1. FORMS OF EMPLOYMENT RELATIONSHIPS
FORMS OF EMPLOYMENT RELATIONSHIPS

2. Forms of employment relationships
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)

3.
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

4. Agreement on work performance
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

5. Agreement on working activity
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 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

6.
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.
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

8. Employer: duties continued
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)

9. Working hours Max 40 hours per week
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

10. Termination of employment relationship
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

11. Immediate termination of employment relationship
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

12.
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

13.
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

14. Never sign a dismisal notice in which dismisal reasons do not reflect reality – you
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

15. poradna@refug.cz http://www.migrace.com http://www.mpsv.cz/cs/6