Employment contracts

Employment contracts

(= pracovní poměr) there are two “versions” based on the number of hours you work weekly: there are full time contracts and part time contracts. Both these types give you good social security.

Full time (plný úvazek) employment contract

This is the most usual type of employment contract in the Czech Republic. The salary (= plat) or wages (mzda)  is expressed as a monthly gross income, not yearly as in some countries.

People usually work 40 hours a week (8 hours/day). After a maximum of 6 hours of work, you are entitled to and also obliged to a 30-minute break for taking a rest and a meal. Those 30 minutes can be split into shorter breaks, out of which at least one must be at least 15 minutes long. The thirty minutes are not included in the working hours and you cannot enjoy them at the beginning or the end of the workday, so actually the workday is 8.5 hours a day (including the break). 

You will also usually receive 4-5 weeks of paid leave every year. First¨, there is usually the probationary period (=zkušební doba). It can take a maximum of 3 months, or 6 months with a managerial position. If a contract is shorter than 6 months, the probationary period can be a maximum of half the length of the employment. If the contract is for 2 months, the probationary period can be a maximum of one month. During the probationary period, both the employer and the employee may decide to stop the contract without any notice or stating any reasons. After the probationary period one cannot leave the job immediately, but has to hand in a job termination statement (=výpověď). Usually a  two-month notice period starts to run on the first day of the month following its delivery to the employer. The job termination statement / or redundancy dismissal statement from the employer also has a two-month notice period.

The employment relationship may also end by mutual agreement, on which both the employee and the employer must agree. You have to pay health insurance, social insurance and taxes from your gross salary and the employer will automatically deduct the payments  for you. Moreover, the employer pays extra health insurance and social insurance fees for you which makes this type of an employment contract a very good choice for social security (and later also retirement pension, although this differs by the country of origin). You can also take sick leave (=nemocenská) and maternity leave (mateřská). Also, if you work long enough, you are entitled to unemployment benefits if you unfortunately lose the job.

Part time (“zkrácený úvazek”) employment contract

This contract is suitable e.g. for people caring for a young child, pregnant women or those caring for a disabled person. Unless there are serious operational reasons, the employer is obliged to comply with your request for reducing your contract from full time to part time.  For example, an employee works 4 hours a day, 5 days a week. Working conditions are the same as for full-time work: the employee is entitled to a proportionate share of the paid leave (=dovolená na zotavenou) and company benefits, and the employee is entitled to maternity or sick leave, as well as unemployment benefits.

Both of the above-mentioned contracts can be concluded either for an indefinite period (= na dobu neurčitou) or for a fixed-term (= na dobu určitou). The fixed term can be agreed upon for a maximum of 3 years and can be extended a maximum of 2 times, otherwise you either have to leave or the contract must be changed into a contract for an indefinite period.

Agreements outside employment contract

= Agreement on work performed outside the employment contract – “dohoda o pracích konaných mimo pracovní poměr”

These types of “work contracts” are called ‘Agreements’ (=Dohoda) because they have important limitations and, in many ways, provide less social security for the employee. However, they are very useful for jobs limited in the volume of hours, short-term or one-off jobs,  or for a job that one does concurrently with the main work contract or with one’s self-employment activities. One can usually have more of such contracts at a time, but although they may seem more advantageous for the short-term, having only these types of contracts for a long stay is often not an advantage for the employee.

Prior to concluding a ‘Work Agreement’ your current “main” employer – if you have one – should give you consent. It is not necessary if your  Agreement is to be done in a different field than your main job. There are basically two types of Work Agreements and they are commonly referred to as DPP and DPČ. We shall explain here what the abbreviations stand for and, most importantly, what the main difference between them is.

Dohoda o provedení práce (DPP) (Agreement about the execution of work)

DPP is most often used when hiring temporary workers for a one-time limited work task. This is due to the limit of 300 work hours per one calendar year with one employer, which does not mean, however, that you cannot have several DPPs at the same time, even with the same employer. The limit is, however, that the sum of working hours within all the DPPs with one employer does not exceed 300 work hours with the employer.

The advantage of DPP is that you do not have to pay health and social insurance if the gross income (before tax) is below CZK 10,000 per month. Once the income rises over CZK 10,000  to CZK 10,001, you are immediately obliged to pay social and health insurance. The disadvantage of DPP is that if you do not have any additional income or the state does not pay for health and social insurance (eg. you are on parental leave), you are obliged to pay for the health insurance yourself. Otherwise, you will be penalised for each day of the non-payment of the health insurance. However, social insurance is only voluntary. The tax is 15%, and it is a withholding tax, so the employer pays it for you. At the time of filing your taxes, if your yearly income is very low (e.g. you are a student), you can claim the tax back.

Dohoda o provedení činnosti (DPČ) (Agreement about the execution of activities)

DPČ is suitable for larger-scale cooperation. The volume of work must not exceed half of the employer’s weekly working hours, eg 40 hours of the full-time, ie. DPČ is for a maximum of 20 hours / week. You are not entitled to wage compensation if the employer does not currently have any work tasks for you. Neither are you entitled to paid leave or company benefits, unless you have agreed on them explicitly in the Agreement. However, you already pay social and health insurance and income tax in this contract. If your income exceeds 3,000 CZK, you have to pay social and health insurance. Also, the employer pays extra health and social fees to the Government for you that will not be visible on your payroll.

Comparison table (DPP x DPČ)
InstituteDPPDPČ
Originwritten contractwritten contract
Requisitestype, scope, remuneration, duration of worktype, scope, remuneration, duration of work
Rangemax 300 hours /max on average 20 hours / week
 calendar year
Health and social insurancewith remuneration over CZK 10,000 / monthwith remuneration over CZK 3,000 / month
 Termination 
By agreementYesYes
Notice periodyes / 15 daysyes / 15 days
Immediate cancellationmust be agreed / only reasons according to lawmust be agreed / only reasons according to law
By obstacles at workcan be arranged / according to lawcan be arranged / according to law
Comparison table of employment contract and DPP/DPČ

 

 Employment contractDPPDPČ
Originwritten form, but lack of written form does not mean invaliditywritten form, otherwise it is valid, but the employer can be finedwritten form, otherwise it is valid, but the employer can be fined
Mandatory

requisites

type of work, place of work, day of commencement of worktype of work, scope

of work, remuneration, duration

type of work, scope

of work, remuneration, duration

Contractual naturecontent defined by laws and regulationsthe content is contractually definedthe content is contractually defined
Scope of working hoursmax 40 hours / weekmax 300 hours per

calendar year

max on average

20 hours / week

Remunerationincome higher than the minimum wageincome higher than

minimum wage / hour

income higher than

minimum wage /hour

Health and social insurancethe employer always payswith income over CZK 10,000 / monthwith income over CZK 3,000 / month
Close

Write us a message

Write us more about the company you want to add.

Any other needs?
Contact us

Contact