Employment in the Czech Republic

by Fisher Phillips

[author: Danielle Urban]

This is the fifth article in a series about East European employment law issues.

Bordered by Germany, Austria, Poland, and Slovakia, the Czech Republic occupies an important position in Europe.  Following the Velvet Revolution of 1989, and its return to liberal democracy, the Czech Republic quickly became re-integrated into Europe and is a strong economic force in the region.  The Czech Republic ranks 64 out of 183 economies for “ease of doing business” and boasts a highly-educated and developed workforce.  For employers looking to do business from a strategic, centralized location, the Czech Republic offers many advantages. 


The Czech Republic came into existence on January 1, 1993, following the Republic of Czechoslovakia’s peaceful split into two countries:  the Czech Republic and The Republic of Slovakia.  The Czech Republic is a parliamentary representative democracy, led by a Prime Minister.  The head of state is the President, who serves for a five-year term, and has limited powers.  Although the Czech Republic has made great strides in privatizing most of its industry, the country is still hampered by a relatively high rate of corruption, which can provide challenges to running a business in the country.  The Czech Republic is a relatively affluent country, with its per capita GDP approximately 80% of the European Union average.  Although a member of the European Union since 2004, the Czech Republic has not yet adopted the Euro, and there is no set timeframe in which it will do so.  Most observers believe that 2013 would be the earliest date that Czech citizens would vote to adopt the Euro.  The currency unit is the Czech koruna (CZK).  As of December 2007, the Czech Republic became a Schengen country, doing away with border controls with its neighboring countries.   

The Labour Code

In the Czech Republic, the Czech Labour Code, along with The Collective Bargaining Act, and the Employment Act, are the primary sources of labor and employment law.  Because the Labour Code has been updated at least ten times since 2007, employers are advised to review relevant Code provisions on a regular basis.

The latest revisions to the Labour Code took effect on January 1, 2012, and were generally welcomed by employers.  The Labour Code governs most aspects of the employment relationship, from minimum wage, severance pay (governed by length of service), overtime pay and maximum hours (limited to 416 hours annually for managers, 150 hours annually for non-management employees), outsourcing, terms and conditions of employment, to annual leave (a minimum of four weeks of paid leave - longer for certain professions/industries - with at least one block of leave taken in a two-week increment).  It is important to note that “employment-at-will” as permitted in the United States is not recognized under the Labour Code.  Employee terminations are limited to certain specific reasons, and the employer must be careful to follow required notice and severance requirements.  

The employment contract

The Labour Code requires that the terms of the employment relationship must be outlined in a written employment contract at the outset, and should address the following topics: 

  • A description of the job, including duties required;
  • The start date for the job, including the time;
  • Location of the work.
  • Additional information that is recommended, but not required, includes information regarding
  • Holidays – length of leave;
  • Any required notice periods;
  • Weekly schedules/hours to be worked;
  • Wage and salary information, including date for payment and method for calculation;
  • Collective bargaining information; and
  • Whether there is any trial period.  Under the Labour Code, trial periods can last up to three months for non-management employees and up to six months for managers.  Importantly, the trial period must be in writing and agreed to prior to the commencement of employment, or will be invalid. 

Non-competition agreements valid

Pursuant to the January 2012 revisions to the Labour Code, employees may agree to accept a non-competition agreement, provided the agreement does not exceed one year, and the employer is able to show there is a valid reason for such an agreement.  During the non-competition period,  the employee must be paid one-half of his or her average monthly wage.

Equal Treatment under the Labour Code

Under the Labour Code, equal treatment of all employees, with respect to pay and benefits, training and advancement opportunities, is guaranteed to all employees, with special protection guaranteed to pregnant women and new mothers.  Employees complaining of unfair treatment may bring a complaint to the local labour office or in a court of law.  Discrimination on the basis of race, color, gender, sexual orientation, creed, religion, language, political opinions, membership in political parties or movements, trade union membership, nationality or ethnic/social origin, property status, health status, family extraction, marital or family status or responsibilities is also prohibited, as is sexual harassment.  “Mobbing,” which is defined as “any behavior perceived by the employee as unwanted, unsuitable or offensive, and which could affect personal dignity or create a humiliating or unpleasant work environment” is also prohibited.
Although this is only a brief overview, it is important to note that trade unions, collective bargaining, and employee work councils are also permitted under the Labour Code, and foreign employers doing business in the Czech Republic should take care to review all potential contracts and agreements pertaining to its operations before taking any actions that may affect employee rights, or the terms and conditions of employment.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Fisher Phillips | Attorney Advertising

Written by:

Fisher Phillips

Fisher Phillips on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.