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Novelization of the Czech Employment Act 2017 – part two

Novelization of the Czech Employment Act 2017 – part two

In part two of this article we pay attention to further changes brought by the novelization of the Employment Act, i.e. the Act No. 206/2017 Coll., by which the Act No. 435/2004 Coll., the Employment Act (“the EA”), is amended, and which became effective in the Czech Republic as of 29th July 2017.

II. MANDATORY EMPLOYMENT OF DISABLED PERSONS BY SO-CALLED SUBSTITUTE PERFORMANCE

The new legislation implements a unified register of the substitute performance with the aim to enable the effective control of respecting the mandatory statutory limit of the substitute performance.

All employers employing over 25 employees are obliged to comply with statutory limits for employment disabled persons. The statutory limit for employment of disabled persons to the total number of the employer’s employees is 4 %.

The Employers might comply with this obligation also by so-called substitute performance, i.e. by:

  • purchasing products or services from employers whose workforce includes more than 50% of disabled employees;
  • awarding orders to these employers;
  • purchasing products or services from disabled persons who are self-employed and do not employ any other employees, or
  • awarding orders to these persons.

The reason for the implementation of the unified register is to gain an overview about transacted purchases (supplies) and have the opportunity to effectively control whether the statutory limit of the substitute performance is observed.

The statutory limit of the substitute performance is set as the 36 times of the average wage in national economy for the first to third quarter of the preceding calendar year for adjusted employee with disability employed in the previous calendar year. In 2016 it was the sum of CZK 932,508.

Suppliers are obliged to put data about purchases (supplies) into the register. They are also liable for correctness of the inserted data. Purchasers are liable for the fact that the purchases are contributable to the substitute performance. However, as contributable, will be regarded only such performance that will be registered within 30 calendar days from the realization date.

The effective date for the registration of the mandatory data (for the period of the respective calendar year till the effective date of the novelization) is 60 days, i.e. data must be registered by 27.9.2017.

The new register will be held in the electronic format by the Czech Ministry of Labour and Social Affairs.

III. PERFORMANCE OF SO-CALLED NON-CONFLICTING EMPLOYMENT

The novelization cancels the possibility to perform the so-called non-conflicting employment on the basis of an agreement to complete a job (dohoda o provedení práce) with the aim to support the unemployed to look for a permanent employment.

According to the new legislation it will be allowed to include and manage in the unemployed register only those applicants, who perform their activities on the basis of an employment or service relationship, provided their monthly remuneration does not exceed half of the statutory minimum wage, or applicants who perform activities on the basis of an agreement on work performance (dohoda o pracovní činnosti), provided that the monthly remuneration or average monthly remuneration for the time worked does not exceed half of the minimum wage (so-called non-conflicting employment).

Performance of activities on the basis of an agreement to complete a job will no longer be classified as non-conflicting employment and on the contrary it will represent an obstacle for the registration of the applicant in the unemployed register. The reason for this change is the fact that the performance of so-called non-conflicting employment on the basis of an agreement to complete a job became excessively frequent and in most cases it did not lead to finding a permanent employment.

IV. PROTECTION OF EMPLOYEE’S PRIVACY AND EMPLOYEE’S PERSONAL RIGHTS

The new law classifies new types of offences and administrative torts in the field of the protection of employee’s privacy and employee’s personal rights into the amended Czech Labour Inspection Act (the Act No. 251/2005 Coll.).

The respective authorities are entitled to impose a pecuniary penalty on the employers who break their obligations set by the Czech Labour Code (the Act No. 262/2006 Coll.) in order to protect the employee’s privacy.

The fine up to CZK 1,000,000 might be imposed on an employer, who:

  • encroaches upon employee‘s privacy at workplaces and in the employer’s common premises (e.g. by open or concealed surveillance (monitoring) of employees, interception and recording of their telephone calls, checking their electronic mail or postal consignments), or
  • requires from an employee information that does not directly relate to performance of work (e.g. information about pregnancy, family and property situation).

The fine up to CZK 100,000 might be imposed on an employer who in compliance with the Labour Code introduces the surveillance (monitoring) of his employees (where is a serious cause consisting in the nature of the employer’s activity), but who at the same time violates his obligation to inform the employees about the scope and methods of its implementation.

By Jiří Spousta & Magda Stárková

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