Czech Republic: The Flexinovela and its impact on employment documentation

1. Ban on confidentiality clauses regarding wages

• Employers can no longer prohibit employees from sharing information about the amount and structure of their wages.
• Violations can be sanctioned with a fine of up to CZK 400,000 (approx. EUR 16,000).

2. Changes to notice periods

• In legally defined cases, the minimum notice period is shortened from two months to one month. This applies, for example, to termination due to breach of duties by the employee or loss of qualifications for the job.
• In other cases, the notice period remains two months.
• However, the running of the notice period will also change, as it will now start from the actual delivery of the notice, rather than from the first day of the month following the delivery of the notice. This will effectively shorten the notice period in practice.
• These rules will apply only if there is no more favourable arrangement for the employee in the employment contract. For example, if the contract stipulates a longer notice period (e.g. three months) or states that the notice period begins on the first day of the calendar month following the delivery of the notice, this contractual arrangement will take precedence.
• In the case of terminating a large number of employees, the newly adjusted notice period may lead to increased administrative work, such as the need to carefully monitor when notices were delivered to each employee to accurately determine the end date of employment. For this reason, some employers may choose to adjust the notice period according to the previous legislation.

3. Changes to probation periods

• The Flexinovela extends the maximum length of probation periods. For regular employees, the maximum probation period is extended from three months to four months, while for managerial employees, it is extended from six months to eight months. This change provides employers with a longer period to assess an employee's suitability for the position.
• It is now possible for the employee and employer to agree to extend the probation period even during its term. This flexibility can be advantageous in cases where more time is needed to evaluate the employee's performance.

4. Abolition of mandatory initial medical examinations for non-risk jobs

• According to the new legal regulation, mandatory initial medical examinations for employees performing non-risk work (i.e. professions classified in the first category according to the Public Health Protection Act) will be abolished.

What is necessary or appropriate to do?

A) Review existing documents

• Check whether employment contracts or internal regulations contain a confidentiality obligation regarding wages.
• Verify how the notice period is regulated in the employment contract.
• Prepare contract amendments that remove the confidentiality clause regarding wages and, if necessary, adjust the notice period and its term according to the new legislation.

B) Update template documents and internal regulations

• Review and adjust these documents to comply with the new legal regulation, including, for example:
• adjusting the length of the probationary period (possible no earlier than the effective date of the Flexinovela);
• adjusting the length and term of the notice period (e.g. it can be adjusted by referring to the Labour Code or, conversely, according to the existing regulation);
• ensuring that the documentation does not contain a confidentiality obligation regarding remuneration;
• removing the obligation for employees to undergo an initial medical examination for non-risk work (if the employer has no interest in it).

C) Training of the HR department

• Inform the HR department about all legislative changes and ensure that the new procedures are correctly applied in practice.

Summary

We recommend conducting a comprehensive review and adjustment of employment documentation to ensure compliance with the new legislation effective from 1 June 2025, while taking advantage of all opportunities for greater flexibility. It is necessary to check the employment documentation to ensure that any confidentiality clauses regarding wages are removed. Additionally, employment contracts should be reviewed and the notice period and its term appropriately adjusted. The maximum length of the probationary period should be updated and other matters enabled by the Flexinovela (e.g. payment of wages in another currency under specific conditions) may also need to be adjusted. Finally, we recommend providing training for the HR department to ensure the correct application of these innovations in practice.

authors: Helena Hangler, Marie Gremillot