On 9 April 2025, the Senate of the Czech Republic approved a flexible amendment to the Labour Code aimed at increasing adaptability on the labour market. The bill now awaits the President’s signature. The amendment will most likely come into effect on 1 June 2025.
At Expat-Tax.cz, we closely monitor legislative developments that affect both employers and employees. Below is a summary of the key changes introduced by the amendment:
1. Extended Probation Periods
The maximum length of the probation period will be extended:
Up to 4 months for standard employees (currently 3 months).
Up to 8 months for managerial employees (currently 6 months).
The probation period must not exceed half the agreed duration of a fixed-term employment contract.
If the probation was initially agreed for a shorter period, it may be extended (in writing), but not beyond the new maximum.
2. Flexibility in Fixed-Term Contracts
The standard rule allowing a maximum of three years and two renewals still applies.
Exception: For temporary replacements (e.g. maternity, paternity, or parental leave), no limitation on the number of renewals applies.
However, the total duration of fixed-term contracts between the same parties cannot exceed nine years.
3. Work During Parental Leave
An employee may perform the same job for the same employer during parental leave under a DPP (agreement to perform work) or DPČ (agreement on working activity).
4. Return to Original Job After Parental Leave
If a parent returns to work before their child turns 2 years old, the employer is obligated to reinstate them to their original position and workplace.
5. Notice Period Begins Upon Delivery
The notice period will start on the day the notice is delivered to the other party, not on the first day of the following month, as is currently the case.
It will end on the same day of the following month(s).
6. Shorter Notice Period for Certain Employee-Initiated Terminations
In specific cases (sections 52(f)–(h) of the Labour Code), employees may give notice with a minimum one-month notice period.
7. Higher Severance Pay for Medical Unfitness
If an employee is dismissed (or ends employment by mutual agreement) due to loss of medical fitness, severance pay will increase to 12 times the employee’s average monthly salary.
8. Youth Employment from Age 14 During Summer Holidays
Teenagers aged 14+ may work during school holidays under specific conditions:
Light work only.
Maximum 7 hours per day / 35 hours per week across all jobs.
No work after 8 PM for those under 15.
No night or overtime work is permitted.
9. Salaries Payable in Foreign Currency
With the employee’s explicit consent, salaries or wages may be paid in a foreign currency, provided it is listed in the Czech National Bank’s official exchange rate list.
What Did Not Pass?
A controversial proposal to allow termination without cause in exchange for double severance pay was ultimately rejected during the legislative process.
At Expat-Tax.cz, we ensure that all payroll and HR-related services reflect the latest legal standards. If you are an employer or employee navigating the Czech labour market and need guidance on these upcoming changes, feel free to reach out to us.
Stay tuned for further updates once the bill is signed into law.
Questions? Contact us at www.expat-tax.cz.