There are several types of work. In this article we will look at the definitions of work, part-time work, agreements for work outside the employment relationship and fixed-term relationships.
There are several types of work. In this article we will look at the definitions of work, part-time work, agreements for work outside the employment relationship and fixed-term relationships.
This type of work is an increasingly popular way to combine work and lifestyle or family, especially among millennials who are not just chasing a career but rather want to enjoy every moment. Or for those who want to have two jobs at once. But how to set this up from a legal perspective? When is it possible to ask for a shorter workload and when must the employer provide it? Why can it also be beneficial for the employer? This type of work is one of the basic definitions of work under the Labour Code and allows for a more flexible approach to working hours. In this case , the employment relationship can be created in two ways.
From a legal point of view, we basically have two basic options to give the employee more freedom. It can be a classic employment relationship based on an employment contract, but with shorter working hours, or it can be a so-called “agreement”. Let’s focus first on the shorter working hours. Part-time work can be agreed between any employee and the employer at any time if it suits both of them. This is also the case with so-called job sharing, which we will discuss below.
However, some employees are even entitled to work shorter hours. This means that if they ask their employer to adjust their working hours, the employer cannot refuse.
These include pregnant women or employees caring for a child under 15. The employer must comply – unless serious operational reasons prevent them from doing so. In practice, of course, it is all about the atmosphere in the workplace and is more likely to be enforced in a larger corporation or operation. Employers are not very accommodating in this respect and often get creative in inventing these insurmountable operational reasons. Their explanations, however, would often raise the eyebrows (or the corners of the mouths) of the members of the panel in court. Indeed, the employer must be able to prove the operational reasons; they must objectively exist.
In terms of the definition of work, the Labour Code does not define these reasons in detail, so there is no choice but to rely on court practice. What is important is that the Supreme Court has concluded that there are no serious operational reasons if the employer can solve the problem by hiring another person on a part-time basis or perhaps on a work agreement to cover the rest of the regular working hours of the employee needed. The mere fact that the employer has to take certain measures is therefore not a serious operational reason.
However, a serious operational reason may be the irreplaceability of an employee due to narrow specialisation or economy, i.e. that the work cannot be divided among several people.
An agreement can be an alternative to a traditional employment contract. Agreements are actually such work done outside the employment relationship on the basis of a simplified employment contract. Although they create an employment relationship, it is not so tightly bound by the straitjacket of the Labour Code and compulsory contributions. Agreements on work outside the employment relationship represent an important alternative to traditional employment contracts. Specifically, these are performance of work agreements (PWAs) and employment agreements (EWAs).
The simplest way to distinguish between the two is by the possible hours worked. A work performance agreement is limited to 300 hours per calendar year. On the other hand, a work activity agreement may exceed this range, but it cannot exceed half of the fixed weekly working time, averaged over the entire period for which the FTE was concluded, but not exceeding a maximum of 52 weeks. In other words, it cannot exceed 20 hours per week on average. The FTE is therefore more suitable for longer-term temporary work or activities.
On the other hand, a work arrangement has the advantage that if you earn less than CZK 10,000 per month, you will only pay withholding tax and will not be charged health or social security.
Be more careful about the taxation of remuneration in the case of an employment agreement. If you don’t sign a tax declaration with your employer and your remuneration is less than CZK 2,500, your employer will withhold 15% withholding tax from your remuneration. However, for remuneration above CZK 2,500, the employer will pay the advance tax in the same way as in a regular employment relationship. At the end of the year, your employer will provide you with an income certificate upon request so that you can file your tax return. If you have had income from two employers in any month that is subject to advance tax, you must file a tax return. If you pay tax by withholding, there is no obligation to file a tax return. Social security and health insurance are payable on remuneration above CZK 2,500 per month, and in the case of multiple agreements, the remuneration is added together.
Tip: Summer and temporary jobs go hand in hand. But what about the contract? Find out in our article.
When entering into both agreements, it is important to specify the definition of the work, the agreed scope of the working hours and the period for which the agreement is concluded. Other details can of course be negotiated or regulated by internal regulations.
Both agreements must be in writing but are not subject to many of the provisions of the Labour Code. These include, for example, entitlement to severance pay on termination of employment, working and rest periods, with the proviso that the performance of work may not exceed 12 hours in any consecutive 24-hour period, holidays, termination of employment, remuneration other than the minimum wage, etc.
However, this does not mean that these cannot be agreed with the worker or laid down in the employer’s internal regulations. If you do not agree anything else in the performance agreement, it will always be up to the agreement of both parties as to when you work and when you take time off (only some restrictions apply, for example on the length of working hours). However, if you agree to a clause whereby you agree to come to work, for example, every weekday, then this arrangement is self-executing.
There are different ways of terminating an employment relationship. Unless something else has been agreed, it is possible to terminate the agreements:
A written form is also required for termination. However, as with any employment contract, take particular care when signing the agreement to look out for various unusual provisions, for example, regarding travel, notice, immediate termination, and so on, similar to any employment contract.
Thus, outside employment offers employers and employees greater flexibility, but it also brings limitations on employees’ rights.
Tip: Looking for flexible short-term work and wondering what legal form is suitable? An easy way to arrange such short-term work is to enter into one of two types of employment agreements. For example, a work performance agreement. What to look out for when entering into one and what are its advantages? We have discussed this in detail in our article.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
This type of work is defined by fixed rules in the Labour Code that protect employees from over-extending a precarious employment relationship. If you agree a fixed-term employment contract, you are setting a clear end. This contractual relationship is advantageous for employers in that they can simply break up with an employee who fails to perform at the end of the term. However, it is not possible to enter into this contractual relationship for too long a period. It is a legal requirement that a fixed-term contract can be agreed for a maximum of three years. It must be clearly stated in the contract how long the contract is for. Of course, it can also be for a shorter period – for example, one year is common.
When the contract expires, the employer may decide to terminate the employment relationship, enter into a contract for an indefinite period or extend the fixed-term contract. If the contract is extended, it is important to remember that it can only be for a period not exceeding three years. However, there is a limithttps://dostupnyadvokat.cz/wp-admin/edit.php?post_type=pagezeníthat this can be done no more than twice. This means that a fixed-term employment relationship can last no longer than 3×3 years.
If the company wants to employ you even after it has exhausted its “three attempts” under that rule, it must offer you a permanent employment relationship. According to the Labour Code, another fixed-term employment relationship can only be agreed after a further three years have elapsed.
Tip: Read about the advantages and disadvantages of a fixed-term contract.
However, one exception has been introduced since 1 August 2013. There are employees for whom fixed-term contracts need to be negotiated more frequently. These are mostly seasonal activities that can only be carried out at certain times of the year – for example, ski lift operators, agricultural work and so on. In such justified cases, the employer may deviate from the above rules and set its own. Only if the employer has a trade union, these company rules must be agreed with the trade union.
If you are offered a fixed-term job, it is a good idea to check whether your employer has taken any exception to the statutory rules. In practice, there will not be many such companies. If your employer is not one of them, what we have said above applies. If it does, you should familiarise yourself thoroughly with the company’s rules. In addition to these rules, the restriction on the repetition of fixed-term contracts does not apply to agency employment. That is, where you are employed by an employment agency that places you in a specific position with a particular user of their services under a temporary assignment agreement.
Whether your employer has the rules under the Code or has modified them in part, there is one pleasant consequence for you if you exceed the maximum permissible duration of a fixed-term contract (i.e. after a maximum of nine years). If you notify your employer in writing before the expiry of the agreed period that you insist that he continues to employ you, your employment relationship is deemed to be for an indefinite period. You will no longer be at risk if the incorrectly agreed period expires.
The types of employment relationship offer different options for employers and employees to tailor the collaboration to their needs. Part-time work allows flexibility, which is particularly advantageous for parents or students. Agreements for work outside the employment relationship, such as FTEs and SNEs, are a simple form of employment relationship with a lower administrative burden. Fixed-term contracts provide the security of a clearly defined end to the employment relationship, but with strict rules to protect employees from abuse of this form of contract.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
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