The Czech Republic is revolutionizing its labour law in 2025 with a series of employment law changes.  

These reforms aim to modernize the workplace, offering more flexibility for employees and streamlining processes for employers. Let’s take a look at the most significant updates shaping the Czech labour market this year.  

Expanding Your Business Into Czech Republic?

There are lots of opportunities for innovative companies like yours here. Find out the key elements of this exciting new market.

Learn More About Czech Republic

Greater Flexibility in Work Schedules 

Starting 1 January 2025, employees can now self-schedule their working hours to achieve a better work-life balance. Previously limited to remote workers, this option is now available to all employees.  

Agreements must be in writing detailing maximum shift lengths, mandatory breaks, and restrictions on night or weekend work. While, employers are still responsible for keeping accurate records, workers have more control over their working schedule. 

Key Changes for Hiring and Employment Contracts 

1. Longer Probationary Periods 

Employers now have more time to assess new hires. The probation period for standard employees has been extended from three months to four months, while in case of managerial positions has been increased from six months to eight months. This change gives both parties more time to ensure the right fit. 

2. Notice Period Starts Sooner 

The wait for the next month to begin the notice period is over. Now, it starts as soon as the termination notice is handed over, enabling faster transitions for both employees and employers. 

Financial and Compensation Updates 

1. Get Paid in Foreign Currency 

International employees with ties to other countries can now opt to be paid in foreign currencies, calculated using the Czech National Bank’s rates. This change is a win for global workers and employers alike. 

2. A Boost to the Minimum Wage 

The monthly minimum wage has been increased from CZK 18,900 to CZK 20,800. This increase reflects the government’s commitment to fair pay and keeping up with economic conditions. 

3. No More Guaranteed Wage in Private Sector 

As of 2025, employers and employees can negotiate wages directly, simplifying payroll systems, without observing guaranteed wage levels in the private sectors. 

Other Improvements

Enhanced Support for Working Parents 

Good news for parents: fixed-term contracts can now be extended indefinitely during parental leave, up to a maximum of nine years. Additionally, employees on parental leave can work for the same employer under separate agreements, even if it’s the same type of work as their main contract. 

Fully Digital Sickness Benefits 

Sickness insurance benefits have entered the digital age. Processes like family care, maternity and paternity leave, and compensatory allowances are now fully electronic, speeding up approvals. 

Expanding Your Business Into Czech Republic?

There are lots of opportunities for innovative companies like yours here. Find out the key elements of this exciting new market.

Learn More About Czech Republic

A More Adaptable and Employee-Friendly Future 

These updates represent a step towards a more adaptable and employee-friendly future for the Czech Republic. Whether you’re navigating new work arrangements or enjoying the advantages of simplified processes, the upcoming changes are set to reshape the employment experience. 

         

CareersAbout UsAnalyst Reviews & ReportsPartner with AtlasOur Global Impact

How We Help

Global Hiring & ExpansionConsulting & SupportMergers & AcquisitionsCountry ComplianceEmployee BenefitsTalent OnboardingExpense Management

Who We Help

Financial ServicesTechnologyLife Science & PharmaNon-Profit & NGOEnergy, Oil & GasPrivate Equity & VCStartup & Growing

Resources & Tools

Global Salary CalculatorGlobal Employee Cost CalculatorCountry InsightsCase StudiesReports & WhitepapersEvents & WebinarsBlog