1. Employment in the Czech Republic
, Brno

2. Summary / Outline Employment – main regulations Recruitment process
Employment contracts
Payroll
Termination of employment contracts
Agreements on work performed outside an employment relationship
Partnership with self-employed people
Types of stay in the Czech Republic

3. Employment – Main regulation
Labour Code No. 262/2006 Coll.
Basic legal document of employment law for Czech Republic
Regulates labour relations
Integral part of HR area
Essential principle: „what is not forbidden by law is permitted“
No. 89/2012 Coll., Civil Code
No. 435/2004 Coll., Employment Act
Other statutory regulations
Employer rules

4. Who is who? Employee Employer an individual (natural person)
older than 15 years with completion of compulsory school
Employer
a legal entity (a legal person) or an individual (a natural person) with business license / Trade Certificate

5. Recruitment process Decision Maker: EMPLOYER
You can hire who you want (education, practice, knowledge)
You can use your own hiring process
You can use professionals – recruitment counseling, personal agencies, headhunters (paid services)
You can try to use public office – Labour Office
Beware of discrimination (age, sex, religion, policy)
Beware of personal information/data (asking, saving)

6. 1) Employment contract the type of work new employee is going to do
Main contract between employer and employee
The Czech Republic prefers this type of contract
Document in writting form and employee has to receive a copy
It has to include the details of:
the type of work new employee is going to do
the place of work
the first day of work

7. What else to deal with new employee?
Input direct in the contract or use individual document
Probation period
only at the beginning of a new job (very common in the Czech Republic, even for executive positions)
the maximum length for a probation period is 3/6 months
advantage: the employer and also the employee can cancel the employment contract without being bound to dismissal protection
Salary / Wage, Overtime work, Bonuses
For how long: Fixed-term (max 36 months) or Indefinite period
Specific agreements on business trips, Competition Clause
Employee´s rights and obligations

8. Who is the Manager (leader) by labour code?
Director
HR Manager
HR Specialist
Facility Manager
Finance Manager
Accountant 1
Accountant 2
Production Manager
Technologist
Process Engineer
Shift Leader
Worker 1
Worker 2
Assembly Leader
Assistant
Lean Manager

9. the difference between the leaders and the ordinary employee
Probationary period
3 months
6 months
Possibility to include overtime to wage
150 hours per year
416 hours per year
More duties for leaders
Duties from employment contract + coordinate, lead, control and assess subordinators
Responsibility for Health and Safety at the workplace (their department)
Greater responsibility/liability for a shortfall in things of value entrusted to an Leader

10. chaining of fixed-term contracts:

11. Payroll – How much i have to pay?
Minimum gross salary in 2016: CZK/month; 58,70 CZK/hour
Minimum gross salary in 2017: CZK/month; 66,00 CZK/hour
Average gross salary in 2016: CZK/month
Employer has to pay „supergross“ salary:
Gross salary + health (9 %) and social (25 %) insurance for all employees
f.e. Gross salary CZK / month x 1,34 = CZK / month
And necessary to pay minimum 4 weeks vacation / year

12. Termination of employment contracts
By agreement between employer and employee
Fixed-term contracts end on a last date
Termination within the probationary period (immediately, without reasons for both sides)
Immediate termination – only for legitimate reasons for both sides
Employer's decision: dismissal only for legitimate reasons with notice period (2 months) and with statutory redundancy
Employee´s decision: dismissal without reason only with the same notice period

13. 2) AGREEMENTS ON WORK PERFORMED OUTSIDE AN EMPLOYMENT RELATIONSHIP
additional forms of an employment relationship which apply to special legislation, and they should be concluded rather exceptionally
not all the rules apply which are necessary with regular employment contracts but is possible to deal between employer and employee (f.e. vacation, longer notice period)
2 forms:
A) Agreement to complete a job (DPP)
B) Agreement to Perform Work – Working activity (DPČ)

14. A) Agreement to complete a job (DPP)
Writting form – 1 copy for employer and 1 copy for employee
The maximum of 300 hours per calendar year for one employer
For each month in which income will be higher than CZK, employer has to pay social and health insurance
DPP must contain:
specification of the time (fixed-term or indefinite)
work description (what exactly will you do)
specification of the place, where the work is supposed to be carried out
the estimated range of working hours, remuneration and the conditions for its payment (minimum wage is the same like for employment contract)

15. B) Agreement to perform work (DPČ)
Writting form – 1 copy for employer and 1 copy for employee
Work performance may not exceed half of the set weekly working hours (20 hours / week in average) – maximum period is 52 weeks
For each month in which income will be higher than CZK, employer has to pay social and health insurance
DPČ must contain:
the specification of work activity
the range of working hours 
the period of time for which the agreement is concluded
the remuneration and the conditions for its payment (minimum wage is the same like for employment contract)

17. Partnership with self-employed people
Beware of misclassification of employees as independent contractors = so-called „švarcsystem“
illegal form of employment (from 2012)
penalties up to 10 million CZK
According to the Commercial Law (not to the Labour Code)
You have to deal about Business contract (not something like Employment contract)
Authorities assess the characteristics of dependent work
the employer's superiority / his employee's subordination; according to the employer's orders and in employer´s name
dependent work is performed for salary, at the employer's cost and liability, at the employer's workplace or some other agreed place within the working hours

18. FOREIGNERS AND WORK PERMITS
EU vs. non-EU differences and exceptions

19. Petra Štěpničková Senior Recruitment ConsultantE:
Thank you for attention