Czech Republic: Proposed Amendments To The Czech Labour Code - Are They Really Important?

The Czech Ministry of Labour and Social Affairs (the "MLSA") recently submitted a new proposal for interdepartmental comment, that will modify the current Labour Code1. The latest proposal to reduce the use of "agency employees" was (fortunately) cancelled for now2 . According to the MLSA, this new proposal aims to eliminate several problematic aspects caused by the application of the current Labour Code, and to ensure the compliance of Czech legislation with the decisions of the European Court of Justice.

This article summarises the most important modifications that the MSLA is proposing.

Details of the proposed modifications

(i) Definition of managing executives (in Czech: vrcholoví zaměstnanci)

In accordance with Directive No. 2003/88/EC of the European Parliament and of the Council of 4 November 2003, on certain aspects of the organisation of working time, the MSLA proposes to add a definition of managing executives into the Labour Code. Although this idea is undoubtedly positive, we believe that the proposed definition itself is not appropriate. Among other things, the managing executives shall be measured by their average earnings. Employees will be considered managing executives only if the remuneration is agreed in their employment contract and is higher than CZK 100,000 per month.

Despite the positive aspects of this idea, the limiting amount is, however, too high, especially for employment outside Prague. Moreover, under the proposed definition, the employee's remuneration shall be agreed on between the contractual parties in the employment contract, meaning that it cannot be unilaterally determined by the employer within a wage assessment. Such a condition is unfounded and limits the powers of the employer. Finally, it is unclear whether the status of the managing executive may vary with time, ie, based on their average earnings determined for the period of a calendar quarter. For these reasons, we believe that the definition of managing executives is not accurate and should be altered.

(ii) Modifications regarding trade unions, transfer to different work, working hours and annual leave, and protection of employer's property

The MLSA proposes to modify several provisions on trade unions, transfer to different work, working hours and annual leave, and protection of employer's property. In our opinion, all these proposals are unnecessary. The current wording of this provision is appropriate and works well in practice. In case the proposed modifications regarding annual leave are approved, the employers will have to replace existing systems, which also means additional costs on their side. We therefore highly recommend keeping the existing provisions and avoiding pointless changes that bring nothing but higher costs for the employer.

(iii) Home office

We believe that the existing provisions on home office do not reflect the needs of both parties within the employment relationship. However, the proposed modification is incomplete and in our view certain aspects are simply inappropriate. Based on the proposal, employers will be encumbered by duties that they do not even have towards employees who work at the employer's workplace (for instance information duties regarding usage of technical and software equipment). On the other hand, we believe that it is crucial to establish that the employer is not responsible for the employee's workplace in case of home office, something that the proposal ignores.

(iv) Automatic transfer of employees

It is widely known that the Czech legal provisions on automatic transfer of employees do not completely reflect European legislation and decisions of the European Court of Justice. In accordance with the current Czech provisions, automatic transfer occurs in any case where the activities or tasks (or a part thereof) of an employer are transferred to another employer, that is also in case of a change of supplier, etc. The rights and obligations under an employment relationship may be transferred only in cases stipulated by the legal provisions. Our laws are therefore very strict.

The MLSA proposes modifications in order to comply with European legislation and decisions of the European Court of Justice. However, these modifications are not entirely suitable. For some reason, the MLSA does not adopt the exact wording of the respective Directive3 (which would be completely appropriate) and introduces five new conditions regarding automatic transfer, ie:

  • identical or similar performance of the activity in question (before and after the transfer);
  • the activity does not rest exclusively in delivery of goods;
  • the activity is performed by an organised group of employees;
  • the activity is not of a short-term/one-off nature; and
  • a property (connected to the activity in question) must be transferred as well.

For comparison, the Directive defines the transfer as "a transfer of an economic entity which retains its identity, meaning an organised grouping of resources which has the objective of pursuing an economic activity, whether or not that activity is central or ancillary." According to decisions of the European Court of Justice, the following conditions shall be considered in case of automatic transfer of employees:

  • the kind of transferred business;
  • transfer of tangible goods and their value;
  • transfer of intangibles and their value;
  • takeover of the majority of employees;
  • takeover of customers;
  • interruption of a business activity and its length.

The differences between the MLSA proposal on the one hand and the EU Directive and the decisions of the European Court of Justice on the other are obvious. The MLSA effort is evidently positive, but the final proposal does not correspond to the existing needs and legal certainty. Therefore the final proposal shall be re-evaluated one more time. We also recommend considering the possibility of legally stipulating the option of contractual transfer of employees.


The MLSA's ideas and efforts are a step in the right direction, but the final proposal is incomplete, unclear and in some cases unnecessary. In most cases it replaces systems that work well in practice, which also means additional costs on the side of employers. We therefore recommend reconsidering the modifications and limiting them only to the most important (and currently problematic) fields, being:

  • traineeships;
  • home office;
  • transfer of employees (including the option of contractual transfer of employees); and
  • payment of wages in foreign currency.


[1] Act No. 262/2006 Coll., as amended.

[2] Please refer to Legal Insight 7/2015, Zezulka D., Limiting the number of agency employees – a plausible reality?

[3] Directive No. 2001/23/EC of the European Parliament of 12 March 2001 on the approximation of the laws of Member States relating to the safeguarding of employees' rights, in the event of transfers of undertakings, businesses, or parts of undertakings or businesses.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions