Flexible amendment to the Labour Code (update)

At a glance

Update: 26 September 2024

• On 21 August 2024, the government approved an amendment to the Labour Code aimed at increasing the flexibility of employment relations. The proposal has been submitted to the Chamber of Deputies for further consideration.
• In view of the political sensitivity of the proposal, it may still be substantially amended during further discussion.
• The Ministry of Labour and Social Affairs presented an amendment to the Labour Code.
• The amendment aims to increase the flexibility of employment relationships.
• The amendment is set to be finalised in 2024 and to enter into force in 2025.

The Ministry of Labour and Social Affairs presented a new amendment to the Labour Code, which aims to increase the flexibility of employment relationships. The draft is still in the very early stages and may be subject to significant changes in the future. The current draft proposes the following changes:

• Employees on parental leave can continue to carry out the same type of work for the same employer as they did prior to taking leave, provided that a framework agreement exists which permits work outside the employment relationship. Additionally, employees who return from parental leave before the child reaches the age of two will be guaranteed a return to the same job, similar to what is currently only possible for maternity leave.
• Notice periods will commence on the day the notice of termination is delivered to the other party, as opposed to the first day of the following month. This results in shorter notice periods for recruiting new employees or filling a vacant position. If the notice is issued due to the employee’s violation of work discipline or failure to meet the employer’s expectations or legal obligations (including underperformance), the notice period is shortened to one month.
• The maximum length of a mutually agreed probationary period may be increased by up to four months for ordinary employees and up to eight months for senior employees.
• There will be an increase in the number of cases where it is possible to agree with the employee that their salary will be paid in a currency other than the Czech currency.
• Minors aged 14 and above will be allowed to perform certain light duties during the summer holidays, even if they haven’t completed mandatory education.
• If the employment relationship was terminated on the grounds that the employee is no longer able to work due to an accident at work or an occupational illness, the employee will receive special compensation, which the employer can reclaim from the statutory insurance.

The amendment is set to be finalised in 2024 and to enter into force in 2025. However, the amendment is still in the very early stages of the legislative process and therefore is subject to change. 

We will continue to provide updates on the legislative process, and a more detailed overview of the expected changes when the final version of the amendment is published.