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Basic rules of employment


The Labour Code (Act 262/2006 Coll) regulates all legal relations in the Czech Republic arising in connection with the performance of dependent work between employees and their employers.

Foreigners who will be or are employed at UCT Prague are also subject to the provisions of the Act on the Residence of Foreigners in the Territory of the Czech Republic (Act No. 326/1999 Coll.) and the Act on Employment (Act No. 435/2004 Coll.).

Foreigners who are nationals of the EU/EEA and Switzerland have to comply with the EU coordination rules that coordinate different national health and social security systems.


Types and Provisions of Labour Relationships

According to the Czech Labour Code, the following types of Labour Relationships can be concluded: 

  • Employment Relationship (Pracovní poměr “PP”)
    1. Contract for an indefinite period
    2. Contract for fixed-term period
  • Agreements on work performed outside the employment relationship
    1. Agreement on Work Activities (DPČ)
    2. Work performance agreement (DPP)

A labour relationship must be concluded in writing and must include identification data of the contracting parties, type of work performed (job description), place of work, and date of commencement of employment. According to the type of labour relationship, the relevant career/employment position is assigned as well as the amount of remuneration for work, the duration of the employment relationship, and the scope of weekly or monthly working hours. It can also include a trial (probationary) period with a maximum of 3 consecutive months for regular employees. Each contracting party must receive one copy of the relevant employment contract or agreement.


1.a) Employment Contract for a Fixed-Term (definite) period (“Pracovní smlouva na dobu určitou”)

This type of contract is concluded for a specific time period. Generally, it can be concluded for a maximum of 3 years and it is only possible to prolong such a contract twice (maximum length 3x3 years).

The employer pays monthly obligatory contributions to the social security and health insurance premium in the amount of 33.8 % of the gross salary.

If the employee signs the Declaration to personal income tax (“Prohlášení k dani z příjmu”), a payroll accountant applies a tax relief on monthly income tax advances.

Each employee with this type of employment contract is entitled to their annual leave (or its share according to the hours worked), to the provision of public health care, paid sickness, maternity, paternity and parental leave in the Czech Republic. The employee is covered by the social security system of the Czech Republic for the duration of their employment contract.

After the termination of this type of employment contract, EU/EEA and Switzerland nationals are covered by the social security and health insurance system according to the rules of EU Social Security Coordination.

Third country nationals are entitled to social security benefits and health insurance in the Czech Republic only within the duration of their employment contract with UCT Prague. Several agreements on social security are concluded between the Czech Republic and third countries that stipulate additional social security benefits provided after termination of the employment contract in the Czech Republic. An overview of the bilateral agreements and their scope are available on the web page of Ministry of Labour and Social Affairs.


1.b) Employment Contract for indefinite period ("Pracovní smlouva na dobu neurčitou")

This type of contract is concluded for an indefinite period. All other provisions remain the same as in the previous point 1.a.


2.a) Agreement on Work Performance ("Dohoda o provedení práce" or "DPP")

The scope of work may not exceed 300 hours per employer in one calendar year.

Remuneration is paid monthly based on the number of hours worked multiplied by the relevant hourly rate. If the remuneration is less than or equal to 10 500 CZK per month with only one employer, the employer does not contribute to the employee´s social security and health insurance premium. The employee is  entitled to working leave but not for other benefits as they are not participating in the social security and public health insurance system.  

2.b) Agreement on Work Activity ("Dohoda o pracovní činnosti" or "DPČ")

The scope of work must not exceed a weekly maximum of half of the specified weekly working hours (20 hours).

If the monthly remuneration is equal to or lower than 3 999 CZK, the employer does not contribute to the employee's social and health insurance premium. If the monthly remuneration is equal to or higher than4 000  CZK, the employer contributes to social and health insurance system and the employee participates in a public health insurance system and they can claim social security benefits.

Glossary - Slovník pojmů




Labour Code

Zákoník práce

Labour relations

Pracovněprávní vztahy





Employment relationship

Pracovní poměr

Employment contract

Pracovní smlouva

Trial (probationary) Period

Zkušební doba

Fixed-Term (definite period) Employment Relationship

Pracovní poměr na dobu určitou

Employment relationship for an indefinite period

Pracovní poměr na dobu neurčitou

The place of the job performance

Místo výkonu práce

Employer´s worksite

Pracoviště zaměstnavatele

Notice of termination in respect of an employment relationship

Výpověď z pracovního poměru

Agreements on work performed outside an employment relationship

Dohody o pracích konaných mimo pracovní poměr

Agreement on Work Performance

Dohoda o provedení práce „DPP“

Agreement on Work Activity

Dohoda o pracovní činnosti „ DPČ“

Remuneration pursuant to an Agreement

Odměna z dohody

Weekly working hours

Týdenní pracovní doba



Wage tariff (sometimes salary rate)

(= the part of the wage stated in the wage regulation)

Mzdový tarif (platový tarif)

(= část mzdy určená mzdovým předpisem)

(Wage) tariff class (e.g. A1, V1, B1...)

(mzdová) tarifní třída (např. A1, V1, B1...)

Pay Statement

Mzdový výměr

Job description

Pracovní náplň

Annual leave

Dovolená za kalendářní rok

Sick leave

Pracovní neschopnost


Updated: 11.4.2024 16:20, Author: Anna Mittnerová

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