Information on amendment to the Labour Code

Amendment No. 281/2023 Coll. to the Labour Code entered into effect on 1 October 2023. Below you will find a summary of the changes and how they might affect your business.

The time limit for informing employees of their rights and obligations has changed

The time limit for informing employees of their rights and obligations that are not specified in the employment contract, but follow from the employment relationship, has been shortened. Instead of one month, employers now have to provide employees with this information within seven calendar days of the date of establishment of their employment relationship. The information required can be included in an onboarding kit, for example. Be particularly sure to keep proof of the provision of such information (provision e.g. via data box or email is sufficient).

Benefits for people working on the basis of agreements outside an employment relationship

Several things will change if you employ people on the basis of an agreement to complete a job or an agreement to perform work.

The most important change is the introduction of an entitlement to paid leave for such employees. The new provision, which enters into force on 1 January 2024, reads as follows: “For employees working on the basis of an agreement to complete a job or an agreement to perform work, it shall hold that for the purposes of an entitlement to annual leave, the weekly working time is deemed to be 20 hours per week.” Employees will be entitled to annual leave after having worked at least 4 weeks and, at the same time, at least 80 hours. For each 20 hours worked, employees will be entitled to approx. 1.5 hours of annual leave. The final number is rounded up to whole hours.

Employees working under such agreements are also to receive extra pay for work on holidays and weekends, work at night and work in an unfavourable working environment. They are also entitled to leave in relation to all admissible impediments to work, e.g. a medical check-up. Compensation for salary is not provided for such impediments unless the employer and the employee specifically agree otherwise. However, impediments to work will be taken into account when calculating the time worked with regard to the determination of entitlement to annual leave.

The amendment further lays down the employer’s obligation to determine the employees’ work schedules in writing at least 3 days before the beginning of their shift or the period for which the schedule is being prepared. You can also set a different period of time (but no less than 1 day) by means of a signed agreement with the employee. The duty to provide the relevant information in writing within 7 days of commencement of work also applies with regard to persons working on the basis of an agreement to perform work / to complete a job. A fine of up to CZK 200,000 may be imposed for breach of this duty.

Working from home (telecommuting)

Telecommuting is increasingly becoming a common practice with many employers.

The new wording of the law lays down that remote work can only be performed on the basis of a written agreement that must have been concluded by the end of October 2023. Employers may order an employee to work from home only for a strictly necessary period of time if a public authority so decides.

The amendment also provides for compensation of the costs associated with telecommuting. The employer and the employee shall either agree on a predetermined lump-sum compensation, or the employee must prove the actual costs incurred. They may also agree in writing that the employee will not claim reimbursement of the costs.

Parental leave

Before the amendment, employees were not required to notify their employer of the commencement of parental leave in advance. Now, however, employees are required to submit a written request for parental leave at least 30 days in advance.

Digitalisation

The main changes pertain to the area of HR-related matters as the latter transition to the digital environment, with a more liberal regime of delivery of documents being introduced. This concerns, in particular, bilateral legal acts involving the creation, change or termination of an employment relationship. These arrangements may newly be concluded via data box or email. Employees may withdraw from such arrangements, but not later than within 7 days of the receipt of the relevant documents.

What next?

Should you need further information on any area affected by the approved amendment to the Labour Code, please do not hesitate to contact us.