How to claim wage compensation?

JUDr. Ondřej Preuss, Ph.D.
23. September 2023
6 minutes of reading
6 minutes of reading
Labour law

Vacation, illness or holiday. These quite different situations for employees have one thing in common: they may give rise to a claim for wage compensation. In our article, we will explain under what conditions this happens and how much wages are compensated.

Muž s batohem řeší náhradu mzdy za dovolenou

Wage compensation for sickness

You are entitled to sick pay while you are sick, but the state only pays it from the 15th day of your illness. Until then, your employer is legally obliged to take care of you and pay you wage replacement for the first 14 days of your illness.

But be careful if you are ill during the probationary period. Of course, you can still be sick during this period, but this usually has an impact on the length of the probationary period and possibly other differences.

Tip na článek

Tip: What benefits is a worker entitled to if he/she falls ill for a long period of time and how long does the employer have to keep the job? Can he be required to work at least part of the time while he is home sick? We have addressed this topic in a separate article.

Amount of sick pay compensation

The amount your employer will contribute during your sickness absence is based on your salary. The first step is to calculate your average hourly earnings for the previous quarter. To do this, divide your gross pay for the quarter by the number of hours you worked. There are then certain statutory limits that reduce the hourly rate. Depending on the amount of your hourly earnings, only the first limit is applied, or the first two and all three limits for high hourly wages. Average hourly earnings that exceed CZK 705.78 are no longer taken into account:

  1. reduction threshold – up to CZK 235.38 (calculated on 90%),
  2. the reduction threshold – up to CZK 352.98 (calculated at 60%),
  3. the reduction threshold – up to CZK 705,78 (calculated on 30 %).

We then obtain the reduced average hourly earnings. The hourly wage replacement is then 60% of this.

Example calculation:

Mr Vyhnanovsky earns an average of CZK 265 per hour. He is now ill and stays at home for a week (five working days). He is therefore entitled to wage replacement.
First, we reduce the hourly earnings:

  1. reduction threshold: 235.38 x 90% = CZK 211,842
  2. reduction threshold: (265 – 235.38) x 60% = CZK 17,772

The reduced average earnings will be CZK 229.61 (211.842 + 17.77) and the wage replacement for 40 hours of work will be CZK 5 510 (229.61 x 60% x 40 hours).

Tip na článek

Tip: We have discussed the differences between gross and net pay and their calculations in a separate article.

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Holiday pay

Holiday pay is based on a different concept than sick pay. It is primarily based on average earnings in each quarter, after which the employer’s accounting department should calculate your average earnings for that quarter. These dates are 1 January, 1 April, 1 July and 1 October.

So, if we are talking about the previous quarter in relation to holiday pay, it is not the three immediately preceding months. Average earnings here means the gross wages for those three months divided by the number of hours worked. The amount so obtained is then multiplied by the number of hours spent on leave (e.g. 5 days x 8 hours = 40 hours).

In this case, for example, if Mrs Kocian goes on holiday on 5 June, then we will not take the average earnings for 4 March to 4 June as the basis, but will use the average earnings calculated on 1 April for the previous quarter.

Tip na článek

Tip: Not sure what to do if your employer won’t approve your leave? We can advise you on exactly what you are entitled to and when and how to take your leave.

Can I influence the amount of holiday pay?

It is relatively easy to accrue vacation pay (or more accurately, shortly after) if you take it in the quarter following the quarter in which you received any bonuses or awards. For example, if you received a very generous bonus in December and take your vacation in February in the mountains, your vacation pay will be higher than if you were working. This is assuming it was an extraordinary bonus. If the bonus related to a longer period, for example half a year, only one sixth of it (one twelfth in the case of an annual bonus) counts towards your gross pay.

As indicated above, gross pay for the previous quarter is divided by the number of hours worked. Therefore, if fewer hours were worked due to a holiday, the hourly wage will be visually increased.

Holiday pay compensation

If you were unable to go to work on Wednesday 17 November, for example, because of a public holiday, you do not have to worry about a reduction in pay as a result of fewer days worked. Even in this case, you are entitled to a wage replacement equal to your average earnings (or part thereof) for the wages you lost due to the holiday.

Under the Labour Code, an employee who did not work because a public holiday fell on his normal working day is entitled to wage compensation equal to the average earnings or part thereof for the wages or part of the wages lost as a result of the holiday. The working time so missed shall be treated as work for the purposes of payment of wages.

In the case of a multi-shift operation, the situation is different. The employer should break down the days on which the employee works and when he does not work and then it does not matter whether it is a holiday or not.

Public holidays are set by law on 1 January, 8 May, 5 and 6 July, 28 September, 28 October and 17 November. The law establishes as other public holidays January 1, Good Friday, Easter Monday, May 1, December 24, December 25, and December 26.

Other cases of wage compensation

The law distinguishes other situations in which an employee is entitled to a wage refund. You can safely go to the doctor and you will be granted wage replacement and time off work for the necessary time. Likewise, you may go to the doctor as an escort for your young child, or for your spouse, partner or parent (if the escort is necessary). Your employer will give you two days’ leave with pay if you want to get married (only one day of this is payable). The law also remembers you for sad events such as the death of family members.

Tip na článek

Tip: Do you need to move, treat strep throat, or take your dog to the vet? In all cases, these are situations that usually take place during your working hours. On which occasions are you entitled to paid (or unpaid) time off from your employer? And what if you want time off to travel, for example?

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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