What are trade unions and what are they for?

JUDr. Ondřej Preuss, Ph.D.
30. June 2025
8 minutes of reading
8 minutes of reading
Labour law

Are unions a relic of a bygone era or can they bring real change and improvement to your workplace? What can they provide and on what occasions must employers not neglect them? Here is a clear summary.

odbory, stávka na pracovišti

Perhaps the word union evokes endless meetings that lead at most to providing a watch as a gift for deserving workers. But a functioning union can do much more than that – it’s up to its members. If functional, they can provide a platform for effective bargaining with the employer. In general, their main objectives are to improve working and economic conditions and to ensure areas of occupational safety. They can also help to deal with very specific situations at work, such as giving notice. Members usually pay a monthly membership fee to the union (often around 1% of net pay, for example), but the amount is always determined by the specific union in its constitution.

Membership of a trade union is voluntary, as is the formation of the union itself. The Labour Code does not therefore regulate the need for a company to have a union in certain situations, and there are a large number of companies that do not have a union.

Who can form a union and how?

Any employee of a company can form a trade union. He or she only needs the consent and cooperation of two other colleagues, with whom he or she will form a preparatory committee. Together, the committee will draw up a constitution, which will be approved at the constituent meeting. The trade union must then be registered with the relevant registration court. The trade union is established as a legal entity on the date of registration in the public register. On the day following the date of delivery to the Ministry of the Interior, the trade union is established.

Members of the governing body (board, committee, etc.) may well be persons other than employees of the company, but it is necessary to prove that at least three trade unionists are employed by the employer . It is not clear from the law what such proof should look like, but it does not necessarily mean that the trade union has to submit a list of members.

The employer may not even request information from its employees about their union membership, but it can be assumed that members of the preparatory committee will identify themselves as members.

There may be more than one trade union per employer. In this case, the employer is obliged to negotiate with all of them and inform them of everything necessary according to the law.

The employer should not penalise participation in a trade union, but unfortunately there are cases where this happens.

Tip for article

You can also read our article on the types of unions you may encounter in our company.

Example of a trade union in northern Moravia

Employees of a factory in the North Moravian region were permanently dissatisfied with their working conditions. They were not being paid for overtime and their wages were late, so four employees decided to form a trade union. Before they officially notified their employer of their formation, the employer gave them all notice. The employees turned to the Affordable Advocate for help. The situation was fairly clear. Not only did the employer not have a legal reason to terminate the employees at that point, but it was also clear that this was bullying and revenge related to the formation of the union. It was clear to our lawyers and ultimately to the employer itself that it could not legally remedy the situation and the terminations were invalid. The employer eventually acknowledged this and withdrew his terminations.

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Obligations to the trade union

The employer has several sets of obligations towards the trade union. First of all, it has to inform the employees through the union and it also has a duty to discuss certain matters with the union.

The duty to inform

The employer is obliged to inform the trade union that works for him about:

  • wage and salary developments,
  • the development of the average wage or salary and its individual components and the breakdown by occupational group,
  • the employer’s economic and financial situation and its development,
  • the employer’s activities and changes in the scope of its activities,
  • environmental measures,
  • the legal status and internal organisation of the employer and changes thereto,
    persons authorised to act on behalf of the employer in labour relations,
  • basic working conditions and changes thereto,
  • measures to prevent discrimination,
  • job vacancies,
  • health and safety at work.

The obligation to negotiate with a trade union applies to:

  • Negotiating information on newly created jobs.
  • Negotiation of dismissal and immediate termination of employment – this procedure must be discussed with the trade union in advance. If the employee is a member of a trade union body, the employer is obliged to seek the trade union’s consent to the termination or immediate termination of employment (otherwise the acts in question are null and void). Other cases of termination of employment need only be notified ex post and do not require the consent of the trade union.
  • Mass redundancies – this procedure must also be consulted with the trade union at least 30 days in advance and the reasons for the redundancy, the number of employees to be made redundant, the time when the redundancy will take place, the severance pay or other rights of the redundant employees.
  • Bulk working time adjustments – this applies not only to working hours as such, but also to overtime work, night work or the possibility of ordering work on rest days.
  • Compensation for damages – if an employee suffers an occupational injury or illness, appropriate compensation must be negotiated in advance.
  • A holiday schedule, which the employer shall inform the trade union in advance and the trade union shall give its consent (or not).
Tip for article

The area of occupational health and safety is covered in detail in our separate article.

Co-decision

Joint decision-making between the employer and the trade union concerns the cultural and social fund, i.e. its allocation and use.

Collective bargaining

Trade unions must be authorised to bargain collectively by statute. In this case, they may negotiate a collective agreement.

A collective agreement is understood as a bilateral contract between a trade union and an employer, the content of which is the rights and obligations in labour relations. Consequently, it applies to all employees, i.e. not only those who are members of a trade union. If there are more than one trade union in the workplace, the organisation with the largest number of members acts for employees who are not members of any of them (unless the employee chooses otherwise).

Collective agreements may be within a single company for the whole enterprise or for individual management levels (territorially or professionally defined).

A collective agreement may include, for example:

  • adjustment of working hours (e.g. reduced or flexible working hours),
  • holidays – e.g. more weeks than the legal entitlement,
  • obstacles to work – entitlement to paid time off in excess of the statutory entitlement,
  • protection of employees in the event of organisational changes, determination of severance pay, wages – e.g. rules on bonuses, or the amount of extra pay for overtime or weekend work,
  • employment benefits – pension or life insurance, meal vouchers, anniversary bonuses, the FKSP fund, etc.,
  • OSH,
  • its validity and effectiveness – the contract may be for a fixed or indefinite period (the possibility of termination is regulated by the Labour Code – termination may be given after six months of validity at the earliest, with six months’ notice).

If the collective bargaining process does not lead to a successful outcome, a strike may be the last resort in a dispute over the conclusion of a collective agreement. According to the law, it must be preceded by unsuccessful proceedings between the employer and the employees.

Tip for article

The strike doesn’t have to be just DJs. Strikes have been with humanity for hundreds of years, changing the course of our history. We do not avoid them even today, when we associate them especially with teachers’ strikes and student strikes for the climate. The doctors’ strike is no exception. But what good are strikes, and which strikes have marked our country the most? Find out in the next article.

In what areas do unions emerge?

Lapidary speaking, in all of them. You can find them in small companies and companies with thousands of employees. They exist in the public and private spheres and in almost all professions. Individual trade unions are organised by profession into trade unions, which may form other groups such as associations or confederations. The largest of these, the ASO ČR together with the ČMKOS, represent trade unions in the Council for Economic and Social Agreement(tripartite).

The Association of Independent Trade Unions of the Czech Republic(ASO CR) is an association of independent trade unions in the Czech Republic. ASO is the second largest trade union headquarters in the Czech Republic.

The Czech-Moravian Confederation of Trade Unions (ČMKOS) is the so-called trade union headquarters, i.e. an association of trade unions in the Czech Republic. It brings together, among others, the firefighters’ union, the education workers’ union, the library workers’ union, the cultural workers’ union and many others.

Summary

A trade union is a voluntary association of employees to protect and improve their working, wage and safety conditions, and it operates through a trade union operating in a particular employer. A trade union can be formed by a number of employees who draw up a constitution, form a trade union and, once the legal conditions are met (including at least three members employed by the employer), notify the employer of its existence; membership is always voluntary and the employer may not ascertain who is a member. The employer has a number of obligations towards the trade union – it must inform it of wage developments, the economic situation, changes in activities or working conditions, discuss with the union the creation of new jobs, terminations and immediate dismissals (in addition, the consent of union officials is required), collective redundancies, adjustments to working hours, compensation for accidents at work or the holiday schedule, and even co-determine with the union on certain issues, typically the cultural and social needs fund. An important area of union activity is collective bargaining, which can result in a collective agreement governing working hours, holidays, work barriers, wages, benefits or protection in the event of organisational change, and which applies to all employees, not just union members; if bargaining fails, the last resort may be a strike.

Frequently Asked Questions

What is a trade union and how does a trade union work in an employer?

Trade unions are associations of workers who work together to improve their working and pay conditions, protect workplace safety and promote fair treatment. A particular trade union then works for a particular employer – it represents employees in negotiations with the employer, participates in collective bargaining and can comment, for example, on dismissals, working time schedules or OSH.

In practice, the way it works is that the trade union informs the employer of important changes (e.g. organisational or economic) and in many cases has to discuss the changes with them. Trade unions can represent employees in disputes, help them to object or take legal action, and often have their own legal background.

What types of trade unions exist in our country?

Trade unions in the Czech Republic are very diverse and are often divided by sector or profession. In addition to “general” unions, there are, for example:

  • healthcare unions and Healthcare unions, which include, for example, the Health and Social Care union or the Healthcare union,

  • education unions, which represent employees of schools, nurseries and other educational institutions,

  • mining unions, which protect the rights of workers in the mining industry,

  • police unions and police trade unions, which deal with specific working conditions in the security forces,

  • business unions defending the interests of certain professions or groups of entrepreneurs,

  • trade unions representing workers in the retail and wholesale trade.

Many of these unions are grouped under larger headquarters. The best known is the Czech-Moravian Confederation of Trade Unions, which speaks on behalf of trade unions externally and participates in tripartite negotiations with employers and the government.

Is it worth my while to be a union member even though there is no strong union at my work?

Yes, even in a smaller company or where unions do not yet have a strong tradition, union membership can make sense. A trade unionist has the opportunity to raise issues through the union, demand explanations from the employer and demand compliance with the Labour Code even in situations where an individual would be afraid to speak up.

If your employer does not yet have a trade union, a few motivated employees can start a new trade union and establish contact with an existing union (e.g. a school union, a health union, a mining union or a trade union within the Czech trade union movement).

How to form a trade union at an employer?

The foundation is a group of employees who have the desire to make a difference. At least a few people get together, draw up a constitution and set up a trade union as a legal entity (typically with a public register). In order for a trade union to actually operate at a particular employer, it must have at least three members employed by that employer under the Labour Code and notify the employer of this fact.

In the next step, you can decide whether to join one of the existing unions – for example, the health and social care union if you are in the health sector, the trade union if you work in retail, or a union affiliated to the Czech-Moravian Confederation of Trade Unions.

What should I do if I have a problem with my employer because of the union?

Sometimes an employer reacts hostilely to a trade unionist or an entire trade union organisation – for example, by changing shifts, not renewing a contract or even terminating a contract. However, the law clearly states that an employee must not be disadvantaged because of his or her union membership or activities for the union. This applies to everyone, whether it is a health union, a school union, a mining union, a police union, a business union, or any other union structure within the Czech trade unions.

If you feel that this is a repressive move because of your trade union activity, it is advisable to consult the situation immediately – first with the relevant union (e.g. health unions through the Health and Social Care Union, or another union depending on the profession) and ideally also with a lawyer specialised in labour law.

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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

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