Investor Presentaiton
The employer is being liquidated or
is ceasing to carry on business.
- The employer is relocating.
― The employer is undergoing
organisational changes.
- The employee has committed
a serious disciplinary breach.
Where an employment contract is terminated
for any of the reasons under points 1 to 3, the
employer is obliged to pay the employee up to
three months' severance pay depending on the
duration of the employment relationship.
Specific termination conditions apply in re-
spect of temporarily disabled employees, preg
nant women and employees caring for minors.
Specific termination conditions, severance pay
rules and other conditions may also be includ-
ed in a collective agreement, if in force.
During the trial period, the employment con-
tract may be terminated by either side for any
reason, or without any reason being given.
Employment agencies
An alternative to employment contracts is
agency employment.
An employment agency provides its clients
with human resources, without the clients hav-
ing to conclude employment contracts with the
employees. Even though this option is more ex-
pensive, it provides flexibility in the allocation
of human resources.
Mass layoffs
If an employer terminates the employment re-
lationships of a certain number of employees
as defined in the Labour Code, for the specific
reasons set out above under points 1 to 3, with
in a period of 30 calendar days, this is consid-
ered a mass layoff and special conditions, such
as a notification obligation to the Labour Office
and unions, apply.
Trade unions
Unions can be formed freely and neither the
state nor any other subject can restrict their
formation.
Trade unions engage in collective bargaining
at a national level. A tripartite council including
representatives from trade unions, employers
and the government meets annually to discuss
labour issues.
The role of trade unions in the Czech Republic
is to formulate and assure the labour, economic
and social interests of employees. The aim is to
reach an agreement with the employer based
on the collective bargaining.
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