Dear clients and business partners,
As you may know from other sources, an amendment to the Labour Code known as „Flexinovela“ has been passed, which aims to make the labour market more flexible. The new legal rules will be effective from 01.06.2025.
What will change?
- Probationary period: a probationary period of up to 4 months (previously 3 months) can be agreed, and up to 8 months for senior staff (previously 6 months). If a shorter probationary period is agreed, it can be extended by agreement up to the legal limit.
- Notice period: the notice period starts from the date of delivery of the notice (until now only from the first day of the month following delivery). The notice period for notice for breach of duties and regulations (Section 52(f) to (h) of the Labour Code) is reduced to one month. The most debated point of the amendment was termination without giving a reason, but this is not part of the final version of the amendment.
- Payment of remuneration in foreign currency: Payment of remuneration in a foreign currency for which the CNB announces the exchange rate may be agreed, provided that the employee is an employee with a so-called “foreign element” (e.g. living abroad, foreign national).
- Prohibition of confidentiality of remuneration: An employer may not restrict an employee from providing information about his or her remuneration or remuneration structure.
- Abolition of compulsory medical examinations for non-hazardous professions: compulsory medical examinations for jobs falling under the first category of the Public Health Protection Act are abolished. These include e.g. administrative professions.
- Cancellation of severance pay in the event of termination due to loss of medical capacity as a result of a work-related injury or occupational disease: if the employment relationship is terminated due to loss of medical capacity as a result of a work-related injury or occupational disease, the employee is not entitled to severance pay. The employee shall be paid compensation from the employer’s compulsory insurance in lieu of severance pay at the same rate as the original severance pay (i.e. 12 times the employee’s average monthly earnings).
- Stronger position of parents: the guarantee of the same job (same workplace and work) now also applies to workers returning from parental leave, up to the age of 2. The employee may also continue to perform the same work for the same or another employer during the parental leave period, on the basis of a work performance agreement or a work activity agreement.
- Other changes: e.g. the possibility of more flexible prolongation of fixed-term employment relationships for an employee who is employed as a substitute for an employee on maternity, paternity or parental leave, or the performance of work by minors as young as 14 years of age during the summer holidays with parental permission
What needs to be done now?
We recommend employers to critically review and revise their standard template employment contracts. Many model employment contracts contain, more often than not redundant, reproductions of provisions of the current Labour Code. Particularly with regard to notice periods, now is the time to review and modify the wording so that is responsive to the upcoming legal changes.
We will be happy to help you with the implementation of changes in the daily operation of your company, so if you have any questions, please do not hesitate to contact us.