What changes did the so-called flexinovela from March bring to the Czech Labor Code in 2025?
At the beginning of April, the long-awaited amendment to Act No. 262/2006 Coll., the Labor Code, the so-called flexinovela, was approved, bringing fundamental changes to the area of labor relations. It is expected to come into effect on June 1, 2025. Currently, the draft flexinovela can be found in the approved version on the website of the Parliament of the Czech Republic as Parliamentary Print 775. The bill has been debated since the middle of last year, when its effectiveness was originally planned for January 1, 2025, but due to some controversial points, its approval was extended by several months. An overview of the key changes is provided below.
Parental leave
The amendment in Section 34b newly allows employees on parental leave to perform the same type of work for the same employer based on an agreement on work activity or an agreement on work performance. According to Section 34b(2), it was added: "This restriction (i.e., the prohibition of the same type of work for the same employer) does not apply to another legal relationship established by an agreement on work performance or an agreement on work activity that were concluded for the period of parental leave or part thereof." This adjustment responds to practical requirements, especially when female employees on parental leave are interested in earning extra income with their existing employer and want to perform the same type of work.
The amendment also significantly contributes to the flexibility of parental leave in Section 47, as it guarantees return to the same work and workplace also to female and male employees who return from parental leave to work before the child reaches 2 years of age. Specifically, Section 47(1)(c) states: "The employer is obliged to assign the employee to the original work and workplace if they return to work after the end of parental leave before the day the child reaches the age of 2 years." This adjustment not only supports an earlier return of female employees to work but may also contribute to more flexible use of parental leave.
Probationary period
A significant change is the extension of the probationary period in Section 35, where its maximum length for regular employees is extended from three to four months, and for managerial employees from six to eight months. According to Section 35(4), the probationary period may be "during its duration additionally extended within the limits of paragraphs 2 and 3 by a written agreement between the employer and the employee.", while respecting the maximum length of four or eight months, respectively.
One of the changes is also the explicit definition of extending the probationary period in Section 35(5): "The probationary period shall be extended by the employee's working days in which during the probationary period they did not work the entire shift due to an obstacle to work, taking leave, or unexcused absence from work."
Number of repetitions of fixed-term employment
Section 39 introduces an exception to the general rule limiting the chaining of fixed-term employment relationships. Newly, an unlimited number of repetitions of fixed-term employment relationships between the same contracting parties will be allowed in cases where it concerns a replacement for a temporarily absent employee during maternity, paternity, and parental leave. Section 39(2) now states: "If it concerns a replacement for a temporarily absent employee during maternity, paternity, and parental leave and leave under Section 217(5), a fixed-term employment relationship may be negotiated without limitation on the number of repetitions according to the first sentence." However, the rule that the total duration of fixed-term employment relationships between the same contracting parties must not exceed nine years is maintained.
Notice and notice period
One of the biggest changes is the adjustment of the notice period in Section 51. The notice period now begins to run from the day of delivery of the notice, not from the first day of the following calendar month. Section 51(1) states: "If notice has been given, the employment relationship will terminate upon the expiry of the notice period. The notice period begins on the day on which the notice was delivered to the other contracting party and ends on the day which corresponds to this day by number; if there is no such day in the last month, the end of the notice period falls on the last day of the month." Paragraph 2 also adjusts the shortening of the notice period to 1 month: "The notice period is at least 2 months, with the exception of notice given a) to an employee for the reason stated in Section 52(f) to (h), where the notice period is at least 1 month, b) to the employer according to Section 51a."
Section 58 extends the periods within which an employer may give an employee notice or immediately terminate the employment relationship due to a breach of work duties. The subjective period is extended from two to three months and the objective period from one year to fifteen months. This change responds to practical requirements, as in many cases it is difficult for employers to obtain all necessary information and fully assess the case within the current short period.
Severance pay upon termination of employment by the employer
A fundamental change is the adjustment of severance pay upon termination of employment for reasons according to Section 52(d). The amendment partially cancels the right to severance pay and in the new Section 271ca introduces a completely new type of one-time compensation for non-material damage in case of a work accident, occupational disease, or risk of such disease. "An employee whose employment relationship is terminated by notice given by the employer under Section 52(d) because they have lost, due to their health condition according to a medical opinion issued by a provider of occupational health services or a decision of the competent administrative body that reviews the medical opinion, long-term capability to continue performing their current work due to a work accident, occupational disease, or risk of such disease, is entitled upon termination of employment to a one-time compensation in the amount of twelve times the average monthly earnings. The employee is entitled to compensation according to the first sentence also if the employment relationship was terminated by agreement concluded for the same reason." This one-time compensation will be covered by the employer's insurance, which will significantly relieve especially smaller employers.
Right to leave in case of invalid termination of employment
Section 69 responds to the case law of the Court of Justice of the EU and newly stipulates that in the case of invalid termination of employment, where the employee insists that the employer continue to employ them, the employer is obliged to provide, in addition to compensation of wages or salary, also leave. At the same time, the requirement that the employee must notify that they insist on further employment without undue delay is removed.
Young employees
With regard to reducing the minimum age limit for the possibility of concluding an employment relationship to 14 years, Section 79a proposes to establish different requirements for the maximum working hours for employees under 15 years of age and employees who have not completed compulsory education. "For a juvenile employee younger than 15 years or a juvenile employee who has not completed compulsory education, the length of a shift on individual days must not exceed 7 hours per day and 35 hours per week."
The amendment also introduces provisions on light work in Section 244a. "A juvenile employee younger than 15 years or a juvenile employee who has not completed compulsory education may perform only light work during the main holidays, which does not harm their health, education, and moral development. Light work for the purposes of this Act is work classified in category one according to the Public Health Protection Act, provided that the work does not include an activity for which conditions are set by another legal regulation."
Section 245 adopts a measure prohibiting children from working between eight o'clock in the evening and six o'clock in the morning. Specifically, it stipulates that employees under 15 years of age cannot be employed to work between 8 p.m. and 10 p.m., and juvenile employees cannot work overtime or at night.
Section 247 provides a legislative clarification of the employer's obligation to ensure, at their own expense, an examination of a juvenile employee before the establishment of an employment relationship based not only on an employment contract but newly also on agreements on work performed outside the employment relationship, thereby extending the protection of juvenile employees to all forms of employment relationships.
Delivery of electronic documents
Modernization has also affected the delivery of documents, where Sections 334a to 337a bring new rules for the delivery of electronic documents. According to Section 335(3): "The employer may deliver a wage or salary statement to the employee through a network or electronic communications service also to another electronic address of the employee, whereby paragraphs 1 and 2 shall not apply. In such a case, the document according to the first sentence is delivered at the moment when the employee confirms receipt of the document to the employer in writing; if the receipt of the document is not confirmed within 15 days from its sending, the delivery is ineffective. This document must be accessible to the employee in such a way that they can save and print it."
The employer can now deliver wage and salary statements through electronic communications even without the special consent of the employee, while maintaining guarantees for the protection of their rights. The effects of delivery occur at the moment of confirmation of receipt, and if it does not occur within 15 days, the delivery is ineffective. Terminological changes clarify the moment of legal effects of delivered documents.
Remuneration area
In the area of remuneration, Sections 113 and 136 unify the rules for handing over salary and wage statements, where the employer is now obliged to hand over the statement to the employee before starting work. The amendment also establishes in Section 356 a precise method for calculating the average gross monthly earnings when changing weekly working hours, thereby preventing different interpretations and potential damage to the contracting parties. The calculation according to Section 356(2) is as follows: "The average hourly earnings of the employee shall be multiplied by the employee's weekly working hours applied in the decisive period and the coefficient 4.348. If there is a change in weekly working hours in the decisive period, the weekly working hours shall be calculated by dividing the sum of the products of the individual weekly working hours in hours and the calendar days for which these weekly working hours were applied, by the total number of calendar days in the decisive period; the resulting value shall be rounded up to thousandths."
Section 360 then introduces an explicit regulation for the use of average earnings after the termination of the employment relationship. "If average earnings are to be used after the termination of the employment relationship, the average earnings last determined during the employment relationship shall be used." This clearly stipulates that average earnings are determined only during the duration of the basic employment relationship.
Non-cash method of payment to account
The change in Section 142 responds to current practice and introduces non-cash method of payment to the employee's account as the priority method. Section 142(3) states: "The employer pays wages or salary after making any deductions from wages or salary according to this Act or a special legal regulation at its own expense and risk to the payment account specified by the employee, so that the employee has them available at the latest on the regular date of their payment. An employee who is paid wages or salary in Czech crowns may specify for payment only an account maintained in Czech crowns at a bank or a savings and credit cooperative based in the Czech Republic or a branch of a foreign bank based in the Czech Republic. The employer and the employee may agree on another method of payment."
Cash payment is de-emphasized and will only occur if the employee does not provide cooperation for non-cash payment, as stated in Section 142(4): "If the employee expresses written disagreement with the method of payment to a payment account, or does not provide the necessary cooperation for it, or does not have a payment account established, the employer pays the employee wages or salary in cash during working hours and at the workplace, unless another time and place of payment has been agreed."
Payment of wages and salary in foreign currency
The amendment significantly changes the conditions for paying wages or salary in foreign currency in Section 143. This option will continue to be conditional on the employee's consent and agreement between both parties on a specific foreign currency for which the Czech National Bank announces an exchange rate. However, Section 143(1) now precisely stipulates that this option only applies to specific categories of employees:
a) employees with a place of work abroad,
b) foreigners or stateless persons with an employment permit, employee card, or long-term residence permit for the purpose of employment requiring high qualifications,
c) foreigners or stateless persons for whom such permits are not required under the Employment Act,
d) citizens of another EU Member State (unless they are also Czech citizens with permanent residence in the Czech Republic),
e) other employees who permanently reside abroad or pay living expenses there for themselves or their family members.
Regarding the conversion of wages or salary or part thereof into foreign currency, Section 143(2) then states: "For the conversion of wages or salary or part thereof to a foreign currency, the exchange rate announced by the Czech National Bank for the first working day in the calendar month following the month in which the employee's right to wages or salary or part thereof arose shall be used, unless the employee and the employer agree on another working day."
Compensation for certain expenses for service abroad
Section 181 unifies the regulation of providing compensation for certain expenses to employees and employers in the non-business sphere with the regulation for service abroad. Section 181(2) states: "An employee who takes maternity or parental leave in the state of the place of work abroad and an employee who takes parental leave in this place shall be provided by the employer with compensation for accommodation expenses for a period of 14 weeks in the same amount as before taking maternity or parental leave; during this period, the employee is also entitled to other compensation for expenses determined by an implementing legal regulation issued according to Section 189(6). The condition for the right under the first sentence is that the employee notifies the employer of the intention to take maternity or parental leave abroad at least 10 weeks before the expected day of birth." This change significantly improves the social situation of employees with a place of work abroad and ensures an easier return to work after the end of the obstacle to work associated with childcare. At the same time, the deadline for notifying the employer of the intention to take maternity or parental leave abroad is set at 10 weeks before the expected day of birth.
Other introduced changes
Terminology
Section 216 introduces a terminological clarification, newly using the more general term "basic employment relationship" instead of "employment relationship". Section 216(1) states: "The termination of the existing and the immediately following creation of a new basic employment relationship of the employee to the same employer is considered as a continuous duration of the basic employment relationship." This provision stipulates that the termination of the existing and the immediately following creation of a new employment relationship of the employee to the same employer is considered as a continuous duration of the employment relationship, which now also applies to legal relationships established by agreements on work performed outside the employment relationship.
Section 240 implements legislative-technical changes unifying terminology with Sections 241 and 241a. This is mainly about unifying the way of defining age limits, newly consistently using the formulation "younger than 9 years" instead of "up to the age of 8 years" and "younger than 15 years" instead of "until the child reaches the age of 15 years". Section 240(1) therefore states: "Female employees and employees caring for a child younger than 9 years must not be sent on a business trip outside the municipality of their workplace or residence without their consent."
Adjustment of employees' rest period
For juvenile employees, Section 90 establishes a special regulation of the rest period, specifically 14 hours during 24 consecutive hours. Section 90(1) now adds at the end: "and to a juvenile employee referred to in Section 79a(1) for a period of at least 14 hours during 24 consecutive hours".
At the same time, the possibility to reduce the rest period for adult employees to up to 6 hours (compared to the current 8 hours) in case of extraordinary events, such as accidents or natural disasters, is adjusted. The new Section 90(3) states: "If it is necessary to avert an accident, natural disaster, or other extraordinary event, or to eliminate or mitigate their immediate consequences, the rest according to paragraph 1 may be reduced to up to 6 hours during 24 consecutive hours for an employee older than 18 years on condition that the following rest will be extended by the duration of the reduction of this rest."
Trade unions
A new mechanism for proving the fulfillment of the condition of the minimum number of members of a trade union who are also employees of the employer is introduced into the Labor Code in Section 286. Section 286(4) states: "If the employer requests it, the trade union is obliged to prove the fulfillment of the condition of the minimum number of members in an employment relationship with the employer according to paragraph 3; the employer is obliged to provide necessary cooperation for this purpose. If the trade union does not prove the fulfillment of this condition in another way, it is obliged to provide necessary cooperation to a notary agreed upon and paid for by the employer for the purpose of certification of the fulfillment of this condition and the preparation of a notarial deed on this certification."
The amendment establishes mandatory cooperation between the employer and the trade union in the preparation of a notarial deed, whereby proving the operation is no longer a mandatory part of the notification of operation at the employer. In the area of personnel, Section 303 also relaxes the conditions for employees of public law employers - these employees can now be members of governing or supervisory bodies of business legal entities after obtaining the written consent of the employer, and at the same time, their administrative burden associated with the information obligation about monetary performance is reduced.
Transitional provisions
The amendment to the Labor Code contains several important transitional provisions ensuring legal certainty in the transition to the new legal regulation.
The probationary period according to Section 35 agreed upon before the amendment comes into effect will be governed by the current legal regulation, which ensures predictability for employment relationships concluded before the effectiveness of the changes. On the contrary, the newly established exception in Section 39 can also be applied to employment relationships concluded before the amendment comes into effect, thereby extending the applicability of new rules to existing relationships.
In the area of termination of employment, the transitional provisions stipulate that if notice was delivered before the effectiveness of the amendment, the length of the notice period according to Section 51, including its beginning and end, is governed by the current legal regulation. Similarly, if the reason for notice according to Section 52(g) or for immediate termination of employment according to Section 55 arose before the effectiveness of the amendment, the periods will be governed by the current wording of Section 58 of the Labor Code.
An important transitional provision also concerns severance pay and one-time compensation, where the question of the creation of the right to one-time compensation for non-material damage upon termination of employment according to Section 271ca or to severance pay according to Section 67(3) will be assessed according to the legal regulation effective on the day of termination of employment. To eliminate interpretive ambiguities, it is explicitly stipulated that the one-time compensation upon termination of employment according to the newly proposed Section 271ca of the Labor Code is covered by the statutory insurance of the employer's liability for damage in case of a work accident or occupational disease.
Changes to related legal regulations
The flexinovela did not bring changes only to the Labor Code. The interventions also affected a number of other legal regulations that are closely related to labor law. These changes aim to align the legal regulation with innovations in labor law and to support greater flexibility and comprehensibility in practice.
Civil Service Act
Section 29 of the Civil Service Act addresses application and interpretation problems associated with extending the probationary period, which is now explicitly extended by the working days of the civil servant and also in case of unexcused absence. Section 29(1) now states: "The probationary period shall be extended by the working days of the civil servant in which during the probationary period they did not serve the entire shift due to an obstacle to service, taking leave, or unexcused absence from service." At the same time, the same rules as for the probationary period will be used for the certification period (Sections 49, 51, and 62), which contributes to greater consistency of the legal regulation.
Following the adoption of the amendment to the Civil Code, Sections 46 and 177 adjust the definition of a lone employee, which now includes both partners from registered partnerships and partners who enter into a partnership according to the Civil Code. Section 46(3) now states: "A person who does not live in marriage, partnership according to the Civil Code, or registered partnership, including cases where they live with a partner, is considered lonely." The provisions have been linguistically simplified and now refer to persons who do not live in marriage, partnership, or registered partnership, or are lonely for other serious reasons.
Significant changes also concern disciplinary measures and termination of civil service. According to Sections 60 and 89, the period during which a superior can be removed from a service position due to a second written warning is extended from 12 to 15 months before the initiation of proceedings. Section 60(1)(c) now states: "A superior may be removed from the service position of a superior due to a breach of service discipline if they have been given a written warning in the previous period of 15 months before the initiation of disciplinary proceedings for a disciplinary offense about which a final decision has not yet been made, and they committed a disciplinary offense, or they have been finally imposed a sanction for a disciplinary offense."
Similarly, in Section 72, the period during which the service authority can decide on the termination of civil service is extended from 1 year to 15 months, due to "a serious breach of service discipline or repeated breach of service discipline; for the purposes of this provision, repeated breach of service discipline is considered if the civil servant has committed at least 2 less serious or less serious and serious breaches of service discipline and 15 months have not elapsed since the imposition of a written warning or since the legal force of the decision to impose a disciplinary measure or to impose a disciplinary punishment." These changes unify the regulation with the new wording of the Labor Code.
Sections 60a and 73 change the rules for terminating the performance of service in the position of a superior based on their request - newly, it will end after a period of 2 months from the delivery of the request, while maintaining the possibility to agree on a shorter period. Section 60a(1) now states: "The performance of service in the position of a superior shall end on the basis of a written request of the superior after a period of 2 months. This period begins on the day of delivery of the request and ends with the expiry of the day which corresponds by name or number to the day of delivery of the request; if there is no such day in the last month, its end falls on the last day of the month."
The amendment in Section 75 responds to the case law of the Court of Justice of the EU and newly grants to a civil servant whose termination of civil service was found unlawful, in addition to salary, also the right to leave for this period. Paragraph 1 now reads as follows: "If the court's decision annulled an act issued in the matter of a disciplinary measure of dismissal from civil service, termination of civil service based on law, decision on termination of civil service, or removal from the service position of a superior, the civil servant is entitled to salary and leave and to salary according to another legal regulation, from the day of legal force of this act to the day preceding the day of re-assignment to a service position."
An important liberalizing change is the removal of the general prohibition of civil servants' membership in governing or supervisory bodies of legal entities conducting business activities. Section 81(1) states: "A civil servant may be a member of a governing or supervisory body of a legal entity conducting business activities only with the prior written permission of the service authority. A civil servant is obliged to terminate membership in a governing or supervisory body of a legal entity conducting business activities or to request the service authority for permission of such membership no later than 3 months from the date of establishment of the civil service relationship." Employees can now be members of these bodies after prior permission from the service authority. Following this change, Section 159 adds decision-making about permission for this membership and Section 165 adds the possibility to cancel or change an already issued decision.
Section 103 addresses a practical aspect, taking into account frequent cases where an employment relationship ends and the creation of a civil service relationship of the same person at the same office immediately follows, or vice versa. Paragraph 7 of this provision states: "The termination of an employment relationship and the immediately following creation of a civil service relationship in the same service office is also considered as a continuous duration of the civil service relationship for the purposes of leave; this applies similarly for the termination of the civil service relationship and the immediately following creation of an employment relationship in the same service office." In these cases, both relationships are viewed for the purposes of leave as one continuously lasting relationship. The amendment also includes an adjustment of Section 178, which ensures that similar rules about the probationary period also apply to employees in a service position.
Income Tax Act
The new provision of Section 4(1)(d) follows the introduction of the institute of one-time compensation for non-material damage and adjusts the provisions of the Income Tax Act so that this one-time compensation is subject to income tax. Point 6 states: "a one-time compensation upon termination of employment provided to an employee as a result of termination of employment due to long-term loss of capability to continue performing current work due to a work accident, occupational disease, or risk of such disease." This ensures the consistency of the tax system.
Act on Officials of Territorial Self-Governing Units
There is a liberalization of the legal regulation of sending these employees to governing or supervisory bodies of business legal entities. Section 16(3) newly states: "An official may be a member of a governing or supervisory body of a legal entity conducting business activities only with the prior written consent of the territorial self-governing unit of which they are an employee." It will no longer be necessary for them to be sent directly by the self-governing unit, but it will be sufficient for the self-governing unit to give them consent to membership.
Due to the reduction of administrative burden, an information obligation is introduced only to the total sum of benefits that were paid to the official in the relevant calendar year, setting January 31 of the following calendar year as the latest deadline for fulfilling this information obligation.
Labor Inspection Act
Due to changes in the regulation of the probationary period, a new factual basis for an offense is introduced, which will penalize incorrect negotiation of the probationary period. Sections 12 and 25(1) add a new letter (g), which reads: "violates the obligation set in § 35 of the Labor Code." Given the serious consequences that incorrect negotiation of the probationary period may have for the employee, a fine of up to 2,000,000 CZK is proposed.
There is also the removal of the factual basis that regulates the violation of the obligation according to Section 317 of the LC, which is to be abolished. Due to the establishment of new obligations of the employer in negotiating, determining, or setting wages or salary, Sections 13 and 26(1) introduce a new factual basis in the form of letters (o) and (p), which establish an offense, if the employer: "o) violates the obligation in negotiating, determining, or setting wages or salary, p) violates the obligation in the payment of wages or salary in foreign currency according to Section 143(2) or (3) of the Labor Code." The amount of the sanction is set at a maximum of 500,000 CZK with regard to the rather administrative nature of the offense.
Act on Specific Health Services
The regulation responds to the change in the existing notice reasons contained in Section 52(d) and (e) of the Labor Code in connection with the related consequences in terms of providing severance pay and one-time compensation upon termination of employment. Because the distinction of the cause for which the employee lost health capability is crucial for determining whether the employee has the right to severance pay or to one-time compensation for non-material damage according to the new Section 271ca, it is not possible to leave the issuance of an opinion to the will of the patient, resp. the authorized person, and therefore the new paragraph 4 states: "If a medical opinion is issued for the purposes of labor law relationships, the authorized person is obliged to ensure without undue delay the issuance of a medical opinion to determine whether the disease is caused by a work accident or occupational disease. This opinion may also be issued after the termination of the labor law relationship."
The amendment to the Act on Specific Health Services also introduces a new institute of health support program. Section 55a(1) defines: "For the purposes of this Act, a health support program means a set of measures that an employer can create and offer to employees with the aim of enabling greater use of health prevention tools. The health support program does not include measures that the employer is obliged to implement according to part five of the Labor Code. The employer evaluates the implemented health support program at least once a year." In case of implementation of a health support program, the employer is obliged to cooperate with persons with demonstrable experience in the field of public health protection. The Ministry of Health shall determine by decree the tools of health prevention provided within the health support program, the range of persons with whom the employer may cooperate in ensuring the health support program, and the method of evaluating the health support program.
Another change concerns initial medical examinations. Section 59(1)(c) and (d) newly stipulate: "c) a person applying for employment is considered medically unfit to perform the work to which they are to be assigned if they do not undergo an initial medical examination if they are sent to it, d) the employer has the right to require an initial medical examination of a person applying for work who is classified in category one according to the Act on Public Health Protection and which does not include an activity for which the conditions of medical fitness are established by an implementing legal regulation according to Section 60 or other legal regulations; if the employer does not require an initial medical examination, the person applying for work is considered medically fit to perform the work to which they are to be assigned, until the opposite is proven by performing the examination; if the employee requires an initial examination, the employer shall issue a request for this examination."
Civil Code
The amendment follows the change in the concept of work of minors presented in labor law regulations, when work of children is newly allowed from 14 years of age. Section 34(2) states: "Deviating from paragraph 1, a minor who has reached the age of fourteen may perform dependent work during the main holidays under the conditions established by another legal regulation." This provision represents an exception to the general limit of 15 years, where minors are newly allowed to perform dependent work from the age of 14 under the conditions established in the Labor Code.
For minors to be able to conclude an employment contract, Section 35(2) newly states: "A minor according to Section 34(2) may commit to the performance of dependent work during the main holidays only with the written consent of a legal representative." Thus, minors can already perform light work as dependent work from the age of 14, and until the completion of compulsory education only during the main holidays, where a minor who has reached 14 years of age will be able to commit to the performance of light work during the main holidays only with the written consent of their legal representative.
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