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Dear readers,

An amendment to Act No. 262/2006 Coll. (the “Labour Code”) was published in the Collection of Laws under no. 281/2023 Sb. on 19 September 2023. This amendment substantially regulates certain aspects of labour relationships. Different parts of the amendment have different effective dates, and some of its provisions become effective as soon as on 1 September 2023.

This article brings you a summary of key information and points that become effective on the beginning of the next month. Please be advised that this article is not intended to be an exhaustive enumeration of all related changes. We recommend paying an increased attention to the amendment alone so that you can get ready for the changes.

Please be informed that the Code of Civil Procedure, the Act on Labour Inspection, and the Act on Income Taxes are also being amended in addition to the Labour Code.

Changes in the Area of Work Performed Outside Employment (Section 74 et seq. of the Labour Code)

Due to the European Union directives, work performed outside employment, i.e. agreements to complete a job (the “ACJs”) and agreements to perform work (the “APWs”), have been dramatically regulated; please find below a summary of key aspects:

• New obligations of the employer (include, but are not limited to, the following):
• An obligation to determine the scope of work and a schedule of shifts in writing no later than three days before a shift (unless otherwise agreed);
• A register of work hours; and
• Duty to inform in relation to employees;
  
  
• New entitlements of employees (include, but are not limited to, the following):
• A right to switch to another form of employment (as long as statutory conditions are met);
• An entitlement to protection in the event of an impediment on the employer’s side; and
• An entitlement to a bonus for example for work at night or on holidays;
• *Please be advised that employees will be entitled to vacation where statutory conditions are met effective from 1 January 2024.

Changes Related to Remote Work (Sections 190a, 241a, and 317 of the Labour Code)

Responding to more and more frequently used “home office“, the area of remote work has been significantly regulated; please find below a summary of key aspects:

• Remote work will only be possible on the basis of a written agreement between the employer and employee;
• The employer will not be obliged to satisfy a remote work application:
• In case of a specified community of applicants (such as a pregnant female employee, a male employee taking care of a child below nine years of age, or an individual considered dependent on assistance), rejection of the remote work application will have to be explained in writing;
• Remote work can only be ordered if statutory conditions are met;
• Employees will be entitled to reimbursement of costs of remote work (reimbursement of a lump sum / effectively spent costs), or a written agreement whereby the employee is not entitled to reimbursement of costs (reimbursement of costs up to the level of a lump sum determined by the Ministry of Labour and Social Affairs is not subject to individual income tax) can be entered into.

In addition to the above, additional changes are included in the amendment:

• Flexible Working Hours (Section 240 et seq. of the Labour Code)
  

The employer will be obliged to satisfy a written application for shorter working hours in selected individuals (such as pregnant female employees), serious operating reasons being the only exception. Where the employer will not satisfy the application, the employer will have to explain such rejection in writing.

• Electronic Formation of Contracts and Agreements (Section 21 of the Labour Code)

A major shift has occurred in the area of administering the HR agenda. It will be possible to enter into bilateral legal acts (e.g. employment agreements, agreements on work performed outside employment) electronically (data box, email), and the electronic signature will no longer be required.

• Electronic Delivery of Documents (Section 334 et seq. of the Labour Code)

Data boxes or emails can now be used in delivering documents. However, an employer will be obliged to obtain the employee’s written consent that will contain any and all details.

• The Employer’s Duty to Inform (Section 37 et seq. and Section 77a et seq. of the Labour Code)

Additional changes relate to the employer’s duty to inform employees (in employment / with an ACJ/APW). Here, categories of information that the employer is obliged to provide to the employee are being expanded together with the community of individuals in relation to whom employers will have to discharge this duty. In addition to this, the deadline for the information’s provision is being shortened.

The set of information provided to employees when being seconded to another EU member state or a third country is substantially being expanded too.

• Paternity Leave (Section 196 of the Labour Code)

A new requirement of an obligatory written form of an application to draw paternity leave has been introduced. The application has to be filed by the employee no less than 30 days prior to leave’s beginning (and has to include the date of the leave’s beginning and its term).

The information specified above is a summary of major changes related to the amendment. However, the summary’s purpose is not to inform about any and all details. Please be advised that certain changes will only become effective on 1 January 2024 in connection with the different effective dates of the amendment’s different parts (e.g. regulation of uninterrupted rest on weekdays). If you have any questions regarding this topic from the tax or payroll perspective, please feel free to contact us.

Lenka Kolmanová                                           Michaela Kozminská
kolmanova@edmutilitas.cz                              kozminska@edmutilitas.cz