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Labour Law and Employment in the Czech Republic – 2024 Guide

January 10, 2024
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Labour law in the Czech Republic regulates the legal relations arising in connection with the performance of dependent work between employees and their employers, labour relations of collective nature and other aspect related to employment.

The fundamental principles of labour relations are especially legal protection of employee status, satisfactory and safe working conditions for performance of work, fair remuneration and equal treatment of employees and prohibition of their discrimination.

Download our 2024 guide on labour law and employment in the Czech Republic, or read more below

Entitlement to work in the Czech Republic

For Czech nationals

No employment permission needed.

For foreigners

  • foreigners from the EU, Switzerland and EEA and their family members do not need an employment permit
  • foreigners from third countries (except some special categories of employees, such as holders of long-term residency permits, students etc.) need one of the following:

Work Permit – most common in cases of seasonal work, or applicants for international protection etc.

Blue Card – for a long-term stay involving the performance of a highly skilled job

Employee Card – for long-term stay in the territory of the Czech Republic where the purpose of the stay (longer than 3 months) is employment

Intra-Company Transfer Card – for transfer within a group of companies (from a group company outside the EU into Czech Republic), where the purpose of the stay is work (longer than 3 months) as a manager, specialist or employed intern

Employment types

Regular employment

There are two types of regular employment contracts in the Czech Republic:

Employment Contract for a definite period: generally, it can be concluded for a maximum of 3 years and it is possible to prolong such contract only twice (maximum length 3×3 years)

Employment Contract for an indefinite period: an employment relationship shall last for an indefinite period unless a definite period has been expressly agreed

Work outside employment relationship

Furthermore, an employee may perform work outside employment relationship on the ground of two agreements:

Agreement to complete a job: the scope of work for which an agreement is concluded may not exceed 300 hours in one calendar year.

Agreement to perform work: the scope of work shall not exceed a maximum of one half of determined weekly working hours (20 hours)

Probationary period

In Czech employment contracts, the probationary period can be concluded as:

Maximum 3 consecutive months for regular employees

Maximum 6 consecutive months for managers

A probationary period may not be longer than one half of the agreed period of the employment relationship and must be agreed in writing on the day of commencement of employment at the latest.

Termination of employment


Employment relationship may be terminated with the Czech employee:

  • by agreement between the parties in writing
  • by notice of termination
    • the notice of termination shall be made in writing and delivered to the other party
    • the employee may give his employer notice of termination for any reason or without stating a reason
    • the employer must specify the reason based on a list of reasons provided by law
    • the Czech law prohibits giving notice to an employee during the protection period (while the female employee is pregnant or is on maternity or parental leave, the employee is unfit for work, the employee is released to exercise a public office, etc., given that other conditions are met) (note: even the protection period has its own conditions which need to be met. For example, an employee is not protected if his/her incapacity for work was caused by intoxication)
  • by immediate termination only for reasons specified in the Labour Code
  • by termination within a probationary period
  • on the expiry of agreed period in case of employment contract for a definite period
  • upon lapse of validity of a work permit of a foreign employee, or due to deportation or revocation of a residence permit
  • upon death of the employee

In some specific cases, an employee is entitled to severance pay upon termination of employment.

Notice period

Where notice of termination has been given, the employment relationship will come to an end upon the expiry of the notice period. The notice period must be the same for both the employer and the employee.

Notice period
2 months


The notice period shall be at least 2 months and can be extended only by agreement between the employer and the employee in writing. The notice period shall start to run on the first day of the calendar month following delivery of the notice.

The length of the notice period is regulated differently for agreements on work outside of an employment relationship. Unless agreed otherwise, the notice period for these agreements is 15 days and starts on the date on which the notice is delivered to the other party.

Social contributions and income tax

The employer is obliged to pay monthly contributions to social and health insurance and advances on the income tax.

Contributions paid by employers for each employee

Social security contribution: 24.8%* of gross earnings

* (from 1 February 2023, it is possible to apply a discount on the contribution of 5% for certain groups of employees, e.g., under 21 years of age, or those with shorter working hours who are over 55 years of age or caring for a child under 10 years of age, etc.)

Health insurance: 9% of gross earnings

Contributions paid by employee

Social security contribution: 7.1% of gross earnings

From 2024, employees are paying sickness insurance as part of their social security contributions, at a rate of 0.6% of their gross wages. The employee’s social security contribution will therefore be 7.1% instead of the previous 6.5%.

Health insurance: 4.5% of gross earnings

Personal income tax

The personal income tax in the Czech Republic is paid by the employee at a flat rate of 15% applicable on a gross salary up to the annual income of 36x the average salary (i.e. CZK 1,582,812 for 2024).

Income exceeding this limit is taxed at a higher flat rate of 23%.

Working time and vacation

Working time

40 hours/week is the length of standard weekly working hours, except for some employees. Working hours are usually distributed over a five-day working week. Part-time work may be agreed between the employer and employee.

12 hours is the maximum length of a shift. The employer shall distribute working hours and determine the start and end of shifts.

25% of the average earnings is the minimum premium that the employee is entitled to for overtime work in addition to the attained wage, or a compensatory time off.

Besides an evenly distributed work time schedule, employers may also introduce uneven or flexible schedules, as well as a work time account. Specific requirements are indicated in the Czech Labour Code.

Time off

Regarding the vacation and other circumstances under which the Czech employee can take time off, the main cases are:

Annual leave

The employee in an employment relationship who performed work for the employer for 52 weeks in the extent of the weekly working hours (standard or shorter part-time working time) in one calendar year is entitled to annual leave. The basic statutory period of leave is 4 weeks.

Proportional part of annual leave

The employee who worked for the employer in the extent of the weekly working hours for at least 4 weeks, is entitled to 1/52 of the leave entitlement for each fully worked weekly working time.

Additional leave

The length of additional leave in the Czech Republic is 1 week and it is provided for specific groups of employees engaged in particularly hard work when an employee performs such work for the entire calendar year. In case that this type of work was not performed during the whole calendar year, a proportional part of the additional leave is provided (1/52 of the yearly entitlement for each work week).

Annual leave of employees on DPP/DPČ agreements

As of 1 January 2024, employees working under an agreement for work performed outside the employment relationship (agreement to perform work or agreement to complete a job) are now also entitled to annual leave. The entitlement arises if the employment relationship under the same agreement lasted at least 4 weeks in the relevant calendar year and if the employee worked at least 80 hours. With the statutory 4-week annual leave entitlement, the employee is entitled to approximately 1.5 hours of leave for every 20 hours worked.

Unpaid leave

Due to family circumstances or for other personal reasons the employee may be given a leave without pay, the duration of which is determined usually under the agreement between the employee and the employer. It is applicable upon request, but in certain cases prescribed by law. For example, the employer is obliged to provide unpaid leave when the employee moves or seeks another employment (both subject to further conditions). In some cases, the employee is even entitled to paid leave (e.g. medical examination, wedding, bereavement).

Most common employee benefits

The most common benefits for employees in the Czech Republic are:

  • bonuses in terms of financial rewards
  • professional trainings
  • language courses and personal development
  • the option to work remotely
  • additional days off (extra holidays, study leave, sick days)
  • discounts on company products
  • flexible working hours
  • meal vouchers
  • company phone
  • company car or transport allowance
  • insurance contributions
  • sports and recreation contributions*
  • refreshment/beverages at workplace

Certain companies offer also temporary accommodation or housing allowances, recreation in the company’s facilities or holiday allowances, or free ticket by companies operating regular public transportation.

* Non-monetary benefits in the field of culture, education, purchase of services and goods from medical institutions, recreation and trips, etc., which are provided by the employer to the employee or his/her family members, will now be exempt from tax on the employee’s side only up to half of the average monthly salary for the whole calendar year (for 2024 this amount is CZK 21,983).

Agency employment and posting

Agency employment

An employment agency temporarily assigns its employee to perform work for a client on the basis of a temporary assignment agreement entered into by and between the agency and the client.

The agreement must be in writing. The employment agency assigns an employee to perform temporary work with the client on the basis of a written order.

The employment agency and the client are obliged to secure that the working and wage conditions for the temporarily assigned employee are not or would not be worse than those under which a comparable employee works or would work.

The time of temporary assignment to perform work for the same client shall not exceed 12 consecutive calendar months, although some exceptions apply.

Posting of employees and the necessity to carry an A1 certificate

In case an employee of an employer based in one of the EU member states is sent to work within the framework of the posting of employees in the territory of the Czech Republic, such an employment must comply with the European legislation, as well as that of the Czech Republic.

An A1 certificate is a form that states the country in which an employee is covered by social insurance. In principle, all employees are covered by social security in the country where they work and hence to prove this, employees must carry an A1 certificate.

Inspections in several EU countries are strict and may cause unpleasant situations to the employees and their employers if they do not have A1 certificates.

If the posting is short-term (i.e. up to 12 months), the employment must comply with the following Czech basic work conditions:

  • maximum work periods and minimum rest periods
  • remuneration, including overtime rates; this does not apply to supplementary occupational retirement pension schemes
  • occupational safety and health
  • minimum paid annual leave
  • working conditions for pregnant employees, breastfeeding employees and employees up to the end of the ninth month after giving birth and minors
  • equal treatment of male and female employees, ban on discrimination
  • working conditions for agency employment
  • conditions of employee accommodation
  • allowances or reimbursement of expenditure to cover travel, board and lodging expenses for employees away from home for professional reasons.

In case of long-term postings (i.e. exceeding 12 months), it is necessary to ensure that also any other local work conditions are applicable to the posted employee, with the exception of conditions governing the establishment, changes or termination of an employment relationship.

Local legislation is not applicable if the legislation of the posting country is more favourable to the employee, which is to be considered individually.

Overview of applicable legislation

The main sources of the labour law are three acts:

  • Act No. 262/2006 Coll., the Labour Code, as amended
  • Act No. 2/1991 Coll., the Collective Bargaining Act, as amended
  • No. 435/2004 Coll., the Employment Act, as amended

However, the area of labour law is governed by other important regulations, such as:

  • Act No. 309/2006 Coll., the Act Stipulating Further Requirements for Health and Safety at Work, as amended
  • No. 251/2005 Coll., the Labour Inspection Act, as amended
  • No. 73/2011 Coll., the Labour Office Act, as amended
  • Act No. 187/2006 Coll., the Sickness Insurance Act, as amended
  • Act No. 329/2011 Coll., on benefits for people with disabilities, as amended
  • Act No. 589/1992 Coll., on social security insurance and state employment policy, as amended
  • Act No. 48/1997 Coll., on public health insurance, as amended
  • Act No. 592/1992 Coll., on premiums for general health insurance, as amended
  • Act No. 326/1999 Coll., on the Residence of Foreigners in the Territory of the Czech Republic, as amended
  • Act No. 118/2000 Coll., on protection of employees against the employer’s insolvency, as amended
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