Types of Employment Relationships and Other Forms of Work

Quick Overview

What types of employment relationships and jobs are there?

• A permanent employment contract has no predetermined end date and is the standard form of employment.
• A fixed-term employment contract has a predetermined duration, and the Labor Code limits both its length and the number of times it can be renewed.
• Reduced working hours (part-time work) is not a separate type of employment relationship, but rather a different scope of working hours within an employment relationship.
• DPP and DPČ are agreements for work performed outside of an employment relationship and are governed by partially different rules.

Are you unsure whether the employment contract or agreement you are about to sign complies with the law and truly protects your interests? Have it reviewed by our labor law attorney.

What types of employment relationships does the Labor Code distinguish?

Employment relationships are typically established either for an indefinite term or for a fixed term. If the duration of the employment relationship is not specified in writing in the employment contract, the Labor Code assumes that it is an employment relationship for an indefinite term. In addition to these types of employment relationships, there are various ways to arrange working hours, as well as agreements for work performed outside of an employment relationship, namely DPP and DPČ.

Part-Time Employment

This type of work is an increasingly popular way to balance work with lifestyle or family commitments, especially among millennials, who aren’t just chasing a career but rather want to enjoy every moment. Or for those who want to hold down two jobs at once. But how does this work from a legal standpoint? When can an employee request a reduced workload, and when is the employer required to grant it? Why might this also be beneficial for employers? This type of work falls under the basic definition of employment under the Labor Code and allows for a more flexible approach to working hours. In this case, an employment relationship can be established in two ways.

From a legal standpoint, we essentially have two basic options for granting employees greater flexibility. This can take the form of a traditional employment relationship based on an employment contract—albeit with shorter working hours—or a so-called “agreement” can be entered into. Let’s first focus on part-time work. Any employee can agree to part-time work with their employer at any time, provided it suits both parties. This also applies to a “shared position,” which we will discuss below.

However, some employees are actually entitled to shorter working hours. This means that if they ask their employer to adjust their working hours, the employer cannot refuse.

This applies, for example, to pregnant women or employees who care for a child under the age of 15.The employer must grant their request—unless there are serious operational reasons preventing it. Employees who are primarily responsible for the long-term care of a person classified as requiring assistance from another person at levels II through IV also have the same right. The request must be in writing, and if the employer does not grant it due to serious operational reasons, the employer must also justify the refusal in writing.

From our experience: In disputes over reduced working hours, it is not usually sufficient for the employer merely to label operational reasons as “serious.” The employer must be able to specifically explain—and, if necessary, document—what complications the requested change in working hours would actually cause.

From the perspective of the definition of work, the Labor Codedoes not further specify these reasons; therefore, one must rely on case law. Most importantly, the Supreme Court has concluded that serious operational reasons do not exist if the problem can be resolved by the employer hiring another person on a part-time basis or under a contract for work to cover the remainder of the regular working hours of the employee in question. The mere fact that the employer must take certain measures does not, therefore, constitute a serious operational reason.

However, a serious operational reason may be the employee’s irreplaceability due to narrow specialization or economic efficiency—that is, the fact that the work in question cannot be divided among multiple people.

Agreements on Work Performed Outside an Employment Relationship – DPP or DPČ

Agreements on work performed outside an employment relationship can serve as an alternative to an employment relationship. These are separate labor-law relationships—the agreement on the performance of work (DPP) and the agreement on work activity (DPČ)—rather than types of employment relationships. Although they give rise to a labor-law relationship, it is not as strictly bound by the Labor Code and mandatory contributions. Agreements on work performed outside of an employment relationship represent a significant alternative to traditional employment contracts. Specifically, these are agreements for the performance of work(DPP) andagreements for work activities(DPČ).

The simplest way todistinguish between these two agreements for work performed outside of an employment relationshipis by looking at the maximum number of hours that can be worked. An agreement for the performance of work is limited to 300 hours per calendar year. On the other hand, an agreement on work activities may exceed this limit, but it cannot exceed half of the established weekly working hours on average over the entire period for which the DPČ was concluded, up to a maximum of 52 weeks. In other words, the average cannot exceed 20 hours per week. An agreement on work activity is therefore more suitable for longer-term part-time work or activities.

What about social security and health insurance contributions under DPP and DPČ in 2026?

For DPP and DPČ contracts, eligibility for social and health insurance depends on the income earned. For DPP contracts, the threshold amount for eligibility for sickness insurance in 2026 is 12,000 CZK per month. For other types of employment, including DPČ, the general threshold income is 4,500 CZK. Furthermore, the tax treatment also depends on whether the employee has signed a tax declaration with the employer. Therefore, it is always advisable to use the limits applicable to the specific calendar year.

When entering into either agreement, it is important to specify the definition of the work, the agreed-upon scope of working hours, and the term of the agreement. Other requirements can, of course, be negotiated or specified in an internal regulation.

Both the DPP and DPČ must be entered into in writing. Although this involves work outside of an employment relationship, many provisions of the Labor Code now apply to employees working under such agreements. For example, the employer must provide them with a written work schedule in advance and inform them of the schedule, generally no later than three days before the start of a shift, unless a different deadline is agreed upon. If the legal conditions are met, employees working under DPP and DPČ agreements are also entitled to vacation time. Conversely, severance pay and the rules governing the termination of employment generally do not apply to them.

How do you terminate agreements on work performed outside of an employment relationship?

There are various ways to terminate an employment relationship. Unless otherwise agreed, these agreements may be terminated:

• by mutual agreement,
• by giving 15 days’ notice, which begins on the day the notice is delivered to the other party,
• by immediate termination, if agreed upon, and only in cases where the employment relationship may be terminated immediately.

Termination must also be in writing. However, as with any employment-related obligation, be particularly careful when signing the agreement to watch for any unusual provisions—for example, regarding business trips, notice of termination, immediate termination, and so on.

Work performed outside of an employment relationship thus offers greater flexibility to both employers and employees, but at the same time imposes limitations on employees’ rights.

Are you set to work under a DPP, DPČ, or an employment contract, and aren’t sure which option makes the most legal sense for you? An attorney can review the terms of your contract or agreement and point out any provisions that may be disadvantageous to you.

Employment for an Indefinite Term

The most common type of employment relationship is one for an indefinite term. It has no predetermined end date and continues until one of the parties terminates it in one of the ways specified by the Labor Code or until it is terminated in another lawful manner.

If the employer and employee do not agree in writing on the duration of the employment contract, the employment relationship is deemed to be for an indefinite term.

Fixed-Term Employment Contract

This type of employment is governed by specific rules in the Labor Code, which protect employees from the excessive prolongation of an uncertain employment relationship. If you enterinto a fixed-term employment contract, you are establishing a clear end date. This contractual relationship is advantageous for employers because they cansimply part ways with an employee who does not prove suitableonce the term expires. However, it is not possible to enter into this contractual relationship for an excessively long period. By law, a fixed-term contract may be entered into for a maximum of three years. Furthermore, the contract must clearly state the duration for which it is entered into. Of course, it can also be agreed upon for a shorter period—one year, for example, is common.

What about renewal?

When the contract expires, the employer may decide to terminate the employment relationship, enter into an indefinite-term contract, or extend the fixed-term contract. If the contract is extended, it is important to keep in mind that it may again only be for a period not exceeding three years. However, there is also alimhttps://dostupnyadvokat.cz/wp-admin/edit.php?post_type=pagezení: this may be done no more than twice. This means thata fixed-term employment relationship may last a maximum of 3×3 years.

If the company wishes to continue employing you after it has exhausted its “three attempts” under this rule, it must offer youan employment contract for an indefinite term. According to the Labor Code, another fixed-term employment contract may be entered into only after another three years have elapsed.

Starting in 2025, a special exception will also apply to replacements for employees on maternity, paternity, or parental leave. In these cases, a fixed-term employment contract may be renewed without the usual limit on the number of renewals; however, the total duration of fixed-term employment contracts between the same parties may not exceed nine years.

The Labor Code also allows for an exception in cases where the employer has serious operational reasons or reasons related to the specific nature of the work. This is because there are employees for whom it is necessary to enter into fixed-term contracts more frequently. These are mostly various seasonal activities that can only be performed during certain times of the year—for example, operating ski lifts, working in agriculture, and similar jobs. In such justified cases, the employer may deviate from the rules mentioned above and establish its own. Only if the employer has a union must these company rules be approved by the union.

If you receive an offer for a fixed-term job, it’s a good idea to find out whether your employer has adopted any deviations from the statutory rules. In practice, there aren’t many companies that do this. If your employer isn’t one of them, the rules we’ve outlined above apply. If they do, you should familiarize yourself thoroughly with the company’s rules. In addition to these rules, the restriction on renewing fixed-term contracts does not apply to agency employment. This refers to situations where you are an employee of a staffing agency that, based on a temporary assignment agreement, places you with a specific client in a particular position.

From our experience: For fixed-term employment relationships, we recommend checking not only the end date of your current contract but also those of previous contracts and any extensions. This is because the law also considers the extension of an existing employment relationship to be a renewal, which can be decisive in assessing whether the employer has exceeded the statutory limit.

Whether your employer follows the rules set forth inthe Labor Code or has partially modified them, exceeding the maximum permitted duration of a fixed-term employment relationship (i.e., a maximum of nine years) has one positive consequence for you. If you notify your employer in writing before the agreed term expires that you insist on continuing your employment, your employment relationship is considered to have been agreed upon for an indefinite period. The expiration of the incorrectly agreed-upon term will therefore no longer pose any risk to you.

Summary

It is important to distinguish between types of employment relationships and other forms of work. An employment relationship may be established for an indefinite or a fixed term; in the case of a fixed-term contract, the law limits its duration and the number of times it may be renewed, and also provides for several exceptions. Shorter working hours are not a separate type of employment relationship but rather an adjustment to the scope of work within that relationship; certain groups of employees have a special entitlement to them if certain conditions are met. In contrast, DPP and DPČ are agreements for work performed outside of an employment relationship. However, a number of rules under the Labor Code now apply to these as well, including the scheduling of working hours and, subject to certain conditions, the right to vacation. When choosing a specific form of employment, therefore, it is not only flexibility that matters, but also the scope of work, the method of terminating the relationship, and the rules governing social security contributions.