Global Compliance Desk – Czech Republic
Czech Republic: Recent Amendments to the Labor Law
Recently, an amendment (Act No. 230/2024 Coll.) to the Labor Code (Act No. 226/2006 Coll) (“the Act”) was published in the Collection of Laws. This amendment has introduced several changes that will impact both employers and employees. The upcoming amendments are as follows:
Removal of the Employer’s Obligation to Create a Holiday Schedule
Currently, employers are required to prepare an annual leave schedule at the start of each year and consult with trade unions or employee representatives.
Effective August 1, 2024, this requirement has been removed. Employers are no longer obligated to issue a formal holiday schedule. This change reduces the administrative burden on businesses and reflects current practices more effectively.
However, employers are still responsible for determining employees’ leave periods. They must notify employees of their vacation at least 14 days in advance, unless a different arrangement is mutually agreed upon.
Note – Since the holiday schedule is typically issued at the beginning of the calendar year, this change will practically take effect starting in 2025.
Scheduling of working hours by the employee
Effective January 1, 2025, employees in the Czech Republic will be granted the option to schedule their own working hours under specific conditions. This change introduces greater flexibility for both employers and employees.
Key Points of the New Regulation:
Written Agreement Requirement: Employers and employees must enter into a written agreement that outlines the conditions for self-scheduling working hours. This applies to both standard employment contracts and agreements for part-time or freelance work.
Maximum Shift Length: Self-scheduled shifts must not exceed 12 hours. Employees must comply with statutory limits on rest periods, breaks, and time between shifts. Despite the self-scheduling flexibility, employers remain responsible for ensuring compliance with these legal requirements.
Work Schedule Distribution: The agreement may specify whether working hours should be distributed evenly or unevenly across the week. It can also define the balancing period for unevenly distributed hours, ensuring that shifts align with the total working hours.
Flexibility for Employers: Employers may choose not to include specific restrictions directly in the agreement but instead inform employees in writing. This allows for easier modifications in the future.
Termination Options: The agreement can be terminated either by mutual consent or unilaterally with a 15-day notice period. The notice period begins on the date it is delivered to the other party.
Take Away – Employers should take proactive steps to comply with the amendments and must review their policies to align with them, at the earliest.
