What is your entitlement to wage compensation in the event of an accident at work?

What is an accident at work and when does a claim for wage compensation arise

An accident at work is defined in the Labour Code as an injury to the health or death of an employee caused independently of the employee’s will by a short-term, sudden and violent action of external influences during or in direct connection with the performance of work tasks. In practice, this means that the accident occurs, for example, when handling machinery, slipping at the workplace, falling from a height, or even when travelling for work.

It is important to distinguish that an accident at work is not an accident on the way to and from work. Although such accidents often happen, the law understands them differently. In this case, it is a so-called general sickness benefit, not an accident at work. An exception may be made if the travel is part of a work assignment (e.g. a business trip).

Once an accident at work has occurred, the employer is obliged to document it properly. They must write a record of the work injury, provide witness statements, call a doctor, and report the incident to their insurance company. As an employee, you should make sure that the injury is indeed properly recorded, because the entire workers’ compensation claim then rests on this document.

A workers’ compensation claim always arises if the employee was not under the influence of alcohol, drugs or deliberately violated safety regulations. If the employer is at fault, for example for failing to provide a safe working environment, they are fully liable. In practice, this means that the employee is entitled to have his or her earnings brought up to the level they would have been if the accident had not occurred.

The employer is obliged to make up the difference between sick pay and earnings

If an accident at work renders an employee unable to perform his or her job, the doctor will issue a temporary disability, called an eSick Leave. This document is sent electronically to both the employer and the Czech Social Security Administration (CSSA). The employee is obliged to inform his employer of the injury and the onset of incapacity for work so that the compensation process can be started as soon as possible.

For the first 14 calendar days of temporary incapacity for work, the employer pays the wage compensation directly. This is a percentage of average earnings and is calculated per working day. From the 15th day onwards, the state pays sickness benefits through the CSSA. However, these benefits do not amount to normal earnings because they are calculated only on the reduced daily assessment base.

This is where the institution of compensation for loss of earnings during the period of incapacity for work comes into play. The employee is entitled to have the employer make up the difference between the sickness benefits and his actual average net earnings. In other words, if the employee earned CZK 30,000 a month and the sick pay is only CZK 20,000, the employer will make up the difference to bring the total income back to CZK 30,000.

The wage replacement in the event of an accident at work covers the difference between the employee’s average earnings before the accident and the amount he or she actually receives during the period of incapacity for work. The average earnings are calculated from the wages, allowances and bonuses in the reference period (usually the previous quarter).

In addition to the salary itself, various benefits, bonuses or shift differentials are taken into account if they were a regular part of the remuneration. The law is based on the principle that an employee must not be financially disadvantaged by an accident at work. Compensation is paid for the entire period of incapacity for work as long as the link between the injury and the reduction in earning capacity continues.

In practice, this means that if the employee receives sickness benefit at 60 % of the reduced daily assessment base, the employer will pay the remaining 40 % so that the employee receives 100 % of net average earnings. This mechanism is referred to as work injury compensation.

Thanks to this legislation, the employee does not have to worry about getting into financial difficulties during treatment. However, a problem may arise if the employer refuses to pay. In such a case, it is necessary to contact the employer’s insurance company or take legal advice.

Compensation for loss of earnings after incapacity for work

A special situation arises when an employee recovers sufficiently to be able to work but is no longer able to perform his or her original job. A typical case is an injury that leaves permanent effects – for example, limited mobility, impaired hearing or eyesight.

If the employee has to move to a lower paid job, the law provides for so-called loss of earnings compensation. This compensation is calculated as the difference between the original average earnings and the actual earnings the employee earns after the injury. For example, if the employee had to move from a blue-collar job to a lower-wage administrative job, the employer (or his or her insurance company) must make up the difference.

This compensation can be paid for a long time, even until retirement. The law also provides for cases where the employee is unable to work at all as a result of the injury and is awarded a disability pension. Even in such a case, the employee is entitled to compensation for the difference between the original earnings and the sum of the disability pension and any other income.

We know from practice that this claim is often disputed because employers and insurance companies try to minimise the amount of compensation. That is why it is important to always have all wage documentation and medical records and to seek legal advice.

How to claim wage compensation after an accident at work

There are several administrative steps you need to complete in order to claim wage or loss of earnings compensation. The basic step is always the work injury record, which must be completed by the employer. This document serves as an official document for the insurance company.

The next step is to provide medical reports and a certificate of incapacity for work. The employer then submits the documents to the insurance company for payment of compensation. In some cases, you need to fill out a special form – loss of earnings compensation, which you can find either directly with the employer or on the employer’s insurance company’s website.

It is advisable to carefully file all correspondence, payslips, sickness benefit decisions and medical reports. These documents may come in handy in the event of a dispute.

If your employer is reluctant to cooperate or refuses to pay compensation, you can contact the Regional Labour Inspectorate. Another option is to go to court to assert your rights. In this case, it is already advisable to have a lawyer who is experienced in employment law and compensation for work-related injuries by your side.

Remember that there is a general statute of limitations of three years for filing a claim. You cannot pursue a claim after this period has expired, so it is best to act quickly.

Summary

If you suffer an accident at work, you are legally entitled to work injury compensation, even if you are on sick pay. Your employer (or its insurance company) must pay the difference between the benefits paid and your average net earnings so that you are not financially harmed. For the first 14 days of your sickness absence, your employer pays you directly; from the 15th day onwards, you receive sick pay from the state, which your employer matches up to 100% of your average earnings. You are entitled if you did not cause the accident deliberately or under the influence of alcohol and your employer properly documents the accident. If you are unable to perform your original job after the disability ends and must move to a lower-paying position or are found disabled, you are also entitled to compensation for lost earnings in the long term, up to retirement. A record of your work injury, medical reports, and sometimes a special form from your insurance company are required to file a claim. It is advisable to keep all supporting documents carefully archived and to contact the Labour Inspectorate or a solicitor if you have problems with your payment. The statute of limitations is three years, so it is important to act early.