<\/p>\n\n\n\n
As of 1 October 2023, the Labour Code of the Czech Republic underwent significant amendments, introducing important changes in the regulation of part-time and flexible employment contracts, known as DPP and DP\u010c. These changes introduced new obligations and rights for both employers and employees, which came into force on 1 July 2024. <\/p>\n\n\n\n
DPP contracts (Employment Performance Contracts) allow an individual to work for an employer for up to 300 hours in a calendar year without having to pay insurance or health contributions if the gross monthly income does not exceed one quarter of the national average wage, approximately CZK 10,500 in 2024. DP\u010c contracts (Employment Contracts) allow up to 20 hours of work per week for the same employer, with no annual limit on the number of hours. However, the earnings limit for exemption from paying contributions in a DP\u010c contract is CZK 4,000 per month. Self-employed persons are subject to a business licence if they work more hours and earn more than CZK 10,500 per month.<\/p>\n\n\n\n
The widespread adoption of these contracts was motivated by their flexibility and lower tax burden on employers. However, the recent changes aim to strengthen the fairness of the social security system and increase state revenue through the mandatory payment of contributions by DPP and DP\u010c workers.<\/strong> This change will entail higher costs for both employees and employers, as well as more associated bureaucracy.<\/p>\n\n\n\n After the new law comes into force, companies are obliged to report the total earnings of each employee with a contract of employment (DPP) or a contract of employment (DP\u010c) to the Czech Social Security Administration (\u010cSSZ) by the 20th day of the month following the reporting period<\/strong>. In addition to hourly pay, employees with DPP and DP\u010c contracts will now be entitled to additional pay for the night shift, weekends, holidays and working under difficult conditions.<\/p>\n\n\n\n If an employee arrives for a previously agreed shift and finds that it has been cancelled, the employer will have to reimburse the full cost of the shift. In addition, the employer is now obliged to inform the employee in advance of any changes in duties, working hours and work status by notifying the employee at least three days before the start of the shift. This may make DPP and DP\u010c contracts less flexible. <\/p>\n\n\n\n An important change is that employees with DPP contracts will be entitled to paid holidays<\/strong>, granted after four weeks of work with a minimum of 80 hours worked. The terms and conditions of the holiday entitlement are essentially the same as for a traditional employment contract, with the difference that the pay is calculated as if the employee worked part-time. For every 20 hours worked, the employee is entitled to approximately 1.5 hours of holiday, rounded up to the nearest full hour. If the employee does not use his or her accrued holiday, the employer must reimburse him or her at the end of the agreed work, just as in a traditional employment relationship.<\/p>\n\n\n\n If a temporary employee has worked for the employer for at least 180 days in the previous 12 months, he\/she can request a change to a traditional employment contract by submitting an application written. If the company does not intend to comply with the request, it must also inform the employee of the reasons in writing.<\/p>\n\n\n\n The employer is also obliged to inform the employee in writing of the reasons for dismissal without any delay, otherwise it may incur penalties of up to CZK 200,000. Employees with an employment contract are also entitled to so-called ‘time off’, that is, they can undergo a medical examination or take leave if a life situation requires it. The employer is obliged to grant unpaid leave. <\/p>\n\n\n\n Employment contracts can be concluded electronically, for example by e-mail. It will also be possible to conclude additions or amendments to contracts in this form. If the employee agrees, it will also be possible to terminate the contract electronically, provided that the notice of termination is sent to the employee’s personal e-mail address. Consent may be revoked at any time, again in writing. The employee’s consent shall not be required for a letter to be sent to his or her e-mail box. If the person does not read that message within 10 days from the date of delivery, the message shall be deemed delivered. <\/p>\n\n\n\n The employer is obliged to grant childcare leave at the employee’s written request. Childcare leave is granted to the child’s mother after the end of maternity leave and to the child’s father from the birth of the child, to the extent that they request it, but no later than when the child reaches 3 years of age. The application must be submitted by the employee no later than 30 days before the start of parental leave, unless serious reasons prevent it, the application must specify the duration of parental leave. <\/p>\n\n\n\n For employees with DPP contracts, the new regulations require payment of contributions if the total monthly income from more than one job exceeds 40 % of the national average wage, approximately CZK 17,500. By contrast, the rules for employees with DP\u010c contracts remain unchanged from the current legislation. Moreover, the monthly earnings limit of CZK 10,500 for employees with a single employer under a DPP contract remains unchanged. According to government estimates, these changes will generate additional annual state revenue of approximately CZK 1.8 billion, thus improving the sustainability of the social security system.<\/p>\n\n\n\n Source : https:\/\/www.mpsv.cz\/web\/cz<\/a><\/p>\n\n\n\n Image generated by AI<\/p>\n\n\n\nHolidays and other benefits<\/strong> <\/h2>\n\n\n\n
Electronic communications<\/strong> <\/h2>\n\n\n\n
Child care leave<\/strong> <\/h2>\n\n\n\n
Contributions and earnings limits<\/strong> <\/h2>\n\n\n\n