The Five Most Useful Sections of the Labor Code

Quick Overview:

• An employment relationship is most commonly established by an employment contract, which must specify the type of work, the place of work, and the start date.
• DPP and DPČ are agreements for work performed outside of an employment relationship. Under a DPP, an employee may work a maximum of 300 hours per calendar year for a single employer; under a DPČ, the work must not exceed, on average, half of the established weekly working hours.
• Working hours generally do not exceed 40 hours per week, and the law also sets forth rules regarding breaks and rest periods.
• Termination of employment is subject to specific rules. An employee may terminate theemployment relationship without giving a reason, while an employer may do so only for reasons provided by law.
• The Labor Code alsoprotects employees in cases of illness, caring for a loved one, discrimination, or violations of working conditions.

Are you unsure whether your employment contract, agreement, or notice of termination complies with the Labor Code? Have a lawyer review the document before you sign or send it.

Basic Principles of Labor Relations

The Labor Code is based on liberal principles ,and its fundamental tenet is “what is not prohibited is permitted.”Given that employees are generally in a weaker bargaining position in the employment relationship, certain rights are specifically protected. As you read through the individual provisions of the Labor Code, pay attention to terms such as “must,” “shall not,” “is required to,” and “is prohibited.” These indicate that individual agreements are not permitted in these cases. Section 363 of the Labor Code also lists important provisions from which deviations are permitted only in favor of the employee. Legal protection for employees is also strengthened by Section 52 of the Labor Code, which defines the situations under which an employer may terminate an employment relationship, thereby preventing its abuse.

The principles of equal treatment of employees and the prohibition of discrimination against them are of great importance. An employer may not treat you differently or less favorably than others, for example, because of your religion, race, gender, or sexual orientation. Similarly, employers should not allow certain types of conduct toward employees in the workplace, such as bullying, harassment, or victimization. The courts clarify in their rulings exactly what constitutes such conduct.

Establishment of an Employment Relationship

The central part of the Labor Code is devoted to the employment relationship, which is the dominant and fundamental relationship compared to other labor-law relationships. The Labor Code recognizes two ways in which an employment relationship is established. One is appointment; the other—which the vast majority of us have encountered—is an employment contract.

This is a bilateral expression of intent by the employee and the employer aimed at establishing an employment relationship. Its essential elements include the type of work to be performed, the place of work, and the start date. The Labor Code allows for a relatively high degree of flexibility in both the form and content of the employment contract. It is therefore advisable not only to be familiar with the essential elements but also to understand what provisions should be included in the employment contract to ensure the secure functioning of your relationship with your employer. This may include, among other things, a probationary period, salary amount, business travel, a specific notice period, and similar provisions. Under the new rules, the probationary period may be up to 4 months for regular employees and 8 months for managers. The probationary period is also extended by the number of days the employee did not work due to impediments, vacation, or unexcused absences.

Agreement on the Performance of Work and Agreement on Work Activity

In addition to traditional employment relationships, the Labor Code also recognizes agreements for work performed outside of an employment relationship—the agreement for the performance of work (DPP) and the agreement on work activity (DPČ).

An agreement to perform work is an employment-law relationship particularly suited for work of a smaller scope; under such an agreement, an employee may work a maximum of 300 hours per calendar year for a single employer.

An agreement on work activitiesallows for more regular work than a DPP. However, the scope of work must not exceed, on average, half of the established weekly working hours; thus, for a standard 40-hour workweek, this is generally 20 hours per week. The average is calculated over the period for which the agreement was concluded, up to a maximum of 52 weeks.

Both agreements must be in writing. Individuals working under these agreements are also entitled to vacation leave provided they meet the legal requirements.

Employees’ Working Conditions

Working conditions can be understood in a broader sense as a satisfactory work environment, workplace safety, and various measures and procedures leading to employee satisfaction. This term may also encompass other circumstances under which you perform your work, such as working hours and their scheduling, as well as rest breaks.

The scheduling of working hours must balance the employer’s economic and operational needs, legal regulations and their non-negotiable limits, and, last but not least, the protection of the employee’s health. You will therefore find a number of provisions here that your employer must unconditionally ensure. These include, for example, providing breaks after no more than 6 hours of continuous work and ensuring at least 11 hours between two shifts.

Termination of Employment

The conditions for termination by the employer are precisely defined in Section 52 of the Labor Code. This section contains an exhaustive list of reasons for which an employer may terminate an employment relationship.

Perhaps the most frequently asked-about part of labor law regulations concerns the provisions regarding the termination of employment. Under what circumstances and how to give notice, when employment ends, and conversely, when an employer can validly terminate your employment.

Reasons for termination under Section 52 of the Labor Code include, for example, organizational changes at the employer’s company, the employee’s long-term incapacity to work, or a serious breach of work duties.

The basic rule in this regard is that an employee does not need to have a specific reason to terminate the employment relationship. The employee must simply comply with the requirement that notice be given in writing and observe the subsequent notice period, which is typically two months. However, if an employee is terminated for reasons related to a breach of work duties, the notice period may be shortened to at least one month.

The notice period now begins on the date the notice is delivered, rather than on the first day of the following month, as was previously the case. This means that if the notice is delivered on October 10, the two-month notice period will end on December 10.

Conversely, the employer must strictly comply with one of the grounds for termination specified in Section 52 of the Labor Code. This once again ensures the protection of the employee as the weaker party in the employment relationship.

Have you received a notice of termination and are unsure whether your employer complied with the Labor Code? Contact us, and we will verify the reason for the termination, its form, and the calculation of the notice period, and let you know if and how you can defend yourself.

From our experience: In termination cases, the deciding factor is often not just whether the employer had a valid reason to terminate the employment relationship, but also how they phrased it in the termination notice and whether they complied with all legal requirements. A seemingly minor error in the document can have a significant impact on its validity. That’s why we recommend having a disputed termination notice reviewed as soon as possible.

It is clear that it is primarily Wages that serve as the main motivational factor in many employment relationships. In this regard, labor law establishes both the minimum wage to which you are entitled and, for employees of the state, municipalities, or subsidized organizations, the basic salary scales. For employees, the conversion between gross and net wages and the structure of wages —composed of various components—are also key. The Labor Code governs the rules for compensation, including wages, salaries, and payments under contractual agreements. However, certain specific amounts, rates, or rules for deductions are also established by other labor, tax, and social insurance regulations.

Work-Related Obstacles

In every employee’s life, situations arise fairly often in which they are unable to work for their employer at that particular moment, even though they should be. Whether it’s accompanying a family member to the doctor, incapacity to work, or caring for a family member. The Labor Code protects employees even in these situations and requires employers to excuse the employee’s absence from work, grant them time off, and, in some cases, provide compensation for lost wages or salary.

There aren’t many laws we would recommend even for the bookshelves of those who aren’t legally professionals. But if we were to look for such a text, the Labor Code would certainly be among the top choices. As you can see from the preceding lines, even a brief reading and an understanding of basic rights in the workplace can ensure that those rights are respected and significantly improve your negotiating position.

Summary

The Labor Code governs the establishment, duration, and termination of employment relationships. It sets forth the mandatory requirements for employment contracts, the rules for DPP and DPČ agreements, working hours, breaks, obstacles to work, and compensation. The rules governing termination of employment are also important: an employee may resign without giving a reason, while an employer may terminate employment only for reasons specified by law. Knowledge of the basic rules of the Labor Code therefore helps both employees and employers prevent disputes and properly structure their employment relationship.