On Sunday, 17 September 2023, President Petr Pavel signed an amendment to the Labour Code that will affect the rights and obligations of employees and employers in many areas.
On the one hand, the amendment reflects the European regulation of the directives on work-life balance and predictable working conditions (Directive (EU) 2019/1158 of the European Parliament and of the Council on work-life balance for parents and carers and Directive (EU) 2019/1152 of the European Parliament and of the Council on transparent and predictable working conditions in the EU), on the other hand, it seeks to regulate telework, simplify delivery, and digitalize employment documentation.
What will the amendment to the Labour Code bring?
The biggest change will undoubtedly be the innovations related to the employment of contract workers, whether under a performance of work agreement (PWA) or a contract of employment (CLA).
The so-called contingent workers will be granted a much higher level of protection than before. For employers, this means increased administration and costs even for these traditionally more flexible forms of employment.
As of the new year, contractors will be entitled to holiday pay, will be able to apply for a contract of employment and will have to have staggered working hours.
Surcharges and nursing allowances
Another novelty is the provision of additional payments (for working on public holidays, including compensatory time off, night work or weekend work) also for employees working under an agreement. It is therefore recommended to focus on scheduling working time so that so-called “agreement workers” do not work during these periods. This can prevent further cost increases for the employer.
Holiday entitlement for Agreements
If an employee works (from 1 January 2024) on the basis of a fixed-term contract or a fixed-term contract and meets the statutory conditions, he or she will be entitled to holiday. The general leave regulations in the Labour Code apply to the conditions for the accrual, calculation and collection of leave. For the purposes of leave, the weekly working time for the purposes of leave shall be set at 20 hours, regardless of the actual amount of working time agreed and performed under the agreement. When calculating holiday pay for every 20 hours worked, the employee is entitled to approximately 1.5 hours of holiday. The result shall be rounded up to the nearest whole hour.
Timetabling of working time
The employer will need to give the agreeing employee at least 3 days’ notice of the shift schedule, unless they agree otherwise, in writing. In practice, this may look like the employer scheduling one or more shifts for which it already knows it will have work for the conciliator. Later, it can schedule other shifts according to its needs.
Application by a contract worker to change to an employment relationship
If a contract worker (FTE or FTE) has worked more than 180 days in the previous 12 months, he or she can apply to his or her employer to convert to an employment relationship. This request must be made in writing. The employer is obliged to respond to the conciliator in writing within 1 month at the latest, but is not obliged to comply with his request.
Digitization
The amendment will also advance the digitisation of employment documentation and allow for the electronic conclusion of contracts with employees, as well as the delivery of documents.
The amendment will allow bilateral documents relating to the creation, modification or termination of an employment relationship (e.g. employment contract, FTC, FTC, amendments, termination agreement) to be concluded and delivered electronically. However, to send documents electronically, the employer must have the employee’s consent. The e-mail address to which the employee wishes to have documents sent must be private. Therefore, the employee must be able to save and print the information and the employer must keep proof of the transmission of the information. Employees will only be able to withdraw from such documents within seven days of receipt if they have not yet started work.
Performing work remotely
The legislation in the amendment to the Labour Code states that an employee may request the employer to allow the performance of remote work. The employer will not be obliged to comply in all cases. Only if an employee caring for a child under the age of 9, a pregnant employee and an employee caring for a person dependent on the assistance of another natural person request this form of work engagement. If the employer does not grant the request, the employer shall be obliged to give reasons in writing for refusing the request, e.g. for serious operational reasons.
Teleworking will be subject to a written agreement between the employee and the employer. The reimbursement of the costs of teleworking will have three options: firstly, reimbursement at a flat rate to be determined by the Ministry of Labour and Social Affairs; secondly, reimbursement of the costs of energy consumed, etc. (gas, electricity, solid fuels, heat supply, etc.); or thirdly, agreement that teleworking is a benefit and will not be reimbursed. In the event that both parties agree that home office is a benefit and no compensation is due, this agreement must be in writing.
If home office compensation is paid on a lump sum basis, it is not considered income and is not taxable up to the amount of the lump sum that can be provided to salaried employees. A lump sum in excess of this will have no such exemption.
A provision for additional voluntary overtime for health care workers was included in the amendment to the Labour Code, which is due to apply until 2028. Some doctors working in hospitals have threatened to stop serving because of this. At present, such overtime is solved by agreements, which will no longer be possible given the shortage of doctors, especially in smaller hospitals.
