Labour law and legal relationships with employees are among the fundamental areas which entrepreneurs encounter in their business activities. Given that this does not constitute their main income-generating activity, this area is sometimes neglected by entrepreneurs.

Employment Contract

It is generally known that the establishment of an employment relationship is founded on an employment contract between the employee and the employer. Written form is prescribed for the employment contract. Although failure to comply therewith does not result in the employment relationship not arising, it constitutes an offence by the employer. An employment relationship may therefore arise on the basis of actual activity consisting in the performance of dependent work by the employee for the employer. The employment contract must contain three essential elements, namely the type of work performed, the place of performance of work and the day of commencement of work. From a practical standpoint, however, it is advisable to pay more attention to employment contracts and, where possible, to tailor the relationship particularly to the given work position. If, however, the employment contract contains the three aforementioned elements and is concluded in written form, the employer will satisfy the basic statutory requirements.

Information Obligation Concerning the Content of the Employment Relationship

The Labour Code establishes further obligations of the employer which are connected with the establishment of the employment relationship. The employer must specifically inform the employee of the so-called content of the employment relationship. He is obliged to do so in writing, no later than one month from the establishment of the employment relationship (or always upon any change). These concern in particular the following obligations:

a) to state the name and surname of the employee and further the name and registered office of the employer, where the employer is a legal person, or the name, surname and address of the employer, where the employer is a natural person;

b) to communicate a more detailed description of the type and place of performance of work;

c) to communicate information on the length of leave, or alternatively indication of the method of determining leave;

d) to communicate information on notice periods;

e) to communicate information on weekly working time and its distribution;

f) to communicate information on wage or salary and the method of remuneration, due date of wage or salary, date of payment of wage or salary, place and method of payment of wage or salary;

g) to communicate information on collective agreements which regulate the working conditions of the employee, and designation of the contracting parties to these collective agreements;

h) to familiarise the employee with the work rules and with legal and other regulations for ensuring safety and health protection at work, which he must observe in his work, and with other internal regulations at the employer’s.

Most frequently, employers neglect to fulfil the obligations set out under letters b) more detailed description of the type of work, c) rules and extent of leave, d) information on notice period, e) distribution of weekly working time and h) familiarisation with internal regulations and rules on safety and health protection at work.

In the event that the employer fails to inform the employee of all facts concerning the content of the employment relationship within the time limit envisaged by law, he commits an offence for which a fine of up to CZK 2,000,000 may be imposed. The employer must demonstrate upon inspection that he informed the employee of the content of the employment relationship. For this reason, we recommend having the document containing the necessary information signed by the employee and keeping it together with the employment contract.

Mgr. Lukáš Barnet, advocate

This text was translated from Czech to English using an AI translator.