On 7 March 2025, the Chamber of Deputies approved in its third reading an amendment to the Labour Code, referred to as the so-called Flexinovela, the aim of which, as the name suggests, is to increase the flexibility of labour relations, both on the part of employers and employees. The amendment, which, with a few exceptions, is expected to come into force on the first day of the second calendar month following its publication in the Collection of Acts, possibly as early as 1 June 2025, will now be discussed by the Senate. What changes will the Flexinovela bring to labour law if approved?

Extension of the probation period

According to the Flexinovela, the probation period will be extended to 4 consecutive months for ordinary employees compared to the current 3 months and up to 8 consecutive months for managers compared to the current 6 months. It will also be possible to extend the probationary period, within specified limits, by written agreement between the employee and the employer. However, the maximum period of 4 or 8 months may not be exceeded even after contractual extension. The probationary period will now also be automatically extended by the period of unexcused absence.

Changes to fixed-term employment in the event of a replacement

Flexinovela will also bring changes in the area of fixed-term employment relationships. According to the current legislation, such an employment relationship can be agreed for a maximum of three years and can be repeated between the same parties no more than twice, with its extension being considered a repeat. An exception to this rule will now be compensation for an employee temporarily absent during maternity, paternity or parental leave, where the number of repetitions will not be limited. However, the total duration of such employment relationships between the same parties may not exceed nine years.

Empowering parents in the labour market

The amendment will introduce measures aimed at improving the position of parents on the labour market, both when taking parental leave and when returning to work. The first of these measures is to allow employees taking parental leave to perform the same work for the same employer during the period of parental leave as before taking parental leave, on the basis of a work performance agreement or a work activity agreement. Furthermore, the employer will now be obliged to reinstate the employee to his/her original job and workplace if he/she starts work after the end of parental leave before the child reaches the age of two. This will significantly extend the period for which the employee is guaranteed to return to the same job, as currently this guarantee only applies if the employee returns after maternity leave or the employee returns after paternity leave or parental leave during the period for which the employee is entitled to take maternity leave.

Changes in the payroll

It will now be prohibited to contractually restrict employees from handling information about the amount and structure of their wages, salary or remuneration under the agreement.

While until now the employer and the employee could only agree on wages in a foreign currency and the payment could only be made in CZK, the new law will allow the payment of wages, salary or part thereof in the agreed foreign currency with the employee’s consent, if the exchange rate of the foreign exchange market is announced by the Czech National Bank (CNB) in cases specified by law. These apply, for example, to foreigners or stateless natural persons, persons with an agreed place of work abroad or employees living permanently abroad. For the conversion of wages, salary or part thereof into foreign currency, the exchange rate announced by the CNB for the first working day of the calendar month following the month in which the employee became entitled to wages, salary or part thereof shall be used, unless the employer and the employee agree on a different working day.

In this context, it is also possible to mention the employer’s right to deliver the employee’s wage or salary statement, which will be signed electronically, to the employee’s work e-mail address.

Greater flexibility in terminating employment

Changes related to termination of employment will affect, among other things, the length of the notice period. It will start on the day on which the notice is delivered to the other party, not on the first day of the calendar month following the delivery of the notice, unless otherwise agreed.

The notice period may also be shortened to at least one month if the employee is given notice for a reason under Section 52(f) to (h) of the Labour Code as amended and in force. ¹

Reducing the administrative burden on employers

The forthcoming amendment brings with it elements that may contribute to reducing the administrative burden on employers. These include, for example, the abolition of compulsory occupational health examinations for professions classified in the first category according to Act No. 258/2000 Coll., on the protection of public health, i.e. for so-called non-risk professions.

Consolidation of grounds for dismissal in connection with long-term incapacity of the employee

The amendment merges the termination grounds related to the long-term loss of the employee’s ability to perform his/her current work into one termination ground instead of the current two, which are currently regulated in Section 52(d) and (e) of the Labour Code, as amended and in force.   The consequence should be a reduction of the existing risk of incorrect identification of the termination ground by the employer and the related possible negative consequences.

An employee whose employment relationship terminated by notice given by the employer on the grounds that he or she has lost the long-term ability to perform his or her previous work due to an occupational injury, according to a medical report issued by an occupational health service provider or a decision of the competent administrative authority reviewing the medical report, an occupational disease or the risk of such a disease, according to Flexinovela, should be entitled to a lump-sum compensation of 12 times the average monthly earnings upon termination of employment instead of severance pay, even if the employment is terminated by agreement for the same reason. This compensation will be paid to the employee by the insurance company with which the employer has compulsory insurance. The employer saves the 12 months severance pay under the current law.

Some other changes

In addition, the amendment to the Labour Code will open up the labour market to minors from a younger age than at present, as they will be allowed to perform dependent work from the age of 14, during the main holiday periods and subject to certain conditions. These include, for example, the written consent of the legal guardian. It is also worth mentioning that the period of continuous rest for an employee over 18 years of age may be reduced in exceptional situations where this is necessary to avert an accident, natural disaster or other emergency or to remove or mitigate its immediate consequences, up to 6 hours in 24 consecutive hours.

We will bring you more information about Flexinovela in a free webinar to be held online on 10 April 2025 at 10:00 a.m., which will cover not only the most important changes mentioned above na dplan additional webinars in other languages soon after.

¹ These are cases where the employee does not meet the prerequisites laid down by the legislation for the performance of the agreed work, does not meet the requirements for the proper performance of this work without the fault of the employer; cases where the failure to meet these requirements results in unsatisfactory performance of the employee; and cases where the employee has reasons for which the employer could immediately terminate the employment relationship with him or her; cases of serious breach of an obligation arising from the legislation relating to the work performed by the employee; cases of persistent minor breach of an obligation arising from the legislation relating to the work performed by the employee; and cases of breach of the established scheme for temporarily incapacitated insured persons.