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Czech Republic

January 29, 2021

By Anna Szabová

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Czech Republic

KEY DEVELOPMENTS FOR 2019


 

Increase of minimum salary

From 1 January 2019, the minimum wage increased to CZK 13,350 per month or CZK 79.80 per hour. In addition, the respective rates of minimum salaries for different categories of jobs also increased accordingly.


 

Compensation for first 3 days of sickness leave reintroduced

With effect from 1 July 2019, the 3-day “exclusion period” in relation to mandatory sickness insurance will be abolished. This means that employees on sick leave will be entitled to paid their salary from the first day of their sickness absence (which must be confirmed by a medical certificate). The rules regarding paid salary and entitlement to sickness benefits from the state from the 15th day of sickness remain unchanged.


 

Inspections of cross-border posting of employees continue

The Labour Inspection Authority continues to conduct inspections of contractual relationships of Czech businesses where third-country nationals are posted to the Czech Republic by their employers to provide services to Czech companies. The inspections focus on whether the provision of services are in fact disguised hiring-out of labour, which have stricter immigration and work permit rules.

With thanks to Anna Szabová of Deloitte Legal s.r.o., advokátní kancelář for her invaluable contribution on this update.

Contributors

Image: Suzanne Horne
Suzanne Horne
Partner, Employment Law Department

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Kirsty Devine
Associate, Employment Law Department

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Aashna Parekh
Associate, Employment Law Department