Global Compliance Desk – Czech Republic
Czech Republic: Effect of EU Ruling on Overtime Pay for Part-Time Employees
Recently the Court of Justice of the European Union (CJEU) issued a significant judgment in the joined cases C-184/22 and C-185/22, addressing the crucial issue of overtime remuneration for part-time employees. These rulings emphasize the importance of ensuring that part-time employees’ entitlements align with their full-time counterparts.
CJEU’s Ruling
The respective cases were examined within the framework of Directive 97/81/EC, which aims to prevent discrimination against part-time employees and to ensure proportional adjustments in working conditions corresponding to the hours worked.
The court ruled that applying the same overtime threshold to both full-time and part-time employees results in inequitable treatment. It emphasized that part-time employees should not face disadvantages solely due to their reduced hours, and any differentiation in treatment must be objectively justified.
This ruling affirms the principle of equal treatment for part-time employees, mandating that their rights to overtime pay and other benefits to be proportional to their working hours.
Implications under Czech Law
Under Section 93 of the Czech labor law (Act No. 262/2006 Coll.,), overtime pay is applicable only when any employee full-time or part-time works beyond the standard limit of 40 hours per week. Consequently, part-time employees do not receive overtime pay unless they exceed the full-time working hours.
Currently, employers in the Czech Republic comply with the law by not providing overtime pay to part-time employees unless they exceed the full-time threshold.
The CJEU’s decision raises concerns regarding this practice, suggesting that it may lead to inequitable outcomes, as full-time employees are compensated for any additional hours while part-time employees must work significantly more hours to qualify for overtime.
Certain other countries like Poland, already have well established legal provisions governing part time wok thresholds. Article 151(1) of the Polish Labour Code defines overtime work as work performed beyond the employee’s working time standards or extended daily hours under their working time system. However, Article 5 mandates that employment contracts must specify the permissible number of hours a part-time employee may work beyond the contractually agreed working time, with any excess entitling the employee to additional remuneration.
The CJEU ruling and the Polish labor provisions both prevent discriminatory practices against part-time employees in relation to overtime.
Take Away – The CJEU’s ruling represents a pivotal advancement in the quest for equitable treatment of part-time employees within the labor market, particularly regarding overtime remuneration.
As the implication of this ruling unfolds, it is anticipated that collective agreements and labor practices will evolve, promoting a more equitable framework for the treatment of part-time employees across various sectors.
