Newsletter: Flexible amendment to the Labour Code is here. What will it bring?

The Chamber of Deputies has approved an amendment to the Labour Code, which should increase flexibility in employment relations. Unless something unexpected happens, most of the amendment will become effective as of 1 June 2025. It introduces a number of significant changes that will affect most employers.

First of all, the amendment aims to speed up and simplify the terminationof employment relationships. A notice period is to start from the dateof delivery of the notice (i.e. not from the fi rst day of the following month)and in some cases is to be reduced to one month. The amendment alsomerges the existing “health” reasons for termination and changesthe concept of compensation payable to employees in connection withtermination on grounds of a work-related injury or occupational disease.

A trial period is to be extended to four months for ordinary employees andeight months for management personnel. It should also be possible toadditionally extend the agreed trial period. However, the new rules applyonly to trial periods agreed after the amendment becomes eff ective.

The amendment also facilitates the position of parents in the labourmarket. When returning from parental leave, it guarantees the right toreturn to the “same chair” until the child reaches the age of 2 years. Duringparental leave, it will also be possible to earn extra income by performingthe same type of work for the employer under an agreement to completea job / to perform work (DPP/DPČ).

Employers will surely appreciate the fact that the amendment abolishesmandatory initial medical examinations for non-hazardous jobs. Theamendment also signifi cantly changes the concept of unemploymentbenefi ts and prohibits employers from restricting employees fromdisclosing information about their remuneration (i.e. requiring so-calledwage confi dentiality clauses).

The changes introduced by the amendment will require most employers toadjust their employment law documentation and HR processes. In thisrespect, we recommend paying attention to the transitional provisions,according to which some matters will still be governed by the original legislation even after the amendment becomes eff ective (e.g. the durationof the notice period for a notice delivered before the amendment becomeseff ective).