If an employee loses the ability to do his or her current job for health reasons, this can have a significant impact on the employment relationship. Until May 2025, the procedure for termination of employment varied depending on whether the health limitation was due to a work-related injury, occupational disease or ordinary illness.
Loss of medical capacity can have different causes. Sometimes it is the result of an accident at work, sometimes it is an occupational disease or the threat of one – for example, if the employee has worked in a hazardous environment for a long time. In other cases, it is a medical condition 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 unrelated 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.
Practical example: Mr. Tomas worked for more than ten years as a maintenance technician in an automobile 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.
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.
The law does not oblige the employer to offer the employee another, more suitable job. In practice, however, it often happens that an employer will make an offer – especially if it wants to keep an experienced employee in the company. Such a move can be mutually beneficial and is often a more acceptable solution than dismissal.
Therefore, the employee should discuss the possible transfer with the employer in good time – ideally immediately after receiving a medical report that he or she is no longer fit to perform the original job.
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 severance pay – for example, as a result of occupational disease. Even in the case of termination by agreement, this entitlement remains.
The employer is obliged to notify the insurance company of the claim within eight days. If the employer fails to do so, the insurer may not pay part of the claim and the employer will bear part of the costs.
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 a work-related accident 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 or her current job in the long term. 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.
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.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
