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Czech Republic

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Currency

Kč (CZK)

Work Hours

40/week

The Czech Republic (sometimes known informally as Czechia) is in the heart of Europe, bordering Germany, Austria, Slovakia, and Poland. It was united with its neighbor Slovakia in a single country, Czechoslovakia, from 1918 until 1993, when Czechoslovakia peacefully split into two separate countries. The Czech Republic developed quickly, earning investment-grade credit ratings from the major rating agencies by the mid-1990s, the first formerly Communist country to reach this milestone. The Czech people have long been known for their mechanical skills and engineering proficiency. Vehicle production is the largest industry in the country. Machinery, glass, and chemicals are among the country’s many other industries. Efforts are underway to diversify the economy and continue the expansion of the country’s growing service sector.

Employment contracts in the Czech Republic must be written and contain the parties' agreement. Employers can hire employees on a full-time employment contract. Part-time employment contracts must specify the hours to be worked. Fixed-term contracts are capped at three years and cannot be renewed more than twice. Seasonal and casual employment contracts are for a specified short period of time.

The standard work week in the Czech Republic is 40 hours. The workday is capped at nine hours. Overtime is capped at eight hours a week or 150 hours a year and is paid at 125% of the standard rate.

Employees are entitled to 14 days of sick leave in the Czech Republic paid by the employer at 60% of their average earnings. If the employee is sick for more than 14 days, they may be eligible for a social security illness benefit. Employees may take carer’s leave to care for a close relative who is sick and requires assistance.

Female employees receive 28 weeks of maternity leave in the Czech Republic at 70% pay with at least six weeks before the birth. This increases to 37 weeks for multiple births. Male employees receive two weeks of paternity leave.

The Czech Republic has a minimum wage. Bonuses are common with a customary 13th-month bonus paid as well as performance-based compensation.

Employees receive four weeks of annual leave in the Czech Republic, but a collective bargaining agreement can require longer leave.

In the Czech Republic, the public holidays are:

  • New Year's Day

  • Restoration Day of the Independent Czech State

  • Good Friday

  • Easter Monday

  • Labor Day

  • Victory Day

  • Day of Slavonic Prophets Cyril and Methodius

  • Jan Hus Day

  • Day of Czech Statehood

  • Day of Establishment of the Independent Czechoslovak State

  • Day of the Struggle for Freedom and Democracy and Independent Student Day

  • Christmas Eve

  • Christmas Day

  • St. Stephen's Day

The Czech Republic has universal healthcare which is funded by employer and employee contributions.

In the Czech Republic, the probation period is three months and the notice period is two months. Severance pay depends on years of service and could be higher due to a collective bargaining agreement. Employers can terminate employment through mutual consent by agreeing on an end date and the employer giving a written reason. Employers can terminate employment by providing written notice with a reason. If there is no written reason, the termination is not valid. Employees can terminate their employment with immediate effect if they provide clear written reasons. Employers can terminate employment when casual work or a project is completed.

  • Local Laws & Regulations

    We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Czech Republic can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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