There are several reasons why people are increasingly taking up the option of secondary employment. In any case, in certain cases it is a beneficial model for both the employee and the employer. In this article, we will look at what the concept of secondary employment actually entails, what its legal aspects are, and we will also present various practical examples that show when and how it can be useful or, on the contrary, problematic.
Working on the side has become a popular way for many people to increase their income, gain new experience or pursue other careers to avoid boredom or burnout. It is also a convenient type of part-time work for employers who only need workers for a small number of hours or are looking for experts for specific projects. So let’s take a closer look at the side job.
A secondary employment relationship is an employment relationship that an employee enters into alongside his or her main employment relationship. This relationship usually involves working fewer hours, allowing the employee to combine multiple work commitments. From the point of view of the Czech Labour Code, it is defined as an additional employment commitment alongside the main employment.
What does it look like in practice? Jana is a full-time accountant in a multinational corporation. In addition, she has an employment agreement with a smaller company where she prepares tax returns for employees. This side job allows her to use her accounting skills and earn extra money without giving up her main job.
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A secondary employment relationship can be concluded through two main types of contracts. The first type is a contract of employment (CBA). With a temporary contract, the employee is allowed to work a maximum of 20 hours per week, which is roughly half-time. These hours can be freely spread over the duration of the FTE or over a maximum of 52 weeks. So he can work 40 hours one week and none the next. The FTE is intended for longer-term activities and the employer must pay social security and health insurance for the employee in this case.
The second type is the contract for performance of work (DPP). This has a limit of 300 hours per year with one employer. If the monthly income does not exceed CZK 10 000, the employee does not have to pay social security and health insurance in this case.
How does it look in practice? Josef works as a programmer in a web application development company. In addition, he has an agreement with a non-profit organisation for which he manages their website. This form of agreement is advantageous for him because the scope of his activities with the non-profit organisation is not high and he meets the limit of 300 hours per year.
Tip: Employing employees on a FTE or FTE means certain obligations for the employer. You can read about the basic obligations towards employees on a FTE or FTE in the article linked below.
Some jobs may be legally restricted in relation to the secondary employment relationship. For example, an employer may require that an employee does not perform a secondary employment relationship in a competitive field. This is, of course, mainly to ensure that the employee does not jeopardise the interests of his or her main employer.
What does this look like in practice? Kateřina is a software engineer who works on the development of an internal company system for a large technology company. Her employer has forbidden her to work on the side in a competing company that deals with similar software in order to prevent the leakage of sensitive information and know-how from his company.
Tip: Are you a student about to start a part-time job? Find out what kind of contract to sign when earning extra money while studying to make it as advantageous as possible for you.
Yes, the law allows you to have a secondary employment relationship with the same employer as your main employment. However, it must be a different type of work. Therefore, overlapping employment relationships are not prohibited by law, but the employer may require that the employee’s secondary employment relationship does not affect the quality of his or her performance in the main job.
What does this look like in practice? Lukáš works in a logistics company as a dispatcher on a main employment relationship and at the same time as a warehouse worker on a part-time basis in the same company. As this is a different type of work and Lukáš manages his duties, this does not conflict with the rules of the secondary employment or the requirements of his employer.
Moreover, the Labour Code provides legal protection for employees against discrimination or disadvantage because of their secondary employment. If you suspect that your employer is putting you at a disadvantage, you can contact the Labour Inspectorate or contact us and together we can potentially take your complaint to court.
Tip: What about that kind of income in retirement? What type of contract pays retirees the most? Not only that, you can read in this article.
The wage conditions in a secondary employment relationship are similar to those in a main employment relationship. The employee pays taxes on the side income depending on the amount of income and the form of the contract. The employment agreement is subject to taxation and social and health insurance contributions if the monthly earnings exceed CZK 4,000. In the case of an employment agreement, if the monthly earnings are up to CZK 10,000, no insurance is deducted.
What does this look like in practice? Veronika works as a teacher in a kindergarten and also tutors mathematics on a DPP. She earns CZK 8 000 a month from tutoring. As her income from her secondary employment does not exceed CZK 10 000, she does not have to pay social security and health insurance on it.
Agreement employees are also entitled to holiday pay. In order to qualify, the employee must work at least four times his or her weekly working time, which for agreements is 20 hours per week. The second condition is that the agreement must last at least 4 weeks.
There are several ways to terminate a secondary employment relationship. The first is by giving notice, which can be given by either the employee or the employer. The notice must contain a defined notice period. This is usually 15 days.
Another way to end a secondary employment relationship is by agreement. In this case, the employee and the employer can agree to terminate the employment relationship immediately.
The third way is immediate termination. The employer may terminate the secondary employment relationship immediately, but may only do so in the event of a serious breach of employment obligations by the employee.
Secondary employment allows employees to earn extra money or gain new experience while keeping their main job. With a work arrangement, the employee works a maximum of 20 hours per week (spread loosely over 52 weeks) and, if the income exceeds CZK 4,000, social security and health insurance is payable on it. In the case of an employment agreement, the limit is 300 hours per year per employer and insurance is only payable on monthly income above CZK 10,000.
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