The credit report is a key document related to your working life. It is the official confirmation of your employment, issued by your employer after your employment has ended. This important piece of paper serves many purposes, including the needs of a new employer or the job centre. In this article, we’ll give you an overview of what a credit report is, what information it must and must not contain, and why it’s worth remembering.
A credit report is a certificate of your employment. It is issued to you by your employer immediately after your employment ends, usually on your last day and directly into your hands. If he or she cannot give it to you in person, your employer is obliged to deliver it to you by registered post in his or her own hands. Electronic delivery is also possible, but only if you have agreed to this in advance.
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The latest date for the issue of a credit note is always the last day of your employment. This deadline may not be extended. If your employer does not issue you with a credit slip and you have problems starting a new job because of this, you can claim compensation. In addition, the employer would also be liable to penalties from the State Labour Inspection Office of up to two million crowns.
In this area, we can mention a real situation where an employee repeatedly asked his former employer to issue him a credit note. However, the employer did not comply with his requests and the employee wasthus unable to start a new job, where he was asked for a credit certificate as a condition of employment. This situation was eventually resolved by the Supreme Court of the Czech Republic, which awarded the employee compensation in the amount of CZK 245,000 for lost wages.
Tip: A credit report is often confused with a work report, but they are two very different things. Read our article to find out what a report card is for.
The credit report has mandatory components that must always be included. Specifically, these are:
On the other hand, there are certainly things that are not legally allowed to be on the credit slip without your express consent. These include, for example, the evaluation of the work you have done, the amount of your salary, or the reason for terminating your employment (for example, in the event of a serious breach of your employment obligations on your part).
Don't download a credit report template from the internet
Are you an employer and are you about to issue your employee with a credit note? The internet is full of different credit slip templates to download, but this may not be worthwhile. These templates are often full of errors or not updated with new legislation. Often these templates need to be heavily modified to fit your specific situation, which can create additional errors and inconsistencies. Additionally, your former employee has the right to seek correction through the courts if there are errors or discrepancies in the credit report.
Therefore, it is best to leave it to us. We will prepare the credit note for you and provide you with a legal service tailored to your requirements.
Although it may not seem like it at first glance, the credit report plays a very important role.
In the first place, your new job may require it. Although this is not stipulated in the Labour Code, it is quite common. The reason is that the employer is taking a big risk by hiring an employee without a credit card. The credit slip contains very important information for the employer. In particular, information about deductions from wages due to garnishment.
Tip: Read our article on the topic of execution by deductions from wages and other income.
According to the Civil Code, the employer is obliged to request information from the new employee about the deductions from wages, which is included in the credit certificate. If he fails to request this information, he may be fined up to CZK 50,000.
At some point in the future, the Labour Office or the Czech Social Security Administration may also ask you for a credit certificate. The Labour Office will ask you for it if you lose your job and seek help from them in finding new employment. In this case, the credit certificate is used to assess your eligibility for unemployment benefits. In turn, the Czech Social Security Administration needs your credit certificate to determine when you will retire and how much you will receive in retirement pension.
As far as so-called agreement work is concerned, here your employer is only obliged to issue a credit slip if the remuneration for the work performed has given rise to participation in sickness insurance or if the remuneration has been subject to enforcement or execution by deduction from wages. Participation in sickness insurance starts at CZK 2,999 for employment agreement and CZK 10,000 for employment agreement.
Tip: Read our article on the employment contract. Find out what to look out for when entering into it and what the benefits are.
The periodof protection is defined by the Sickness Insurance Act, refers to the period after the end of employment, relates to entitlement to sickness or maternity pay and serves to ensure that a person does not end up destitute after leaving employment. In the case of sickness insurance, it lasts 7 calendar days from the end of the insurance. If you fall ill during this time, you can take sick pay.
For the first 14 days of your illness, if you are employed, you are entitled to wage replacement from your employer and then receive sickness benefits from the 15th day of your illness. However, if you are in a protective period, you will get nothing for the first 14 days as you are no longer entitled to wage replacement.
Tip: You are not entitled to wage replacement only in the event of sickness. Read our article to find out in which cases you can get wage replacement.
In the event of your illness or incapacity for work, this period is not included in the credit certificate, so if you want to prove the duration of your sickness insurance to your new employer, for example, this must be documented in a separate certificate.
The protection period does not apply to all situations without exception. Typically, it does not apply to people in receipt of an old-age pension or a level III disability pension, or to pupils and students where employment falls during school holidays. It also does not apply to work under a work performance agreement and in certain other situations where the law so provides.
Finally, it should be recalled once again that the employment certificate or credit certificate is by no means a trivial document. It is important in various aspects of your professional life, from securing new job opportunities to securing various entitlements, such as in particular the length and amount of your retirement pension. Its absence can lead to complications and it is therefore very important that your employer gives it to you as soon as your employment ends.
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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.
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