Due to COVID-19, foreign workers who hold a “blue card” are able to change employers within 6 months of initial employment. The new employer is required to submit notice to the Minister of Interior on the first day of employment. There is no clear expiration date for this rule change to expire.
Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The monthly minimum wage is 15,200 CZK.
The payroll cycle is monthly and a regular date for payment must be set by the employer. Salaries must be paid no later than the following calendar month in which the work was performed.
There are no provisions in the law regarding 13th salaries.
A full-time work week is 40 hours or 8 hours per day. The length of a shift cannot exceed 12 hours.
Overtime work can only be performed as an exception and cannot exceed 150 hours within a calendar year.
If there is an agreement between the employee and employer in regards to work beyond regular hours, overtime cannot exceed 8 hours a week for more than 26 consecutive weeks. If there is a collective agreement, overtime may be increased.
For managerial positions- the maximum amount of overtime that can be negotiated is 150 hours per year.
Overtime pay is as follows:
- Overtime pay is 125% of the regular pay. It is also possible to give additional time off in place of overtime pay.
- For work over holidays, employees are entitled to their wages plus time off.
- For work over the weekend, the overtime pay rate is 110% of the regular wages.
- For nightshift- The shift cannot exceed 8 hours within a 24-hour time period and the pay rate is 110% of the regular wages.
Employees are entitled to 4 weeks (20 days) of paid leave. The employee must perform work for the same employer for at least 60 days without interruption to receive this allotment.
Employees whose right to annual leave has not yet been met, are entitled to leave for the days on which they carried out work in the length of one-twelfth of annual leave for every 21 days on which they carried out work in the relevant calendar year.
There are 13 public holidays.
During the first 14 days of illness, the employee is entitled to receive 60% of their regular wages, so long as the employee has fulfilled the conditions to be eligible for this entitlement.
In the Czech Republic, a woman is entitled to 28 weeks of maternity leave or 37 weeks for multiple births. The leave can start at least 8 weeks before the expected due date, but no later than 6 weeks. Maternity leave is compensated at 70% of the regular salary, however, this amount depends on how much the employee has contributed to social security. In addition, at least 14 weeks of maternity leave must be taken.
New fathers are able to take leave in lieu of the mother after the first 7 weeks from birth.
The mother is entitled to parental leave starting at the end of the maternity leave and the father is entitled to the leave starting from the child’s birth until the child reaches the age of 3. This leave can only be taken when the child is being cared from home.
Parents are entitled to a maximum allowance of 220,000 CZK until the child reaches the age of 4 or 330,000 CZK for multiple births.
An employee can be terminated:
- By a mutual agreement between the employee and employer
- Notice of termination by either the employee or employer.
- The notice must be delivered in writing
- If the employee is resigning, they are not required to give a reason
- If the employer is terminating the employee, the employee is obligated to list the reason for termination.
- Notice of termination cannot be given during the protection period (i.e the employee is pregnant or on maternity leave, the employee is unfit for work, etc.)
- For immediate termination for a reason that is specified under the Labor Code
- Within a probationary period
- On an agreed date if the employment contract is for a definite period
- In the event of death of the employee
The notice period for the employee or employer must be at least 2 months. It is possible to extend this period if both parties agree on a longer notice period and must be agreed upon in writing. The notice period commences the first day of the month following the delivery of the notice.
Depending on how long the employee has been employed, the amount of severance pay to be paid out will vary:
- 1 year of employment: 1 months’ gross salary
- 2 years of employment: 2 months’ gross salary
- 3+ years of employment: 3 months’ gross salary
The probation period is a maximum of 3 consecutive months for regular employees and up to 6 consecutive months for chief officers. The probationary period must be agreed in writing and cannot be longer than half of the agreed period of the employment relationship.