The Labour Code (Section 29)

The Labour Code (Section 29)

Czech law recognizes two forms of full employment contracts, indefinite, open-ended contracts, and fixed terms. However, there are other forms that are practised, including:

Indefinite, Open-ended Employment Contracts: Where an end date has not been contractually agreed. They can be terminated by agreement. The employee can terminate for any reason; the employer can terminate only for reasons set out in the Labor Code.

Fixed-term Employment Contracts: A fixed-term contract cannot exceed three years and can be renewed only twice for a maximum of nine years covering all three terms. If there is a gap of more than three years between fixed-term contracts between the same employer and employee, the sequence is broken. There can be an exception to the ‘three contracts’ rule where an employee’s fixed-term contract is specifically for summer seasonal work.

Executive Services Agreement: Contractually, executives form an Executive Services Agreement with their employer, with different obligations and liabilities to a regular employee.

Probation Periods within Employment Contracts: Both open-ended and fixed-term contracts can include the terms of a probationary or trial period. The maximum is six months for managerial staff and three months for others. Probation periods cannot be extended even if they were originally agreed to be less than three or six months.