Employees in all countries are protected by various labour laws designed to prevent them from coming to harm at work. If you want to hire workers in the Czech Republic, you’ll need to understand the rights and protections that those workers will be entitled to so you can ensure your operations are compliant.
In this section, we’ll discuss various employment laws to protect workers in the Czech Republic, including the Whistleblowing Act, the Labour Code, and the Anti-Discrimination Act. We’ll cover employees’ rights after making a protected disclosure, as well as the legal options available to employees who have experienced discrimination or harassment in the workplace. We’ll also dive into the right to equal treatment for temporary agency workers, and employers’ responsibility to provide equal pay and working conditions to employees performing work of equal value in the Czech Republic.
Whistleblowers play an important role in Czech society by calling out wrongdoing within their organisations. For this reason, they are entitled to certain protections under the law. The Czech Republic was one of the last European countries to implement the EU Whistleblowing Directive, which was transposed into Czech law in August 2023.
The whistleblowing law in the Czech Republic is the Whistleblowing Act, which implemented the EU Whistleblowing Directive. The act requires employers with 50 or more employees to put in place processes for internal whistleblowing. Failure to comply with the rules can result in a fine of up to CZK 1 million (around EUR 42,000).
Employees in the Czech Republic can report their concerns internally using their company’s whistleblowing channels, or report externally to the Ministry of Justice. In some situations, they can also report to the public or the media. This is usually only covered by whistleblowing legislation if it concerns a serious disclosure representing an imminent threat to public order, lives, or health.
The Czech Whistleblowing Act also prohibits retaliation against whistleblowers, which could include:
If an employee alleges that they have experienced retaliation for whistleblowing, it is up to the employer to prove that this is not the case and that any negative actions were not related to the disclosure.
The rules on data protection in the Czech Republic are based on the European General Data Protection Regulation (GDPR), which was implemented by the Czech government in 2019. The body responsible for ensuring data protection in the Czech Republic is the Czech Office for Personal Data Protection.
The Labour Code also provides certain limitations on how employers can use their employees’ data. For example, it stipulates:
In general, employers in the Czech Republic must have a lawful basis for processing personal data, as set out in the GDPR. Even stronger grounds are required for sensitive personal data. Employers must also notify employees of the personal data they process about them, and only process data that is strictly necessary for employment purposes.
The rules surrounding employee monitoring and surveillance are an important part of employee data protection in the Czech Republic. This may include video surveillance and the monitoring of employees’ internet use and correspondence.
The Czech Labour Code states that employees must not encroach on an employee’s privacy in the workplace without a serious cause. This includes recording or intercepting telephone calls or checking an employee’s emails or physical correspondence. However, employees are not normally allowed to use work equipment (e.g. laptops) for personal uses unless this has been agreed with their employer. Employers are allowed to conduct a certain amount of monitoring to ensure compliance with this rule.
When an employer needs to hire a worker for a short period, they can choose to do so through a temporary work agency. These companies legally employ workers and effectively lease them out to user companies. There are certain rules and restrictions on temporary agency work in the Czech Republic.
In the Czech Republic, temporary work agencies must have a permit for employment. There must be a written agreement between the agency and the user company, and the employee must be given written instructions on their temporary assignment. The specific content to be contained in these documents is set out in the Labour Code.
When an employee is engaged through a temporary work agency in the Czech Republic, the user company assigns them work. They are also responsible for ensuring favourable working conditions and the health and safety of the workers in question. However, they can’t legally act on behalf of the temporary work agency.
In the Czech Republic, the maximum duration for a temporary work assignment through a labour agency is 12 months. Exceptions are possible in some circumstances, such as when the worker is replacing another employee who is on maternity or parental leave.
When an employee is hired through a temporary work agency in the Czech Republic, both the agency and the user company are obliged to ensure that their working conditions are at least as favourable as those of a comparable employee at the company. This applies to:
Employees in the Czech Republic are protected from all forms of discrimination by various labour laws. There are also processes in place for employees who have experienced discrimination to seek compensation.
In the Czech Republic, discrimination is covered by two main pieces of legislation: the Labour Code and the Anti-Discrimination Act. These acts prohibit all forms of discrimination, including:
There are certain circumstances where discrimination may be permitted if it is a substantial requirement for the performance of the work. It is also permissible to treat different groups differently if the aim is to level out disadvantages. For example, a company may be able to hire only female employees to improve their level of representation within the organisation.
Both direct and indirect discrimination are prohibited under the Anti-Discrimination Act in the Czech Republic. Direct discrimination is when an employer treats an employee (or a group of employees) differently based on a protected characteristic. Indirect discrimination is when rules or conditions theoretically apply to everyone but disproportionately impact a particular group.
The Czech Labour Code prohibits any form of discrimination based on one of the following characteristics:
Harassment is undesirable behaviour related to a protected characteristic, which is intended to diminish the dignity of an employee or create a hostile work environment. Sexual harassment is harassment that is sexual in nature. Both of these are forms of discrimination and are prohibited in the Czech Republic under the Labour Code and the Anti-Discrimination Act.
Employees who experience harassment or any other type of discrimination in the workplace can seek a court decision requiring the behaviour to stop. They can also seek compensation for any losses and compensation for moral damage. The amount of compensation awarded is determined on a case-by-case basis — there is no legally defined maximum or minimum.
Under the Charter of Fundamental Rights and Freedoms, employees in the Czech Republic are entitled to fair remuneration and satisfactory working conditions. The Czech Labour Code also grants employees the right to equal pay for work of equal value, regardless of their gender or any other protected characteristics.
The Anti-Discrimination Act and the Labour Code regulate pay discrimination in the Czech Republic. Under this legislation, employees who feel they are paid unfairly based on their gender (or another protected characteristics) can complain to the labour inspectorate or file a lawsuit in court.
In pay discrimination cases, the burden of proof is on the employer. That means that the employee only has to prove the facts of the case (i.e. that they have been paid less than another employee), and it is up to the employer to prove that this is not due to discrimination.
In 2023, the EU Parliament and Council adopted a new directive on pay transparency, which will come into effect across all member states by June 2026. The idea behind the directive is to improve transparency around pay, with a view to reducing the gender pay gap in Europe.
Employers in the Czech Republic will have several new obligations related to pay and pay transparency once the directive is transposed into Czech law. First, they will have to report regularly on their gender pay gap. If their report finds a gap of 5% or more in any category of workers, they will have to conduct a joint pay assessment in collaboration with employee representatives.
The directive will also give employees the right to request information about their pay and the pay of other employees in comparable positions. Employers will have to provide job seekers with at least a starting salary range before the interview stage and will be prohibited from asking candidates about their salary history.
Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in the Czech Republic. Get it wrong, and you could face legal action and damage to your reputation.
Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
DISCLAIMER: The information contained on this website is provided for general informational purposes only and should not be construed as legal, tax, or other professional advice on any subject matter. While we endeavor to ensure that the content is accurate and up to date, we make no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. The content on this site is not intended to be a substitute for professional advice. Users should not act or refrain from acting based on any information on this website without seeking the appropriate legal, tax, or other professional advice tailored to their specific circumstances from qualified professionals. We expressly disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this website. Use of the information on this site does not create an attorney-client, tax advisor-client, or any other professional-client relationship between the user and the website or its authors.
