of the notice and shall end on the day which corresponds numerically to it.


Example : Under the current regulation, when delivered on 10 January, the notice period starts on 1 February and ends on 31 March. The amendment will introduce that a notice delivered to an employee on 10 January will end on 10 March.


It will also be possible to reduce the notice period to 1 month in the case of a notice for breach of duty on the part of the employee under section 52(f) to (h). These are, for example, grounds for failure to meet the prerequisites or requirements for the performance of the work, unsatisfactory performance, breach of work discipline or other work obligations, or where the employee breaches another obligation in a particularly serious manner, e.g. by failing to comply with the temporary incapacity regime.


2.3 Repetitive fixed-term employment contracts

Currently, according to Article 39 of the Labour Code, fixed-term employment with one employer may last for a maximum of 3 years and may be repeated no more than twice. However, the amendment is to introduce that it can be repeated several times - succession of fixed-term employment contracts up to a cumulative total of 9 years. This is provided that the

employee is a substitute for an employee on maternity, paternity or parental leave.


Example : Currently, a maximum of three fixed-term contracts of three years can be concluded: 3 + 3 + 3. In the new regulation, there will be no limit on the number of repetitions and a situation could arise where an employee enters into nine consecutive contracts of 1 year each (9*1).


2.4 Employment of persons on parental, maternity or paternity leave

According to the new draft wording of Section 34b(2) of the Labour Code, employees who are on parental, maternity or paternity leave should now be able to conclude a work performance agreement or a work activity agreement also to perform the same type of work as they did under their main employment relationship. This possibility does not exist under the current legal framework. It was necessary to have a different type of work. However, the agreement must be concluded for the duration of parental leave or part thereof. Parental allowance may be taken at the same time.


Up to now, an employee who has returned to work from maternity, parental or paternity leave has been classified according to the type of work, which does not necessarily represent the original post. The amendment proposes that if a parent returns to work before the child's 2nd birthday, they will be guaranteed the so-called "same chair" (post). If the employee returns to work after the child's 2nd year, but up to a maximum of the child's 3rd year, the current arrangement applies, i.e. the employee must be assigned to the job as specified in the employment contract.


2.5 Payment of payroll

  • he/she has a workplace abroad;
  • he/she performs his/her work on the basis of an employment permit, employment card or long-term residence permit;
  • he/she is a citizen of another EU Member State and is not a citizen of the Czech Republic;
  • he/she lives permanently abroad or pays for the living expenses of himself or his family members there.

At the same time, in order to be paid in a foreign currency, the Czech National Bank will be required to have the currency listed in its exchange rate list. The exchange rate to be used for the conversion of the salary is the rate announced by the National Bank for the first working day of the calendar month following the month in which the employee's right to the salary arose (unless they have agreed on a different working day).

 

Example : If the employment relationship starts on 1 April 2025, the exchange rate announced by the Czech National Bank on 2 May 2025 will be used for the calculation. 

2.6 Employment of minors

Persons under the age of 15 can now also be employed for a summer part-time job. Section 244a of the Labour Code will allow this for minors aged 14 and above, provided that the work takes place during the summer holidays and that it is only light work that does not endanger their health or education. For the purposes of this Act, light work means work classified as category 1 under Act No 258/2000 Coll. on the protection of public health. This includes, for example, the work of summer camp supervisors and animators, auxiliary staff and service staff in the hospitality industry, etc.


However, the consent of the legal guardian will be required for the conclusion of an employment contract or agreement, and minors will also have shorter working hours, namely 7 hours per day and a maximum of 35 hours per week, while observing a rest period of 14 hours between shifts.


2.7 Simplification of the delivery of wage and salary assessments

In response to employers' requests, the amendment proposes to introduce a simplified regime for the electronic delivery of wage and salary assessments. The employer should now be able to proceed with the delivery of the wage and salary assessment also to the employee's electronic address (e.g. to the employee's "company" e-mail) even without the employee's prior consent, which has so far been one of the conditions for electronic delivery of wage and salary assessments.

The effect of such service is conditioned on the employee's written acknowledgement of the delivery of the assessment within 15 days of its dispatch. Therefore, the legal fiction of delivery, which is currently applicable under Section 335 of the Labour Code (where the employee has to consent to electronic delivery), will not apply.


2.8 Compensation from the insurance company instead of severance pay after an occupational injury or illness

When the employment relationship is terminated due to an occupational injury or loss of medical capacity, the employer will no longer pay severance pay. Instead of severance pay, compensation will be paid by the insurance company with which the employer has taken out compulsory insurance.


In view of the new legislative changes, it is advisable to subject your employment documents to a legal audit to ensure that they are up-to-date and ready for the incoming changes.