Felipe is working like the manager in the international company and that is why he is the citizen of EU, he does not need any work permission. He concluded a fixed-
term contract for 2 years with the location in Prague. He has the status of the employee, so he does not have to worry about paying the health and social insurance paid by his employer.
Isabella is considering to begin with her business in the Czech Republic and at this point she collects the necessar
y information for the successful start of the business in the Czech Republic. She wants to know the Czech retail market and that is why she wants to work for the part time job like a shop assistance in a patisserie. She still needs to have a time for children, especially for Lisa and she still receives a parental allowance for Lisa. What are her possibilities to be employed? Is it possible at the same time to receive the parental allowance and to have another benefit/salary? What contract could you recommend her?
- First of all, the concept of maternity benefit (PPM), which is the sick pay paid by the Czech Social Security Administration, is to be distinguished from the state social support benefit – the parental allowance. The conditions for receiving the parental allowance are laid down in the State Social Support Act. The concurrence of parental allowance and employment is possible. It is important to ensure child care for the duration of work by another adult person. An employee may work with another employer of the same type of work agreed in the employment contract with the current employer as well as work of another type. In the case of work for another employer, once again, account must be taken of restrictions in accordance with the provisions of § 304 of the Labor Code (the same subject of the employer’s activity).
- For the purpose of the part time job we can recommend her 2 possibilities of working contract:
- Work-performace agreement (DPP) – an advantageous way of legally securing some of the one-time jobs to the employee who just needs a job. The agreement must be in writing. Employees can conclude an employment agreement with any number of employers, with each employer up to 300 hours per year. The maximum amount of the reward is not limited. Employee and employer do not pay health, social or sickness insurance benefits from bonuses of CZK 10,000 or less per month (gross) per employer. It may have such income with more than one employer. Of the rewards exceeding CZK 10 thousand per month, social, health and sickness insurance is paid as in the case of normal employment, from the whole amount. The same applies in cases where the employee concludes more agreements with one employer at the same time and the sum of the monthly remuneration from the agreements exceeds CZK 10,000.
- Working-life agreement (DPČ) –an advantageous way of employing less on time for regular employee activity, which is enough to make a living. If it is closed to a maximum of CZK 2500 per month, no health or social insurance is paid out of the rewards. If we need activities of a one-off character, we will use the Work- performance agreement. We can conclude an employment agreement for a work that does not exceed an average of half the weekly working time (assessed over the entire duration of the Agreement, but at most 52 weeks). The work agreement must be in writing and must state the agreed work, the agreed amount of working hours and the time at which the agreement is concluded (fixed or indefinite). More in the “Social Insurance” section below. Rewards from the Work-life Agreement are taxed in the same way as income from employment. This means that the employer deducts 15% from the remuneration of the income tax.
Even if you are earning a work-performance agreement (DPP) or a working-life agreement (DPČ), the minimum wage threshold applies to you, you cannot get the least work. Starting January 2018, the minimum wage is 12.200 CZK a month, and per hour of CZK 73 per 20 hellers.
For the first part time job we would recommend to Isabella to conclude Working-performance agreement. When she missed planned 300 hours, she can negotiate with her employer Working-life agreement (DPČ).