Czech labour law overview for private sector
1. LEGAL BACKGROUND
In general, the relationship between employees and employers is governed by labour law regulations, in particular Act No. 262/2006 Coll., the Labour Code, as amended (the “Labour Code”).
Czech labour law is very strict In many cases, it is not possible to deviate from statutory provisions, even on the basis of a mutual agreement.
2. ESTABLISHMENT OF EMPLOYMENT RELATIONSHIP
The employment relationship between an employer and an employee is governed by the Labour Code and is established on the basis of an employment contract. In some cases, however, an employee may also work for the employer on the basis of agreements on work performed outside the employment relationship (i.e. an agreement to perform work or an agreement on working activity).
3. TERMINATION OF EMPLOYMENT RELATIONSHIP
Under Czech law, an employment relationship may be terminated by the parties in particular on the basis of the following legal acts or events :
- Cancellation of an employment relationship in the probation period;
- Termination agreement entered into between the employer and the employee, whereas the employment relationship terminates on the agreed day;
- Notice whereas the employee may serve the termination notice for any reason or without giving a reason and the employer may serve a notice to the employee only for the reasons stipulated by the Labour Code;
- Immediate cancellation of the employment relationship whereas both the employer and the employee may serve the immediate cancellation only for the reasons set out by the Labour Code;
- Death of the employee;
- Expiry of the time period for which the employment relationship was concluded.
If the legal requirements for the termination of an employment relationship are not complied with, the termination of employment is invalid. Special rights arise in this respect and the claims to be raised are subject to strict rules.
4. WORKING HOURS AND REST
4.1. Working Hours
The standard weekly working hours are 40 hours per week. However, reduced working hours apply for some groups of employees (e.g., employees working in mines, minors).
Generally, working hours may be scheduled evenly or unevenly. Regardless of whether the working hours are even or uneven, a shift per day cannot exceed 12 hours.
If allocated unevenly, the average weekly working hours cannot exceed the stipulated or agreed working hours in the settlement period of 26 weeks; the collective bargaining agreement can prolong this settlement period up to 52 weeks.
Furthermore, flexible working hours or working time accounts may be agreed, allowing greater flexibility for both the employer and the employee. Employee self‑scheduling ofworking hours may also be agreed.
4.2. Rest
The employee is entitled to at least a 30-minute break for meals and rest after no more than six consecutive hours of work. This break is not included in the working hours.
The employer shall allocate the working hours so that the employee has a minimum rest period of 11 hours between the end of one shift and the commencement of another shift within 24 hours and a minimum rest period of 35 hours during seven consecutive days.
4.3. Vacation
The statutory vacation entitlement is 4 weeks. A longer vacation entitlement can be agreed between the employer and the employee.
Generally, an employee who has worked for the same employer for the full amount of his/her yearly working time in a calendar year is entitled to an annual vacation. If the employee has worked at least 4 times of his/her weekly working time in a calendar year, he/she is entitled to the proportional part of vacation – special calculation applies.
For the period of vacation, the employee is entitled to a wage compensation of his/her average earnings.
5. REMUNERATION FOR WORK
Wage is generally agreed in the employment contract, collective bargaining agreement or another agreement or the employer determines it in an internal regulation or wage assessment. The wage must be agreed or determined before the employee starts to perform work.
The wage cannot be less than the statutory minimum wage (for 2026 CZK 22,400 per month or CZK 134.40 per hour). This does not include additional payments (e.g., for overtime work, night work, etc.).
The wage must be generally paid in Czech crowns. Exceptions may apply in specified cases (e.g. for employees who perform work abroad).
6. EMPLOYEE REPRESENTATIVES
The role of employee representatives is to represent and protect employees’ rights. Employee representatives have the right to information and consultation.
Employees can be represented by trade unions, works councils or representatives for occupational safety and protection of health at work. However, only the trade unions have legal personality and can conclude collective bargaining agreements.
