I INTRODUCTION

National laws in the Czech Republic regulate employment relationships extensively. As a result, employees receive a high level of statutory protection. Modifications of rights and duties in employment relationships are limited. The rights and duties of an employee may only be modified by a bilateral agreement and modifications to the employee's disadvantage are not permitted. The main employment regulation is the Czech Labour Code. In addition to national legal acts, government regulations and EU law are the key sources of Czech employment law rules. Case law is used as an interpretation source but is not binding.

Some aspects of employment relationships can be regulated by collective bargaining agreements, specifically those at a higher level, concluded between employers' associations and sector trade unions, which are binding for all employers active in the relevant economic sector. Collective bargaining agreements of a higher level are published on the website of the Czech Ministry of Labour and Social Affairs.

Employment law-related disputes are subject to the jurisdiction of special employment law senates. The court system comprises three levels: regional courts, district courts and the Supreme Court.

The main government agency with authority to enforce employment law is the State Labour Inspectorate, which monitors compliance with statutory laws relating to a wide range of matters, including working conditions, health and safety, remuneration and employment-related documents. Other authorities involved in employment relationships are the Office for Personal Data Protection, the Foreign Police Department and the Customs Administration; the latter has the authority to monitor employment of foreigners.

II YEAR IN REVIEW

i Abolishment of three days' unpaid sickness leave

A Labour Code amendment that came into effect at the beginning of July 2019 has abolished a controversial provision, under which employees were not entitled to any sickness compensation during the first three days of being temporarily unable to work. As a result of the amendment, employees now receive compensation from the first day of a temporary sickness. The first two weeks of sickness are compensated by the employer, after which payment of compensation is covered by statutory state insurance.

ii New Labour Code amendment

There is a further major amendment to the Labour Code in the pipeline, which in particular contains a reform to the calculation of annual leave (i.e., working hours as the basis for calculation instead of working days). It is also expected to introduce shared working and to implement Directive (EU) 2018/957 of the European Parliament and of the Council, amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (the New PWD Directive).

It is expected that the amendments relating to the framework of the New PWD Directive will be effective from July 2020. The rest of the amendments are expected to take effect from 2021.

iii New PWD Directive

The freedom of movement of persons and the freedom to provide services are two of the fundamental principles of the European Union and have become significant tools within the EU employment market.

More than 20 years after the implementation of Directive 96/71/EC, the regulation of posted workers was amended by the adoption of Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 (the New PWD Directive). The deadline for implementation of the New PWD Directive by EU Member States is 30 July 2020.

The PWD Directive regime applies to situations in which employees from one EU Member State are posted by their employer to work temporarily for a company in another EU Member State; either to perform work for another company on the posting employer's behalf, and under its direction, or within the same group of companies.

The New PWD Directive implements two categories of posting: (1) short-term (less than 12 months), which may be extended up to 18 months and (2) long-term. It also sets down a rule that if an employee replaces another employee and performs the same duties in the same location, the durations of those postings must be combined. The employer is therefore obliged to monitor instances and durations of postings in which employees replace others in the same position.2

Under the New PWD Directive, all minimum components of the salary must be granted to each posted employee. In the Czech Republic, this means a premium for overtime work and a premium for work during the night or at weekends. Employers will also have to monitor applicable collective agreements. In addition, posted employees will be entitled to compensation for travel and lodging expenses.

iv Labour authority inspections

The State Labour Inspectorate has been focusing on illegal employment and illegal provision of agency workers. Both these administrative offences may be subject to significant fines. Typically, we see cases in which a company believes it is using agency workers but the provider of those workers does not have the relevant authorisation. Another common typical inspection matter is a situation in which a company uses independent contractors who nevertheless do not work independently but actually work according to the same regime as employees who are under the instructions of the employer, using the employer's tools, and whose working time is determined by the employer.

III SIGNIFICANT CASES

On 11 April 2018, the Czech Supreme Court delivered a ruling on the highly sensitive question of whether members of a company's statutory body may at the same time perform activities (falling within the scope of the activities of the corporation's statutory body) for the same company within an employment relationship.

The Supreme Court found that although the relationship between a member of the company's statutory body and the company should reasonably be governed by the executive services agreement, the parties may agree that their relationship will be governed by the Labour Code. However, it does not mean that the employment relationship is established by this agreement; it remains a commercial-law relationship. It is only governed by those Labour Code provisions that are not at variance with the obligatory commercial law provisions regulating (in particular) the status of the company's statutory body and the individual's relationship with the company (e.g., the duty to exercise an office with due managerial care, or the consequences of a breach of the duty to exercise an office with due managerial care).

As in previous years, the Czech courts repeatedly dealt with questions relating to the (in)validity of termination of an employment relationship for a breach of work discipline. On 8 July 2019, the Constitutional Court dealt with a query as to whether an employee's unexcused absence for eight days establishes a ground for immediate termination of the employment relationship.

The Constitutional Court concluded that a long-term absence itself might not lead to the conclusion that an employee has breached work discipline in an especially gross manner, and therefore would not suffice as a ground for termination with immediate effect. The Court repeated that it is necessary to properly access all consequences of a breach of an employee's duties. To assess the degree of severity of the given breach of duties, it is necessary to take into account, among other things, an employee's personality, the specific job performed by the employee, the employee's current attitude to the performance of work tasks, the time and situation during which the employee breached his or her duties, the degree of fault, the manner and the intensity of the breach of the employee's duties, the consequences of the breach for the employer and damage caused to the employer.

IV BASICS OF ENTERING INTO AN EMPLOYMENT RELATIONSHIP

i Employment relationship

A written employment contract is required by law and it should be executed before the employment relationship commences. If there is no employment contract in place and the employee starts to perform work for the employer, an employment relationship will be created and the employee will be granted all statutory rights, duties and protection, including from termination of employment. An employment contract must include at least (1) the type of work, (2) the place or places where the work is performed, and (3) the date of the commencement of work. The employer must provide the employee, in writing, with further details of the employment relationship, such as a description of the tasks involved in the job, weekly working hours and duration of annual vacation, no later than within one month of the commencement of the employment relationship, if the information was not already provided in the employment contract. Terms and conditions of an employment contract may only be amended in writing by mutual agreement between the employer and the employee.

Fixed-term employment contracts are allowed but the duration of a fixed-term employment relationship cannot exceed three years and cannot be repeated more than twice, that is to say, the maximum term for which an employee can be employed on a fixed-term contract is nine years. There are limited cases in which exceptions apply, such as seasonal employment in the agriculture sector. Should an employee work for an employer in breach of these fixed-term contract limitations, an employment relationship for an indefinite term will be created automatically.

ii Probationary periods

The employer and the employee can agree on a probationary period. That agreement must be in writing and the probationary period may not exceed three consecutive months from the commencement of the employment relationship in respect of non-managerial employees or six consecutive months in respect of managerial employees. In the case of a fixed-term contract, the agreed probationary period must not be longer than half of the agreed term of the employment relationship.

A probationary period may be agreed not later than on the date that was agreed as the date of commencement of work or the date specified as the date of appointment to a managerial position. An agreed probationary period cannot be subsequently extended.

iii Establishing a presence

Foreign companies do not have to register in the Czech Republic to hire employees but non-EU companies must register a subsidiary or a branch in the Czech commercial register to conduct business here. Business presence will also often create a permanent establishment for tax purposes. The company will have to obtain the relevant authorisation to conduct its business (i.e., a trade licence or other relevant licence) and register as an employer with the Czech social security and health insurance system to pay the relevant contributions for its employees.

Statutory deductions from each employee's monthly salary include advance payments for personal income tax, social security insurance, unemployment contribution, health insurance and sickness insurance. Generally, all statutory contributions are calculated, deducted and paid by the employer for its employees.

Foreign companies can engage independent contractors in the Czech Republic.

V RESTRICTIVE COVENANTS

An employee is prohibited by Czech employment law to perform any gainful activity (with the exception of scientific, pedagogical, journalistic, literary and artistic activities) that is identical to the activities of his or her employer, unless the employer provides the employee with a prior written consent to the performance of that gainful activity.

An employee and an employer may agree on a non-compete clause that becomes applicable after the termination of an employment relationship. It must be in writing, either as part of the employment contract or in as a separate agreement. The non-compete agreement can only prohibit the employee from conducting a gainful activity that is of the same nature or competes with the activity of the employer. The duration of a non-compete clause is limited to a maximum of one year after the termination of an employment relationship and it must be justifiable with respect to the nature of the employee's work. The employer must provide the employee with a statutory compensation corresponding to a minimum of 50 per cent of the employee's monthly average earnings for each month of the duration of the non-compete obligation. The employee and the employer may agree on an adequate contractual penalty that the employee will be obliged to pay if he or she breaches the non-compete agreement. Upon payment of the contractual penalty, the non-compete obligation ceases to exist.

The employer may only withdraw from a non-compete agreement during the existence of the employment relationship and only for reasons established in the agreement. The employee may terminate the non-compete agreement if the employer failed to provide him or her with compensation within 15 days of its due date. In that case, the agreement ceases to be valid on the first day of the calendar month following the delivery of the notice.

VI WAGES

i Working time

The standard working time is 40 hours per week, which also is the statutory maximum for employees working in a single-shift regime. The working week for employees in a two-shift or three-shift regime (whereby they regularly mutually switch between two and three shifts within 24 consecutive hours) is 38.75 or 37.5 hours, respectively.

An employer may distribute working hours evenly (over five working days during the week), or unevenly, in a more complex pattern over a balancing period exceeding one week. A single shift (without overtime work) may not exceed 12 working hours and the employer must distribute working hours so that the employee has a rest between shifts of at least 11 consecutive hours and uninterrupted weekly rest of at least 35 consecutive hours (including Sunday, if possible).

Night work means work performed between 10pm and 6am the following day, and the duration of a night shift may, as a rule, not exceed eight hours within 24 consecutive hours. For night work, employees are entitled to additional pay of at least 10 per cent of their average earnings (unless otherwise agreed).

ii Overtime

Overtime work is defined as work in excess of the full-time weekly working hours determined in the work shifts schedule. Employers should only require overtime work from employees as an exceptional measure.

Unless agreed otherwise, overtime work performed by an employee may not exceed eight hours in a single week and 150 hours in a calendar year. If the employee agrees to perform overtime work exceeding the yearly limit of 150 hours, that work may not exceed, on average, eight hours per week over a balancing period of 26 or 52 consecutive weeks. As a result, employees may actually perform a total of 416 hours of overtime work in a year, subject to his or her individual consent.

For performance of overtime work, employees are entitled to their salary and additional pay of at least 25 per cent of their average earnings, unless an employer and an employee agree that the employee will be provided with compensatory time off corresponding to the amount of overtime work. An employer and an employee may agree that the salary of the employee includes performance of overtime work. The statutory limit for including overtime work in a regular salary is 150 hours per calendar year for standard employees and 416 hours per calendar year for managing employees.

VII FOREIGN WORKERS

Citizens of Member States of the European Union and European Economic Area (EEA) and of Switzerland may seek employment in the Czech Republic freely without a working permit or visa. These citizens may be also posted to the Czech Republic by their employers for a limited period when meeting the conditions of the New PWD Directive and related regulations. Third country citizens need to obtain a residence and a work permit, Employee Card or Blue Card; the latter combine the residence and work permit.

The Employee Card is a long residence permit for third country citizens whose purpose for staying in the Czech Republic is employment. Holders of the Employee Card are entitled to reside and work in the territory of the Czech Republic in the job for which the Employee Card was issued or for which the consent was granted. The Employee Card is usually issued for the duration of the employment, to a maximum of two years, with an option to repeatedly extend its validity. The Blue Card is similar to the Employee Card and is intended for third country citizens to perform a highly skilled job.

An employer is obliged to keep records of its foreign workers, containing basic information such as identification data, the type of work and the date of commencement of the work. The number of foreign workers an employer may have is not limited.

Employers are obliged to notify in writing the competent regional labour office of the employment of a foreigner on the day the worker commences performance of work, at the latest. In respect of workers posted in the European Union, the posting employer must send this notification. Employers are further obliged to inform in writing the competent regional labour office within 10 calendar days, at the latest, that a foreigner ended performance of his or her work or that the posting has concluded.

A foreign worker may be subject to Czech taxation, especially to income tax, if he or she is a permanent resident in the Czech Republic or is present in the Czech Republic for more than 183 days in a calendar year. When an employee is considered a resident in more than one country, tax residency is usually determined according to the applicable double taxation treaty.

Whether a foreign employee is protected under local employment law depends on the law applicable to the employment contract and to the time spent in the territory of the Czech Republic in respect of a posting in the European Union. Pursuant to the PWD Directive and its implementation to the Czech Labour Code, the local legal provisions apply particularly in the following areas: the maximum length of working hours, the minimum length of rest periods, annual leave, minimum wage, occupational health and safety.

VIII GLOBAL POLICIES

There is no statutory requirement for companies to have any disciplinary rules. Most employers issue internal regulations to regulate employment relationships in respect of rights and duties that do not have to be set down in the employment contract. Disciplinary rules would typically be established by internal regulations, not in an employment contract. Internal regulations, like a code of business conduct, have been more typically used by international groups of companies that implement global policies but similar internal regulations are increasingly being implemented by other employers.

An employer issues internal regulations unilaterally. They take effect as of the date of an announcement to employees or any other later date specified in the regulation. Upon the issuance of an internal regulation, all its changes and its abolishment must be announced to employees within 15 days. The text of an internal regulation must be available to all employees and the employer must archive each internal regulation for 10 years after its expiry. The law prescribes no form of announcement or publishing; email and the company intranet are increasingly used. If trade unions are established within the organisation, they must be consulted in most cases regarding regulations, but no consent is required and non-compliance with this obligation does not make a regulation invalid.

There is no legal obligation to have internal employment regulations drawn up in Czech but since, in the event of any dispute, the employer must prove that employees have understood the regulations, it is recommended in most cases that Czech is used for internal employment regulations.

IX PARENTAL LEAVE

Czech law distinguishes between three types of leave in connection with the care of a child. All types of childcare-related leave are also available for parents who are taking a child into their care in place of the biological parents.

Maternity and parental leave are considered protected periods, during which the relevant employee is protected from dismissal. Employers have a statutory obligation to provide an employee returning from maternity leave with the same position as was held before the maternity leave (or parental leave to the extent of the maternity leave). Employers also have a statutory obligation to provide an employee returning from parental leave with a position corresponding to the employment contract.

i Maternity leave

In connection with childbirth and care for a newborn child, a female employee is entitled to maternity leave for 28 weeks. Should an employee give birth to two or more children at the same time, the employee is entitled to maternity leave for 37 weeks. Maternity leave usually commences at the beginning of the sixth week prior to the expected date of birth, but not before the beginning of the eighth week prior to the expected date of birth.

During maternity leave, employees are entitled to financial support in maternity (PPM),3 which is fully funded by the state. The amount of PPM corresponds to 70 per cent of the gross average salary of the employee; the law also stipulates the minimum and maximum amounts of financial help due.

ii Paternity leave

The father of a newborn child is entitled to seven days leave, which must be used within six weeks of the date of birth of the child. Similar rules as in case of maternity leave apply.

iii Parental leave

The mother is entitled to parental leave after the expiry of maternity leave and the father from the birth of the child. The maximum duration is until the third birthday of the child. An employee on parental leave is entitled to a parental allowance funded by the state.

X TRANSLATION

Czech law does not require employment documents to be translated into Czech or into an employee's native language. However, in the event of a dispute, the employer must be able to prove that its employees have understood all documents relating to the employment relationship, such as the employment contract, employee handbooks, internal policies or confidentiality agreements.

It is recommended that documents are prepared in bilingual version, with one of the languages being Czech. This approach is also practical since the State Labour Inspectorate may request these documents during an inspection and the employer must be prepared to provide a translation if one does not already exist.

XI EMPLOYEE REPRESENTATION

Employees in the Czech Republic are permitted, but not obliged, to form representative bodies (trade unions or works councils) or elect a representative for occupational safety and health protection. Pursuant to the applicable EU legislation implemented in the Czech Labour Code, employees are also permitted to create a works council. The employer is obliged to inform or consult employee representatives about certain organisational or personnel changes, or must fulfil these obligations towards employees individually if there are no active employee representatives. There are no strict requirements for the frequency with which employee representatives should meet.

i Trade unions

The right to form trade unions results from the Czech Charter of Fundamental Rights and Freedoms. A trade union may operate with an employer only if (1) it is authorised to such operation in its statutes and (2) at least three members of the trade union are employed by the respective employer. Upon meeting these conditions, an unlimited number of trade unions may be active with the employer. The employer may neither prohibit its employees from becoming members of a trade union nor discriminate against them in connection with their activities within the trade union. Trade unions active with an employer always represent all employees, including those who are not members of the trade unions.

Employers must keep trade unions informed on several matters, such as the economic situation, working conditions, occupational health and safety protection or equal treatment, and in particular must consult trade unions regarding the employer's economic situation, workload and work pace, changes in the organisation of work, the system of employee remuneration, dismissals and other important matters pursuant to the Labour Code. The trade unions also approve holiday schedules and may enter into collective agreements with the employer and influence or participate on some employer's decisions. The employer must consult the trade unions in respect of each termination with a notice period or immediate termination; however, the trade union may not veto a termination.

Trade unions may decide on the election procedures for their body members and the length of their term of office. Trade union members who hold an office in the union enjoy special protection during their term of office (and for a period of one year afterwards), in that the employer may not dismiss these employees without the prior consent of the trade union.

ii Works councils and representatives for occupational health and safety protection

Works councils and representatives for occupational health and safety protection may be constituted for each employer individually. A works council may have between three and 15 members (the number of members must be always odd).

The number of representatives for occupational health and safety protection depends on the total number of employees of the employer, since a maximum of one representative per 10 employees may be appointed. Representatives are elected for three years.

For elections to these bodies, one third of an employer's employees must sign and deliver a written proposal, upon which the employer is obliged to organise an election within three months of delivery of the proposal.

XII DATA PROTECTION

In May 2018, a new complex personal data protection regime was implemented by Regulation 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data and repealing Directive 95/46/EC, also known as the General Data Protection Regulation (GDPR).

i Requirements for registration and other general obligations

Employers have no obligation to register with the Czech Office for Personal Data Protection (the Office). All employers in their role as data controllers are obliged to maintain a register of their data processing activities, particularly with respect to personal data processed systematically and with respect to all employee personal data. The Office monitors compliance with this obligation and a register of data processing activities must be provided to the Office in the event of an inspection.

Employers have an obligation to inform employees about the processing taking place, and secure the processed data by implementing appropriate technical and organisational measures depending on the type of data processed and its extent. Recommended best practices are maintaining a strong password policy, clean desk policy or regular employee training.

Employers should only process data that they need to fulfil their statutory rights and duties and no employee consent is required for this type of processing.

ii Cross-border data transfers

Transfers of personal data to countries within the European Union and EEA are allowed under the same conditions as domestic data processing. They do not have to be notified to the Office but they have to be described in the register of processing activities.

Transfers of personal data to countries outside the European Union and EEA are only permitted if the recipient of the data can ensure an adequate level of protection. The European Commission identified certain countries outside the European Union as having an adequate level of protection, including Switzerland, Japan, Canada and the United States (the EU–US Privacy Shield was adopted in 2016). In other countries, an adequate level of protection can be ensured by individual agreements with the data recipient, binding corporate rules, certification mechanism, codes of conduct, and the like.

iii Sensitive data

The processing of personal data that reveals racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, and of genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health, a natural person's sex life or sexual orientation shall be prohibited. Sensitive data can only be processed by the employer in exceptional situations when this is explicitly permitted or required by statutory provisions (typically, notification duties with respect to social and health security insurance).

iv Background checks

Background checks by the employer are allowed but must be limited to matters that are relevant for the specific job. An employer cannot require from a potential employee information concerning pregnancy, family and property situation, sexual orientation, racial or ethnic origin, trade union membership, affiliation with political parties, or religion. Criminal record checks can be requested based on the general principle that it must be important and adequate for the specific position.

XIII DISCONTINUING EMPLOYMENT

i Dismissal

There are three possible types of dismissal: termination with a notice period, immediate termination for serious cause, and termination during a trial period. The employer or the employee may terminate the employment during a trial period without stating any cause. Once the trial period has expired, the employer may terminate an employment agreement only for one of the reasons set out in the Czech Labour Code. However, the parties may terminate the agreement at any time by mutual agreement.

Termination with notice period or immediate termination are subject to consultation with trade unions, and trade unions members are subject to special protection (see Section XI). In the case of individual terminations, which do not fall under collective dismissal (see Section XIII.ii), the employer is not obliged to inform any state authorities. The employer has no obligation to provide a social plan or to offer any alternative employment to the affected employees.

Form of dismissal

The termination notice must be in writing, delivered to the employee and stipulate the reasons for termination, except in the case of a termination during a trial period, when no reasons are required.

Notice period

In respect of a standard termination notice, the employment terminates upon the expiry of the notice period. The standard notice period is two months; it can be longer if agreed in the employment contract and by both the employer and the employee. The notice period starts on the first day of the calendar month following the month in which the termination notice was delivered to the employee. Pay in lieu of the notice period is not permissible. Employment continues during the notice period but garden leave is often used, whereby employers release employees from their duty to work during the notice period.

When an employee is dismissed for serious cause by an immediate termination, the employment is terminated with immediate effect. During the trial period, employment is terminated without a notice period, usually as of the day of delivery of the termination notice, unless the notice stipulates a later date within the trial period.

Special dismissal protection

Some groups of employees enjoy protection with respect to dismissal. The Labour Code introduced a special protection period during which the employment contracts of certain employees may not be terminated. This applies to employees who are pregnant, on maternity leave, or while employees are absent because of illness, serving a term in public office or on military exercises, among others.

Severance pay

An employee is entitled to severance pay for termination with notice or by agreement in the event that the employer's undertaking, or a part of it, is closed down or relocated or if the employee becomes redundant. The amount of the severance pay depends on the length of the employment. An employee is entitled to at least (1) the equivalent of his or her average monthly earnings if the length of service is less than one year, (2) twice his or her average monthly earnings if the length of service is at least one year but less than two years, or (3) three times his or her average monthly earnings if the length of service is two years or more.

If the reason why an employee is dismissed with notice or by agreement is because of his or her incapacity to work resulting from a work injury, occupational disease or a threat of occupational disease, the employee is entitled to severance pay amounting to at least 12 times his or her average monthly earnings (unless the employer is entirely relieved from liability for the work injury or occupational disease).

ii Redundancies

As stated in Section XIII.i, an employer may terminate an employment agreement only for one of the limited reasons set out in the Labour Code, of which one is redundancy. Employees becomes redundant following a decision by an employer to make organisational changes.

Collective dismissal

Special rules for collective dismissal apply if the same employer dismisses a certain number of employees (depending on the total number of its employees) within 30 calendar days for organisational reasons. The employer is obliged to inform the trade unions and the works council in writing at least 30 days in advance of the collective dismissal, stating the reasons. If there is no trade union or works council, the employer must inform each affected employee individually. At the same time, the employer is obliged to inform the competent regional labour office of the planned collective dismissal and provide a written report on the decision leading to that collective dismissal and the conclusions of consultations with the employee representatives. If an employer fails to inform the labour authority, the employment relationships of the affected employees will not be terminated.

XIV TRANSFER OF BUSINESS

Employees affected by a transfer of business are protected by rules set down by EU Council Directive 2001/23/EC of 12 March 2001 (the Acquired Rights Directive). The Directive has been implemented in the Czech Labour Code.

The legal definition of a transferring business is rather extensive: a transfer of rights and duties of employees occurs if the activity or a part of the activity of an employer or tasks or a part of tasks of an employer (the transferring business) are transferred and the transferee continues to operate it. As a consequence, all employment relationships that are allocated to the transferring business transfer with all rights and obligations to the transferee by operation of law. The employment conditions remain unchanged and working conditions should not be worse as a result of the transfer.

The transferor and the transferee are obliged to notify the employees who are subject to a transfer of their employment relationship 30 days before the planned date of transfer. There is an administrative fine of 200,000 koruna for non-compliance with the information obligation but non-compliance does not affect the outcome of the transfer.

An employee affected by a transfer of business may terminate his or her employment with effect from the actual date of the transfer. An employer cannot terminate the employment of an employee because of the transfer of business.

XV OUTLOOK

Employers should be prepared for significant legislative changes in labour law during 2020, as an amendment to the Labour Code is expected to be adopted. The aim of the amendment is to adapt the Labour Code to meet current trends and needs in employment practice, noting the following changes in particular:

a the calculation of annual leave;

  • shared working places;
  • regulation of the delivery of documents relating to employment relationships; and
  • regulation of the transfer of rights and obligations arising from employment relationships.

The amendment will also reflect the new (updated) EU legislation on the posting of a worker within the European Union (Directive (EU) 2018/957 of the European Parliament and of the Council amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services). For further discussion on the amendment, see Section II.

Employers should increase their vigilance in ensuring compliance with applicable labour law regulations. It is expected that the activity of the State Labour Inspectorate will be intensified in 2020. The Inspectorate verifies compliance with legal obligations relating to general working conditions and safety at work in the Czech Republic. As in previous years, the Inspectorate shall focus mainly on illegal employment, in particular employment of foreign workers without a permit, and concealed agency employment.


Footnotes

1 Jan Procházka is a partner and Iva Bilinská is a senior managing associate at Deloitte Legal sro.

2 The purpose of adding up successive postings is to prevent situations in which employers might 'rotate' the posted workers by replacing them with each other so as not to fall under the stricter posting regime. Although no maximum period of posting is explicitly stipulated, a posting should be temporary in its nature, even while being 'long-term'.

3 Peněžitá pomoc v mateřství.