If an employee loses the ability to do his or her current job for health reasons, for example as a result of an occupational disease, this can have a significant impact on the employment relationship. Until May 2025, the procedure for termination of employment differed depending on whether the health limitation was due to an accident at work, an occupational disease or a common illness.
Loss of medical capacity can have different causes. Sometimes it is the result of an accident at work, other times it is an occupational disease (e.g. carpal tunnel in clerical workers or fitters) or an occupational hazard – in such cases, the law grants specific compensation for occupational disease. In other cases, it is a health problem unrelated to work, such as a chronic illness arising outside work.
All these situations are now treated uniformly and allow for dismissal under Section 52(d) of the Labour Code. However, this does not mean that the consequences for the employee will always be the same.
The key is that the termination must be based on a medical report from the occupational health provider. Without it, the employer runs the risk that the termination will be considered invalid – and the employee can claim reinstatement and back pay.
Significant differences also remain in the area of entitlement to severance pay or compensation. If the employment relationship is terminated due to an occupational accident, occupational disease or threat of such a disease, the employee is entitled to a lump sum compensation of 12 times the average monthly earnings. Although this amount is initially paid by the employer, the employee then claims it from his statutory insurance company.
A different situation arises when the employment relationship is terminated because the maximum permissible exposure at a hazardous workplace is exceeded. In such a case, the Labour Code also entitles the employee to a 12-fold severance payment in Section 67(3) – but this time the cost remains with the employer.
However, if the reason for the dismissal is not occupational hazards butgeneral health problems (for example, a long-term illness not related to the performance of the job), the employee is not entitled to the extraordinary severance payment. In such cases, termination under section 52(d) is lawful, but the departure tends to be significantly less financially favourable.
If the employment relationship is terminated because of an occupational injury, occupational disease or occupational disease risk, the employee is entitled to a lump sum compensation or even an occupational disease annuity if the consequences permanently limit his ability to work.
Practical example: Mr Tomas worked for more than ten years as a maintenance technician in a car factory. Long-term problems with his knees, aggravated by repeated climbing on machinery, gradually made it impossible for him to move safely around the shop floor. A medical assessment confirmed that he was no longer able to perform the physically demanding work in the plant. Whereas under the previous legislation, the assessment would have been whether it was a common illness or a risk of occupational disease, now a single reason – permanent incapacity to perform the work he had been doing – was sufficient.
Tip: Have you had an accident at work? What are you entitled to, what is pain and suffering and how is it determined? How is the pain point value calculated according to the current pain point table? This is the subject of our article.
We will review the employment contract and propose a new wording, update or prepare a list of information that the employer must disclose to the employee, or review the payroll and propose a new wording.
The law imposes an obligation on the employer to transfer the employee to another job if the employee has lost the ability to perform his/her current job on a long-term basis.
Therefore, the employee should discuss with the employer about a possible transfer to another job in due time – ideally immediately after receiving a medical report on the loss of capacity to perform the original work activity.
The employment relationship can be terminated either by notice or by agreement. In the case of an agreement, it is important that the text of the agreement explicitly states that it is terminated for a reason under Section 52(d) of the Labour Code – i.e. because of long-term incapacity.
The reason is particularly important in cases where the employee is entitled to occupational disease compensation or one-off occupational disease compensation. If the illness is proven after the fact, the employee can claim compensation retrospectively. The insurance company then pays both the lump sum compensation and any annuity for the occupational disease.
The employer must notify the insurance company of the claim within eight days. If he fails to do so, the insurer may not reimburse part of the claim and the employer will bear part of the costs himself.
Tip: If the employer is concerned that there has been a loss or change in the employee’s ability to work, for example if the employee has not worked for more than 8 weeks after an accident at work with severe consequences, the employer can order an emergency medical examination. We have covered this topic in more detail on our blog.
The basis for this is a medical report which must clearly and unequivocally state that the employee has lost the ability to perform his/her job for a long period of time. Without such a statement, a notice under section 52(d) cannot be used.
It is also important to verify whether the health problems have arisen as a result of the performance of the work, in which case the employee is entitled to substantial financial compensation. If it is an ordinary illness or injury unrelated to work, no compensation is payable.
The employee should also enquire about the possibility of transfer to another job. This may be a way of keeping a job even in the event of limited medical capacity.
The amendment to the Labour Code, effective from June 2025, has unified the previously fragmented legislation on dismissal for health reasons. This significantly simplifies the situation for both employers and employees. The amendment makes the process more predictable and less formal.
Employees who cannot return to their current position for health reasons now have a clearer procedure. If the difficulties arose in connection with the performance of the work, the law guarantees adequate financial compensation.
An occupational disease is a disability that has arisen in direct connection with the performance of work – that is, as a result of long-term exposure to harmful effects of the working environment or work activities. Unlike a common illness, an occupational disease must be officially recognised by a specialised workplace (called an occupational medicine clinic) according to the list of occupational diseases set out in the government regulations.
If the illness is officially recognised as an occupational disease, the employee is entitled to full compensation under the Labour Code and the relevant insurance regulations. Compensation includes a lump sum for pain and suffering, an occupational disease annuity if the employee has permanently lost part of his/her earnings, compensation for lost wages and medical expenses, and compensation for survivors if the occupational disease has led to death. Recognition and subsequent compensation for occupational disease shall be decided by the doctor and the employer.
Yes, occupational disease can be recognised retrospectively if it can be shown that the health problems occurred while you were doing the hazardous work. Typically, this is a situation where the employment relationship has already ended but the problems do not become apparent until later.
The most common occupational diseases in the Czech Republic include carpal tunnel syndrome, spinal diseases from long-term overloading, noise-induced hearing damage, lung diseases from dust, asbestos or chemicals and skin diseases from contact with irritants.
The amendment to the Labor Code brings new options and obligations from June 1, 2025. We will prepare a complete revision of your work documents to ensure that everything complies with the applicable legislation and allows you to fully utilize the new flexibility.
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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