Severance pay in 2015

In the event of an involuntary termination of employment, the Labour Code guarantees a “cushion” to enable the employee to find a new job or other livelihood. In addition, employers like to use severance pay as an “incentive” for termination so that it is less painful for the employee and does not lead to an unpleasant dispute.

Jak snížit zálohy pro OSVČ
2 minutes of reading

What changes did 2015 bring?

Severance pay is particularly advantageous because it is not subject to social security and health insurance contributions, so the employer saves money and the employee gets more. However, this was originally intended to change with the new year 2015. In the end, however, the change did not take place and it is still the case that no contributions are deducted from the severance pay to which the law entitles. But when is severance pay due and how much is it?

There are no changes here. Most often, severance pay is due when an employee is so-called redundant. The minimum amount of severance pay is then guaranteed according to the number of years of service. Employees who have been with their employer for less than a year will only receive a severance payment of at least one month’s average earnings if they are dismissed, for example, because of a reorganisation. If the employment relationship has lasted more than one year but less than two years, he is entitled to at least twice his average earnings. Finally, if the employment relationship lasted more than two years, severance pay of at least three times the average earnings may be claimed.

I have given notice from my job

When you quit your job, we can help you defend yourself against your employer’s actions and make sure you get everything you’re entitled to from them. This includes, for example, any wages or severance pay you are owed. We provide assistance throughout the country and at a predetermined price.

Some time ago, there was a dispute in this matter, which went all the way to the Supreme Court. The Supreme Court confirmed that the severance pay is limited “only from below” by the minimums that the employer must comply with, but nothing prevents the employer from contractually agreeing with the employee on a higher severance pay, as well as newly (as of 1 January 2007) on other grounds of termination than those listed in the Labour Code (Case No. 21 Cdo 613/2011).

Will social security and health insurance contributions be deducted from the above-standard severance pay?

If the severance pay is due for statutory reasons, no deductions for compulsory contributions will be applied this year, even if it is granted in an amount higher than the minimum amount. For example, consider an employee, Mr Vomacka, who has been working for his employer as a turner for a year and a half. One day, he and his employer agree to split their trips, and to get Mr. Vomacek to accept, his employer promises him four times his average earnings instead of two. If the reason for this separation is that Mr Vomacka is redundant, the severance pay is not subject to any levies.

Are you solving a similar problem?

Dostupný advokát team of online lawyers will solve it for you.

I have given notice from my job

When you quit your job, we can help you defend yourself against your employer’s actions and make sure you get everything you’re entitled to from them. This includes, for example, any wages or severance pay you are owed. We provide assistance throughout the country and at a predetermined price.

Preset Prices
All services pre-priced for no surprises.
We Do Everything Online
Save time, money and the hassle of travel.
We Work Fast
90 % of issues get solved by the following day.
Experienced Team
We have specialists for every field of law.

Has this content helped you? Give it a rating

No rating yet. Be first to rate and help others.

Article topic:

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

Reviews of the Dostupný advokát service

Recenze služby

Jitka Salačová, Praha 6 – Řepy

before 4 years

In 2016 our Homeowner Association faced an unexpected event which led to the need for legal help. We reviewed many professional legal services, and chose Dostupný advokát because they remain available for contact practically anytime, without charging extra for being outside work hours. In addition, Mr. Preuss is available to speak with by phone, email (zobrazit více) and Skype, and he never fails to be respectable and discrete. We can confidently confirm the excellent quality of his service, loyalty and availability online.

Recenze služby

Monika Holcátová, Prague

before 3 years

Your reputation is well deserved. All our contracts were done quickly and accurately. In addition, Dostupný advokát explained the legal regulations for our property easement, which I found critical to our success because as a layman I had no idea what problems that could cause us. I have no suggestions for improving your service, because (zobrazit více) I am completely satisfied.

Recenze služby

Tomáš Hrdlička, Nové Strašecí

before 4 years

I felt very uncomfortable meeting an attorney in person. But Dostupný advokát managed to solve everything for me online. I bought a consultation because my employer had sent me for a long term business trip to an exotic country with no explanation, and I wanted to be sure what my rights in this situation were. (zobrazit více) The Skype consultation was very pleasant and the service was fast. I can fully recommend them.

View All Testimonials

You could also be interested in

About us in public media
Logo Česká advokátní komora Logo Advokátní kancelář roku 2023 a 2024
Follow the news
Facebook Dostupný advokát Twitter / X Dostupný advokát