The past year has brought several important changes in the employment area. Most of the new developments are already in force, but for some we had to wait until the beginning of 2025. However, some important changes are still not in force, nor have they been approved. Also due to considerable media support, part of the public is confused, and unexpected situations may arise. Below is a summary of the most important changes.
Changes in the area of “DPC/DPP” agreements
From 1 July 2024, a new notification obligation applies to employers who employ persons on the basis of “DPP” agreements (agreement to perform work; a special type of zero-hour agreement). These employers must now register all employees working based on a DPP agreement (i.e. regardless of whether they are eligible for payment of the statutory contributions) with the relevant authority and submit regular reports regarding the number of such employees, including their identification, and the amount of their income for the given calendar month. This obligation still applies.
There was also rather complex regulation for so-called notified and non-notified DPP agreements adopted, introducing different statutory contribution thresholds depending on which employer “booked” the DPP agreement employee first.
This regulation was supposed to be effective from 1 January 2025 but was eventually abolished at the end of the year and replaced only by an increase in the threshold for payment of statutory contributions to 25% of the average wage,
i.e. CZK 11,500 in 2025 (approx. EUR 455), which applies to all DPP agreements from 1 January 2025.
For “DPC” agreements (agreement on working activity; another type of zero-hour agreement), the important change is the increase in the threshold for paying statutory contributions from CZK 4,000 to CZK 4,500 in 2025 (approx. EUR 178).
Employee self-scheduling of working time
From 1 January 2025, it is officially possible to agree in writing with an employee (both in an employment relationship and on “DPP” / “DPC” agreement) that the employee will schedule their own working hours, subject to the basic restrictions of the Labour Code.
Changes to the taxation of employee benefits
In 2024, an aggregate annual limit of half of the average wage (CZK 23,278 for 2025; approx. EUR 922) has been introduced for the exemption of so-called leisure-time employee benefits.
Now, in 2025, health benefits have been excluded from this regime and its own exemption limit up to the average wage (CZK 46,557 for 2025; approx. EUR 1844) has been introduced. The health benefits might include, for example, the purchase of goods and services of a medical, therapeutic or hygienic nature or the purchase of medical devices on prescription.
Both above limits are considered separately.
The (still) upcoming “flexi-amendment” of the Labour Code
Last year, the so-called flexi-amendment to the Labour Code should have been adopted, with effect from 1 January 2025 and was to bring about a significant streamlining of employment relations.
The Flexi-Amendment has not yet been adopted and so none of the changes listed below are yet in force.
The proposed changes include in particular:
- Extension of the maximum duration of the probation period (up to 4 months, 8 months for managerial employees); in addition, the probation period can be extended after it starts;
- The notice period will start from the date of delivery of the notice, and also, in case of breach of duties or failure to meet requirements, the statutory notice period will be reduced to one month;
- Certain groups of employees can be paid in foreign currency;
- The employer will be obliged to guarantee employees on parental leave the same job until two years of their child’s age; and
- A special compensation financed by employers’ insurance for employees who lose their jobs due to occupational accidents or diseases.
Based on the latest information, these changes can be expected to take effect in spring 2025 at the earliest.
However, significant changes may occur during the legislative process. We are monitoring the legislative process and will keep you informed of the final proposal.
By Radek Matou, Partner, and Ondrej Sudoma, Counsel, Eversheds Sutherland