The year 2025 will bring significant changes to the Labour Code that will affect both employers and employees. The amendment addresses current trends and labour market needs, particularly in the areas of flexible employment relations and family support. What exactly is changing, and how can you prepare?
Changes in the Name of Flexibility
The government has approved the key points of the Labour Code amendment, known as the “flexibility amendment,” which will come into force in January 2025. This amendment introduces a range of changes aimed at increasing workplace flexibility and adaptability to the modern labour market.
What Specific Changes Are Coming, and How Will They Affect Employees and Employers?
Longer Probation Period for Greater Security
One of the most significant changes is the extension of the probation period. For regular employees, it will increase from three to four months, and for managerial staff, from six to eight months. The probation period, however, must not exceed half the agreed duration of the employment contract. It can also now be extended during its course.
More Flexibility in Replacing Employees on Maternity and Parental Leave
A new exception to the “three times and out” rule for fixed-term employment contracts applies when employers need to temporarily replace an employee during their maternity or parental leave.
In practice, this means employers can enter into more than three fixed-term contracts to replace an employee on parental or maternity leave without violating the general rule limiting such contracts to three renewals (for the same position with the same employer).
Changes to Notice Period Calculation
Changes also affect notice periods. The notice period will now begin on the day the notice is delivered, not on the first day of the following month. For example, if an employee gives notice on May 21, their employment will end on July 21.
Additionally, the amendment allows for shortening the notice period to one month in certain specific cases:
- When the notice is due to a breach of work discipline.
- When the employee does not meet the legal qualifications or requirements for the job.
Compensation for Work-Related Injuries or Occupational Diseases
In cases where employment is terminated due to long-term incapacity caused by a work-related injury or occupational disease, employees will no longer receive severance pay but instead compensation paid from mandatory employer insurance.
This change applies to situations where an employee can no longer perform their job due to work-related injury or illness. Previously, severance pay was provided by the employer. Now, compensation will be paid directly from mandatory insurance.
The compensation will remain equivalent to severance pay, amounting to 12 times the average monthly salary. This step enhances protection for employees affected by work-related injuries or illnesses, both financially and in terms of employer responsibility for workplace conditions.
Work During Parental Leave and Returning to Work
The changes in the Labour Code will grant parents greater flexibility during parental leave. A key innovation is the ability to work under a “work agreement” or “contract for work performance” in the same position from which the parent took parental leave.
Previously, employers had to formally create different job titles even if the work remained the same. This new provision brings more transparency for all parties involved.
Another significant change is the clarification of conditions for returning to work after parental leave:
- Return within 2 years of the child’s age: Employers must guarantee a return to the original position.
- Return between the 2nd and 3rd year: Employers are required to provide work corresponding to the original employment contract but not necessarily in the same position.
This provision strengthens assurances for parents returning to work earlier while offering employers clearer guidelines for workforce planning.
More Freedom for Employees to Plan Shifts
A revolutionary change is the introduction of self-scheduling working hours. Employees, with employer agreement, can now plan their shifts themselves even when working on-site. Until now, this model was only available for remote work (home office).
Previously, shifts were planned by employers, who were required to notify employees at least two weeks in advance.
Opportunities for Young Workers: Summer Jobs for Students
From 2025, young people aged 14 and older will be allowed to take summer jobs during the main school holidays. These jobs will be limited to light work that poses no health risks, is age-appropriate, and does not interfere with school attendance.
Working hours will be limited to a maximum of seven hours per day, totaling 35 hours per week.
This marks a significant change from the current law, where only those aged 15 and older, who have completed compulsory education, can legally work.
Insurance Companies to Handle Compensation for Work-Related Injuries
The system of compensation for work-related injuries or occupational diseases will change. Insurance companies, with which employers have mandatory liability insurance, will now be responsible for payouts.
This adjustment eases the financial burden on smaller employers, for whom severance payouts could sometimes be financially challenging. For employees, the amount of compensation remains unchanged, equivalent to 12 months of average salary, but it will now be paid by the insurance company instead of the employer.
Digitalization of Labour Relations and Other Changes
- Electronic Delivery: Employers can now electronically deliver payroll-related documents, with employees having 15 days to confirm receipt (e.g., by clicking or responding).
- Foreign Employers: Foreign companies operating in the Czech Republic can pay wages in currencies other than Czech crowns, provided there is a clear international connection (e.g., family ties abroad) and the currency is listed in the Czech National Bank’s exchange rates.
How to Prepare for These Changes?
- Conduct an audit of existing employment contracts and internal policies.
- Prepare new document templates reflecting the legislative changes.
- Train HR teams and managers on the new rules.
- Set up processes for electronic communication.
- Update systems for tracking working hours.
SYNERGIE: Your Partner for Implementing Changes
Labour Code changes bring new challenges but also opportunities. Do you need help preparing for legislative changes or looking for flexible staffing solutions? Contact us. Together, we’ll turn these changes into your competitive advantage.