Working life in Czechia

Notes: Values for real GDP per capita are chain-linked volumes (based on 2010 data; €). The unemployment rate for men and women is the annual average as a percentage of the active population aged 15–74 years, and the youth unemployment rate is the annual average as a percentage of people aged 15–24 years. The employment rate for men and women is the annual average as a percentage of the active population aged 15–64 years, and the youth employment rate is the annual average as a percentage of people aged 15–24 years. GDP, gross domestic product.

Source: Eurostat [sdg_08_10], for real GDP per capita and percentage change 2012–2022; [une_rt_a], for unemployment rate by sex and age; [lfsi_emp_a], for employment rate by sex and age

Economic and labour market context

Like many other countries, Czechia suffered as a result of the COVID-19 pandemic in 2020–2021.The government’s compensation programmes and expansive fiscal policy helped many companies to stay afloat; however, these measures resulted in significant worsening of the budget balance and public debt. Owing to the Russian war against Ukraine and the energy crisis, there was a sharp increase in the rate of inflation in 2022, with the average rate of inflation rising to 15.1% in 2022 (in comparison with 3.8% in 2021).

The rate of unemployment remained low in 2021 and 2022 (2.8% in 2021 and 2.2% in Q4 2022), and even the unprecedented influx of immigrants from Ukraine in 2022 did not change the situation on the labour market. In 2023, the rate of unemployment stood at 2.6%, 2.5% and 2.6% in Q1, Q2 and Q3, respectively.

Legal context

Fundamental legislation regarding labour relations can be found in the Labour Code (Act No. 262/2006 Coll.), Act No. 435/2004 Coll. on employment (as amended) and Act No. 2/1991 Coll. on collective bargaining (as amended). The areas regulated by the Labour Code include the start, duration and termination of employment, working discipline, working conditions, working hours, breaks at work, overtime, night work and sick leave. Other areas include wages and the reimbursement of wages, occupational health and safety, employee care, women’s and young workers’ working conditions, labour disputes and compensation for damage. The Labour Code is closely linked to Act No. 309/2006 Coll on ensuring additional requirements for occupational health and safety. It regulates the requirements concerning occupational health and safety in labour law relations. The last extensive amendments, harmonising labour rules with EU law, were implemented in 2000 and 2006.

Act No. 435/2004 Coll. on employment regulates the delivery of the state’s employment policy, the goal of which is to attain full employment, to protect against unemployment, to ensure fair treatment and to prohibit discrimination against people asserting their right to employment. It also regulates the powers of the labour offices and the activities that they perform.

The Civil Code (Act No. 89/2012 Coll.) does not contain direct regulations on employment relationships (which are instead found in the Labour Code); however, it covers all matters not covered by the Labour Code. Previously, the Civil Code was applied to labour law only when the Labour Code explicitly referred to it.

Industrial relations context

There is no comprehensive legal regulation in Czechia on trade unions, employer organisations and collective bargaining; these legal relations are provided for in several laws:

• the Labour Code, which forms the legal basis for negotiating collective agreements at enterprise and higher levels
• Act No. 435/2004 Coll. on employment
• Act No. 2/1991 Coll. on collective bargaining, which was substantially amended as of 1 January 2007 in connection with the adoption of the new Labour Code and which continues to regulate the collective bargaining process at company and higher (sectoral) levels, the settlement of collective disputes and the extension of higher-level collective agreements (HLCAs)

Act No. 2/1991 Coll. on collective bargaining regulates the collective negotiations between trade union organisations and employers and regulates the participation of the state, if applicable, with the purpose of concluding a collective agreement. Among other things, it regulates the terms of the collective agreement, the procedure of concluding collective agreements, collective disputes, a strike within a dispute related to the conclusion of a collective agreement and lockouts.

Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the main actors and institutions and their role in Czechia.

Public authorities involved in regulating working life

The regulation of working conditions and industrial relations falls under the authority of the Ministry of Labour and Social Affairs of Czechia (Ministerstvo práce a sociálních věcí, MPSV). The primary role of the MPSV in the area of industrial relations and working conditions is to set up a legal framework for both individual and collective employment relations and to control the application of this framework. The MPSV also cooperates with the Council for Economic and Social Agreement of Czechia (Rada hospodářské a sociální dohody České republiky, RHSD ČR), which is a tripartite body.

The enforcement of employees’ rights is ensured in particular by the National Labour Inspectorate (Státní úřad inspekce práce, SÚIP), which is one of the MPSV’s subordinate bodies, as well as by the MPSV’s eight district labour inspectorates and locally competent courts. There are no special labour courts in Czechia; labour legislation, including labour disputes, falls under the authority of general courts. The National Labour Inspectorate and the district labour inspectorates supervise compliance with labour law by employers and employees, in particular in matters such as health and safety at work, working conditions, employment agencies, illegal employment of both Czech citizens and foreigners and bogus self-employment. These bodies also promote health and safety and provide counselling in relevant areas. The National Labour Inspectorate can fine employers and employees for any offences detected.

Safety at work, technical devices and compliance with health and counter-epidemiological regulations are areas that are inspected by specialised supervisory bodies, such as the Technical Inspectorate of Czechia (Technická inspekce České republiky, TIČR), the Czech Mining Authority (Český báňský úřad, ČBÚ) and regional public health authorities.

The MPSV and its subordinate body the Labour Office of Czechia (Úřad práce ČR, ÚP ČR) are responsible for national employment policy. The Labour Office of Czechia acts as an intermediary in the labour market, provides counselling, applies active employment policy measures, pays unemployment benefit and operates the register of jobseekers, foreign workers and job vacancies.

Representativeness

The criterion of representativeness of social partners in Czechia is required only in the following cases.

• Collective bargaining in the workplace. A trade union can undertake collective bargaining in the workplace if it has at least three trade union members in an employment relationship (Labour Code, section 286).
• Membership of the RHSD ČR, a tripartite body. Representative criteria for participation in the RHSD ČR are set out by the statute of the RHSD ČR: trade unions are required to have at least 150,000 members, while employer organisations are required to represent companies with at least 400,000 employees.

• Extension of HLCAs (although this is applied only rarely). Requests to extend HLCAs must be sent to the MPSV by the largest trade union or the largest employer organisation in the sector to which the HLCA should be extended (Act No. 2/1991 Coll. on collective bargaining).

   

Trade unions

About trade union representation

Basic legal provisions of social dialogue for trade unions (and employers) are embedded in the Charter of Fundamental Rights and Freedoms (Act No. 23/1991 Coll.), which is part of the constitutional order of Czechia. Article 27 of the charter provides for the right to associate and unionise.

The establishment and existence of trade union organisations and associations is provided for by the Civil Code, which regulates trade unions and employer organisations in subsection 2 on societies/associations (Articles 214–302) and in Articles 3025 and 3046.

There is no comprehensive legal regulation in Czechia on trade unions, employer organisations and collective bargaining; these legal relations are provided for in several laws, namely the Labour Code and Act No. 2/1991 Coll. on collective bargaining.

An employee is free to join or not to join a trade union as they choose. Consequently, it is unfair to dismiss any employee because they are or are not a member of a trade union. Trade union membership is voluntary; one can revoke membership any time. Trade union bodies are entitled to take part in labour law relations, including collective bargaining under the conditions stipulated by law. The only people who are excluded from this law are members of the armed forces.

Trade union membership and trade union density, 2010–2021

Notes: * National source (see sources below). ** Trade union membership of employees derived for the total union membership and adjusted, if necessary, for trade union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students and unemployed people). n.a., not available.

Sources: RILSA Prague (authors’ own calculations based on the data of trade unions). Other data about trade union membership and density are from the three largest trade union confederations – the Czech-Moravian Confederation of Trade Unions (Českomoravská konfederace odborových svazů, ČMKOS), the Association of Autonomous Trade Unions of Czechia (Asociace samostatných odborů, ASO) and the Confederation of Art and Culture (Konfederace umění a kultury, KUK) – and from 29 independent unions (authors’ own calculations).

Main trade union confederations and federations

There are three main trade union confederations in Czechia: ČMKOS, ASO and KUK. These confederations represent around 79% of trade union members in Czechia.

Main trade union confederations and federations

Some of the largest trade union federations in Czechia are members of ČMKOS. As of October 2022, these are:

• Czech Metalworkers’ Federation (Odborový svaz KOVO, OS KOVO)
• Trade Union of Health and Social Care of Czechia (Odborový svaz zdravotnictví a sociální péče České republiky, OSZSP ČR)
• Czech-Moravian Trade Union of Workers in Education (Českomoravský odborový svaz pracovníků školství, ČMOS PŠ)
• Trade Union on State Bodies and Organisations (Odborový svaz státních orgánů a organizací, OSSOO)

Trade Union ECHO (Odborový svaz ECHO) brings together employees from the energy and chemical industries. The third-largest trade union confederation in terms of members and importance is KUK, which was a member of the RHSD ČR until 2000.

There is a certain degree of coordination between ČMKOS and ASO. This involves an exchange of opinions and consultation on joint steps, especially with respect to the preparation for the plenary session of the RHSD ČR. Other than this, both confederations are autonomous and their cooperation cannot be described as particularly intensive.

Employer organisations

About employer representation

Employers’ interests in national-level social dialogue in Czechia are represented by the two largest employer confederations – the Confederation of Industry of Czechia (Svaz průmyslu a dopravy České republiky, SP ČR) and the Confederation of Employer and Entrepreneur Associations of Czechia (Konfederace zaměstnavatelských a podnikatelských svazů České republiky, KZPS ČR) – which are both part of the tripartite body RHSD ČR. Both of these social partners hold talks on a tripartite platform within the RHSD ČR, with the plenary session of the RHSD ČR attended by the Czech Prime Minister, seven government members, seven trade unionists and seven employer representatives.

Membership of these two employer organisations is voluntary and members are required to pay membership fees. Employer organisations assert their members’ interests within the business sector generally and represent employers in the context of the RHSD ČR. Employer organisations comment on draft legislation, are involved in consultation or representation in collective bargaining, influence economic and social policy as part of expert teams, take part in trade delegations by accompanying the highest government representatives on state and official visits abroad and are active members in working groups within international organisations.

The Chamber of Commerce of Czechia (Hospodářská komora ČR, HK ČR) plays a similar role and, in many respects, it protects the interests of employers and of the business sector in general. However, it is not an employer organisation as such and is not party to the national social dialogue. The HK ČR consists of nearly 16,000 members (legal and physical entities) in the form of 60 regional and 127 sectoral associations.

Employer organisation membership and density, 2012–2021

Note: National data for 2012–2019: data from the three largest employer organisations, SP ČR, KZPS ČR and SOCR ČR.

Main employer organisations

Main employer organisations and confederations

Sources: SP ČR and KZPS ČR.

Tripartite and bipartite bodies and concertation

The tripartite forum at national level, the RHSD ČR, is the country’s main social dialogue institution. Its role is strictly consultative. The aim of this tripartite organisation is to reach agreement via mutually respected forms of dialogue in fundamental areas of economic and social development. Above all, it seeks to maintain social consensus as a prerequisite for the positive development of the economy and citizens’ standard of living.

The main forum for negotiation for the tripartite organisation is the plenary meeting. At this meeting, the government delegation is represented by eight members, employer organisations have seven representatives – namely from the SP ČR and the KZPS ČR – and union confederations have seven representatives – namely from ČMKOS and ASO. The criteria for participation are set out in the RHSD ČR statute.

From a European perspective, Czechia is one of the countries in which the national tripartite organisation covers the widest array of activities. The areas on which the RHSD ČR may comment are defined by its own statute: economic policy, labour relations, collective bargaining and employment, social issues, public service wages and salaries, public administration, safety at work, the employment of foreign workers, the development of human resources and education, and Czechia’s position within the EU.

There are also 13 regional tripartite bodies that deal with similar areas to those dealt with by the national body. The issues they deal with are defined by their statutes.

There is no bipartite body in Czechia.

Main tripartite bodies

Workplace-level employee representation

Employee representatives – trade unions, works councils and workplace health and safety representatives – are required by law to keep employees in all workplaces informed about their activities and about the content and conclusions of all information and negotiations with employers. Employee representatives must neither profit from nor be discriminated against because of their membership of the works council.

Trade unions play by far the most significant role in employee representation, not only in terms of competence but also because of their existence in the workplace and function in social dialogue, particularly collective bargaining. Only trade unions can represent employees in labour relations, in collective bargaining when concluding collective agreements and in tripartite negotiations in the RHSD ČR.

Employees may be represented by a works council, which has no legal subjectivity and which can act only as a mediator between employers and employees to facilitate the flow of information and consultation within a company (works councils are actually very rare in practice). The term of office for a member of a works council or for a workplace health and safety representative is up to three years.

Regulation, composition and competences of the representative bodies

The central concern of employment relations is the collective governance of work and employment. This section looks at collective bargaining in Czechia.

Bargaining system

In Czechia, it is possible to conclude both higher-level collective agreements (HLCAs) and company-level collective agreements (CLCAs). Both HCLAs and CLCAs are legally binding. The most common level of collective bargaining in Czechia consists of that held at company level. Collective bargaining at national level does not exist.

Collective bargaining is relatively stable; there is no centralised approach, as trade union confederations and employer organisation are entirely autonomous.

Wage bargaining coverage

Wage bargaining coverage is slightly above 30%: this figure has been relatively stable since 2006.

Collective bargaining coverage (%), national data, 2012–2022

Source: ČMKOS (data for ČMKOS members only)

Collective wage bargaining coverage of employees from different sources, all levels

Note: * Percentage of employees working in local units where more than 50% of the employees are covered under a collective pay agreement against the total number of employees who participated in the survey.

Sources: Eurofound and Cedefop (2020), European Company Survey 2019 (including private sector companies with establishments of > 10 employees (NACE codes B–S), with multiple answers possible); Eurostat [earn_ses10_01], [earn_ses14_01], [earn_ses18_01], Structure of Earnings Survey 2010, 2014 and 2018 (including companies with > 10 employees (NACE codes B–S, excluding O), with a single answer for each local unit)

Collective bargaining at a higher (sectoral) level and company level, 2012–2022

Note: The national data are for ČMKOS members only, except for the number of HLCAs, which is for Czechia as a whole. Unfortunately, no information is available on the number of employees covered by HCLAs for 2015 and the following years (ČMKOS was unable to obtain such data from individual member trade union associations).

Source: ČMKOS, 2022.

Bargaining levels

HLCAs serve as a framework for the determination of CLCAs: they set out minimum standards with respect to wages and working time that are subsequently adhered to in CLCAs. CLCAs can set higher, but not lower, standards than HLCAs. HLCAs and CLCAs are legally binding.

No register is maintained of CLCAs concluded in Czechia; however, HLCAs are monitored by the MPSV.

The most important level of collective bargaining in Czechia is company level. The HLCAs that are concluded serve as a framework to determine the form of CLCAs in the sector. HLCAs are usually concluded between social partners in the following sectors: chemicals and energy; machinery, including the aviation industry; the mining and oil industry; construction; wood processing, forestry and water management; the textile, apparel and leather industry; the banking and insurance sector; the wholesale, retail and tourism industry; postal, telecommunication and newspaper services; agriculture; transportation (road transport services); road transport management; and car repairs.

The number of employees covered by HLCAs declined continuously between 2012 and 2022.

Levels of collective bargaining, 2022

Articulation

HLCAs set out minimum standards of wages and working time – this standard is then followed by CLCAs. CLCAs can set higher, but not lower, standards than HLCAs.

Timing of bargaining rounds

The vast majority of negotiations on a new collective agreement (or amendment to a collective agreement) begin in the fourth quarter of the year. Contracts are signed mostly in the period between December and January. This applies to bargaining at company level and at sector level. Previously, HLCAs were concluded for a period of one year, but they are now gradually being replaced by those with multiannual validity. However, the wage-related parts of these contracts are still negotiated with annual validity (in the form of appendices). CLCAs are usually concluded for a period of one year.

Coordination

There is no coordination mechanism for collective (wage) bargaining in Czechia, but HLCAs usually set out minimum standards for collective bargaining at company level.

Extension mechanisms

The extension of a binding HLCA to another employer is possible under the conditions of Act No. 2/1991 Coll. on collective bargaining. The MPSV has the relevant powers to ensure agreements are extended, based on a proposal made by both contractual parties to the agreement, provided that the conditions determined by law are met. There are no voluntary mechanisms of extension.

From a total of 22 HLCAs conducted in 2022, 5 were extended; in 2021, from a total of 23 HLCAs, 6 were extended. Unfortunately, the number of employees covered by these HLCAs is not known (ČMKOS was unable to obtain such data from individual member trade union associations).

Derogation mechanisms

Derogation mechanisms, such as opening or opt-out clauses, do not exist in Czechia.

Expiry of collective agreements

If the collective agreement expires and no new collective agreement is concluded, the employment relationship is then regulated by legislation, mostly by the Labour Code.

Other aspects of working life addressed in collective agreements

Czech social dialogue is considered to be well established and functional, in both formal and informal ways. Social partners, especially at peak level, are proactive and discuss a wide range of current issues with the government – digitalisation and automation, e-learning, teleworking, new forms of work and climate change.

Collective bargaining is, however, still very conservative; ‘new’ topics are hardly ever reflected in collective agreements at either sectoral or company level. Evidence of this can be seen, for example, in the implementation of European framework agreements, frameworks of actions and other joint documents, which are outlined in the European social dialogue work programmes. In its reports on collective bargaining at the higher and company levels, ČMKOS regularly states that the implementation of these work programmes through HLCAs is insufficient, and it calls on member unions to devote greater attention to this topic (despite HLCAs in Czechia having only limited impact and covering only around 20–25% of the labour force).

Legal aspects

Czech law recognises only two types of industrial action: strikes (stávka) and lockouts (výluka). A lockout is, de facto, a counterstrike from the side of the employer in a dispute over the conclusion of a collective agreement.

In addition to these two types, defined in Act No. 2/1991 Coll. on collective bargaining, in practice a strike alert (stávková pohotovost) can be used.

The terms ‘blockade’ (blokáda) or ‘occupation’ (okupační stávka) are not set out in law and therefore these actions do not occur in practice.

Strikes

The right to strike, as a fundamental human right, is guaranteed in the Charter of Fundamental Rights and Freedoms, which forms part of the Constitution of Czechia. Article 27 (section IV) of the charter states that the right to strike is guaranteed in accordance with the conditions laid down by law; this right is not held by judges, members of the armed forces or members of security forces.

The legality of a strike is also limited by Act No. 2/1991 Coll. on collective bargaining, which covers strikes related to collective bargaining. This means that strikes can be divided into two groups.

1. Strikes related to Act No. 2/1991 Coll. on collective bargaining: These strikes, along with their requirements and their procedures, are precisely regulated by law. A strike, as understood by the act, is a legal instrument to settle collective disputes concerning the negotiation and conclusion of a collective agreement. A dispute on a change to an agreement already in force is also considered a collective dispute if the possibility and extent of the changes have been agreed in a collective agreement. Collective disputes are disputes that do not give rise to entitlements for individual employees. A precondition for a strike, however, is that all regulations set out by the act be observed.
2. Strikes outside the scope of Act No. 2/1991 Coll. on collective bargaining: There is no law in the legal code to implement Article 27 of the Charter of Fundamental Rights and Freedoms concerning strikes other than strikes addressed in Act No. 2/1991 Coll. on collective bargaining. However, this does not mean that all types of strikes other than those addressed by this act are prohibited – the court decides if a particular strike is legal or not.

Act No. 2/1991 Coll. on collective bargaining also recognises solidarity strikes to support employees striking for the conclusion of a collective agreement.

Lockouts

A lockout is the second type of industrial action covered under Act No. 2/1991 Coll. on collective bargaining (section 27). The definition of a lockout is partial or complete stoppage of work by an employer. The employer may, as a final solution for resolving a dispute about the conclusion of a collective agreement, declare a lockout if an agreement cannot be reached even after proceedings in the presence of a mediator and if the contracting parties do not request an arbitrator to resolve the dispute. The start date of the lockout, its extent, the reasons for it and a list of names of employees to whom the lockout applies must be sent by the employer to the competent trade union body at least three working days in advance. The employer is required to give the employees concerned the same period of notice. The law specifies situations in which a lockout is unlawful. In general, this applies to situations in which a lockout would affect the employees of medical facilities, which might endanger the health or lives of members of the public, as well as lockouts affecting judges or state representatives.

Strikes are relatively rare in Czechia (see the table ‘Developments in industrial action, 2015–2022’). However, strike alerts are used more often, but this type of industrial action is not defined by law. These two forms of industrial action are the most important and most used in practice (particularly as regards strike alerts).

Strikes and strike alerts are regularly monitored by ČMKOS, the largest trade union confederation in Czechia. Data from ČMKOS cover industrial actions within ČMKOS only; aggregate numbers of industrial actions in the whole of Czechia are not available.

Lockouts as a form of industrial action have not been recorded for many years.

Developments in industrial action, 2015–2022

Note: There is no legally defined reporting service in this area. The average number of working days lost due to strike per year per 1,000 employees have not been centrally monitored since the mid-1990s.

Source: ČMKOS (2022) (data for ČMKOS members only).

Dispute resolution mechanisms

Collective dispute resolution mechanisms

The procedure for resolving collective labour disputes is governed by Act No. 2/1991 Coll. on collective bargaining. The act provides that collective disputes are disputes concerning the conclusion of a collective agreement or disputes about the fulfilment of commitments in a collective agreement (company level or higher level) that do not establish claims for individual employees. The parties to collective disputes are the parties to a collective agreement. Collective disputes, whether concerning the conclusion of a collective agreement or the fulfilment of commitments established by a collective agreement that do not establish claims for individual employees, are resolved in proceedings with a mediator or an arbiter. That means that, among other things, Czechia has only a two-tier concept for the resolution of collective labour disputes (in which conciliation and mediation merge into one).

Individual dispute resolution mechanisms

Disputes between employers and employees about the rights resulting from the employment relationship are usually heard and decided by courts in Czechia. Compared with the court settlement of labour disputes, other procedures such as conciliation, mediation and arbitration are of minor importance in this legal context.

Use of alternative dispute resolution mechanisms

Generally, Czechia has only a two-tier concept with respect to the resolution of collective labour disputes (in which conciliation and mediation are merged). These two possibilities are the only alternative forms of dispute resolution. No labour courts exist in Czechia.

Use of dispute resolution mechanisms, 2015–2022

Source: ČMKOS, 2022 (data are for ČMKOS members only)

Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks at the start and termination of the employment relationship and entitlements and obligations in Czechia.

Start and termination of the employment relationship

Requirements regarding an employment contract

Employment is based most often on the conclusion of an employment contract. The employment contract must specify the following information: the type of work that the employee is supposed to do, the place of work and the start date. The employer and employee have to reach agreement on these details. In addition to these, the contracting parties may also agree on other aspects that they wish to include, particularly special working conditions deviating from the generally applicable legal regulation (such as conditions for homeworking or job-sharing for example).

Under the Labour Code, employment contracts are defined for an indefinite period of time as standard, but the conclusion of employment contracts for a definite period of time is also allowed for. However, a contract for a definite period of time may be concluded a maximum of three times, and each period cannot exceed three years. Further similar contracts can be concluded only after legally prescribed conditions are met (this applies for seasonal workers especially). In the employment contract, parties may agree on the length of a trial period, which, by law, can be no more than three months for rank-and-file employees and six months for managerial employees.

In addition to standard employment contracts, the Labour Code makes it possible to conclude agreements on work performed outside employment – agreements to ‘complete a job’ (dohoda o provedení práce) and to ‘perform work’ (dohoda o pracovní činnosti) – which are relatively popular in some sectors (such as the construction, hotel and restaurant sectors). An agreement to complete a job can be concluded only when the range of work will not exceed 300 hours in a calendar year for the same employer. Employees working on agreements to ‘complete a job’ only pay social and health insurance contributions if their monthly income amounts to more than CZK 10,000 (€390 approximately) and only in those months in which this income threshold is exceeded.

The agreement to perform work is characterised by the fact that it does not allow the performance of work in excess of half the set weekly working hours (usually 20 hours a week). Compliance with the agreed maximum weekly working hours is assessed for the entire period for which the agreement to perform work is concluded, but not longer than 52 weeks. The agreement to perform work is also more stringent with respect to social and health insurance contributions. The obligation to pay such contributions arises once earnings exceed (since 1 January 2023) CZK 4,000 (€115 approximately) per calendar month.

Dismissal and termination procedures

Employers or employees may terminate employment in several ways:

• by agreement – between the employer and the employee in writing, by a certain date
• by notice – in writing, by the employer (indicating statutory reasons) or by the employee (without having to indicate a reason)
• by immediate termination of the employment contract – by the employee (allowed only for serious health reasons or because their salary has not been paid within 15 days of the due date)
• by cancellation within the probation period – by the employer or the employee, also without having to indicate a reason
• by a lapse of the agreed period in the case of fixed-term employment

It is prohibited to terminate employment with an employee during the period of protection. Following the COVID-19 pandemic, quarantine is now (since 2022) also included among the reasons for protection when the prohibition of dismissal under the Labour Code applies.

If notice has been given, employment shall end only after the notice period. The notice period is identical for both employers and employees and at least two months’ notice must be given.

An employee can hand in their notice for any reason or without stating a reason. An employer may terminate employment unilaterally only for the reasons expressly defined by the Labour Code. These reasons are as follows:

• the employer, or one of its branches, shuts or relocates
• the employee becomes redundant as a result of a decision made by the employer or the competent body to change the employer’s business or commercial objectives
• the employee can no longer perform as expected because of ill health
• the employee does not meet the prerequisites prescribed by the statutory provisions for the performance of the agreed work or does not meet the requirements for the proper performance of such work
• the employee seriously breaches some duty arising from the statutory provisions and related to the work performed by them, or reasons for the immediate cancellation of employment are given.

Entitlements and obligations

Parental, maternity and paternity leave

An employee (mother) is entitled to 28 weeks of maternity leave. She begins maternity leave at least six or at most eight weeks before the expected date of birth. In the case of a multiple birth, the mother is entitled to 37 weeks of maternity leave. The minimum length of maternity leave taken in the case of a birth cannot be shorter than 14 weeks and cannot be finished or interrupted before six weeks have passed since the date of birth.

Responsibility for the payment of the maternity leave allowance lies with the Czech Social Security Administration (Česká správa sociálního zabezpečení, ČSSZ).

Maternity benefit (maternity leave allowance) corresponds to 70% of the claimant’s reduced assessment base (more or less the claimant’s gross salary). An insured person who is the father of the child or the husband of a woman who bore the child also has the right to maternity benefit if the father has concluded a written agreement with the mother of the child that he will take over the care for the child from the mother. The agreement must include data laid down by law and may be concluded with effect no sooner than the beginning of the seventh week after the birth.

Parental leave applies to the mother of the child once her maternity leave comes to an end and to the father of the child from the child’s birth. They can apply for parental leave from their employer until the child is three years old. The parental allowance can be received until the child is four years old. In recent years, the amount of the parental allowance and the speed at which it is drawn down have been modified several times. Since January 2020, the total amount of the allowance has been CZK 300,000 (€11,682), and CZK 450,000 (€17,523) in the case of children from a multiple birth. Since January 2018, a parent has been able to freely choose the monthly amount of parental allowance and thus the period of its drawing. The allowance is paid monthly, and the maximum amount corresponds to the amount of maternity benefit (in 2021: a maximum of CZK 43,470 (€1,693) and, for a multiple birth, CZK 65,205 (€2,539)). If the maximum monthly amount is chosen, the total amount of parental allowance (CZK 300,000 (€11,682)) will be paid out over seven months. The choice regarding the amount of parental allowance can be changed once every three months.

A parent is entitled to parental allowance if they personally care for the youngest child in the family on a full-time basis and that child is up to four  years of age. The condition of personal full-time care is also considered to be fulfilled in the following cases:

• a child under the age of two years attends a crèche or other facility for preschool children for a maximum of 92 hours in a month
• a child regularly attends a remedial care centre, crèche, kindergarten or similar facility for preschool children with disabilities for a maximum of four hours a day
• a child of parents with disabilities attends a crèche, kindergarten or similar facility for preschool children for a maximum of four hours a day
• a child with a disability attends a facility for preschool children for a maximum of six hours a day
• the parent arranges for care for the child by another adult while the parent is gainfully employed or studying

Attendance in these facilities is not monitored for children over two years of age.

The parent’s income is not tested; the parent may carry out an occupational activity without losing their entitlement to parental allowance.

Starting in July 2022, if another child is born while receiving parental allowance and the family does not manage to exhaust the current benefit up to the total statutory amount, the Labour Office of Czechia will pay the remaining part of the parental allowance at once. However, at least one parent must meet the condition of the determination of the daily assessment base on the date on which the youngest child in the family is born, or at least one of the parents must be considered self-employed for pension insurance purposes on that date.

Although the legislation enables Czech men to take parental leave under the same conditions as women, men taking parental leave represented only 1.7% of all cases of parental leave in 2019. Moreover, this proportion was constant between 2008 and 2019, with the percentage ranging from 1.6% to 1.9%.

Since 1 February 2018, fathers have been entitled to claim the ‘paternal postnatal care benefit’. The duration of the benefit is currently set at two weeks, and the amount paid is derived from the maternity benefit calculation (70% of the daily assessment base). These two weeks of leave can be taken any time during the first six weeks following the birth of the child. In 2022, paternity leave was introduced into the Labour Code as an important personal ‘obstacle’ to work on the part of the employee; this leave was effective from 1 December 2022. Leave has also been recently granted in the event of a stillbirth or the death of a child within the first six weeks of birth.

Sick leave

Sick leave is addressed primarily by Act No. 187/2006 Coll. on sickness insurance and by section 192 of the Labour Code.

During the first two weeks of an employee’s temporary incapacity to work, an employer provides the employee with a compensation wage for working days equal to 60% of the employee’s average earnings. The employee is entitled to the compensation wage only for the period of the employment relationship during which they make contributions to health and social insurance.

From the 15th calendar day of a temporary incapacity to work, the employee is entitled to a sickness benefit from the sickness insurance scheme. The support period lasts no longer than 380 calendar days from the date of the temporary incapacity to work or quarantine order, unless stated otherwise.

The amount of sickness benefit per calendar day is 60% of the reduced daily assessment base until the 30th day of the temporary incapacity to work. From the 31st to the 60th calendar day of the temporary incapacity to work, the rate is 66% of the daily assessment base and, from the 61st calendar day of the temporary incapacity to work, the rate is 72% of the daily assessment base. This gradual increase was introduced on 1 January 2018; before this, it remained at the level of 60% of the reduced daily assessment base for the whole period of the temporary incapacity to work.

The employer cannot terminate an employment relationship with an employee during their temporary incapacity to work, with the exception of cases in which the employer’s undertaking, or its part of the undertaking, is closed down or relocates away from places where the employee is to perform work in accordance with their employment contract.

Retirement age

Two fundamental processes apply to the calculation of retirement age.

The first process is the approximation of the retirement age for men and women. At present, women still retire earlier than men, specifically depending on the number of children raised (their retirement age decreases as the number of children raised increases). The retirement age, regardless of the number of children born, will be fully equalised no earlier than 2037, namely when those born in 1972 will start retiring, aged 65 years.

The second process is a continuous increase in the retirement age for each generation born. An unlimited increase in the retirement age was adopted by the Chamber of Deputies of the Parliament of the Czech Republic (Poslanecká sněmovna Parlamentu České republiky) in 2011. The retirement age is thus postponed for each age group with the same year of birth, namely by two months when compared with the previous age group. However, both employers and trade unions were critical of the unlimited increase in the retirement age.

On 5 September 2016, the Czech government approved the capping of the retirement age at a maximum of 65 years. This measure will positively affect those born after 1965, who would otherwise have retired when they were older than that.

In 2021, men retired when they were 63 years and 10 months of age and women when they were between 59 years and 63 years and 10 months of age, depending on the number of children raised.

On 1 January 2023, Act No. 323/2021 Coll., amending the Pension Insurance Act, came into force. It stipulates that the person (woman or man) who has provided the majority of care for a child is entitled to the benefit granted for raising that child (výchovné). In 2023, this was a fixed monthly allowance of CZK 500 (€20 approximately) (subject to gradual indexation) for each child raised.

For workers, pay is a reward for their work and their main source of income; for employers, it is a cost of production and a focus of bargaining and legislation. This section looks at minimum wage setting in Czechia.

Trends in average and median monthly wages from 2017 to 2022

According to structural wage statistics, average wages rose steadily between 2017 and 2021, although the growth rate slowed somewhat in 2020 and 2021 as a consequence of the COVID-19 pandemic. The highest year-on-year wage increase was recorded in 2018, when it was 8.3%, and the lowest wage increase was in 2020, when it was 4.6%. In 2021, the average gross monthly wage was CZK 38,270 (€1,611), which represents an increase of 29.1% compared with 2017. In the third quarter of 2022, the average gross monthly wage rose nominally by 6.1% compared with the same quarter of the previous year; however, due to the significant rise in prices, it fell by 9.8% in real terms.

The median wage grew slightly faster than the average wage in the period under review (with the exception of 2019), indicating a faster rise in the wages of lower income workers (among other things due to increases in the minimum wage). As in the case of the average wage, the growth in the median wage was slowed down by the COVID-19 pandemic in 2020 and 2021. In 2018, the median wage increase was 8.7%, while in 2020 it amounted to 5.6% and in 2021 to 5.9%. Overall, the median wage grew by 31% between 2017 and 2021, rising from CZK 26,843 (€1,130) to CZK 35,169 (€1,481). In Q3 2022, the median wage reached CZK 34,993 (€1,473), which was 6.5% more than in the same period of the previous year.

Average monthly gross wages of employees in the national economy according to NACE, annual average (full-time equivalents)

Notes: Preliminary data for 2021. Data on average wages that are classified by both NACE and sex are not available.

Source: ČSÚ, 2023, Table 7.

Gross monthly median wages by sex, annual average (full-time equivalents), 2017–2021

Notes: Preliminary data for 2021. Data on median wages by NACE category are not available.

Source: ČSÚ, 2023, Table 14.

Minimum wages

The minimum wage was introduced into the Czech labour system in 1991 as a statutory minimum wage and is governed by Article 111 of the Labour Code. Its level is determined by Government Regulation No. 567/2006 Coll.

An increase in the minimum wage usually results from tripartite negotiations between the main social partners and the government. However, there is no mechanism that would ensure a regular revaluation of the minimum wage, and this depends on the political programmes of individual governments. Thus, minimum wages can be frozen in some periods, as was the case between 2007 and July 2013.

In the private sector, the minimum wage can be increased by collective agreements. Since collective bargaining coverage is relatively low in Czechia, Article 112 of the Labour Code and Government Regulation No. 567/2006 Coll. further determine eight levels of the ‘guaranteed wage’. The levels of this wage are set out by the government and are differentiated on the basis of the complexity and difficulty of the work. The lowest level of the guaranteed wage equals the minimum wage.

Government Regulation No. 567/2006 Coll. further stipulated the lower levels of both the minimum and the guaranteed wage for workers with limited capacity to work until the end of 2016. However, the different levels of the minimum and the guaranteed wage were cancelled as of 1 January 2017; therefore, the same minimum wage levels apply to all employees at present.

Minimum monthly wages for specific groups, 2017–2023

Source: MPSV, 2024

Working time is ‘any period during which the worker is working, at the employer’s disposal and carrying out his activity or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises the regulation of and issues regarding working time, overtime, part-time work and working time flexibility in Czechia.

Working time regulation

Czech labour legislation stipulates the statutory maximum normal weekly and daily working time in the Labour Code. Article 79 prescribes that the normal weekly working hours must not exceed 40 hours and stipulates shorter normal working hours for specific categories of workers (those working in mining and mine construction or those working in multi-shift mode, for example). Articles 83, 85(3), 79a and 94 of the Labour Code further determine the statutory maximum normal working day, which must not exceed 12 hours (eight hours in the case of minors and night workers), except for those workers in transport listed in Article 100.

In the private sector, standard weekly working time may be shortened without a concurrent reduction in wage only in collective agreements or internal regulations. In the public sector, reducing standard weekly hours is not allowed.

Overtime regulation

Overtime work, which is defined by the Labour Code as work that exceeds standard weekly working hours following the predetermined schedule of working hours and beyond the pattern of shifts, is regulated by Article 93 of the Labour Code. It stipulates that ordered overtime must not exceed 8 hours a week or 150 hours a year, and total overtime work (including ordered and individually agreed overtime) on average must not exceed 8 hours a week within a compensatory period of 26 successive weeks, unless a collective agreement extends this period to the maximum of 52 successive weeks. However, overtime for which the employee is compensated by a leave of absence is neither counted in the total number of overtime hours nor regarded as overtime. Part-timer workers may not be ordered to work overtime.

Article 114 of the Labour Code states that an employee is entitled to their standard hourly wage supplemented by a premium of at least 25% of their average hourly earnings for every overtime hour (if the overtime has not been compensated by a leave of absence). However, when a wage is agreed that takes into account potential overtime work, the employee is not entitled to any additional pay or compensatory time off for overtime. Such a wage may be agreed provided that the agreement specifies the extent of overtime that will be taken into account and that overtime hours are within the scope of 150 hours in one calendar year and, in the case of managerial employees, that their overtime hours are within the limits of eight hours a week on average within the compensatory period.

Collective agreements may contain an extension of the compensatory period up to 52 successive weeks; additionally, they often include an increase in premiums for overtime work.

Part-time work

Part-time work is defined by Article 80 of the Labour Code as working hours below the standard weekly working hours, for which the employee is paid a wage or salary reduced proportionally to the reduction in the standard working hours. Part-time work can be agreed only between the employer and the employee in an individual contract.

The proportion of employees working part-time is relatively low in Czechia. According to Eurostat, part-timer workers aged 20 to 64 years made up 5.7% of total employment in 2021 (men 2.5%, women 9.6%), which is approximately three times less than in the EU27 and the United Kingdom, on average. The reasons for this include a lack of demand for part-time jobs on the part of employees (most families need two full incomes to secure a decent living standard) and a lack of flexibility on the part of employers. The result is a low number of part-time jobs offered by employers.

The most recent data indicate that the percentage of part-time workers in total employment decreased slightly in 2020 (5.6% in Q3) compared with previous years, most probably as a temporary consequence of the COVID-19 pandemic. This might be explained by the related uncertainty that led employers to terminate agreements to complete a job and agreements to perform work. Both types of agreement are governed by the Labour Code and are used in particular for (marginal) part-time jobs.

The current government’s goal is to support the supply of part-time employment options. From 1 February 2023, employers can take advantage of a discount on social insurance premiums if they employ workers who (1) are aged 55 years or over, (2) care for a child under 10 years of age, (3) are in education, (4) have retrained in the previous 12 months, (5) have disabilities or (6) are under 21 years of age. The discount applies to part-time jobs ranging from 8 to 30 hours per week. The discount is 5% of the employee’s total assessment base and applies to the employer’s share of the premium.

Night work

Night work is defined by the Labour Code as work performed at night, that is, between 22:00 and 06:00. A night worker is an employee working on average no less than three hours of their working time at night within 24 consecutive hours at least once a week within a period of 26 consecutive weeks (Article 78(1)(j) and (k)).

Article 94 of the Labour Code stipulates that the length of an employee’s shift at night may not exceed 8 hours within 24 consecutive hours or, if this is not feasible for operational reasons, the average length of a shift should not exceed 8 hours within a maximum period of 26 consecutive weeks.

In the case of night workers, the employer is obliged to provide them with appropriate medical examinations and appropriate social conditions, such as having refreshments and first-aid supplies available in the workplace.

Shift work

In Czech legislation, a shift means a number of weekly working hours without overtime during which an employee is obliged to perform work for the employer according to a predetermined pattern (shift schedule). Article 78 of the Labour Code further highlights two-shift, three-shift and continuous patterns of shift work as special cases of shift work in which employees regularly rotate shifts. The statutory working week is shorter for such employees (a maximum of 38.75 weekly hours for employees in the two-shift pattern and a maximum of 37.5 weekly hours for employees in the three-shift or continuous patterns of shift work). Collective agreements often stipulate shorter working weeks for employees performing shift work.

Weekend work

Czech legislation defines and sets ‘non-working days’, that is, days on which an employee’s uninterrupted weekly rest falls during the week and on public holidays. Weekend work is not specified by Czech legislation. However, Article 118 of the Labour Code guarantees a premium of at least 10% of the average earnings in addition to the wage earned for hours worked on Saturday and/or Sunday. In public services and administration, the premium amounts to 25% of the average salary (Article 126 of the Labour Code). The specific level of the premium (beyond its minimum statutory level) may be a subject of collective bargaining in the private sector.

Rest and breaks

A rest period is defined by the Labour Code as a period outside working hours. Article 88 of the Labour Code provides for a rest break after a maximum of six working hours of continuous work (or after 4.5 hours in the case of juvenile workers). This break should not be shorter than 30 minutes or – if it is divided into several parts – one of the parts of the rest break should not be shorter than 15 minutes. Rest breaks do not count towards working hours. If the work in question cannot be interrupted, employees have to be provided with appropriate time for rest and food even without interruption of the operation or work. The time for rest is then considered to be working time. This does not concern juvenile workers who have to be provided with a rest break as indicated above. Rest breaks are not provided at the beginning or end of working hours. Statutory safety breaks are considered to be working hours.

The minimum daily rest period is 11 consecutive hours a day (12 hours in the case of juvenile workers); however, this can be reduced to a minimum of 8 hours in specific situations for employees over 18 years of age (continuous operation; unevenly scheduled working hours; overtime work; agriculture; public services such as public catering, cultural establishments, telecommunications, postal services, and health and social care facilities; urgent reparations aiming to avoid danger; and natural disasters and other extraordinary cases). However, the subsequent daily rest period has to be extended correspondingly. In the case of seasonal work in agriculture, the compensation must be provided within three weeks of the reduction (Articles 90 and 90a of the Labour Code).

Article 92 of the Labour Code further stipulates that the minimum weekly rest period is 35 hours or, in the case of juveniles, 48 hours. When it is possible in terms of operation, the weekly rest period should be set on the same day for all employees and it should include Sunday. In the specific situations listed previously in the context of the minimum daily rest period and in relation to technological processes that cannot be interrupted, it is possible to reduce the weekly rest period for workers over 18 years of age to 24 hours, but weekly rest periods have to amount to 70 hours over two consecutive weeks. The specific allocation of weekly rest periods can be agreed in agriculture, but they must amount to 105 hours in three weeks or 210 hours in six weeks.

Working time flexibility

A flexible working hours scheme is provided for in Article 85 of the Labour Code; it defines flexible working hours as working hours that consist of bands of core time and flexitime. The beginning and the end of these time bands are determined by the employer. An employee is obliged to be at their workplace during the determined core working hours, whereas they can choose the start and the end of their working time for the flexible working hours. Daily working hours should not exceed the statutory maximum working day. When a flexible working hours scheme is used, the average weekly working hours must be complied with within a settlement period that is fixed by the employer and within no longer than 26 weeks, unless a collective agreement prolongs this period to up to 52 weeks. Flexible working hours do not have to apply to all employees within a workplace; the employer can decide to which (categories of) employees flexible working hours will be offered. In addition, the Labour Code regulates working hours accounts (Articles 86 and 87).

The application of flexible working hours can be agreed in both individual contracts and collective agreements. Collective agreements may also prolong the settlement period to up to 52 weeks for both flexible working hours schemes and working hours accounts.

The level of working time flexibility in Czechia can be evaluated based on the 2019 ad hoc module of the EU Labour Force Survey on work organisation and working time arrangements. Its results reveal that Czech workers have a relatively low level of working time autonomy: 79% of Czech employees indicated that their employer or organisation mainly decides on the start and end of their working times, compared with 68% of employees in the EU27 and the United Kingdom. In addition, 49% of Czech employees reported that they had to make a change to their working times as required by their tasks, clients or superiors once a month or more often, whereas the EU average was 37% of employees. This suggests that Czech workers are exposed to negative forms of flexibility relatively often. However, at the same time, they appear to have less difficulty in taking one or two hours or one or two days off at short notice for personal or family matters: in Czechia, 29% of employees reported that it was fairly or very difficult to take one or two hours off and 27% reported that it was fairly or very difficult to take a day or two of leave. In the EU27 and the United Kingdom, these proportions were 37% of employees in the case of hours and 47% of employees in the case of days. Thus, it seems that the relatively rigid working time schemes in Czechia are to some extent compensated by (rather informal) mechanisms that enable employees to react to immediate needs emerging in their personal or family lives.

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill health of their workers. This section looks at psychosocial risks and health and safety at work in Czechia.

The main legislation on occupational health and safety is made up, among others, of the following laws: the Labour Code (Articles 101–108); Act No. 309/2006 Coll. on ensuring additional requirements for occupational health and safety; Act No.174/1968 on state inspection of labour safety; and Act No. 251/2005 Coll. on labour inspection.

The regulation of health and safety at work falls under the authority of the MPSV. It is monitored and checked, in particular, by its subordinate authority, the National Labour Inspectorate, and in the mining industry also by the Czech Mining Authority. Employees have the right to participate in resolving occupational health and safety issues through their trade union organisation and their representative for occupational health and safety. These employee representatives cooperate with the employer and individuals qualified to deal with risk prevention so that the employer can ensure safe and non-hazardous working conditions. Employee representatives are also entitled to make comments when inspections are performed by the relevant authorities.

Health and safety at work

Before 2014, there had been a positive trend (i.e. a decrease) in the number of work accidents, but, between 2014 and 2017, this trend took a slightly negative turn. The total annual number of working days lost through accidents at work increased between 2014 and 2017 after five years of continuous decline between 2007 and 2013 (see the table ‘Time series of work accident indicators in Czechia, 2002–2019’). In 2018 and 2019, the annual number of lost working days declined again.

The number of work accidents causing an incapacity to work in relation to the number of people insured fell steadily until 2013, but went up between 2014 and 2016. In 2017, there was evidence of 47,491 accidents at work that resulted in a subsequent incapacity to work but, in 2018, the number of accidents declined and this decline continued through to 2020. In addition, the average duration of one case of incapacity to work caused by a workplace accident oscillated around 55 days from 2011. However, in 2020, it reached a peak of 62.51 days.

In 2017, there were 95 fatal work accidents, which is the lowest figure registered since this statistic was first recorded. In 2018, the number of fatal accidents rose sharply to 123, then in 2019 it fell to 95 accidents. In 2020, the number increased again to 108 fatal work accidents.

Time series of work accident indicators in Czechia, 2002–2019

Source: VÚBP, 2020a.

Psychosocial risks

National legislation seeks to prevent mental health risks for employees by requiring employers to inform employees of the category that their job comes under from the point of view of factors injurious to health. The detailed conditions of the categorisation of work are set out by Ministry of Health Decree No. 432/2003. Mental stress factors are clearly defined by this legislation (the definition includes monotonous work, work at a forced pace, work in night shifts only, work in three shifts and continuous operation).

Despite the legislation referring to psychosocial stress connected to work performance to some extent, it does not provide any special advantages to the staff at risk. The law (Government Regulation No. 567/2006 Coll.) does not include psychosocial stress among the influences that make the performance of work more difficult and thus it is not included in the definition of a difficult working environment as regards the legal obligation to provide extra pay for work in difficult working conditions. If, however, the position falls under the high-risk categories in terms of mental strain, the employer is obliged to report this fact to the relevant body of public health protection and ensure the relevant frequency of medical examinations.

Sexual harassment and bullying in the workplace can be considered extreme forms of psychosocial stress. The notion of harassment was implemented in Czech legislation in 2004 in order to harmonise it with the acquis communautaire. In accordance with Directive 2002/73/EC, harassment, sexual harassment and persecution have been defined as specific forms of discrimination. Czechia has a specific law – Act No. 198/2009 Coll. on equal treatment and legal provisions protecting against discrimination (the Anti-discrimination Act) – that elaborates on discrimination and related issues in more detail and stipulates means of protection against discrimination. Violence-related legislation is pertinent to the infliction of harm and consequences set forth in the civil, administrative and criminal (penal) standards.

One of the many goals for collective bargaining at company level in 2020 was the recommendation made by ČMKOS to include in company collective agreements measures aimed at alleviating and preventing stress and overloading employees in the workplace. In 2020, measures to eliminate work-related stress were included in 0.5% of company collective agreements in the business sphere and in 0.7% of collective agreements in the sphere of public services and administration. Measures or conditions for reducing cases of harassment and violence in the workplace were regulated in the business sphere in 1.3% of company collective agreements and in the non-business sphere in 0.9% of collective agreements.

Skills are the passport to employment; the more highly skilled an individual, the more employable they are. People with good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Czech system for ensuring skills and employability and looks at training provision.

National system for ensuring skills and employability

In Czechia, the validation and recognition of skills are regulated by Act No. 179/2006 Coll. on recognition of further education results. Recognised skills are based on the National Register of Qualifications (Národní soustava kvalifikací, NSK), which lists all complete professional and vocational qualifications that are nationally recognised and validated in Czechia. It defines the necessary skills for individual vocational qualifications and describes the scope of activities that the respective qualification includes. The NSK is comparable to national registers in other European countries and is linked to the National Register of Professions (Národní soustava povolání, NSP), operated by the MPSV, which provides information on the scope of activities, necessary skills and qualifications required for individual professions.

The system of validation and recognition of qualifications falls under the authority of the Ministry of Education, Youth and Sports (Ministerstvo školství, mládeže a tělovýchovy, MŠMT), which coordinates the whole system and the NSK, approves qualifications and awards authorisations to agencies that are subsequently entitled to organise exams and award certificates.

The MŠMT has an advisory body, the National Council for Qualifications (Národní rada pro kvalifikace), that focuses on the preparation and practical application of the NSK. It is composed of representatives of several ministries (including the MPSV and the MŠMT), the social partners, education and training providers and other bodies (such as the Labour Office of Czechia). The social partners are therefore involved in ensuring skills and employability via this platform.

To ensure future employability, the need for more intensive cooperation between academia and business has been discussed frequently at both institutional and governmental level (e.g. within tripartite bodies, within working groups with different stakeholders present, at governmental level). The issue is considered to be more important in the light of the digital transition in all economic sectors. An important step to make such a dual education system more effective (a closer link between academia and business) was taken in October 2016 when an agreement between representatives of the main employer organisations, namely the SP ČR, the HK ČR, the KZPS ČR and the Czech Agrarian Chamber (Agrární komora ČR), was signed. The agreement defined how the responsibility of employer organisations would be split for different groups of vocational education disciplines taught at secondary schools.

Training

Training is regulated primarily by the MPSV in cooperation with the MŠMT. These ministries determine the priorities and coordinate a number of programmes that aim to develop training and skills and that are mostly funded by the European Social Fund. An example is the Promotion of Employee Vocational Training II programme (Podpora odborného vzdělávání zaměstnanců II). Some programmes are administered by organisations subsidised by the MPSV and the MŠMT and non-governmental, non-profit organisations, in particular the following.

• The National Pedagogical Institute of Czechia (Národní pedagogický institut České republiky, NPI ČR) is an organisation subsidised by the MŠMT that focuses on further training of teachers and pedagogical staff and the development of their teaching competencies.
• The National Training Fund (Národní vzdělávací fond, NVF) is a non-profit organisation that aims to promote the development and restructuring of human resources in accordance with the requirements of economic and social reforms in Czechia.

The principle of equal treatment requires that all people – and, in the context of the workplace, all workers – have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, sex, disability, nationality, race and religion.

• European Industrial Relations Dictionary: Equal treatment

Equality and non-discrimination at work are ensured in particular by the Anti-discrimination Act, which transposes relevant EU legislation into Czech law, defines different forms of unequal treatment and discrimination, and stipulates rules of equal treatment and protective legal remedies against discrimination.

The equal treatment of employees and the prohibition of their discrimination in working conditions, remuneration for work, vocational training and opportunities for career advancement are further guaranteed by the Labour Code.

Additionally, equality in the application of the right to employment is ensured by Act No. 435/2004 Coll. on employment, which explicitly charges the Labour Office of Czechia with the implementation of measures to ensure equal treatment in access to employment, requalification, preparation for work, specialised training and other measures.

The issue of equality and non-discrimination at work falls under the authority of the MPSV. For example, gender equality is listed among the main responsibilities of the ministry. Labour inspectorates can monitor issues related to equality and discrimination at work. Furthermore, the Labour Office of Czechia is in charge of ensuring equal access to employment for all categories of workers and jobseekers. The Government Council for Gender Equality (Rada vlády pro rovnost žen a mužů), which operates under the Office of the Government of Czechia (Úřad vlády České republiky), is a permanent government advisory body in the area of creating equal opportunities for women and men.

If anti-discrimination legislation is not complied with, the employee can appeal to a court or to the Public Defender of Rights (Ombudsman) (Kancelář veřejného ochránce práv), who promotes the right to equal treatment and protection against discrimination.

Equal pay and gender pay gap

The basic legislative provision securing equal pay for equal work can be found primarily in the Labour Code. Article 110(1) specifies that all employees of an employer are entitled to an equal salary, wage or contractual remuneration for equal work or for work of equal value.

Equal treatment in remuneration is further provided for by the Anti-discrimination Act. Specifically, Article 5(3) obliges employers to ensure equal treatment in matters of right and access to employment, entrepreneurship and other self-employment, work and other dependent activities, including remuneration. For the purposes of this law, remuneration means all monetary payments or non-monetary benefits, recurring or one-time, that are directly or indirectly provided to the person in gainful employment.

In 2021, Czechia adopted the Gender Equality Strategy for 2021–2030. On 21 December 2022, the Government of Czechia approved the Gender Equal Pay Action Plan for 2023–2026, a follow-up to the Gender Equality Strategy 2021–2030. The action plan is aimed at initiating processes to reduce the gender pay gap in Czechia and in particular to promote transparency in remuneration systems. This is the first time that the government has committed to addressing the gender pay gap in a separate governmental document. This action plan was prepared by the MPSV in cooperation with the Government Council for Gender Equality.

According to Eurostat, the gender pay gap (in an unadjusted form) was 16.4% in 2020, having fallen from 26.2% in 2008. The gap remained above 20% until 2018, that is, for more than 10 years.

Although Czechia has managed to reduce its gender pay gap, it is still above the EU average. The size of the gender pay gap reflects the relatively prolonged caring role of Czech women.

A gender pay gap analysis is regularly published by the Czech Statistical Office (Český statistický úřad, ČSÚ). However, the ČSÚ uses its own definition of the gender pay gap – instead of a mean average for the wages of men and women, it uses a median calculation. The ČSÚ argues that the median is a better indicator of the pay level because the arithmetic mean can be easily distorted by extreme values. The ČSÚ also bases its calculations on gross monthly pay, not hourly pay. In 2021, the gender pay gap figure calculated by the ČSÚ was 11.5%.

Continued interest in the topic of the gender pay gap is apparent among research institutions such as the Institute of Sociology of the Czech Academy of Sciences (Sociologický ústav Akademie věd ČR), private institutions offering human resources services such as Trexima (monitoring wages through the average earnings information system and the working conditions information system) and non-governmental organisation gender studies (see publications in the journal Rovné příležitosti do firem (in English ‘Equal opportunities for companies’). Moreover, the Czech government has recently introduced a number of initiatives aimed at narrowing the gender pay gap. In 2016, the MPSV launched a five-year project called ‘22% to Fairness’ (22% being the average gender pay gap in Czechia). The most frequently discussed and visible parts of the project are:

• systematic inspections specifically focused on screening and pay discrimination – specially trained experts from the National Labour Inspectorate are responsible for conducting salary inspections
• development of a digital auditing tool for employers to objectively detect gender pay differences in companies
• a manual for employees on how to negotiate a wage increase
• an information campaign
• public opinion surveys and examples of good practice

The project website is still active and contains many materials, analyses and measures to use in companies.

• Project website
• Gender Equality Strategy for 2021–2030
• Gender Equal Pay Action Plan for 2023–2026

Quota regulations

There are no specific regulations regarding quotas for men/women in Czechia.

According to Article 81(1) of Act No. 435/2004 Coll. on employment, employers with more than 25 employees who have an employment contract are obliged to make sure that at least 4% of their staff are people with disabilities. However, this obligation may also be met by buying goods or services from people with disabilities or from employers with protected working places or by making transfers to the national budget.

Employer organisations

• Confederation of Industry of Czechia (Svaz průmyslu a dopravy České republiky, SP ČR)
• Confederation of Employer and Entrepreneur Associations of Czechia (Konfederace zaměstnavatelských a podnikatelských svazů České republiky, KZPS ČR)

Trade unions

• Czech-Moravian Confederation of Trade Unions (Českomoravská konfederace odborových svazů, ČMKOS)
• Association of Autonomous Trade Unions of Czechia (Asociace samostatných odborů, ASO)
• Confederation of Art and Culture (Konfederace umění a kultury, KUK)

Government

• Ministry of Labour and Social Affairs (Ministerstvo práce a sociálních věcí, MPSV)
• National Labour Inspectorate (Státní úřad inspekce práce, SÚIP)
• Labour Office of Czechia (Úřad práce České republiky, ÚP ČR)
• Czech Social Security Administration (Česká správa sociálního zabezpečení, ČSSZ)

Tripartite body

• Council for Economic and Social Agreement (Rada hospodářské a sociální dohody České republiky, RHSD ČR)

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