National law - CZ - Employment Law

From the point of view of specifying the rights and obligations of the employee and the employer, the employment conditions can be classified according to the duration of the employment relationship, according to the person of the employer, according to the place of work, according to the way of establishment and by the amount of working hours. By the duration of the employment relationship, we divide employment into fixed-term and indefinite employment. An atypical form of employment in the broader sense refers to those employment relationships that are not for an indefinite or non-full-time basis. In practice, however, the notion of atypical employment is used in a narrower sense, irrespective of the type of employment and the duration of the employment relationship. The basic feature is the smaller regulation of these types of labor relations, with the parties having a greater degree of freedom. From the notion of “atypical” it is obvious that this is something unusual. However, fixed-term employment has a strong presence in the labor market. In the Czech Republic, a fixed-term employment relationship of almost 10% of employees aged 15-64 has been negotiated, and this is even greater in the EU. Therefore, it can be speculated whether fixed-term employment relationships can be subordinated to atypical employment. In most publications this is so. Fixed-term employment relationships are regulated in the Labor Code. The difference from the indefinite employment is in the arrangement of the future duration of the employment relationship. It is clear that the law prefers employment for an indefinite period. Unless the duration of the employment relationship has been explicitly agreed, an irrefutable legal presumption exists that the employment relationship is negotiated indefinitely. The preference of negotiating employment for an indefinite period can also be found in the context of changing the employment relationship from a certain period to an indefinite period of employment.

Reference negotiating employment contracts for an indefinite period is a consequence of the principle of special legal protection status of employees governed by the Labor Code, on the other hand, cannot be employed on fixed-term contracts be completely removed from the legal order, since it has the effect of encouraging labor market flexibility. The negotiation of the duration of the employment relationship is therefore not an essential part of the employment contract and it is only on the parties whether they negotiate a fixed-term contract or not. The purpose of negotiating fixed-term employment relationships is to guarantee the duration of that employment relationship. In many cases, the employer is unable to provide the employee with a contract of indefinite duration, in particular in the case of operational reasons, the limited duration of specific work or the staff member on maternity leave. Also, by negotiating a fixed-term contract, the probationary period is replaced in practice.

In many cases, however, a fixed-term employment relationship is only negotiated because of a better employer’s position. The employer has a relaxed situation in the event of a cancellation of the employment relationship, which will be discussed in the following chapters. It is also more advantageous for employers to negotiate a fixed-term employment relationship in terms of severance pay, since termination of employment does not involve severance payments upon termination of employment.

If the parties negotiate the duration of the employment relationship, it is a fixed-term employment relationship. This arrangement is usually a contract of employment, but it can also be arranged in a separate contract. The duration of the employment relationship must not be concluded for more than 3 years. Thus, the duration of the employment relationship can be agreed with a specific date (eg until 1 January 2018) or by specifying a time period (e.g., 7 months). The parties are also able to negotiate the duration of the employment relationship based on facts that do not refer to a specific date. However, such facts must be objectively detectable.

The reason for negotiating a fixed-term employment relationship is often the impossibility of employing employees for an indefinite period of time for various reasons, lack of jobs. In practice, a probationary period is normally replaced by a fixed-term employment contract. However, it may be negotiated at the same time as a fixed-term contract. The Labor Code regulates the probationary period and stipulates that the probationary period must not exceed 3 months from the beginning of the employment relationship, or 6 months from the head of the employee. The probationary period must not be negotiated for more than half of the duration of the fixed-term employment relationship. If the probation period is negotiated over a three-month period, it will result in invalidity. However, the trial period will be only partially inaccurate than the maximum agreed time.

In addition to the abovementioned fixed-term employment contracts, the Labor Code regulates their repetition. The duration of fixed-term employment relationships can be negotiated for a maximum of 3 years and can be repeated up to two times. A renewal of the fixed-term employment relationship is also considered. The maximum possible duration of the fixed-term employment relationship can then be repeated for up to 9 years.

Czech Labor Law also recognizes agency employment. Such employment is classified as an atypical form of employment where an employee does not work for a labor agency as employer, but does it for the user. The employee then follows the instructions of the user. The reason for different arrangements for negotiating and repeating fixed-term employment is mainly the purpose of agency employment, which is to provide shorter-term needs for a specific workforce for the user. The employment agency can negotiate an unlimited number of fixed-term employment contracts with a hired employee if it is a work for the user. However, the exception is not applicable to employees of the employment agency who do not work for the user.

Among the basic labor relations we include not only the employment relationship, but also legal relationships based on agreements on work done outside the employment relationship. Although agreements on work done outside the employment relationship in the Czech Republic are widespread, they are classified as atypical forms of employment. These agreements are a looser employment relationship between the employer and the employee, where there is a greater degree of flexibility and freedom of contract between the parties. These employers can effectively perform their tasks. On the other hand, employees are less protected than in employment. Non-employment agreements include work-performance agreements and work-related agreements.

Under a negotiated work performance agreement, the scope of the work may not exceed 300 hours per calendar year, with the work also taking into account the work done by the employee under another employment agreement with the same employer. An agreement on work may be closed if the average size of work does not exceed half the weekly working time. The scope of the work can be more than 300 hours per calendar year. For both the labor agreement and the labor agreement, the law provides for the duration of such an agreement as an agreement. However, the agreement may also be negotiated indefinitely.

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