Czech Republic Labor Laws

As the Czech Republic becomes increasingly attractive to international and domestic employers, it is important that they become familiar with its labour laws. In cases where the choice of applicable law is permitted (see above) and the parties have not agreed on an applicable law, the applicable law will be determined on the basis of the provisions of private international law. In this case, the Convention on the Law Applicable to Contractual Obligations (to which the Czech Republic is a party) and Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) provide that the contract of employment is governed by the law of the State in which the worker habitually carries out his work in the performance of his contract of employment (lex loci laboris), even if he is temporarily employed in another country. If the employee does not habitually carry out his work in a country, the law of the country through which the establishment through which he was recruited is applicable to the employment contract shall prevail. However, if the general circumstances show that the contract of employment is more closely related to another State, the contract is governed by the law of that State. Current laws regulate private old-age insurance through pension funds. If an employer pays the employee`s pension contribution, up to CZK 24,000 is tax deductible for each of these employees. The only condition is that the employer determines this right in the collective agreement or in the internal regulations. The employment of foreign workers is also on the rise, with nearly 400,000 workers registered at the end of 2016.However, as the country becomes more attractive to international and domestic employers, it is important that they become familiar with labour law. Here is a summary of the main points you need to know: the head of state is the president, who is elected in a joint session of both houses of parliament for a five-year term. The choice of the right to regulate the employer-employee relationship is possible if the employment contract refers to the law of different countries, for example, if the employer or employee is a foreigner or if the substantial part of the work must be carried out outside the territory of the Czech Republic. Notwithstanding the foregoing, the fact that the parties have chosen a foreign law (if all other factors relevant to the situation at the time of the election concern only one country) does not affect the application of the provisions of the law of that State from which no derogation may be made by contract. In addition, a choice of law made by the parties does not have the effect of depriving the employee of the protection granted to him by the mandatory provisions of the law that would be applicable in the absence of the choice of law applicable by the parties (see below).

The Constitutional Court decides on the repeal of laws or other legal or individual provisions, on constitutional appeals against unlawful interference by the State or against final decisions that violate the fundamental rights and freedoms guaranteed by the Constitution, etc. In anticipation of the Czech Republic`s accession to the EU, the amendment of the Labour Code in 2000 (Act No. 155/2000 Coll.) introduced new provisions that improved labour law, including the introduction of new legal instruments (e.g. with regard to collective redundancies and the protection of workers` claims in the event of the insolvency of their employer). the right to information and consultation, the wording of which is in line with that provided for in the relevant Community directives and in the European Social Charter, as well as in certain other provisions, in particular as regards working time and health and safety. In accordance with article 7 of Act No. 2/1991 Coll. on collective bargaining, the Ministry of Labour and Social Affairs may stipulate in a legal provision that a higher collective agreement is also binding on employers who are not members of the employers` association that concluded the agreement.