Czech republic
Fixed-term contracts are permitted in the Czech Republic but generally may not exceed 3 years in total duration and generally cannot be renewed more than three times during that three year period. However, fixed-term contracts engaging temporary replacements for Workers on maternity or paternity leave can be renewed multiple times without limitations, though the total duration of the employment relationship must not exceed 9 years. If a Worker works beyond the end of the fixed-term contract or if there is a failure to comply with the rules on fixed-term contracts, the contract will be rendered indefinite.
In Czech Republic, Workers recognize 13 public holidays. Workers are entitled to a paid day off in recognition of public holidays. Workers that work on a public holiday are entitled to double pay.
Most Workers are entitled to 4 weeks of vacation annually. Workers become eligible to take leave after 60 days of service working with a company and the company reserves the right to accept or deny any leave requests due to the demands of the business. Leave should be taken in the year it is accrued, but no later than the year following the year it is accrued. However, it is possible to permit workers to carryover a portion of their unused leave into the next calendar year. Carryover requests must be in writing and shared in advance with the company. Accrued but unused leave must be paid to workers who are terminated.
There are no official subcategories of workers in the Czech Republic.
Probationary periods are permitted in the Czech Republic up to 4 months (8 months for Workers in a managerial position). Reason is not needed to terminate an engagement contract during a probationary period. The employment relationship ends on the day the termination is delivered, unless a later day is specified. However, Companies may not terminate the employment relationship during the first 14 calendar days of temporary incapacity for work or quarantine of Worker.
Workers are not entitled to benefits during the first three days of illness or injury. From the fourth to the fourteenth day, employers must pay 60% of the Workers average wage. The government picks up benefits as of the fifteenth day.
A standard workweek is 40 hours per week over 5 days. Shifts may not exceed 12 hours. Workers may not be asked to work more than 8 hours of overtime per week or 150 hours of overtime per year. Workers must receive 11 hours of rest between the end of one shift and the start of another.
All work above the standard weekly hours is considered to be overtime and is regulated by the collective agreement. A maximum of 8 overtime hours per week and 150 overtime hours a year can be worked. All overtime hours in excess of 40 hours per week are paid at an overtime compensation rate of 125% of the worker’s regular pay rate. For night or weekend work, an additional 10% pay must be given.
Generally, Workers must be given advanced written notice prior to termination and include one of the specific reasons for termination permitted by Section 52 of the Labour Code. If a Worker is terminated due to failure to meet job prerequisites or performance requirements, unsatisfactory work, violation of work duties, or breach of treatment regime during temporary incapacity, a Worker is entitled to one month of notice. For reasons defined by the Labour Code in Sections 55 and 56 (e.g. the Worker violated their employment obligations in a particularly serious manner, the employer did not pay the wage/salary or part thereof within 15 days of the due date), the Worker or employer may accede to immediate termination of employment. For all other reasons of termination, Workers are entitled to two months of notice from the employer. The notice periods begins the day it was delivered to the worker or employer from the party terminating the engagement. Workers may be entitled to severance depending upon the reason for termination.
A Worker can terminate their engagement for any reason without cause. The usual notice period for a Worker's resignation is two months, unless the Worker is within their probationary period. During the probationary period, a Worker may resign with one hour's notice.
Social Security contribution by companies is 24.8% and health insurance contributions is 9%, bringing the total employment cost to 33.8%. There are two parts to the monthly retirement pension. The first is a monthly payment of 10% of the average wage (around CZK 1,700). The second element is earnings related, which is calculated on 1.5% of the personal assessment base per year of coverage. People who are not permanent residents of the Czech Republic are still entitled to a pension, which corresponds to the time they spent in engagement in the country.
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