A fundamental change brought by the amendment is the modification of the mechanism for increasing the minimum wage. The minimum wage will no longer be set on an annual basis by governmental decree. Instead, the Labour Code should introduce an indexation mechanism that will be linked to a forecast of the average wage in the national economy and to a coefficient indicating the purchasing power of the minimum wage relative to the cost of living. The coefficient will be set by the governmental decree for a period of two years. By 31 August of every year, the Ministry of Labour and Social Affairs should announce its forecast of the average wage in the national economy, and by 30 September, the monthly and hourly minimum wage for the following calendar year.

The guaranteed wage concept, now setting minimum wages according to the complexity, responsibility and difficulty of the work performed, will be done away with entirely. Only guaranteed salaries for public sector employees will remain, with four levels instead of the current eight. The guaranteed salary will be derived from 1 to 1.6 times the minimum wage.

The proposed amendment also introduces the self-scheduling of working hours by employees, which had been originally envisaged by the Flexinovela amendment. For both salaried employees and workers under agreements to perform work (outside of employment), self-scheduling will be possible based on a written agreement between the employer and the employee from 1 January 2025, and apply to both teleworking and work performed at the employer's workplace. When scheduling their hours, employees will be obliged to comply with the shift lengths, rest periods, and average weekly working hours set by the employer. For the purposes of vacations, impediments to work, or travel, a fictitious working hours schedule will apply, which the employer shall determine in advance. Agreements on the self-scheduling of working hours may be terminated in writing at any time without giving any reason, subject to 15 days’ notice.

The amendment also deals with several trade union organisations being active at one employer. If the trade unions cannot agree on a common procedure for collective bargaining, the employer may conclude a collective agreement with one or more of the trade unions with the largest number of members in the employer's workforce. The other trade unions shall have the right to discuss the draft collective agreement with the employer.

Other changes include the abolition of the employer's obligation to draw up a written vacations schedule, which should reduce the administrative burden on the employer. It will also now be possible to negotiate remuneration under an agreement to perform work or under an agreement to carry out a job while considering possible night work, work in a difficult working environment, or work on Saturdays and Sundays. Changes are also to be made to the regulation of work in healthcare - the amendment should allow for a reduction of the number of hours of uninterrupted rest per week, and introduce supplemental pay for increased workloads in healthcare.

Should the government's goal of passing the amendment through the legislative process in July be met, it will become effective from 1 August this year.

Barbora Cvinerová bcvinerova@kpmg.cz   

Tereza Fojtů tfojtu@kpmg.cz