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Basic Information on Employment in the CR

 

Employment Contract

I have found a job and I want to draw up an employment contract.

Employment contracts always have to be drawn up in a written form! If you and your employer sign an employment contract, employment is established. Always ask your employer to provide you with your own copy of the employment contract and never sign a contract which you do not understand! Be sure to keep all documentation!

What does a contract have to include?

The employment contract has to include: 1) the type of work – what you will do for your employer, 2) the place of work and 3) the day you start working. If any of these essential elements are missing, the contract is invalid and does not constitute employment.

It is in your own interest that the contract also includes the following information:

  • – working time – from when until when you will work,
  • – your pay and the pay day,
  • probationary period (if any),
  • – how you will be compensated for overtime,
  • – the number of days of your annual leave,
  • – conditions under which you may be sent on business trips etc.

Fixed-Term/Indefinite Term Contract

Another piece of information given in contracts is for how long they are valid. If such information is missing, the contract is considered to be valid for an indefinite period of time. The employer may give you a fixed-term contract only three times in a row (always for a maximum of three years), after that you have to get an indefinite term contract (with the exception of seasonal workers).

 

Working Time

A full time job in the CR equates to 40 hours a week. You may also agree with your employer on working part-time.

 

Wage

An employment contract usually states a gross wage, which is the wage before the income tax and health and social insurance deductions. The minimum gross wage for a full-time job is 13, 350 CZK. The specific wage level including deductions is stated on your payslip. According to law, you must not be paid less than the minimum wage. Wages are usually paid once a month. You are always paid retrospectively for the preceding month.

If your employer officially only pays you a part of your wage, there is a risk that you will not be able to prove that your total income is sufficient for extension of your residence permit.

 

Probationary Period

In the employment contract, you and your employer may (but do not have to) agree on a probationary period. During the probationary period you can decide whether you are satisfied with your new job. It cannot last for more than 3 months (6 months for managers). If you are not satisfied with your job, you may terminate your employment any time during the probationary period. However, the employer may also terminate your employment any time during the probationary period without giving any reasons.

During the probationary period you may receive an initial pay, which will be increased once the probationary period is over.

Some employers insist that their employees “try working” for them at first (or to go through an initial training programme) without establishing a contract and without any financial remuneration. Such practices are unlawful!

 

Job Loss and Change

How can I quit my job?

If you want to leave your job, you do not need to have a special reason to do so. All you need to do is to write an agreement of termination of employment, in which you agree with your employer on your final day of employment. If your employer does not agree to your leaving your job, you can terminate your employment by giving notice. If you decide to give notice, there is a 2-month notice period before you can actually leave your job.

The notice period starts on the first day of the month following the month in which notice was given. Therefore, it is the best to give notice at the end of the calendar month.

When can I be dismissed by the employer?

If your employer wants to dismiss you, they can do so only under very narrowly defined circumstances. For example, you may be given notice if your job position becomes redundant, if you fail to meet qualification requirements for your job or if you repeatedly violate your working conditions and have already been notified about it twice in writing. Your employment may be terminated immediately only if you grossly violate working practices (e.g. you come to work drunk). Your employment may also be terminated by the expiration or by the withdrawal of your residence permit.

If you are laid off through no fault of your own (e.g. due to reorganization), you are entitled to severance pay.

 

Protection Period

If you stop doing the job based on which basis you were issued the employee card, you may find another job within the protection period of 60 days. You must apply for the change of the employer to be approved within the protection period. To be able to do so, you need to submit a document certifying that the employment for which you were issued the employee card is still valid or was terminated less than 60 days ago. This document can be an employment contract, a notice document, or an agreement of termination of employment.

If you do not have permanent residence in the Czech Republic yet, you have to bear in mind that losing a job may also lead to losing the purpose of your stay in the Czech Republic in the terms of residence legislation!

 

Registration at the Labour Office

If you are unemployed or if you lose your job and you meet the statutory conditions, you may register at the Labour Office which provides unemployment benefits and retraining courses and acts as an intermediary with job offers.

You have to register at a specific labour office based on your place of residence!

Working hours of labour offices:

Mon, Wed: 8.00 – 12.00 / 13.00 – 17.00
Tue, Thur: 8.00 – 11.00
Fri: 8.00 – 11.00 (only for new job seekers and invited clients)

More information can be found on the following website:

Changing Jobs

If you decide to change jobs, the change has to be approved by the Ministry of the Interior based on your written application!

For more detailed information about employee cards, have a look at the website of the Ministry of the Interior:

 

What am I Entitled to as an Employee?

For overtime work, work at night, during weekends and on bank holidays you are entitled to bonus pay from your employer. Alternatively, you can take compensatory leave.

According to law, as an employee you are entitled to 4 weeks of annual leave during which you are paid your contractual wage.

You can also agree with your employer to part-time work. Your wage will then correspond to the number of hours you work.

If you cannot go to work due to illness, your doctor will give you a confirmation of incapacity to work.

Employers are obliged to allow women to go on maternity leave, which lasts for 28 weeks.

If your children fall ill, you can stay at home with them and take care of them.

 

Employees’ Health and Social Insurance

The employer is obliged to pay health and social insurance for you. A part of it is deducted as a percentage from your wage, another part is paid directly by the employer. As an employer you take part in public health insurance.

Check with your insurance company whether your employer pays health insurance for you. It is their obligation!
Always have your health insurance card with you!

 

Agreements outside Employment

Apart from full-time employment, which is established through an employment contract, you can also work part-time based on the following agreements.

Agreement to complete a job (a widely used Czech abbreviation is DPP)

If you arrange to work through DPP, you may work for up to 300 hours per year for one employer. If your monthly income from DPP work exceeds 10,000 CZK, apart from income tax you also have to pay health and social insurance.

Agreement to perform work (a widely used Czech abbreviation is DPČ)

With DPČ, there is also a limit on the scope of work permitted– the maximum you may work is a half of a full working week (that is 20 hours) for one employer. Payment of health and social insurance is done the same way as in the case of full-time employment.

Under these types of agreements you are not entitled to annual leave. If you give notice, you are not entitled to severance pay.