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CZECH REPUBLIC – Amendment to Czech Labour Code and Employment Law

An amendment to the Czech Labour Code and Employment Law has been passed by the Czech Parliament and approved by the President, to take effect on 1 January 2012. Although the amendment does not immediately impact the requirements for employing EU nationals or obtaining work authorizations for non-EU nationals, its introduction may affect labour office registrations, obtaining a permission to employ a foreign national and/or individual work permit applications.

What Will Change?

According to the information provided by the Ministry of Labour and Social Affairs, the principal changes include:

  • An increase in the probationary period for managerial employees from three months to six, during which their employment may be cancelled immediately without giving a reason;
  • An increase in the maximum length of a fixed-term employment from two years to three, coupled with a removal of specific exceptions permitting a longer fixed-term, such as for employees on maternity leave;
  • A change in the basis of calculating severance payments in the event of dismissal for organisational reasons from 3 months' average earnings to 1-3 months' average earnings depending on the length of employment;
  • The abolition of the general requirement for employers to obtain labour agency licenses in order to second employees to work temporarily for another company;
  • The provision for employees on sick leave to be dismissed on notice if they fail to follow the sick leave rules imposed by their doctor.These and a number of other changes introduced by the amendment should make employment relationships more flexible.

Impact on Immigration Applications

The new labour code is part of a series of new laws/amendments adopted by the Czech Parliament as part of the “Social Reform” package. Although these new laws will be implemented as of 1 January 2012, many of the practical implications are not yet known and labour offices will be provided with more details in early 2012. Based on previous experience, we do expect to see changes in requirements for work authorization applications and possible delays in processing of the applications in early 2012. As soon as more details on the practical implications on work authorization application are available we will be able to provide further updates.

Action Items

  • Note that immigration applications in early 2012 may be delayed, due to the amendment of the labour code.
  • Bear in mind that immigration application procedures may be subject to change in 2012.

This news alert was prepared using information provided by International Business Support s.r.o.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.