Employment Relationships
Employment Relationship
- Is an labour relation between employee and employer and is regulated by the Labour Code (Zákoník práce)
- It is based on an employment contract (see below) and starts on the first working day
- After starting working, both you and your employer have the right to a trial period. Trial period usually lasts 3 months from the beginning of the employment (6 months in case of management staff). During this period, both you and your employer can end the employment relationship without giving a reason.
- Notification about the end of employment relationship during the trial period must be written
How do I recognize employment for a limited period of time and for an unlimited period of time?
- You are employed for unlimited period of time when there is no period or expiry date in your employment contract
Most employers will first make a contract for a limited period of time:
- There is an expiry date or period of employment stated in the employment contract
- For the same employer, you can work for maximum 3 years with the contract for a limited period of time. Employer can extend it max. twice (this is not valid for retired people, for seasonal jobs and for work through agency)
- After 3 years with a contract for a limited period of time, you can finish the employment and after 6 months make a new contract with the same employer for other 3 years
- If have reached maximal length of employment for a limited period of time (twice 3 years) and your employer still wants to employ you, your employment contract changes automatically into an employment for an unlimited period of time
THE LENGTH OF EMPLOYMENT RELATIONSHIP OF FOREIGNERS IS LIMITED BY VALIDITY OF RESIDENCE PERMIT.
1. Employment contract
Must be concluded in writing and both you and your employer get one original of the employment contract
Employment contract must contain:
- Type of work that you will carry out
- Place or places where you will work
- Day of the commencement of the employment
You can withdraw from employment contract before the first day of employment.
EMPLOYMENT CONTRACT WITH AN EMPLOYMENT AGENCY
ATTENTION: From July 2017, agencies can assign foreigners from the third countries who need employee card, blue card or work permit.
- Agency is employer and it can temporarily assign you to work for another employer (user)
- Agency must have valid permission for recruitment (it must be on the list of employment agencies https://www.uradprace.cz/web/cz/agentury-prace )
If you are assigned to a work for another employer, agency must conclude three written documents with you:
Employment contract or agreement to perform work (DPČ) with you as an agency’s employee; Contract about your temporary assignment to employer; Written instruction in which you as agency’s employee agree with performance of work according to instructions of employer (it must contain for whom, where and how long you will work, what will be your work conditions and salary, who will give you work and control it and how can your contract be ended)
- Employment contract for agency is usually concluded for a limited period of time that can be repeatedly prolonged without limitations
- You cannot be assigned to the same employer for more than 12 months unless you ask for it yourself
- Agency and employer must ensure you same conditions as other workers in similar positions
Agency is responsible for any damage caused to you during work.
Contracts for work performed outside an employment relationship
2. Contract of services (DPP)
Work that you carry out for one employer max. 300 hours per year
It must be concluded in writing and it must contain
- Type of work you will carry out
- Period for which is the contract concluded or agreement on an unlimited period of time
- Hourly pay that you will get (it cannot be lower than 90,50 CZK which is the minimum wage in the Czech Republic from 1. 1. 2021), there is no maximum for hourly pay
You must get one original of the contract
- Employer pays 15 % tax from your salary
- If your salary is lower than 10 000 CZK per month, employer does not pay health and social insurance for you
- If you salary is higher than 10 000 CZK per month, your employer is obliged to pay social insurance and health insurance for you
- You are not entitled to holiday, extra pay for extra hours or for work during night and state holidays, breaks during work nor to severance pay
Contract of services ends when:
- You fulfil given task
- You complete number of hours given
- You work for 300 hours for one employer in one year
- Either the employer or the employee terminates the contract by giving a 15 days - notice to the other party
3. Agreement to perform work - DPČ
In the month average you can work for maximum 20 hours per week for one employer.
DPČ must be concluded in writing and it must contain
- type of work that you will carry out
- period for which the contracted is concluded (limited period of time or unlimited period of time)
- your salary (hourly pay cannot be lower than minimum wage =90,50 CZK)
Pay (payouts) over CZK 3,000 monthly = The employer has to pay health and social insurance payments
Pay (payouts) less than CZK 3,001 monthly = If you are not a person insured by state, you must pay health insurance as self-payer, "person without taxable income".
! You are not entitled to paid leave automatically, but it can be included in your contract.
! You are not entitled to extra pay for extra hours or for working during nights and state holidays, working breaks nor to severance pay
DPČ ends when:
- either the employer or the employee terminates the contract by giving a 15 days-notice to the other party
- ends the period of time for which the contract was concluded
