FORMS OF EMPLOYMENT RELATIONSHIPS 7.12.2012 FORMS OF EMPLOYMENT RELATIONSHIPS

Forms of employment relationships 7.12.2012 Forms of employment relationships Governed by Labour code Only for employed NOT for self- employed Three types of relationships: Employment contract (pracovní smlouva) Agreement on work performance (dohoda o pracovní činnosti) Agreement on working activity (dohoda o provedení práce)

7.12.2012 Employment contract Written contract, 2 copies, enlisting rights and obligations Mandatory terms of contract – agreed type of work, place of work, starting date Wage, job description, safety & security at work, liabilities – employer needs to provide in a written form 30 days after starting Vacation, over time, and other terms of contract must be included in the contract, otherwise no entitlement BUT 4 weeks vacation guaranteed by law (available after 60 days of work) Probationary period – max. 3 months Right to pension contribution and sick pay Contract can be for fixed term or indefinite period Non discrimination and equal treatment Tax, pension and health insurance paid for by employer

Agreement on work performance 7.12.2012 Agreement on work performance Max. 20 hours per week Must be in written form Working permission applies Agreement must include: agreed type of work, scope working hours, period of duration of the agreement Other relevant terms of contract such as vacation, over time, etc must be included in the agreement or amendment to agreement, otherwise no entitlement If your monthly income = 2500 CZK and more  health and social insurance will be deducted from your income + contribution towards pension (you are entitled to record of employment “zápočtový list”) + 15% income tax If your income exceeds 2000 CZK/month you are entitled to sick benefits Dismissal notice = 15 days, no obligation to provide reasons

Agreement on working activity 7.12.2012 Agreement on working activity Max 300 hours per year with one employer and those 300 hours can be spread across the year Must be in written form; working permit – working permit applies Terms of contract: type of work, place of work, number of hours, wage, duration of contract; all other terms must in amendment Vacation, over time, etc must be included in the agreement or amendment to agreement, otherwise no entitlement If your income exceeds 10 000 CZK – social and health insurance deducted + 15% wage income Lesser protection of the employee‘s rights, more liberal relationship, but still a type of employment relationship

7.12.2012 Minimum income Minimum income is the lowest guaranteed income given by law Minimum income in 2017 66,- CZK/hour 11000,- CZK/month (proportionate to 40 hours/week)

7.12.2012 Employer: duties A) To pay social insurance which includes pension insurance & unemployment cover Employer pays 25%, employee pays 6.5%  31.5% of gross income paid monthly B) To pay health insurance Employer pays 9%, employee pays 4.5%  13.5% of gross income paid monthly

Employer: duties continued 7.12.2012 Employer: duties continued Employer must pay a down payment for employee’s income tax, which is 15% Next income can be calculated here or here After termination of employment contract and agreement on work performance employer must unconditionally issue record of employment (“zápočtový list”) to the employee Record of employment must include: information about employment, type of employment relationship, nature of job tasks, level of qualification established, and hours worked In case of employer‘s malfeasance employee should contact: Financial bureau (finanční úřad) Czech Social Security Administration (okresní správu sociálního zabezpečení) Insurance company (zdravotní pojištovnu) Labour control office (inspektorát práce)

Working hours Max 40 hours per week 7.12.2012 Working hours Max 40 hours per week When working hours are scheduled evenly – working hours must not exceed 9 hours/days When working hours are scheduled unevenly – working hours must not exceed 12 hours/day Flexible working hours – upon mutual agreement of both parties After employee has been working for continuous 6 hours utmost, he must be given 30 minutes break Min. 12 hours break in between shifts Night work must not exceed 8 hours in 24 hours Scope of overtime work and overtime pay must be stipulated in the contract, otherwise no entitlement

Termination of employment relationship 7.12.2012 Termination of employment relationship By agreement – in writing, agreed by both parties, must include date of termination By notice of termination – in writing, when handed by employer it is called dismissal, when handed by employee it is called resignation; employer must provide legally relevant reasons for dismissal, employee does not have to provide reasons for resignation Instant termination By termination within the trial period By expiration of fixed term contract agreement

Immediate termination of employment relationship 7.12.2012 Immediate termination of employment relationship Instant dismissal by employer - If employee was sentenced in criminal trial without further possibility of appeal - If employee grossly breached agreed duties Instant resignation by employer - Health reasons – employee can no longer do his work and employer has not offered new position - Employer has not paid wage 15 days after it was due

7.12.2012 Redundancy payment Right given to an employee who was dimissed for organizational changes proportionate to years of employment 1 year = 1 salary, 2 years = 2 salaries, 3 years and more = 3 salaries Employer who had to terminate his contract due to occupational injury is entitled to minimum of 12x average salary Redundancy payment may be provided for in trade union treaties Redundancy payment is taxed 15% but no health or social insurance costs are deducted

7.12.2012 THINGS TO BE AWARE OF Employers frequently try to include additional or last moment probationary/trial period after the contract has been signed Employers try to conclude a contract for fixed period which covers the probationary period After termination of employment the employer is obliged to provide you with record of employment without further demands and conditions You should make yourself familiar with any existing trade union treaties and internal regulation Make sure you ask your boss to confirm your vacation request ahead of time If your employer does not want to dismiss you BUT wants to terminate your employment by agreement, you should demand financial compensation

Never sign a dismisal notice in which dismisal reasons do not reflect reality – you 7.12.2012 NOT TO DO! Never sign a dismissal notice in which dismissal reasons do not reflect reality – you may loose your entitlement for redundancy payment Never go on vacation without agreed written request Never start to work without valid and undersigned working contract If you are sick, have been to doctor and were ordered to stay at home  stay at home, do not work and expect controls If nature of your job corresponds with legal form employment by given employer NEVER work as self employed for this employer – it is illegal for both sides and it is heavily sanctioned

poradna@refug.cz http://www.migrace.com http://www.mpsv.cz/cs/6 7.12.2012 poradna@refug.cz http://www.migrace.com http://www.mpsv.cz/cs/6 http://www.jakpodnikat.cz/zamestnani.php