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Changes to agreements on work performed outside an employment relationship

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With the amendment to the Labour Code, the majority of which entered into force on 1 October 2023, there have been, among other things, changes in the area of agreements on work performed outside the employment relationship - i.e. agreement to complete a job (DPP) and agreement to perform work activity (DPČ). For practical reasons, the part of the amendment introducing entitlement to leave from work for employees working on the basis of agreements to complete a job and agreements to perform work activity will not come into force until 1 January 2024. The main changes in the area of agreements to complete a job and agreements to perform work activity

  • Working time scheduling
    • The employer is obliged to schedule the working time in advance in a written working time schedule and to inform the employees working on the basis of agreements to complete a job and agreements to perform work activity about the schedule or its changes at least three days before the beginning of the shift or period, for which the working time is scheduled (unless the employer agrees with the employee on a different time of informing).
  • Obstacles to work
    • Employees working on the basis of agreements to complete a job and agreements to perform work activity have the right to use all work restrictions. However, compensation of remuneration from the agreement for the duration of other important personal obstacles to work (e.g. medical examinations, wedding, birth of a child, etc.) and obstacles to work for reasons of general interest (e.g. performance of a public function or civic duty) is only due to these employees if the employee and the employer so agree or an internal regulation so provides.
  • Employment in an employment relationship
    • Employees working on the basis of agreements to complete a job and agreements to perform work activity have the right to apply in writing to the employer for employment if their legal relationship based on agreements to complete a job and agreements to perform work activity has lasted at least 180 days in the previous 12 months in total with the employer. The employer is obliged to provide the employee with a reasoned written reply within one month at the latest.
  • Informing about the reasons for termination
    • The employer is obliged to inform the employee in writing without undue delay of the reasons for termination of the agreement to complete a job and agreement to perform work activity, if the employee considers that the termination was given due to exercising some of his/her rights under the Labour Code (e.g. the right to be informed of the content of the legal relationship based on agreement to complete a job and agreement to perform work activity, the right to advance scheduling of working time, the right to professional development, the right to employment in an employment relationship), and if within one month from the date of delivery of the employer’s notice the employee request in writing the reasons for the notice.
  • Obligation to provide information
    • The employer’s obligation to inform the employee about the content of the legal relationship based on agreements to complete a job and agreements to perform work activity shall apply. If such information is not directly contained in agreements to complete a job and agreements to perform work activity, the employer is obliged to inform the employee in writing, e.g. about the amount of leave and the method of determining the length of leave, the duration and conditions of the probationary period (if agreed), the procedure for termination of the employment relationship and the length and duration of the notice period, professional development, the competent social security body, etc., no later than within 7 days from the date of commencement of work. The employer must inform the employee in writing of any changes to this information without undue delay, but no later than the date, on which the change takes effect.
  • Compensatory leave and additional payments
    • The employer is obliged to provide employees working on the basis of agreements to complete a job and agreements to perform work activity with compensatory time off for work on public holidays and additional pay for work on Saturdays and Sundays, night work and work in difficult working environments.
  • Leave from work
    • Employees working on the basis of agreements to complete a job and agreements to perform work activity will have the right to take leave from work from 1 January 2024. Entitlement to leave accrues to workers under such agreements under the same conditions as to employees in an employment relationship. For these purposes, the calculation of leave will be based on such an employee’s working week being 20 hours per week. I.e. for an employee working on the basis of agreements to complete a job and agreements to perform work activity with 4 weeks of leave per calendar year, the leave will reach 80 hours (20 x 4 = 80).

Changes resulting from the consolidation package

Further changes for employees working on the basis of agreements to complete a job and agreements to perform work activity will also be brought about by the tax package, which was approved by the Senate on 8 November 2023. It is now awaiting the President’s signature. We have previously written about the specific changes that the package should bring for contract workers here.

The most significant change will affect the participation in sickness insurance for employees working on the basis of an agreement to complete a job. The current fixed threshold of CZK 10,000 for premium payments is being abolished. The new threshold will be based on the average wage and will vary depending on whether the employee works on an agreement to complete a job for the same employer (25% of the average wage) or for different employers at the same time (40% of the average wage).

If you would like to know more about the changes to agreements for work performed outside the employment relationship or to review these agreements directly in light of the changes described above, please do not hesitate to contact our team of experts.

Author: Veronika Odrobinová, Michaela Šumavská