We haven't even absorbed one novel yet and here comes another. The world of employment law is very dynamic, sometimes even hectic. As of 1 August 2024, the collective bargaining process will change, the guaranteed wage will be abolished in the private sector as of 1 January 2025, and the parameters for calculating the minimum wage will change. At the same time, lawmakers are preparing a so-called flexible amendment for 2025 to get the labour market moving.
Everything essential is summarised in the following lines.
Inclusion of surcharges in the remuneration of the agreement
Abolition of the obligation to draw up a holiday plan
Measures to promote collective bargaining
Increased workload allowance in the healthcare sector
Abolition of guaranteed wages in the private sector
Scheduling of working time by the employee
Extension of probationary period
Changes to notice and notice period
Support for parents with children
Jobs for teenagers
Other changes
Many of these planned changes represent a move towards modernising employment law and bring welcome simplification to employment relations, as well as addressing some of the practical problems we have often faced. However, there is no revolution and employment law remains firmly gripped by regulation.
Autor: Adam Hussein
Everything essential is summarised in the following lines.
What applies from 1 August 2024
Inclusion of surcharges in the remuneration of the agreement
- The amendment allows employers to negotiate remuneration from the agreement (FTE, FTE) already with regard to additional payments for night work, weekend work or in difficult working conditions. Work on public holidays cannot be included. The extent of work in such difficult regimes must be agreed, as well as the amount of additional payments. If the agreed extent is exceeded, the employer must pay the employee the appropriate supplements for the excessive hours.
Abolition of the obligation to draw up a holiday plan
- The amendment abolishes the obligation for employers to draw up a holiday plan at the beginning of the year. However, employers will still have to inform employees about taking leave at least 14 days in advance (can be shortened by agreement).
Measures to promote collective bargaining
- One of the key measures of the amendment is to clarify the position of trade unions in collective bargaining. The new rules regulate the process of concluding collective agreements between employers and trade unions, especially if the employer has more than one trade union.
Increased workload allowance in the healthcare sector
- Healthcare employees who work shifts longer than 12 hours will now receive a supplement of 20% of their average hourly earnings for the 13th and each additional hour worked in a shift (even fractions of hours).
What will apply from 1 January 2025
Minimum wage indexation mechanism- The amendment introduces a new indexation mechanism for setting the minimum wage. The minimum wage will now be calculated on the basis of the average monthly wage multiplied by a coefficient set by the government for a two-year period. The Ministry of Labour and Social Affairs (MoLSA) will announce the minimum wage for the following year by the end of September each year. This mechanism will be fully operational from 2025, with the current rules applying until the end of 2024.
Abolition of guaranteed wages in the private sector
- In the private sector, the amendment abolished the institution of guaranteed wages, which determined the lowest wage for different groups of work. The minimum wage will be the only legal minimum that employers must comply with. Nevertheless, the prohibition of discrimination and the obligation to treat employees equally remain in force.
Scheduling of working time by the employee
- The amendment introduces the possibility for employees to schedule their own working hours. The employee and the employer can conclude a written agreement whereby the employee will determine his or her own shifts. At the same time, the conditions for such scheduling must be agreed. Such an agreement may be negotiated with both employed and contracted employees (FTE, FTE).
What is currently under discussion (with a proposed effective date of 1.1.2025)
The so-called flexible amendment aims to increase the flexibility of labour relations. The Labour Code is often rightly considered too rigid, which causes difficulties not only for employers but also for employees.Extension of probationary period
- The amendment extends the probationary period for ordinary employees from three to four months and for managers from six to eight months. It will also be possible to extend the probationary period by working days when the employee has not worked a full shift during the probationary period, for example due to holidays or obstacles on the employer's side. The Labour Code will also allow for an additional extension of the probationary period by agreement.
- It is still the case that the probationary period may not be longer than half the agreed duration of the employment relationship.
Changes to notice and notice period
- The possibility of termination without giving a reason is not proposed by the Government.
- Medical grounds for termination are combined. However, a termination or agreement on medical grounds still needs to be justified because of the employee's possible entitlement to compensation (no longer severance pay). Compensation of 12 times average earnings will now be paid by the insurance company.
- The notice period will start from the date of delivery of the notice, not from the first day of the following month.
- The notice period may be reduced to 1 month for breach of duty, failure to meet the employer's expectations or requirements.
- Beware of contrary clauses in employment contracts stipulating the length and duration of the notice period "the old-fashioned way".
Support for parents with children
- Earnings. The amendment allows employees to earn extra income during parental leave by means of a work performance agreement or a work activity agreement with the same employer, including the same type of work they perform under an employment contract.
- Extending the stand-in. An exception to the "three times and enough" rule for extending fixed-term employment is introduced for cases of replacing absent employees during maternity, paternity or parental leave. After 9 years, the employee must be hired on a permanent basis.
- Holding the "chair" until 2 years of age of the child. It is proposed that employees who return to work from parental leave before the child reaches 2 years of age should also be guaranteed a return to the same job and workplace.
Jobs for teenagers
- Work in "light" jobs will now be open to minors aged 14 and over during the summer holidays. The maximum working time will be 35 hours per week, with a limit of 7 hours per day. However, this proposal has been accompanied by criticism (not linked to health insurance, concessions for parents with children vs. children at work, liability, etc.).
Other changes
- Delivery of payrolls. The employer will be able to deliver wage and salary statements electronically without the employee's specific consent via an internal system or company email.
- Preference for payment of wages on account: the archaic preferred method of payment in cash is being abandoned. For the purpose of payment in Czech crowns, the obligation to use a banking institution with a seat or branch in the Czech Republic (e.g. Revolut, Wise only by agreement) is established.
- Payment of wages in foreign currency: The amendment will allow a wider range of employees to receive wages or salary in an agreed foreign currency. Note that this does not apply to everyone, but mainly to foreigners and employees with close links to foreign countries.
Many of these planned changes represent a move towards modernising employment law and bring welcome simplification to employment relations, as well as addressing some of the practical problems we have often faced. However, there is no revolution and employment law remains firmly gripped by regulation.
Autor: Adam Hussein