Jackson & Frank | Workforce Solutions in the Czech Republic

Maternity Leave

In the Czech Republic, expecting mothers employed have the right to avail themselves of up to 28 weeks of maternity leave. This includes a mandatory 6-week leave period after childbirth. In cases of multiple births or complications, employees are entitled to take up to 37 weeks of paid maternity leave.

Maternity leave in the Czech Republic is compensated at 70% of the average earnings, with reimbursement options available through the Czech Social Security system. There is no minimum service period requirement, and employers cover the costs of antenatal appointments. Compliance with Czech labor laws and relevant regulations is crucial in implementing these provisions.

Paternity Leave

In the Czech Republic, the partner of an employee who has recently become a parent is entitled to paternity leave. The leave allows for up to 7 calendar days of paid leave, typically taken within the first six weeks following childbirth. Additionally, employees have the right to take unpaid time off for antenatal appointments.

During paternity leave, the employer usually covers the expenses, and the employee may qualify for state benefits. Compliance with Czech labor laws and any applicable collective agreements is crucial when implementing paternity leave policies.

Parental Leave

In the Czech Republic, parents are entitled to parental leave, allowing for up to four years of unpaid leave for each child. This leave can be taken until the child reaches the age of 4. Parents can choose to take the leave consecutively or intermittently, providing flexibility to balance work and family responsibilities.

Unlike some other countries, parental leave in the Czech Republic is typically unpaid, and there is no government-provided financial support during this period. However, employees may be eligible for various family-related benefits or allowances, subject to local regulations.

Sick Leave

In the Czech Republic, sick leave policies are governed by social security regulations. If an employee is unable to work due to illness, they are entitled to sickness benefits provided by the Czech Social Security system.

During the initial 14 days of illness, the employer is obligated to pay sick pay, which is typically 60% of the average earnings. After the 14-day period, the Czech Social Security system takes over, providing sickness benefits at a rate of 60% of the daily assessment basis. The employer may choose to provide supplementary sick pay during the social security-covered period, but this is not mandatory.

Termination Requirements

Terminations in the Czech Republic must adhere to specific regulations and the terms outlined in the employee's contract. The off-boarding process is typically managed by the employer in collaboration with key stakeholders, encompassing any necessary fees and adhering to the prescribed steps for specific termination cases.

Process Management: Employers handle off-boarding with stakeholders and address fees.
Valid Reasons: Termination requires a valid reason and lack of redeployment opportunity.
Grounds for Termination: Recognized reasons include redundancy, long-term disability, underperformance, etc.
Complex Procedures: Unilateral termination without consent or authority approval is generally prohibited.
Preferred Mutual Consent: Seeking mutual agreement is often preferred for compliance and avoids governmental permission.

In the Czech Republic, an employer can terminate an employment agreement based on valid reasons, such as redundancy or long-term disability, provided there is no suitable redeployment opportunity. Termination is intricate, typically requiring mutual agreement to comply with labor laws and avoid unilateral action without employee consent or approval from authorities, like labor offices or labor courts.

Notice Period

In the Czech Republic, notice periods are a crucial aspect of the termination process. The notice period can be set out in the employment contract and can vary based on the length of the employee's service.

Notice periods are determined as follows:

Less than 3 months of service: 2 weeks' notice
3 months to 2 years of service: 1 month's notice
2 to 6 years of service: 2 months' notice
6 years or more of service: 3 months' notice

Severance for Employees

In the Czech Republic, the concept of severance pay is not a statutory requirement for regular employment terminations. However, there are specific situations where severance may be applicable, such as mass layoffs or redundancy.

If an employee is terminated due to redundancy, the employer may be required to provide severance pay. The amount of severance is typically based on the length of service and is governed by the Labor Code. The formula for calculating statutory severance pay is usually one month's average earnings for each year of employment.

Paid Time Off

In the Czech Republic, the legal minimum number of vacation days for an employee is determined by the employment period. As of January 1, 2021, the statutory minimum annual leave entitlement is four weeks, which is equivalent to 20 days for employees working a standard five-day week. Employees are entitled to an additional day for each year of service beyond the first year, up to a maximum of 25 days.

It's important to note that the entitlement may vary based on individual employment contracts, collective agreements, or company policies. Some employers may offer more than the statutory minimum as part of their benefits package.

Public Holidays

The Czech Republic observes several public holidays throughout the year.

Here is a list of key public holidays:

New Year's Day (Nový rok) - January 1
Good Friday (Velký pátek) - Friday before Easter Sunday
Easter Monday (Velikonoční pondělí) - The day after Easter Sunday
May Day (Svátek práce) - May 1
Liberation Day (Den vítězství) - May 8
Saints Cyril and Methodius Day (Den slovanských věrozvěstů Cyrila a Metoděje) - July 5
Jan Hus Day (Den upálení mistra Jana Husa) - July 6
Czech Statehood Day (Den české státnosti) - September 28
Independent Czechoslovak State Day (Den vzniku samostatného československého státu) - October 28
Struggle for Freedom and Democracy Day (Den boje za svobodu a demokracii) - November 17
Christmas Eve (Štědrý den) - December 24
Christmas Day (1. svátek vánoční) - December 25
St. Stephen's Day (2. svátek vánoční) - December 26

Onboarding

The onboarding process at Jackson and Frank in the Czech Republic typically spans 2 business days following the client's endorsement of the Statement of Work (SOW).

Salary Requirements:

At Jackson and Frank, the holiday allowance in the Czech Republic is factored into the annual salary. This signifies that the employee's annual compensation on the Jackson and Frank platform encompasses both the base salary and the holiday allowance.

When determining the employee's annual salary, it is imperative to account for both the base salary and the holiday allowance.

The holiday allowance, established at a specific percentage, is billed monthly as an employer expense, distinct from the salary. The precise percentage may vary based on organizational policies and the particulars of employment agreements in the Czech Republic.

Employment Contract Details

In the Czech Republic, it is generally acceptable to have employment contracts in Czech; however, English-only versions are commonly practiced and widely accepted.

A contract in Poland should include:

Name
Start date
Length of the employment
Job description
Termination conditions

In the Czech Republic, it is recommended to follow best practices and legal requirements when structuring employment contracts. Fixed-term contracts are permissible, but adherence to Czech labor laws is crucial, considering any regulations regarding the aggregate duration of consecutive fixed-term contracts. Seeking legal advice ensures compliance and addresses specific nuances in the Czech employment landscape.

Probation Period

In the Czech Republic, employers have the flexibility to implement probationary periods as part of employment agreements. Unlike some countries, there are no strict regulations specifying the maximum duration of a probationary period.

Key points related to probationary periods in the Czech Republic:

Evaluation Focus: Utilize the probationary period for mutual assessment of working compatibility.
Consensual Start: Commence probation through mutual agreement between employer and employee.
Flexibility: Tailor the probationary period's duration to suit individual circumstances.
Extension Option: Consider extending the probationary period collaboratively when beneficial.

While there are no explicit legal restrictions on the duration of probationary periods in the Czech Republic, it is crucial to clearly define the terms in the employment contract. Ensuring mutual understanding and compliance with Czech labor laws is essential when incorporating probationary periods into employment agreements.

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