Amendment to Labour Code waiting only for President’s signature

The long-awaited Amendment to the Labour Code, which is going to introduce a number of important changes to employment regulation in the Czech Republic, was approved by the Senate on 10 June 2020. Only the President’s signature, which is expected soon, is now missing for a successful conclusion of the legislative process.

Certain provisions of the Amendment will become effective already on 30 July 2020. The most important changes include:

  • Rules for delivery of notices – the Amendment is expected to facilitate delivery of notices to employees, which is currently rather problematic for employers;
  • Posting of foreign workers in the Czech Republic to provide services – the Amendment extends the scope of Czech employment legislation which applies to foreign workers posted in the Czech Republic, in particular if the posting exceeds 12 months;
  • Automatic transfer of employment rights and obligations – the Amendment specifies in more detail when employer’s rights and obligations automatically pass to a new employer.

The remaining changes are expected to take effect on 1 January 2021. These changes include:

  • Duration of annual leave – the entitlement to annual leave will be calculated on the basis of weekly working hours and will be counted in hours instead of days;
  • Job sharing – a new concept of “job sharing” will enable several part-time employees to share one position; the employees will schedule their working hours themselves upon a mutual agreement;
  • Compensation for personal injury caused to employees – the Amendment defines the amount of compensation and the conditions of entitlement for compensation paid to employees, especially in case of a severe personal injury or death.

A detailed summary of the most important changes introduced by the Amendment is under preparation and will be sent to you in the near future in the form of our Employment Newsletter.