Labor Law
Employment Contract
The employment contract between the employer and the employee must be set forth in writing. The employee must have received a copy of the employment contract before starting work.
For the employment contract to be valid, it must include the following information:
- The names and addresses of both parties to the contract
- Start date of the employment relationship
- Nature of the work
- Place of work
Since 2023, the employer has had a duty to provide information. Unless already included in the employment contract, the employer must provide information on the following points within 7 days of the employee’s start date:
- the duration of annual leave
- Notice periods for termination of employment
- agreed weekly working hours
- the amount of pay and when it is due
- the procedure for terminating the employment relationship
A probationary period must also be specified in the employment contract. It may last a maximum of 4 months (6 months for management positions). A probationary period must be agreed upon no later than the first day of employment. A probationary period cannot be established at a later date.
An employment relationship can be either indefinite or fixed-term. A fixed-term employment contract does not end upon termination but “automatically” upon the expiration of the term for which it was entered into.
The duration of the fixed-term employment relationship must be specified in writing in the employment contract. It may not exceed three years and may be extended twice. If the employment relationship is to continue thereafter, a permanent employment contract must be entered into.
Payment
In the Czech Republic, wages are divided into two categories depending on the type of employer:
- Wages (private and commercial sectors): The amount of wages is determined by an employment contract, an internal policy, or an industry-wide collective bargaining agreement. Aside from the minimum wage, there are no other government-mandated regional wage rates. It therefore depends exclusively on mutual agreement, standard practice, professional competence, and market demand.
- Salary (public and government sectors): The amount of the salary is strictly determined by the government through salary scales (which take education and experience into account) and by the so-called “guaranteed salary,” which is divided into four groups based on the difficulty of the work performed.
Minimum Wage
In the Czech Republic, there is a minimum wage for full-time work (which generally means 40 hours per week). The minimum wage is adjusted regularly and is mandatory for all employers. As of January 1, 2026, the minimum wage is 22,400 korunas per month. This corresponds to an hourly wage of 134.40 korunas.
Paystub/Pay Certificate
Employers are legally required to issue a pay stub/pay statement (proof of wage calculation). This statement provides a detailed overview of how the net pay was calculated. In most cases, employees receive this pay stub/wage statement in paper form or via a secure electronic system. The pay stub/wage statement must include the following:
- Base pay (gross).
- Hours worked and vacation records.
- If applicable, overtime, premium pay (for night, weekend, and holiday work), bonuses, and incentives.
- Breakdown of tax withholdings, social security contributions, and health insurance premiums.
- Any other wage deductions (e.g., wage garnishments, meal allowances).
- The resulting net pay due.
Taxes and Social Security Contributions
Taxes and mandatory contributions are deducted from the gross pay. The employer is responsible for all payroll administration and remittance to the government. Employees therefore receive their net pay in their bank accounts.
Frequency and Method of Payment
In the Czech Republic, wages and salaries are paid once a month in arrears (for example, payment for work performed in April is received at a predetermined time in May). The most common, safest, and—for medium-sized and larger companies—often the only option is a direct deposit into the employee’s bank account. Although cash payments are permitted by law, in practice they occur only in exceptional cases.