Flexible Amendment to the Labour Code: Changes to be Implemented from January 2025
The flexible amendment to the Labour Code is a bill drafted by the Ministry of Labour and Social Affairs, which has not yet been finally approved (adjustments may potentially be made), but the new amendment should take effect in January 2025.
Why “flexible”? The aim of the proposed changes is to streamline the employment relationship, enhance the flexibility of the Labour Code and respond to the evolving labour market. Many of the changes apply to parents who work during parental leave and then return to their original job position. There are also new developments in the notice and probation periods. What exactly does that mean?
Let’s have a look at what the draft bill proposes:
Changes to Notice Period
From January 2025, the notice period should start running from the date of the delivery of notice, not from the first day of the following month. In practice, this means that employees who give their notice on 15 May, for example, will have their employment terminated on 15 July, not 31 July, as is the case now. In certain cases, the notice period will be reduced to one month for reasons specified under Section 52(f to h) of the Labour Code.
Extension of the Probation Period
From January 2025, the probation period for non-management employees could be up to 4 months (from 3 months currently) and for managerial positions up to 8 months (from 6 months currently). Newly, it should also be possible to extend the probation period during the probation period itself.
However, a probation period cannot be longer than one half of the agreed duration of the employment relationship. Currently, an extension of the probation period during its duration is not legally allowed.
Flexible Scheduling and Working Hours
As of January 2025, it will be possible for the employees to schedule their own shifts even when they perform work at the employer’s workplace by mutual agreement between the employee and the employer (currently only allowed in connection with the performance of remote work). This particular change has already been passed and signed by the President and will take effect on 1 January 2025. Until now, shifts were planned by the employer, and the employer was obligated to inform employees at least two weeks in advance unless specified otherwise.
Jobs for Minors under 15 Years of Age
From January 2025, minors under the age of 15 will be allowed to perform jobs during the summer holidays, even before the end of their primary school education. These are to be only simple jobs (“summer jobs”) which are not risky or harmful to health. Until now, only minors over the age of 15 who have completed compulsory schooling could work legally.
Salary Payments in a Non-Czech Currency
From January 2025, it will be possible to pay the salary (or its part) in euros or another currency according to the exchange rate announced by the CNB. This change should apply, for example, to foreign employees and Czech nationals living abroad. The exact rules are to be determined. There are exceptional cases where it is possible to pay the salary or part thereof in another, pre-agreed currency even now, but the employee’s workplace must be located abroad. For all others, payment of salaries and other wage components is made in Czech crowns.
Termination of Employment upon Loss of Medical Fitness
As of January 2025, if an employee’s employment relationship is terminated as a result of loss of medical fitness (occupational injury or illness), the severance pay should be paid directly by the insurance company with which the employer is legally insured. The amount of severance pay (12 times the monthly salary) will remain unchanged. Until now, severance pay has been paid by the employer, which could be financially devastating for some smaller businesses. That is why the Ministry of Labour and Social Affairs has come up with this change.
Standing in for Someone on Maternity or Parental Leave
As of January 2025, the amendment provides for more flexible rules for extending the employment contract for fixed-term employees standing in for a person on maternity or parental leave. Currently, the “three times is enough” rule applies for a maximum of 3 years. However, the amendment is for a 9-year cap in total, with no exceptions.
Better Working Conditions for DPP and DPČ Agreements during Parental Leave
From January 2025, employees on parental leave have the option to continue the same work for their employer on more flexible working agreements (in Czech: DPP or DPČ).
Until now, this has not been possible, and in practice, it was (and still is) often bypassed by an artificial change in the job title so that it would differ from the original employment agreement while the employee actually performs the same work as before taking parental leave.
Returning after Parental Leave
From January 2025, changes are also to be applied to parents returning after paternal leave. If the employee returns from parental leave before the child is 2 years old, the employer is obligated to guarantee the employee’s original job position. If the employee returns before the child is 3 years old, the employer is not obligated to guarantee the same job position, only the same type of work according to the original employment agreement. The current version of the Labour Code does not address when exactly an employee returns to work after parental leave, provided that the condition of the child being under 3 years of age is met. The employer has only a general obligation to assign a job corresponding to the type of work agreed in the employment agreement.
The forerunner of the forthcoming amendment to the Labour Code was the set of approved changes that came into force on 1 August 2024.
These were the following:
Written Holiday Schedule
Employers are no longer obligated to create a written holiday schedule for employees.
Abolition of Guaranteed Wages in the Private Sector
As of 1 August, the guaranteed wage for the private sector (with a total of 8 categories) has been completely abolished and replaced by a fair and timely calculation of the minimum wage. However, until the end of this year, the previously applicable rules will be followed.
Changes to the Minimum Wage
As of 1 August, a new coefficient was introduced to calculate the minimum wage. The Ministry of Labour and Social Affairs will announce it by 30 September of each year for the upcoming year.
We will continue to closely monitor the entire situation regarding the forthcoming flexible amendment and more and will inform you of the latest news in due time. If you have any questions or are in need of a consultation, please do not hesitate to contact us.
