Conceptual changes in provisions regarding vacation time and minimum wage and more than 80 additional proposed changes effective already from 1 July 2019…

...are brought by the draft amendment to the Labour Code presented by the Ministry of Labour and Social Affairs. It is a more modest act compared to the very ambitious but unsuccessful draft from 2016, but it is still worth our attention.


Changes in the regulation of vacation time
The current regulation of vacation time in the Labour Code has been considered unsuitable for a relatively long time. The newly proposed concept should include the right to vacation time expressed in hours; its calculation will depend on the employee’s working hours per week. In line with requirements arising from practice, it should be allowed to transfer vacation time exceeding the legally required four weeks to the next year. Changes will also affect the use of vacation time, its reduction in the event of unexcused absence etc.

Unfortunately, the amendment does not include an explicit regulation of working from home (home office). The Ministry of Labour and Social Affairs responds to the voices calling for the introduction of more modern principles that would bring greater flexibility to our labour market by introducing “job sharing”. This would refer to a set-up where two or even more employees share one job position and divide their working time themselves so that they cover the required working hours based on a written agreement between the employer and all the employees sharing the job position.

Another problem often encountered in practice has been the discrepancy in the deadlines related to the delivery of labour-law documents. The Labour Code should now be made compliant with the delivery conditions of the Czech Post, i.e. the period for picking up a letter stored at the post office (due to failure to deliver it personally to the employee) will now amount to 15 calendar days (instead of the current 10 business days). Employees will also be required to notify their employer in writing about any change of address where their employer can send documents to them.

Minimum and guaranteed wage
Another proposal concerns the introduction of a fixed mechanism for the valorisation of minimum wage (as well as the lowest levels of guaranteed wage). The objective of the proposal is to set up a valorisation mechanism so that the minimum wage is increased regularly and its amount can be estimated easily and in good time. According to the proposed amendment, minimum wage should amount to 0.548 times the average gross monthly salary in national economy for the calendar year before last (rounded up to the nearest hundred).

The article is part of dReport – November 2018, Tax news; Grants and investment Incentives.

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