New labour law from 1 June 2025: Introduction of Flexinovela

Working hours

• Within the framework of the existing employment relationship, the employer can assign an employee not only the contractually agreed weekly working hours, but also shorter working hours.
• Employees who are on parental leave may enter into further employment relationships with the same employer during this period, provided that these are based on an agreed part-time employment relationship (DPP) or an on-call employment contract (DPČ).

Change to the probationary period

• In contrast to the previous legal situation, which allowed a probationary period to be agreed upon no later than the day of commencement of employment, the new regulation stipulates that the probationary period must be agreed upon in writing no later than the day of commencement of the employment relationship.
• Extension of the probationary period:
• For regular employees, the probationary period may now be up to 4 months (previously 3 months).
• For senior employees, it may be up to 8 months (previously 6 months).
• Further changes:
• An additional extension of the probationary period is now possible by written agreement between the employer and the employee, which was previously excluded.
• The probationary period is automatically extended not only by full days of absence from work and holidays, but in future also by all days on which the employee has not worked a full shift – including unexcused absences.
• The previous rule, according to which the probationary period for fixed-term employment contracts may not exceed half of the agreed contract term, remains unchanged.
• For probationary periods agreed before the amendment came into force, the previous version of Section 35 of the Labour Code continues to apply. Their duration remains unchanged, and subsequent extension by agreement between the employee and employer is not possible. In these cases, unexcused full-day absences will not extend the probationary period.
• However, if the probationary period is renegotiated or changed before it begins and during the period of validity of the amendment, the new regulation shall apply.

Change in the conditions for fixed-term employment contracts

• Previously, a fixed-term employment relationship could last up to three years and be extended no more than twice between the same parties. This limitation no longer applies if three years have passed since the end of the last employment relationship.
• The new regulation provides for an exception for the replacement of employees during maternity or parental leave: in these cases, a fixed-term employment relationship may be agreed without any limit on the number of extensions. However, the total duration of all such employment relationships may not exceed nine years.
• In addition, the newly introduced provision, according to which fixed-term employment relationships can also be newly concluded if the previous limit of three contracts for employees on maternity or parental leave has already been exhausted, which also applies to contracts concluded before the amendment came into force. The total duration of all fixed-term employment relationships between the same parties may not exceed nine years from the start of the first fixed-term employment relationship.

Return of the employee to their original job and position after parental leave

Under the previous legal situation, a return to the original job was only guaranteed if the employee returned from maternity leave. The new regulation obliges employers to reinstate employees to their original job and position also after parental leave, at the latest before the child reaches the age of two. This is a more favourable arrangement for employees who wish to devote themselves to caring for their newborn child.

Notice period

• Under the previous regulation, the notice period began on the first day of the calendar month following the delivery of the notice of termination to the other party. This could lead to an unwanted extension of the employment relationship if the notice of termination was not delivered at the end of the month.
• The notice period now begins on the day the notice of termination is delivered to the other party. If there is no such day in the respective month, the notice period ends on the last day of the month. It is also possible to extend the notice period by written agreement between the parties.
• The notice period remains at least two months, unless the employee has grossly or repeatedly violated their employment obligations or no longer meets the requirements for performing the job (Section 52 f, letters g) and h) Labour Code). In these cases, the notice period is reduced to one month and cannot be extended by written agreement.
• The parties may agree on a notice period that deviates from the statutory provision – for example, by starting the notice period later on the first day of the following month or by extending the notice period. However, such an agreement is excluded in the cases specified in Section 52 f) to h) of Labour Code, in which the notice period begins immediately upon delivery of the notice of termination.
• The notice period must apply equally to employees and employers.
• For notices of termination delivered to the other party before the amendment came into force, the previous statutory provision applies.

Combination of reasons for termination in the event of incapacity to work

• The previous legislation distinguished between two reasons for incapacity to work:
  • § 52 d) Labour Code for work-related injuries and illnesses,
  • § 52 e) Labour Code for causes not related to work.
• Although the effect of both reasons is identical, confusion can lead to the termination being invalid, which can be problematic. The amendment therefore combines these two reasons into a single reason for termination, which is particularly important when granting one-off compensation for non-material damage.

Changes relating to severance payments and the introduction of a one-off compensation payment for non-material damage in the event of occupational accidents or occupational diseases

• The payment of severance in the event of termination of employment by the employer due to the employee’s incapacity to work pursuant to Section 52d Labour Code or by agreement concluded for the same reasons is being reorganised. In future, severance pay will be covered by the employer’s insurance for damages or non-material damages resulting from occupational accidents or occupational diseases.
• This procedure introduces a new form of one-off compensation for immaterial damage, which is granted in the event of an accident at work, an occupational disease or the risk of such a disease. This is a one-off severance payment upon termination of the employment relationship, which is paid at twelve times the employee’s average monthly earnings. The compensation is paid by the employer’s insurance; in the event of partial exemption, the amount may be reduced accordingly. A supplement by the employer, for example on the basis of a collective agreement, is permissible.
• The employee’s entitlement to a one-off compensation payment for non-material damage upon termination of the employment relationship or to the aforementioned severance pay is governed by the legal provisions applicable at the time of termination. If the employee is already entitled to compensation under the version of the law applicable before this law came into force, there is no entitlement to the one-off compensation payment for non-material damage under the new regulation.
• The one-off severance payment upon termination of the employment relationship shall be covered by the employer’s statutory liability insurance. This provision shall apply until new regulations on employer liability insurance come into force.

Termination of employment due to breach of duty

• The subjective period for termination of employment due to breach of duty is extended from one to two months, while the objective period is extended from twelve to fifteen months.
• The proposal responds to practical experience that it is often difficult for employers to obtain sufficient information within two months to decide on a breach of employment obligations by an employee. The aim of the amendment is to enable a more thorough examination of the facts without compromising the legal certainty of employees.
• If the notice of termination was delivered before the amendment came into force, the previous legal provisions apply to the aforementioned periods.

Holiday entitlement and judicial discretion

• The draft implements Czech and European case law and introduces a provision whereby an employee is not only entitled to wage compensation in the event of invalid termination of employment, but also to holiday leave for the duration of the legal dispute. Previous decisions denying this entitlement have been overturned. The previous legal provision did not provide for such an entitlement.
• The court will also have greater scope to take into account whether the employee has taken up other work or earned other income when determining the amount of compensation. In addition, it is proposed to remove the obligation on the employee to immediately notify the employer that they insist on continued employment, as this requirement should not influence the decision on compensation.

Working hours for minors

• According to Article 34(2) of the Civil Code, minors who have reached the age of 14 may be employed during school holidays under the conditions laid down in the Labour Code. These conditions include, in particular, restrictions on shift duration:
  • Minors aged 14 and over who have not yet completed their compulsory schooling:
    • Maximum shift duration: 7 hours
    • Maximum weekly working time: 35 hours
  • Minors over the age of 15 who have already completed their compulsory schooling:
    • Maximum shift duration: 8 hours
    • Maximum weekly working hours: 40 hours
• The upper limits apply cumulatively to all employment relationships of the minor.

Uninterrupted daily rest period

• The minimum duration of uninterrupted daily rest for minors is at least 14 hours within a period of 24 consecutive hours.
• In addition, it is provided that in emergency situations, the uninterrupted daily rest period for adult workers may be reduced to up to six hours within a period of 24 consecutive hours in order to enable urgent work to be carried out without delay. The granting of compensatory rest time is governed by the existing provision in Section 90(2) of the Labour Code.

Transmission of wage and salary statements

• The time at which a payslip must be provided to the employee is being standardised. The payslip must now be handed to the employee before the start of work. This removes the ambiguity that arose from the previous regulation, according to which the notification had to be made no later than the day on which work commenced.
• In the event of changes to the wage or salary amount, the employer is obliged to prepare an updated payslip and hand it over to the employee at the latest on the date on which the change takes effect.

Wage and salary payment

• The priority of cashless payment of wages and salaries is newly introduced. For payment in Czech korunas (CZK), employees are obliged to provide a bank account with a credit institution based in the Czech Republic. Different payment methods may be agreed between the employer and the employee.
• If the employee declares in writing that he does not agree to payment into a payment account, fails to provide the necessary cooperation or does not have a payment account, the employer must pay the wages or salary in cash at the workplace during working hours, unless another time or place of payment has been agreed. If the employee is unable to attend the cash payment for serious reasons, the employer must transfer the wages or salary on the regular payment date, but no later than the following working day, at the expense and risk of the employee, unless another time or method of payment has been agreed.

Payment of wages and salaries in foreign currency

The amendment allows wages and salaries to be paid in foreign currency exclusively on the basis of an agreement between the employer and the employee. The payment may only relate to the net wage after deduction of statutory contributions and is limited to currencies for which the Czech National Bank (ČNB) publishes an exchange rate. This option is only available to employees who have a personal connection to a foreign country, which reduces their transaction costs. This applies in particular to employees whose place of work is abroad, foreign employees or employees who work in the Czech Republic on the basis of a work permit.

Standardisation of the rules on reimbursement of expenses and leave

In order to harmonise the position of employees in an employment relationship – in particular employees on maternity or parental leave – and civil servants who are posted abroad to perform their duties, it is proposed to standardise the deadlines for giving notice of maternity or parental leave to ten weeks. At the same time, the rules on the reimbursement of accommodation costs and other expenses are to be standardised. The aim of these measures is to improve the social situation of those affected and to facilitate their return to work.

Uninterrupted duration of employment

A new feature is that the fiction of uninterrupted duration of employment with the same employer now also applies to employment relationships based on DPČ, DPP and combinations thereof. These relationships are considered uniform for the purposes of calculating the duration and possible reduction of leave. At the same time, the concept of “basic employment relationship” is introduced, which encompasses not only the classic employment relationship, but also DPP and DPČ. This is intended to increase clarity and improve legal certainty for employees and employers.

Employmbent of minors under 15 years of age

• The amendment stipulates that minor aged 14 and over who have not yet completed their compulsatory schooling may perform light work during summer holidays. The definition of such work is regulated by the Public Health Protection Act. At the same time, the provisions of Section 244a of the Labour Code are being adapted to the new regulation of the Civil Code (Section 34(2)). The work must be safe and must not jeopardise the child’s education or moral development.
• Employment of such minor employees between 8 p.m. and 6 a.m. is prohibited.
• In addition, employers are obliged to cover the costs of the medical examination for young employees with DPP or DPČ contracts.

Proof of trade union activity

• It is proposed to change the current procedure for proving trade union activity at an employer, which is based on previous case law. When registering its activity, a trade union is no longer obliged to automatically prove that it has the required minimum number of members. It is sufficient for it to inform the employer that this requirement is met.
• Only if the employer has reasonable doubts can the trade union be asked to prove that the minimum number of members has been reached. Reasonable doubts exist, for example, if the employer does not know three members of the trade union in an employment relationship or if organisational changes or other circumstances have occurred, for example mass redundancies. If the employer requests proof, they shall also bear the costs of any notarisation.
• However, if it turns out that the trade union does not meet the minimum membership requirement at that point in time, it is considered an organisation that has never been active at the employer’s premises in accordance with Section 580 (1) of the Civil Code (OZ).

Relaxation of requirements for public sector employees

• Public sector employees may become members of management or supervisory bodies of legal entities, provided they obtain the written consent of their employer.
• The administrative burden on public sector employees will be reduced, as they will no longer have to inform their employer immediately about each individual payment, but only about the cumulative cash payments at the end of the year.
• The proposal aims to involve professionals from different areas of the public sector while simplifying administrative procedures.

Equal treatment of registered partners and spouses

In the event of the employee’s death, the entitlement to wages or salary shall pass to the surviving registered partner under the same conditions as to the surviving spouse.

Transmission of pay slips

• Employers are now entitled to send an employee’s payslip via an internal system, an electronic account or even the employee’s business email address without the employee’s express consent.
• The payslip must bear a recognised electronic signature. The employee must confirm receipt of the statement by means of an electronic confirmation of receipt. If the employee does not confirm delivery within 15 days of dispatch, the delivery is deemed invalid. In this case, the employer is obliged to choose an alternative method of delivery or to repeat the delivery procedure.
• Sections 334a to 336 of Labour Code retain the previous list of permissible delivery methods for notices. These include delivery by postal services or electronic data mailboxes.
• It is also proposed that the legal effects take effect at the time of delivery.

Prohibition on employers preventing employees from disclosing salary information

Employers may not prevent employees from disclosing information about the amount and structure of their wages, salaries or contractual remuneration to third parties. The new regulation is aimed at the previously widespread practice of preventing employees from disclosing salary information through confidentiality clauses in employment contracts or internal regulations. Under these provisions, employees were obliged to maintain confidentiality about the amount of their salary in order to protect the employer’s salary policy. This will no longer be permitted in future.

Definition of a single employee

• The amendment follows on from the amendment to the Civil Code on the equality of registered partners (Act 123/2024 Sb.). According to this, a person who is neither married nor living in a partnership or registered partnership is considered single.
• The clarification and adjustment of this definition will have a particular impact on so-called single travelers who are sent on business trips.

Average gross monthly earnings (PHMV)

• A new method is proposed for calculating the average gross monthly earnings of employees whose weekly working hours are changed. The previous lack of a corresponding regulation led to inconsistent interpretations and, in some cases, unfair results. The aim of the new regulation is to ensure that the calculation of average earnings takes appropriate account of changes in working hours within the period concerned and does not disadvantage any of the contracting parties.
• First, the average weekly working time is calculated by multiplying the number of hours per week by the time the person worked during that period. The result is divided by the total number of days in the reference period.
  • For example, an employee worked 40 hours per week for 31 days and 20 hours per week for 61 days: Average TPD = (40×31+20×61):92 = 26.739 hours
• The average gross monthly earnings are then calculated as follows:
  • Multiply the average gross hourly earnings, the average TPD and the special conversion factor from week to month (4.348)

Use of average gross monthly earnings

The PHMV (Průměrný hrubý měsíční výdělek – average gross monthly earnings) is also used after the end of the employment relationship, in particular to calculate severance payments or wage compensation payments for unused holiday leave. In the past, this issue was interpreted inconsistently, leading to different approaches in comparable situations. A new binding rule now stipulates that average earnings must be calculated exclusively for the duration of the employment relationship and not beyond. This ensures a uniform practice.

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