Working in Czechia? New labor laws will change how you get hired, paid, and let go

Both houses of the Czech parliament have recently passed a major change to the country’s Labor Code, which will affect how locals and foreigners work in the country. Dubbed the “flexible” work amendment, the changes aim to modernize employment regulations and increase labor market adaptability.

For expats in Czechia, the changes will affect aspects like probationary periods, notice periods (for dismissals and resignations), payments in foreign currency, flexible shift patterns, and more. Awaiting presidential signature, the new law will take effect in June 2025. Here’s everything you need to know.

Under the new amendment, the probationary period for standard (non-managerial or executive) employees will increase from three to four months.

The probation period will extend from six to eight months for managerial or senior-level positions. The government says this adjustment gives employers more time to assess new hires but also delays job security for foreign workers, who often depend on stable employment for visa status.

In a shift that will make it easier for employers to let go of employees (and for workers to start a new job sooner), the notice period will begin immediately upon delivery of the termination notice—no longer on the first day of the following month. 

This clarification eliminates uncertainty and could provide a more predictable exit timeline. In cases of dismissal for serious breaches, the notice period may be shortened to one month.

Here’s a hypothetical example to understand it more easily. Under the old system, quitting or being fired on July 9 meant your two-month notice didn’t start until August 1. Now, it begins immediately—on July 9.

This topic was probably the most controversial in the months-long buildup to the Labor Code change. Two coalition parties had previously pushed for a proposal to allow employers to terminate employees without providing any reason whatsoever.

However, strong opposition from trade unions and the public led to its exclusion from the bill’s final version. Employers must now always give a reason when dismissing an employee.

Josef Středula, head of the ČMKOS umbrella trade union, praised the decision, stating that removing protection against arbitrary dismissal would be “a return to the 19th century.”

In a positive development for expats, employees with personal ties to other countries will be able to receive their salaries in a foreign currency. 

Those who work abroad but for a Czech company, live near the border to a different country, are cross-border workers, have family abroad, or have “demonstrable ties to a foreign country” will have the option to be paid in the common currency.

The payment must be in a currency for which the Czech National Bank publishes an official exchange rate, allowing greater flexibility for international workers managing finances across borders.

Employees, including those working on-site, will now be allowed to schedule their own working hours into shifts, provided there is a written agreement with their employer. 

Previously, this was primarily permitted only for remote workers. This change offers greater autonomy for expat employees who may require flexible hours due to time zone differences or personal obligations.

Unemployment benefits will become more generous at the outset but taper off more steeply over time. In the initial months, compensation will rise from 65 percent to 80 percent of a person’s average net earnings. The rate will drop from 45 percent to 40 percent toward the end of the benefit period. The qualification period to attain benefits will also be lengthened from six to nine months of work and contributions.

Notably, people over 52 will be eligible for longer benefit periods, and those undergoing retraining will receive an elevated benefit of 80 percent of previous earnings. These changes will come into effect in January 2026.

The amendment strengthens job security for working parents. Employers will be required to hold the original job position for employees on parental leave until the child turns two. This measure benefits expat parents seeking stability while balancing family life in a foreign country, the state says. 

Expat parents, take note. The new amendment will now allow 14-year-olds to work part-time during summer holidays with parental consent. While this change is primarily aimed at Czech youth, it aligns with broader efforts to liberalize the labor market and could apply to expat families with teenage children.

In cases of long-term loss of work ability due to a job-related accident or illness, severance pay will now be covered by the employer’s liability insurance instead of the employer. This compensation will be at least 12 times the employee’s average monthly wage.

Only Kooperativa and Generali Česká pojišťovna currently offer this insurance. Until now, employers had to cover this high cost themselves. The change aims to better use insurance funds that often go unused and return to the state budget.

The flexible labor code amendment passed the Senate with overwhelming support—66 out of 74 senators voted in favor. The government says that it wants to increase flexibility for both employees and employers.

“This is a victory for workers’ rights,” said ČMKOS spokesperson Denis Drahoš. “We remain committed to ensuring fair treatment and security for all employees in the Czech Republic.”