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Novelization of the Czech Labour Law 2017 – part one

Novelization of the Czech Labour Law 2017 – part one

This article is focused on the most important changes of the prepared novelization of the Act No. 262/2006 Coll., the Labour Code, which is currently being discussed by the Czech Parliament.

The novelization should become effective as of 1st July 2017; except for provisions concerning annual leave, which is scheduled to become effective as of 1st January 2018.

The aim of this rather large novelization is to reinforce the principle of so-called flexicurity in the Czech Labour Law, i.e. realization of the changes in order to deepen the flexibility of elementary labour-law relations while increasing protection of employees.

Fundamental changes introduced by the novelization will be especially the following:

  1. introduction of a new legal term „top-level managing employee“;
  2. more detailed rules for home office;
  3. new regulation of agreements on work performed outside of an employment relationship;
  4. simplified procedure for delivery of documents;
  5. new rules for calculation, provision and reduction of the annual leave;
  6. other (minor) changes.

I.    TOP-LEVEL MANAGING EMPLOYEE

Definition: The agreement between the employer and the employee may define as the top-level managing employee only

  1. a managing employee which is directly subordinated to
    * the employer‘s statutory body in case of an legal entity,
    * the actual employer in case of an individual (natural person), or
  2. a managing employee which is directly subordinated to any of the managing employee mentioned under the point (1) above;

provided that the salary of such employee will reach the statutory limit of minimum of CZK 75,000  per month.

Characteristics: The top-level managing employee

  1. will be permitted to entirely and independently schedule his working time and this working time will already include any eventual overtime work (in the scope of up to 48 hours weekly);
  2. will not be entitled to any extra pay for overtime work, night work or work during public holidays, on Saturdays or on Sundays;
  3. will have no right to any wage compensation due other important personal obstacles, except for sick pay.

By Michaela Fuchsová & Magda Stárková  

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