Have you lost your job or are you about to give notice and you haven’t signed another contract yet? Then you may be in the stressful situation of dealing with unemployment benefits. This is to provide you with basic needs and support while you look for a new job. However, there are cases where unemployment benefits are cut in ways that can take you by surprise.
The state provides support through the Job Centre. In the following article, we will show you how unemployment benefits are calculated, how much they are and under what conditions they can be reduced. We will also try to answer common questions, such as when unemployment benefits arrive or how long I can stay at the unemployment office.
Unemployment benefit is a benefit given to people who are unemployed and looking for work through the Job Centre. To qualify for this benefit, you must register with the Job Centre and meet several conditions. The most important one is to have worked for a certain amount of time in the past two years. The Job Centre then uses legal rules to determine whether and how much support you will get.
Do you want to resign and don't know how to do it?
If you are about to give notice at work, 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. Just fill out a simple form and we will contact you with further information.
The calculation of unemployment benefits is based on the claimant’s average monthly net earnings in their previous job. The benefit is paid as a percentage of this average earnings, with the percentage gradually decreasing. For the first two months you receive 65% of average earnings, for the next two months 50% of average earnings and for the remaining months (depending on age) it is then 45% of average earnings.
However, there is a limit to the maximum amount of unemployment benefit. The benefit is paid for a certain period of time, which depends on the age of the recipient. People up to 50 years of age are paid for a maximum of 5 months, those aged between 50 and 55 are paid for a maximum of 8 months and those over 55 are paid for up to 11 months.
Unemployment benefit cuts are a measure to encourage jobseekers to be proactive in their search for a new job and to ensure that they do not leave their job without good reasons. Unemployment benefit may therefore not be paid in full by the Labour Office if officials find that a jobseeker has not complied with the rules or is in a situation where the law says they should have their benefit reduced. This process is called a benefit reduction and can occur in several specific cases.
One of the most common reasons for a reduction in support is when an employee terminates his or her employment on his or her own initiative, either by termination or by agreement, but does not have a serious reason for doing so. A serious reason includes, for example, health problems, care for a child or other family member, or bullying at work.
If there is no such reason and the employee leaves the job “voluntarily”, the support will be paid at half the amount (50% of average monthly earnings). The halving is quite significant, so you should always consider how you leave your job if you are interested in full support.
Another situation where benefit is cut is if you refuse a job offer from the Jobcentre. If the Jobcentre offers you a job that matches your health and qualifications and the distance from the job is reasonable, it is considered suitable.
Refusal of this offer without a valid reason may lead not only to a reduction in, but in some cases a complete loss of, entitlement to benefits. The purpose of this measure is to avoid situations where jobseekers refuse jobs they could do and remain on the register of the employment office for longer than necessary.
Jobseekers who are registered with the Jobcentre have a duty to cooperate with the Jobcentre, to actively seek work and to comply with any instructions given by the Jobcentre. This includes regular attendance at appointments, providing the necessary documents on time and, above all, taking an active approach to job search.
Unemployment benefits may be reduced or suspended by the Office if you, as a jobseeker, fail to attend appointments without excuse, refuse to cooperate in your job search or fail to fulfil the obligations associated with registration. The Job Centre considers these actions on an individual basis and may reduce your support on the basis of repeated breaches of the rules.
Tip: Find out when you can get notice for redundancy. If you have any doubts about whether your former employer followed all the legal procedures, don’t hesitate to contact us.
Jobseekers can work part-time while receiving unemployment benefits under certain conditions, or earn extra money through a work or work agreement, but there are limits on how much they can earn. If you exceed this amount or work without the knowledge of the Job Centre, you may lose your benefit altogether or have it cut again.
You must report any extra earnings in good time and get them approved by the Job Centre. Breaching the conditions of the overwork is seen as an unauthorised use of benefits and may result in you having to pay back benefits you have already paid.
If you repeatedly fail to meet your obligations, or if you commit serious breaches of the rules, the Jobcentre can decide to remove you from the register altogether, which means losing your benefit. In practice, this means that if you break the rules, for example, repeatedly reject suitable job offers or fail to cooperate with the office, your support may be terminated. The Jobcentre will then remove you from the register as a claimant, and you will lose not only your entitlement to benefits but also any help in finding work.
When does unemployment benefit run?
Unemployment benefits are paid regularly each month, either into a bank account or by postal order. In most cases, the benefit arrives within a few days of the end of the calendar month, but the specific dates depend on the Job Centre and may vary slightly.
How long can I stay at the Job Centre?
The length of time you can receive unemployment benefits is limited by the limits mentioned above, but there is no limit on how long you can be registered with the Job Centre. This means that if your benefit runs out, you can stay registered with the Job Centre and use its services to find a new job. However, you will no longer receive any unemployment benefits during this time.
What is the maximum amount of unemployment benefit?
According to the Labour Office, the maximum amount of unemployment benefit in the Czech Republic is 0.58 times the average wage for the first three quarters of the previous year (CZK 24,608 per month for 2024), and 0.65 times in the case of retraining support (CZK 27,578 for 2024).
It probably goes without saying that a cut in unemployment benefits has a significant impact on your income. In many cases, the benefit is the only source of finance for the individual and the family, so even a partial cut can cause financial problems. We therefore recommend that you pay attention to any obligations associated with registering with the Job Centre and consider carefully how you terminate your employment.az
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.
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.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
