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  2. Forms of employment relationships • Governed by Labour code • Only for employed NOT for self-employed • Three types of relationships: • Employment contract (pracovní smlouva) • Agreement on work performance (dohoda o pracovní činnosti) • Agreement on working activity (dohoda o provedení práce)

  3. Employment contract • Written contract, 2 copies, enlisting rights and obligations • Mandatory terms of contract – agreed type of work, place of work, starting date • Wage, job description, safety & security at work, liabilities – employer needs to provide in a written form 30 days after starting • Vacation, over time, and other terms of contract must be included in the contract, otherwise no entitlement • BUT 4 weeks vacation guaranteed by law (available after 60 days of work) • Probationary period – max. 3 months • Right to pension contribution and sick pay • Contract can be for fixed term or indefinite period • Non discrimination and equal treatment • Tax, pension and health insurance paid for by employer

  4. Agreement on work performance • Max. 20 hours per week • Must be in written form • Working permission applies • Agreement must include: agreed type of work, scope working hours, period of duration of the agreement • Other relevant terms of contract such as vacation, over time, etc must be included in the agreement or amendment to agreement, otherwise no entitlement • If your monthly income = 2500 CZK and more  health and social insurance will be deducted from your income + contribution towards pension (you are entitled to record of employment “zápočtový list”) + 15% income tax • If your income exceeds 2000 CZK/month you are entitled to sick benefits • Dismissal notice = 15 days, no obligation to provide reasons

  5. Agreement on working activity • Max 300 hours per year with one employer and those 300 hours can be spread across the year • Must be in written form; working permit – working permit applies • Terms of contract: type of work, place of work, number of hours, wage, duration of contract; all other terms must in amendment • Vacation, over time, etc must be included in the agreement or amendment to agreement, otherwise no entitlement • If your income exceeds 10 000 CZK – social and health insurance deducted + 15% wage income • Lesser protection of the employee‘s rights, more liberal relationship, but still a type of employment relationship

  6. Minimum income • Minimum income is the lowest guaranteed income given by law • Minimum income in 2012 (2013) • 48,10 CZK/hour • 8000 CZK/month (proportionate to 40 hours/week)

  7. Employer: duties A) To pay social insurance which includes pension insurance & unemployment cover • Employer pays 25%, employee pays 6.5%  31.5% of gross income paid monthly B) To pay health insurance • Employer pays 9%, employee pays 4.5%  13.5% of gross income paid monthly

  8. Employer: duties continued • Employer must pay a down payment for employee’s income tax, which is 15% • Next income can be calculated here or here • After termination of employment contract and agreement on work performance employer must unconditionally issue record of employment (“zápočtový list”) to the employee • Record of employment must include: information about employment, type of employment relationship, nature of job tasks, level of qualification established, and hours worked • In case of employer‘s malfeasance employee should contact: • Financial bureau (finanční úřad) • Czech Social Security Administration (okresní správu sociálního zabezpečení) • Insurance company (zdravotní pojištovnu) • Labour control office (inspektorát práce)

  9. Working hours • Max 40 hours per week • When working hours are scheduled evenly – working hours must not exceed 9 hours/days • When working hours are scheduled unevenly – working hours must not exceed 12 hours/day • Flexible working hours – upon mutual agreement of both parties • After employee has been working for continuous 6 hours utmost, he must be given 30 minutes break • Min. 12 hours break in between shifts • Night work must not exceed 8 hours in 24 hours • Scope of overtime work and overtime pay must be stipulated in the contract, otherwise no entitlement

  10. Termination of employment relationship • By agreement – in writing, agreed by both parties, must include date of termination • By notice of termination – in writing, when handed by employer it is called dismissal, when handed by employee it is called resignation; employer must provide legally relevant reasons for dismissal, employee does not have to provide reasons for resignation • Instant termination • By termination within the trial period • By expiration of fixed term contract agreement

  11. Immediate termination of employment relationship Instant dismissal by employer - If employee was sentenced in criminal trial without further possibility of appeal - If employee grossly breached agreed duties Instant resignation by employer - Health reasons – employee can no longer do his work and employer has not offered new position - Employer has not paid wage 15 days after it was due

  12. Redundancy payment • Right given to an employee who was dimissed for organizational changes proportionate to years of employment • 1 year = 1 salary, 2 years = 2 salaries, 3 years and more = 3 salaries • Employer who had to terminate his contract due to occupational injury is entitled to minimum of 12x average salary • Redundancy payment may be provided for in trade union treaties • Redundancy payment is taxed 15% but no health or social insurance costs are deducted

  13. THINGS TO BE AWARE OF • Employers frequently try to include additional or last moment probationary/trial period after the contract has been signed • Employers try to conclude a contract for fixed period which covers the probationary period • After termination of employment the employer is obliged to provide you with record of employment without further demands and conditions • You should make yourself familiar with any existing trade union treaties and internal regulation • Make sure you ask your boss to confirm your vacation request ahead of time • If your employer does not want to dismiss you BUT wants to terminate your employment by agreement, you should demand financial compensation

  14. Never sign a dismisal notice in which dismisal reasons do not reflect reality – you NOT TO DO! • Never sign a dismissal notice in which dismissal reasons do not reflect reality – you may loose your entitlement for redundancy payment • Never go on vacation without agreed written request • Never start to work without valid and undersigned working contract • If you are sick, have been to doctor and were ordered to stay at home  stay at home, do not work and expect controls • If nature of your job corresponds with legal form employment by given employer NEVER work as self employed for this employer – it is illegal for both sides and it is heavily sanctioned

  15. Thank you !