On 1 August 2024, Act No. 230/2024 Coll. came into force (in part).This Act not only amended the Labour Code, but also amended Act No. 251/2005 Coll., on Labour Inspection and Act No. 2/1991 Coll., on Collective Bargaining.

New minimum wage calculation

The amendment to the Labour Code first of all introduces a new calculation of the minimum wage. The new indexation mechanism is based on the average monthly wage multiplied by a coefficient set by the government for a two-year period. The Ministry of Labour and Social Affairs will regularly announce the minimum wage for the following year by the end of each September. The introduction of this new calculation transposes Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.

Abolition of the guaranteed wage

The amendment abolishes the guaranteed wage regulation in Section 112 of the Labour Code. The private sector will thus be limited in negotiating wages only through the minimum wage calculated according to the above-mentioned indexation mechanism and, where appropriate, through collective bargaining, which is also strengthened as a result of the amendment. The abolition of the guaranteed wage should also significantly reduce the administrative burden on employers. As far as civil servants on salary are concerned, the basic principles of the functioning of the guaranteed salary remain the same.

Abolition of the employer’s obligation to draw up a written holiday timetable

The amendment also abolishes the obligation for employers to draw up a written holiday schedule in Section 217 of the Labour Code. The practice so far was that employers were obliged to draw up a written holiday schedule at the beginning of each calendar year, but subsequently they followed a different procedure in determining holidays, usually at the request of the employees themselves. The abolition of this obligation should further reduce the administrative burden on employers.  However, the employer still has to ensure that leave is taken in full within the calendar year.

Changes to collective agreements

The amendment also introduces new rules for negotiating a collective agreement in the event of a plurality of trade unions at one employer that cannot reach a consensus during collective bargaining (Section 24 of the Labour Code). Until the amendment came into force, an employer could not conclude a contract with any of the trade unions in such a case. Now, in this situation, the employer may conclude a collective agreement with the trade union with the largest number of members or with a combination of organisations with the largest aggregate number of members, provided that it meets the statutory conditions. This innovation should prevent collective bargaining from being blocked if no agreement is reached.

In connection with the regulation of collective agreements, the provisions of Section 27 of the Labour Code, which until the amendment came into force dealt only with the competition of higher-level collective agreements with company collective agreements, have been amended. The Labour Code now extends the binding force of a higher-level collective agreement to those employers who are covered by another higher-level collective agreement. If the provisions of the two higher-level collective agreements conflict, the provisions more favorable to the employees will apply  .

Extension of shift length for employees in healthcare establishments

Section 83 of the Labour Code allows for the introduction of shifts of up to 24 hours for employees in health care facilities with continuous operation (e.g. ambulance services). For such long shifts, employees are paid a fixed premium from the thirteenth hour of such a long shift.  Prior to the amendment, a shift could last no more than 12 hours, with additional work after that shift constituting overtime.

Extension of the possibility of scheduling working time by the employee (from 1 January 2025)

With effect from 1 January 2025, the employer may conclude a written agreement with the employee under which the employee will schedule his/her own working hours under agreed conditions.

The average weekly working hours of an employee in an employment relationship must be completed within a compensation period determined by the employer.

For the purposes of obstructions at work, such as vacation, compensation for wages or salary lost due to public holidays and in other cases determined by the employer, the fixed working time distribution into shifts, which the employer is obliged to determine in advance, shall apply, unless the employee agrees otherwise with the employer.

The agreement can be terminated without affecting the employment relationship itself. The period of notice shall be fifteen days and shall commence on the date on which the notice is served on the other party. The parties may agree on a different length of notice. The notice period must be the same for both the employer and the employee.