An amendment to the Labour Code was approved on 1 October 2023. Attention, it brings significant changes!

HUMAN RESOURCES / 9. 11. 2023

1st area of change: performance agreements

A number of changes relate to work performance agreements. As from 1 October 2023, employees working under a work performance agreement are entitled to additional payments for working on rest days and public holidays.

The threshold of CZK 10,000 from which social security and health insurance is deducted from the agreements remains the same for 2024, but it should be borne in mind that any additional payment increases the gross salary and it is possible that by paying it you will exceed this threshold.

And what about the insurance contribution for a work performance agreement in 2024? On 1.7.2024 the following should come into force:

The insurance se bude hradit v případě, že příjem z dohod o provedení práce u jednoho zaměstnavatele překročí částku 10 500 Kč za měsíc nebo v součtu u více zaměstnavatelů překročí částku 17 500 Kč za jeden měsíc.

You will now send the Czech Social Security Administration a monthly summary of all employees who work for you on the basis of a work performance agreement. The summary will contain the employee’s identification (name, birth number, etc.) and his/her gross monthly salary.

If your employee exceeds CZK 10,500 in total for all the work performance agreements you have with him/her, you will pay social security and health insurance as you have been used to.

If your employee exceeds CZK 17,500 for more than one employer, you will receive information from the Czech Social Security Administration. In this case, you will only pay a portion of the insurance for you as the employer (i.e. the percentage of your gross wages that increases your costs). The CSSA will claim the contributions for itself (i.e. the insurance that reduces the employee’s gross wages) back from the employee.

Employers will have a new notification obligation to inform the employee with whom they have a WPA that they will be making insurance contributions when they exceed the statutory limits. Penalties may be imposed for breach of this obligation.

It is not yet specified what will happen with health insurance contributions. The government has forgotten about them in the amendment. However, it can be expected that the procedure will be similar to that of the CSSA.


2nd area of change: leave

The next big change is to leave. As of 1 January 2024, an employee working under a WPA will be entitled to 4 weeks’ holiday per year if the employment relationship under the WPA lasts continuously for at least 4 weeks (i.e. 28 days) with one employer in a given calendar year and the employee works at least 80 hours.


3rd area of change: home office

There are also changes in the case of the home office. Home office work requires a written agreement with the employee, with 15 days’ termination notice. Failure to comply with the written form is punishable by a fine of up to CZK 300,000.

For each hour worked at the home office, the employee is entitled to a lump sum compensation according to the Ministry of Labour and Social Affairs’ tariff or the actual costs incurred by the employee in connection with the performance of telework. The employee and the employer may agree in writing that the employee is not entitled to such compensation.


4th area of change: notification obligations

The amendment also introduces a number of notification obligations:

  • an indication of the duration and conditions of the probationary period;
  • the procedure to be followed by the employer and the employee when terminating the employment relationship;
  • an indication of the fixed weekly working time;
  • an indication of how working time will be staggered;
  • on commencing work, the employee must be informed in writing of the conditions of employment;

and a number of others. Failure to comply with these may result in a penalty of up to CZK 200,000.


Do not underestimate the preparation

The amendment is comprehensive. We therefore recommend that you contact your lawyers with whom you deal with employment law matters and work with them to familiarise yourself with the amendment and prepare the relevant documents.



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