Non-payment of wages by the employer: how to proceed?

JUDr. Ondřej Preuss, Ph.D.
1. August 2024
8 minutes of reading
8 minutes of reading
Labour law

Although failure to pay wages is not a criminal offence, it is a breach of the employer’s duties. The law clearly states that an employee is entitled to wages for work performed. So if you have not been paid, the situation needs to be addressed. You have several options, and you are also protected by the Employment Agency. What to do and how to proceed? Find out in this article.

Obligations of the employer

TheLabour Code clearly states that an employee is entitled to wages for work performed. The wage must be clearly set out, either in the employment contract, an internal regulation or a wage assessment. In this case, the employer is obliged to issue you with a written wage slip on the day you start work , which contains details of the method of remuneration and the date and place of payment.

As regards the due date, the law states that the wages must be paid no later than in the calendar month following the month in which the employee became entitled to the wages or salary or any component thereof. In practice, this means that your employer must pay you your wages for the month worked by the end of the following calendar month at the latest. This deadline is known as the wage due date. It is set by law and is therefore the date from which a breach of the law occurs and when you can start taking legal action. If you do not receive your wages by this deadline, you are in breach of your employment contract and your employer becomes your debtor.

In practice, if you have worked the whole month of January, your right to January pay starts on 31 January. Your employer must then pay this wage by the end of February at the latest, as the last day of February is the due date.

But most often the payout takes place in the middle of the month, usually on the 15th or 20th day. This day is known as the payday and is usually set out in your contract of employment.

How to get the wages you owe

If you are not paid your wages by the due date, it’s time to take action. The law gives you a lot of protection in this case. So let’s take a look at how you should

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Try to make a deal

If your employer is only a few days late and you are in contact with them, try to make normal arrangements with them first. Sometimes, for example, there is a problem in the accounts and the unpaid wages are just a misunderstanding. However, if your employer has not paid your wages by the due date, it is time to send them a written demand for payment of the wages owed.

Send him a written notice

The written demand should include information about the amount owed and the period for which it was incurred. It is a good idea to break down what the employer owes you specifically. Make sure you include any additional payments for work (e.g. for night, weekend or overtime work). Also include information about the date and method of payment in the written notice (choose a specific date from the date you received the notice – for example, 7 or 14 days).

It is also worth including information about what will happen if the employer does not pay the debt. For example, you could contact the labour inspectorate or take legal action to recover the amount. The notice becomes more official if you have it drawn up and sent by a lawyer. That way you are more likely to be taken seriously by your employer and your wages are more likely to be paid.

Remember to send the written notice by registered post to make sure your employer has actually received it.

If the written notice does not work and the employer does not pay the companion wages, it is time to take further action.

File a complaint with the labour inspectorate

Contact your local regional labour inspectorate to initiate an inspection of your employer. You can submit it in writing, verbally or by phone. It is a good idea to accompany your complaint with copies of documents relating to your employment relationship (e.g. employment contract and pay slip).

Tip na článek

Tip: Read how labour inspections work in another of our articles.

Take legal action

The next step is to send your employer a pre-suit notice. This serves primarily as a last warning before you sue, but without having to pay a court fee and, in the last resort, risk having to pay the other party’s litigation costs.

If the employer does not respond to the pre-action notice, take legal action against the employer for the amount owed. Be sure to get help from a solicitor and definitely don’t choose templates from the internet. These are often full of mistakes and can lead not only to a significant loss of time and often money, but even to a complete loss of the case. If you choose the services of an Affordable Lawyer, you can be sure that the lawsuit will be filed correctly and will contain all the necessary evidence.

If the claim is successful, the court will decide that your employer must pay the wages owed to you within 15 days of receiving the judgment. If this does not happen, you should contact the bailiff. The bailiff will start to recover the wages owed by your employer.

What if the employer is insolvent?

Unfortunately, it is not uncommon for an employer not to pay wages simply because they cannot afford them because they are in debt. You can check this with the insolvency register. If insolvency proceedings have been opened against him, you do not have to report your claim (wages owed) anywhere. It is automatically deducted from your employer’s accounts or tax records. But if you want to be sure, you can declare it. To do this, use the “Claim Application” form on the Insolvency Register website. The deadline is within two months of the declaration of insolvency.

If you can’t find the employer in the Insolvency Register, but you suspect it is insolvent, you can file an insolvency petition with the court yourself. As an employee, you do not have to pay a deposit for the costs of the insolvency proceedings. For insolvency proceedings to be opened, the employer must have more than two creditors (people to whom he owes money) and more than 30 days have passed since the due date.

Insolvency proceedings can then be opened or a protection period, called a moratorium, can be declared. This lasts for 3 months and is used to allow the employer to pay its debts.

Contact the labour office

Once a moratorium has been declared or insolvency proceedings have been opened, you can apply to the Labour Office to have your wage claims satisfied. This must be submitted in writing to any employment office. The latest date for making claims is 5 months and 15 calendar days after the publication of information on the possibility of making wage claims on the official notice board (i.e. after the declaration of the moratorium or the announcement of the opening of insolvency proceedings).

You can make a wage claim for a maximum of 3 calendar months of your work. For one month of work, the Labour Office will pay you a wage equivalent to a maximum of one and a half times the average wage in the previous year.

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Tip: What can the Job Centre offer? Read the next article.

Immediate termination of employment

You have the right to immediate termination of your employment with unpaid wages. This can be exercised 15 days after the wages are due and must be made in writing, otherwise it does not apply. In this case, you are entitled to a wage replacement from your employer equal to your average earnings, which corresponds to the length of the notice period (usually 2 months).

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Tip: Planning to quit your job? We will protect your rights! With us, you can be sure that your notice will be valid and you will not lose anything you are entitled to under your employment contract. We will help you solve everything in just two days, conveniently and online.

Summary

Failure by an employer to pay wages is a serious breach of his or her obligations. It is important to react in a timely manner and to use the available options, such as filing a complaint with the labour inspectorate or, if necessary , filing a lawsuit. At the same time, you can also take advantage of the satisfaction of wage claims from the labour office and immediately terminate the employment relationship.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

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.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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