Fundamental changes in the amendment to the Labour Code

Sept. 15, 2020 Czech Republic

An amendment to the Labour Code will enter into force on 30 July 2020 and 1 January 2021, respectively. The aim of the amendment is to simplify the implementation of the rights of the employer and employee in the performance of work, as well as to simplify the performance of the work itself and to support communication between the contracting parties. The amendment to the Labour Code reflects a number of practical problems and regulates a number of important institutes.

The amendment to the Labour Code brought about a fundamental change in the legal regulation of holiday calculation, specifically the method of determining it. The calculation and the actual use of holiday will thus, with effect from 1 January 2021, be based on the hourly regime of weekly working hours. The amendment cancels the holiday for days worked. The purpose is to set a fairer determination of the length of holiday. Holiday for a calendar year, its proportional part and additional holiday remain part of the LC. The above-mentioned types of holiday that will be maintained will therefore be expressed in hours corresponding to the employee's weekly working hours. The employee may now be entitled to an extension of holiday. If an employee works more than 52 times the given weekly working time in a calendar year, his / her holiday is always extended by 1/52 for each weekly working time worked. Such a right may arise for an employee, for example, in the case of uneven distribution of working hours. The amendment to the Labour Code will not affect the conditions for the creation of the right to leave. These remain almost unchanged.

A fundamental novelty that the amendment to the Labour Code brings is the institute of a shared workplace. It will therefore be up to the employees to divide their working hours without the intervention of the employer and, in principle, according to their work and private needs. The condition will be the fulfillment of the set work fund. The agreement between the employees will require a written form.

With regard to practical problems with the preferred form of delivery of documents to employees into their own hands at the workplace, the amendment explicitly enshrines the possibility of delivery via a data box. The employer's obligation to deliver documents to the last known address of the employee is no longer applicable. Responsibility is transferred to employees. The employer therefore delivers to the address which the employee communicates to him in writing. The deadline for depositing the item with the postal service provider in the event that the employee is not reached is changed to 15 days (from the original 10 working days). If the employee does not collect the deposited document within this period, it is considered delivered on the last day of this period.

The amendment also contains changes brought about by the adoption of Directive 2018/957, which amends Directive (EU) 96/71 / EC of the European Parliament and of the Council on the posting of workers in the framework of the provision of services, but also introduces a number of other changes. After the amendment takes effect, employees deployed from another Member State of the European Union are subject to Czech legislation, not only in regards the minimum wage, the lowest level of guaranteed wages and overtime pay, but also all mandatory components of wages or salaries paid in connection with posting. in the transnational provision of services. In cases of deploying an employee that exceeds 12 months, all conditions for the employment of an employee in accordance with the Labour Code will apply to him, with the exception of the regulation concerning the establishment, change and termination of employment. However, legislation that is more favorable to employees still prevails.

If you have any other questions concerning labour-law matters please contact our payroll consultants.

Klára Cowan
Head of Payroll
ASB Czech Republic