Every country has set rules and regulations that apply to employment contracts — and employers need to know about them if they want their contracts to be legally valid. Employment contracts in the Czech Republic must meet the requirements set out in the Czech Labour Code. They are also mandatory for all employees, whether they are employed on a permanent, fixed-term, full-time, or part-time basis.
In this section, we’ll take you through some of the most important things you need to know about employment contracts in the Czech Republic, including the required terms you have to include and the limitations that apply to fixed-term contracts and extensions. We’ll also talk about some key employee rights including working hours, rest breaks, and remote work, so you can prepare to hire employees in the Czech Republic fairly and compliantly.
Employment contracts are mandatory for all employees in the Czech Republic. They must be drawn up in accordance with the standards set out in the Czech Labour Code and given to each employee before their first day of work.
Employment contracts in the Czech Republic can be:
They must be concluded in writing, and the employer must give a copy to the employee. They must also keep a copy of the contract for their own records. The Labour Code sets the minimum terms that must be included in each employment contract, which include contact details for both parties and a description of the role in question.
Probationary periods (or trial periods) are not a mandatory requirement in the Czech Republic, but employers can choose to include them in their employment contracts. Under the Czech Labour Code, probationary periods can’t last longer than six months for employees in managerial positions or three months for other employees. While they can be shorter than this, they can’t be extended once an employee has started work. For fixed-term contracts, the probationary period can’t last more than half of the total length of the agreement.
Employers in the Czech Republic can choose to put together employment policies that grant their employees rights and benefits above the minimum standards set out in the Labour Code. However, they can’t grant their employees less favourable conditions than those stipulated by the Labour Code.
There are also some employment policies in the Czech Republic that are mandatory under national labour laws. For example, as of 2023, all employers with 50 or more employees have to put in place a whistleblowing policy that establishes internal channels for reporting concerns.
The Czech Labour Code lays out the minimum terms and conditions that must be included in an employment contract in the Czech Republic. Employers can also choose to include additional information that’s relevant to the employment relationship. Contract terms must grant employees working conditions that are at least as favourable as those set out in the Labour Code.
According to the Czech Labour Code, the three essentials of an employment contract are:
The terms of a contract must also include:
Employers can use fixed-term contracts in the Czech Republic to employ workers whose services they only need for a set period. For example, an employer might engage a worker on a fixed-term contract to complete a specific, one-off, time-limited project. Alternatively, a fixed-term contract could be used to employ a worker to replace another employee who is temporarily away from work (e.g. on maternity leave).
Unlike in some other countries, there are no legal requirements that employers need to meet in order to engage an employee on a fixed-term contract. However, there are limitations on the length of fixed-term contracts and how many times they can be renewed.
If an employee’s contract doesn’t include a set end date, they are presumed to be employed on an indefinite basis. In this case, the contract won’t end until either the employer dismisses the employee or they resign.
Employers that engage workers on fixed-term contracts in the Czech Republic sometimes need to extend the contract because they need the employee’s services for longer than expected. While this is possible, there are some limitations that employers should be aware of.
First, a fixed-term contract can’t be for more than three years in the Czech Republic. It also can’t be renewed more than twice, meaning that the maximum legal limit is three fixed-term contracts in a row. Each time an employer extends or renews a fixed-term contract, this counts as a new agreement. If an employee is engaged on a fixed-term contract for more than three years or has their contract renewed more than twice, they are deemed to be permanently employed.
Once three years have passed since the last time an employee was engaged on a fixed-term contract, their previous contracts are no longer taken into account. There are also exceptions to these rules in certain circumstances. For example, employers can often engage employees on more than three successive fixed-term contracts if the work they are doing is seasonal.
The rules about working hours in the Czech Republic are set by the Czech Labour Code. This piece of legislation restricts the maximum number of hours an employee can work and provides minimum entitlements for rest breaks and days off.
Standard working hours in the Czech Republic are 40 hours per week, which are usually split over five days. Employees who work on a three-shift pattern should work a maximum of 37.5 hours per week, while those working on a two-shift pattern should work no more than 38.75 hours. The length of a shift may not be more than 12 hours.
Employees in the Czech Republic have the right to a break of at least 30 minutes after every six hours of work. Breaks are usually unpaid unless they are required for safety under different legislation. When an employee’s breaks are divided into several periods, at least one of them must be 15 minutes or longer.
Employees also have the right to at least 12 consecutive hours off work between each shift. This minimum can be reduced to eight hours provided the next rest break is extended accordingly. There are exceptions for employees working in agriculture and in roles that involve service to the population, including healthcare and social services.
All employees should have an uninterrupted rest period of at least 35 hours per week. Where possible, this should include Sunday.
In the Czech Republic, it’s up to each employee to decide how working hours are distributed over the week. Normally, an employee’s total working hours are spread over a five-day week. In workplaces where employees work different shift patterns, employers must draw up weekly schedules and make them available to employees at least two weeks in advance.
Some employers in the Czech Republic choose to operate flexible working hours policies. Under this arrangement, employees are usually required to work set ‘core’ hours in the middle of the day but have flexibility over their start and finish time as long as they work the right number of hours.
Overtime in the Czech Republic should only happen when it is required to meet a business need. Employees must not work more than eight hours of overtime per day or more than 150 hours per calendar year. Additionally, no employee should work more than eight hours of overtime per week on average over a 26-week period. Some collective bargaining agreements extend this reference period to 52 weeks (one year).
Overtime worked above the statutory 40-hour workweek must be paid at an overtime compensation rate of at least 125%. For night or weekend work, employees must receive an additional 10% pay, and working on public holidays entitles employees to either an extra 100% pay or a day off in lieu.
Students who are in the Czech Republic on a student visa can work part-time during their studies. For students in a degree programme accredited by the Ministry of Education, Youth and Sports, there is no legal maximum number of working hours in the Czech Republic. However, students must ensure that work doesn’t interfere with their studies.
Over the past few years, there has been a huge rise in the number of global employees working remotely from home — and the Czech Republic is no exception. Today, many Czech employees work either partially or completely from home with the approval of their employers.
Remote work in the Czech Republic is governed by the Czech Labour Code. It states that employees can work remotely if they have signed a written agreement with their employer. Employers in the Czech Republic can’t enforce remote work, except when this is required by a currently applicable measure by a public authority (the COVID-19 pandemic is a good example).
Employees also can’t demand to work remotely — they need to get permission from their employer. However, employers have to provide a justification if they refuse to let an employee with caregiving responsibilities work from home.
The Czech Labour Code stipulates that work must be carried out at the expense of the employer, which applies even when an employee is working from home. That means that employers in the Czech Republic should provide their remote employees with the tools and equipment they need for work or reimburse them for purchasing their own equipment.
Employers must also reimburse employees for the additional costs they incur by working from home, which might include internet subscriptions or additional utilities. Employers can reimburse these costs directly or provide employees with a lump sum allowance. As of 2024, this lump sum must be at least CZK 4.50 per hour worked from home.
Employers are responsible for ensuring their workers have a safe and healthy working environment, even when they work remotely. The specific measures that an employer has to take depend on the individual situation. For example, employers of office workers who work at computers should provide instructions on how to set up a safe workspace and deliver health and safety training with a focus on remote work.
Because of the recent rise in remote work, many countries have introduced remote work visas, which allow remote employees and freelancers to temporarily live and work in the country without having to meet the usual immigration requirements.
People wanting to work remotely in the Czech Republic can apply for the ‘Digital Nomad Program’, which was approved by the Czech government in 2023. This visa is available to citizens of eight countries: Australia, Japan, Canada, the Republic of Korea, New Zealand, Taiwan, the US, and the UK. To be granted a visa, applicants must show that they are either a self-employed freelancer or employed by a foreign company outside of the Czech Republic.
Like all countries, Czech Republic has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in the Czech Republic (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
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.
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