Termination of Employment
There are several ways in which employment may be legally terminated. One common method is by mutual agreement between the employer and the employee, which must always be in writing. Alternatively, either party may issue a notice of termination. In this case, the employee is not required to provide a reason, while the employer must specify a valid reason listed in the Czech Labour Code. Importantly, an employer cannot terminate an employee during certain protection periods, such as when the employee is on maternity or paternity leave, on temporary sick leave, or excused for public office duties.
Other types of termination include immediate dismissal, which may only occur in cases of serious misconduct defined by law; the end of a probationary period; the expiry of a fixed-term contract; or, in the case of foreign workers, the loss of a valid work or residence permit. Employment also ends automatically upon the death of the employee.
In certain cases, depending on the reason for dismissal, the employee is entitled to severance pay. However, this does not apply to all types of termination.
Notice Period
The standard notice period in the Czech Republic is a minimum of two months and must be equal for both employer and employee. It begins on the first day of the month following the delivery of the notice and can only be extended if both parties agree to it in writing.
For employment relationships based on agreements outside standard contracts—such as the “Dohoda o provedení práce” (DPP) or “Dohoda o pracovní činnosti” (DPČ)—the notice period is typically 15 days and starts on the day the notice is delivered.
Working Hours and Leave
The standard working week in the Czech Republic is 40 hours, usually spread over five days. One shift may not exceed 12 hours. Working schedules are generally set by the employer but are usually agreed upon with the employee. If overtime is required, the employee must receive at least 25% additional pay based on their average earnings.
Employers also have the option to implement flexible working hours, allowing employees greater autonomy in planning their work time, whether they work remotely or on-site.
When it comes to leave, employees are entitled to four weeks of annual leave after completing a full year of work, including part-time employment. If an employee does not work a full year, the holiday entitlement is calculated proportionally. An additional week of leave may be granted to employees who perform particularly difficult or hazardous work throughout the year. Employees working under DPP or DPČ agreements are also entitled to annual leave. In some situations, employees may be granted unpaid leave for personal reasons such as family responsibilities, relocation, or job seeking.
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Maternity and Paternity Leave
New parents in the Czech Republic benefit from paid leave during the early stages of parenthood. Maternity leave typically lasts 28 weeks and is paid based on the employee’s previous income. Fathers are entitled to two weeks of paternity leave, which must be taken within the first six weeks after the birth of the child. This leave is paid at a lower rate.
Parents may also choose to take shared parental leave, which can last up to three years and is supported by a flexible parental allowance. During maternity leave, employees are protected from dismissal, as this period is covered under special legal protection.
Probationary Period
At the beginning of an employment relationship, a probationary period may be agreed upon in writing. For regular employees, it can last up to four months, while for senior roles it may extend to six months. During this time, either party may terminate the contract without giving a reason, provided the termination is delivered in writing. If an employee is absent from work during this period due to illness or another valid reason, the probation is extended by the number of missed days.
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Protection Against Dismissal
Outside of the probationary period or mutual agreement, employers cannot dismiss employees without citing a valid reason explicitly listed in the Labour Code. Dismissal is strictly prohibited during legally protected periods, such as during maternity or sick leave. These safeguards are designed to provide job security, particularly during vulnerable times in an employee’s life.
Employee Benefits
While not legally required, many Czech employers offer additional benefits to attract and retain qualified staff. These may include financial incentives such as bonuses or profit-sharing schemes, as well as opportunities for professional growth through language courses or training programs.
Work-life balance is increasingly supported through remote work options, additional paid leave, and flexible schedules. Many companies also offer non-financial benefits like discounts on company products, meal vouchers, transport allowances, mobile phones, and contributions to supplementary pension or life insurance schemes. Wellness benefits, such as MultiSport cards or refreshments at the workplace, are also common.