iGlobal Law

Core Facts

• Population:  10.55M
• GDP:  USD 185 billion
• GDP per head:  USD  21,225
• Workforce:  4M
• Unemployment (2017):  4.4%
• High skilled monthly wages (2017):  USD 1,446

Regulatory

• Government debt:  37% of GDP
• Personal income tax:  15%
• Corporation tax:  19%
• World corruption ranking 2016:  47th Transparency International
• Ease of doing business ranking:  27th  Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Member of the EU and so recognised as having adequate protection

The Czech Labour Code came into force in 2007.  It follows the pattern of a code that seeks to protect the freedom of the parties to make their own contract while setting a minimum level of protection for employees. Amendments brought in 2012 were an attempt to bring more flexibility into the employment relationship.

Contracts must be in writing and contain specified terms. Employment contracts can be open ended or fixed term.  Fixed term contracts can now be concluded for up to 3 years and be renewed no more than twice. Probationary periods are limited to 6 months for management roles and 3 months for other roles provided that the probation is never longer than half the agreed term of the contract.

Both at company level and organisation level, collective agreements are a feature of Czech labour law life.  Company level agreements cannot give lower protection than that provided by organisational level agreements. Trade unions remain influential participants in Czech employment relationships.