New legislation
The government has approved an amendment to the Labor Code designed to incorporate European rules on more transparent pay into Czech law. Employees are to gain better access to information that will allow them to assess whether they are receiving comparable pay to their colleagues for the same work or work of equal value.
The amendment, which the government approved on August 31, responds to the European Directive on pay transparency. It will impose new disclosure requirements on employers, and companies with 100 or more employees will also be required to regularly report on the gender pay gap. The proposal also includes changes to the public sector pay system.
The principle of equal pay for equal work or work of equal value is already enshrined in Czech law. In practice, however, it can be difficult for employees to prove any inequality because they lack sufficient information about how others are compensated. The amendment is intended to mitigate this information imbalance and may thus also influence future labor disputes. For now, however, this is only a government-approved proposal that must pass through Parliament; therefore, the new rules are not yet in effect.
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