Legal Q&A · 08

Employment Law & HR — questions and answers.

13 answered questions on a subject we handle every day. Find related services in the catalogue: Employment Law & HR.

Answered by , Czech and Slovak attorney, admitted to the Slovak and Czech Bars (SAK 300422 · ČAK 19654).

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Questions about Employment Law & HR

  1. How long is the notice period, and when does it start? The notice period is at least one month. If employment has lasted at least one year when notice is served, it increases to at least two months; for notice on organisational or health grounds after at least five years of employment, it is at least three months. The notice period always starts on the first day of the calendar month following service of notice.
  2. When am I entitled to severance pay, and how much? Statutory severance pay mainly applies when the employer terminates employment on organisational grounds (closure, relocation or redundancy) or health grounds. The amount increases with years of service, from one to four times average monthly earnings for termination by notice, or up to five times for termination by agreement. There is no statutory severance entitlement for dismissal for misconduct.
  3. How long can probation last, and how can employment end during it? Probation may last up to three months, or six for managerial employees directly reporting to the statutory body, and must be agreed in writing or is invalid. It cannot be extended. During probation, either employer or employee may terminate employment in writing for any reason or without giving a reason; notification should generally be served at least three days in advance.
  4. When may an employer terminate employment immediately? An employer may terminate employment immediately only exceptionally: where the employee has been finally convicted of an intentional criminal offence or seriously breached work discipline. It must act within two months of learning of the grounds and no later than one year after they arose. Protected employees, such as those on maternity or parental leave, cannot be dismissed immediately.
  5. Is a post-employment non-compete clause valid, and must compensation be paid? Yes, but under strict conditions. A post-employment restriction may be agreed for a maximum of one year and only with an employee who could have acquired sensitive knowledge. The employer must pay at least 50% of average monthly earnings for each restricted month; without compensation, the clause is invalid. Any contractual penalty must not exceed the total compensation.
  6. What limits apply to work agreements outside an employment relationship? The Labour Code recognises three agreements outside an employment relationship. An agreement to perform a task is limited to 350 hours per calendar year, a work activity agreement to no more than 10 hours per week, and a student temporary work agreement to an average of 20 hours per week. Each must be in writing or is invalid. Ordinary agreements may be concluded for a maximum of 12 months; a special work activity agreement for seasonal work is limited to 520 hours per calendar year and may last no more than 8 months.
  7. Can my wife or son help in the business without an employment contract? Yes, but only within a narrow exception. A direct-line relative, sibling or spouse may help an individual entrepreneur or a family s.r.o. with no more than two related members without a contract. The helper must also have pension insurance, receive a pension, or be a pupil or student under 26. Outside these conditions, the work is illegal employment carrying a fine from EUR 4,000.
  8. We registered an employee with the Social Insurance Agency late. Is this illegal employment? Not necessarily. Illegal employment arises only if you fail to register the employee within seven days after the deadline; registration before an inspection starts protects the company from this consequence. If the inspection precedes registration, the inspectorate must impose a fine. The delay itself may attract a less severe Social Insurance Agency fine.
  9. Are we liable if our supplier employs people illegally? You may be, in two ways. The law prohibits accepting work or services supplied through illegally employed people, for all supplies of labour and longer cross-border service provision; the customer faces a fine of up to EUR 200,000. If a statutory representative or managerial employee is proved to have known of the supplier's practices, a fine that could not be recovered from the supplier may also pass to the company. Protection comes from documents the supplier must provide by law and a properly drafted contract.
  10. We hired a third-country national. What must we report to the labour office, and when? Notify the labour office for the place of work in writing when employment starts and ends, each within seven working days; attach a copy of the employment contract when reporting the start. You must also report that the foreign national did not start on the agreed date, which companies most often forget. Breach of reporting duties may attract a fine of up to EUR 100,000.
  11. We employ an EU citizen. Do we have any obligations towards the labour office? Yes, although an EU citizen needs no work permit. You must notify the labour office for the place of work when employment starts and ends, using an electronic information card with a qualified electronic signature, each time within seven working days. The same duty applies to family members. Failure to file the card may attract a fine of up to EUR 100,000.
  12. An employee has challenged dismissal in court. What deadlines apply and what should we prepare? The invalidity of termination must generally be claimed in court within two months of the date employment was due to end. If employment is extended under Section 64(2) because of a protected period under Section 64(1)(a), a special deadline applies: two months after the final day of that protection, but no later than six months after the original termination date. The court examines both the grounds and the statutory dismissal procedure. If the employee insists on continued employment, wage compensation is at risk; the option to reduce compensation beyond 12 months and the 36-month cap do not apply to termination during whistleblower protection under Section 79(3).
  13. An employee repeatedly breaches work discipline. When can we dismiss them? For serious misconduct, you may give notice straight away or terminate immediately. For less serious misconduct, notice is possible only if the employee received a written warning of possible dismissal in connection with misconduct within the last six months. Give notice within two months of learning of the breach and no later than one year after it occurred; before service, inform the employee of the grounds and allow a response. The warning must describe specific conduct, expressly mention possible dismissal and be provably served.

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