The Chamber of Deputies has approved an amendment to the Labour Code, which should increase flexibility in employment relations. Unless something unexpected happens, most of the amendment will become
effective as of 1 June 2025. It introduces a number of significant changes that will affect most employers. Below is a brief overview of the most important ones.
First of all, the amendment aims to speed up and simplify the termination of employment relationships. A notice period is to start from the date of delivery of the notice (i.e. not from the first day of the following month) and in some cases is to be reduced to one month. The amendment also merges the existing “health” reasons for termination and changes the concept of compensation payable to employees in connection with termination on grounds of a work-related injury or occupational disease.
A trial period is to be extended to four months for ordinary employees and eight months for management personnel. It should also be possible to additionally extend the agreed trial period. However, the new rules apply only to trial periods agreed after the amendment becomes effective.
The amendment also facilitates the position of parents in the labour market. When returning from parental leave, it guarantees the right to return to the “same chair” until the child reaches the age of 2 years. During parental leave, it will also be possible to earn extra income by performing the same type of work for the employer under an agreement to complete a job / to perform work (DPP/DPČ).
Employers will surely appreciate the fact that the amendment abolishes mandatory initial medical examinations for non-hazardous jobs. The amendment also significantly changes the concept of unemployment benefits and prohibits employers from restricting employees from disclosing information about their remuneration (i.e. requiring so-called wage confidentiality clauses).
The changes introduced by the amendment will require most employers to adjust their employment law documentation and HR processes. In this respect, we recommend paying attention to the transitional provisions, according to which some matters will still be governed by the original legislation even after the amendment becomes effective (e.g. the duration of the notice period for a notice delivered before the amendment becomes effective).
By Lenka Droscova, Partner, and Vaclav Belohoubek, Senior Associate, Act Legal
