Changes impacting employment law in the Czech Republic in 2019
There have been two major changes to Czech Republic employment law proposed for 2019: an increase of the threshold for payment of health insurance, and the proposed amendment to the Opening Hours Act.
Increase of the Decisive Amount for Payment of Social Security and Health Insurance Contributions
As of 1st January 2019 the threshold for the payment of health and social security insurance was increased from CZK 2,500 (approx. €100) to CZK 3,000 (approx. €120) per month. The limit applies to remuneration paid on the basis of agreements on working activity (“dohoda o pracovní činnosti”). These are simplified forms of an employment contract, defined by Czech labour law.
If the income does not reach the amount of CZK 3,000 per month, the employer does not pay any premiums from the accrued income. Additionally, the employee does not pay any obligations towards the health and social insurance authorities.
Amendment to the Opening Hours Act
An amendment to the Opening Hours Act calling for wholesale shops to be open even during bank holidays has been approved by the House of Deputies. Shops within the shopping area that exceed 200 square metres are currently obliged to close during certain public holidays, according to Act No. 223/2016 Coll., on Opening Hours in Retail and Wholesale. The Act affects eight public holidays out of the total of 13. The new regulation is due to the wholesaler’s need to supply small retail shops (with the area under 200 square metres) that can be open during the bank holidays. The effective date of the amendment is suggested to be on the 15 day following its publication in the Collection of Laws.
Further Information
For further information or to discuss how the changes will affect your company, please contact Tereza Erényi on +420 221 430 111, tereza.erenyi@prkpartners.com.