Starting a new job usually brings stress and expectations on the employee’s side, and a lot of paperwork related to administration on the employer’s side. Yet the employment relationship is one of the most important employment relationships because it provides stability and income for the employee, while enabling the employer to obtain a skilled workforce. But how does an employment relationship come into being and what is required?
An employment relationship arises when an employee and employer agree to perform certain work for an agreed wage. This relationship is specific in that it binds both parties to certain obligations, over a longer period of time and with a greater degree of stability than other forms of employment relationships. The employment relationship is enshrined in the Labour Code, which protects the rights and obligations of both parties.
There are also other forms of cooperation, such as a performance of work agreement (PPA) or a contract of employment (CBA). However, these agreements are not employment in the true sense of the word – they are limited in time and financial validity. They also do not offer the employee as many rights and benefits, such as holiday entitlement, sick leave or protection against dismissal. So if you’re looking for a stable job where you won’t worry about what comes next, an employment relationship is usually the best option.
We will prepare employment contracts and other documentation for you
Are you an aspiring entrepreneur who is adding more staff, but you don’t know how to deal with the administration associated with bringing on a new employee? Leave the preparation of the necessary documents to us and rely on the fact that not only the employment contract, but also other necessities will be in order from an employment law point of view.
The employment relationship is most often created by the conclusion of an employment contract between the employer and the employee. An employment contract must have certain basic elements to be valid:
Then there are specific positions in the civil service, such as senior managers, where the employment relationship may be created by so-called appointment. For example, if someone is appointed as a director, he or she does not have to enter into a traditional employment contract with the company, because his or her employment relationship is created by that appointment. This method is used for public institutions, for example the appointment of judges, or for senior managers.
However, not everyone follows the classical rules. Sometimes the employment relationship is created without a written contract. For example, an employee starts working on the basis of a verbal agreement or in the good faith belief that the employer will sign an employment contract with him soon. However, this practice is risky and can lead to legal problems for both parties. Both the employer and the employee should always ensure that they sign a written contract that clarifies their mutual obligations.
If an employment contract does not meet all the legal requirements, there can be serious consequences. For example, an oral agreement, even if legally valid, is difficult to prove, which can lead to problems if one party disputes the contract.
There is also a difference between fixed-term and indefinite-term employment contracts. A fixed-term contract offers less stability but may be suitable for short-term projects or for workers who want more flexibility. Some people want to work part-time or use a home office or flexible working hours. All of these are possible employee rights and must be clearly specified in the contract.
Failure to comply with the formalities of an employment contract can lead to it being invalid, which can result in loss of pay or employee benefits. Therefore, we recommend that you have your employment contract reviewed by our attorney before signing, whether you are on the employee’s or employer’s side.
The trial period is a period during which both parties can decide whether the employment relationship is suitable for them. The employee gets to know how the job works and whether it suits him or her, while the employer observes how capable the selected candidate will be to perform the job.
The probationary period can last a maximum of 3 months, up to 6 months for managerial positions. During this period, both the employer and the employee can terminate the employment relationship immediately without giving any reason. However, according to the Labour Code, the length of the probationary period may not exceed half of the agreed employment relationship. This limit must be observed mostly only for fixed-term contracts. At the same time, the probationary period may extend the time the new employee spends on sick leave. The number of days he has been at home is the number of days by which the probationary period is extended.
In the case of sickness, the employer may not terminate the probationary employment during the first 14 calendar days of sickness.However, on the 15th calendar day, the employer may send the termination notice home to the employee.
There are certain obligations that both the employee and the employer must fulfil before starting work. First of all, the employee should undergo an initial medical examination. Although these are now planned to be abolished or reduced. The examination is to check whether the individual is fit to perform the agreed activity. You can read our article on what to expect from an occupational health check. At the same time, the employer has a duty to make the employee aware of the internal regulations, workplace safety rules and other documents. Remind yourself of the basics of OHS – when and how to train whom.
Tip: Two-shift operation is not for you and you don’t want to sit in the office until 6 pm? Working hours can have different variations, something that suits everyone. Read about them in our article.
The employment relationship starts on the date specified in the contract as the date of commencement of work. Failure to report for work can have serious consequences, especially if the employee has not been excused in advance. In practice, it happens that the employee does not turn up on the day of commencement.
For example, a worker who did not turn up for work on the first day and did not answer the employer’s phone. The next day, it turned out that this woman had a problem with alcohol and simply forgot that she was supposed to start work. She was given a second chance, but she didn’t take it either. In the end, the employment relationship ended before it could even begin.
The very first instance of an employee failing to turn up without an excuse can result in the termination of the employment relationship. In some cases, the employer can also claim damages if costly preparations have been made for the employee.
Tip: Wondering what all kinds of employment relationships you can enter into? In this article you will find information about part-time, fixed-term or fixed-term contracts.
Here we summarise some tips to help you avoid mistakes when entering into an employment relationship:
The creation of an employment relationship is an important process that deserves the attention of both parties. For the employee it means stability and rights, for the employer the security of a skilled workforce. If you are unsure whether your contract is properly drafted, or if you have specific requirements, we recommend consulting with a lawyer to help ensure that your contract is fully compliant with the law.
It’s not easy to hire someone. Employment law can be complex and sometimes a small deviation from it can cause big problems later. We can help you navigate them and set up employment documents in accordance with the law.
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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