Government approves amendment to Czech Labour Code, Czech Chamber of Commerce opposes

19 September 2016

The government has approved an amendment to the Czech Labour Code, which should ensure greater flexibility of labor relations and reduce the administrative burden. According to the Ministry of Labour and Social Affairs, the current legislation contains weaknesses. The main changes will apply to calculation of leave, the rules for working at home, issues surrounding family policy and others. Irena Barton Pálková, vice president of the Czech Chamber of Commerce, said the proposal is unnecessary, citing in particular new provisions regulating working from home. The calculation of vacation will now be calculated on a weekly basis, rather than on the number of days or shifts.

The new system should ensure a simpler process for making the calculation. The change also applies to allowing leave time to be carried into the next calendar year. The Labour Code would also allow employees to adjust their working hours, while giving them them the responsibility to protect company data. Employers, on the other hand, would be given the ability to take into account the costs of energy, labor and technical equipment. The draft amendment was sent to the Chamber of Deputies. If approved, it would come into effect in April 2017.

„The amendment to the Czech Labor Code (the “Amendment”), which was approved by the government at the end of August 2016, has received mixed reactions. Even though it introduces many desirable changes, including the implementation of rules for working at home, new and simpler way of calculation of leave time, and the concept of top managing employees, it has failed to bring any solution to a variety of defects on the current wording of the Czech Labor Code, therefore it faces critisism, Additionally there is a problem with the Czech Chamber of Commerce because it does not attempt to solve the existing problems of the Czech labour market and does not bring more flexibility, which is acutely needed,“ said Denisa Nováková from Wilson&Partners.

Example banner for displaying an ad. It can be higher.