Beware of Incorrect Holiday Entitlement Calculations for Agreements to Complete a Job/Perform Work

Why is leave for agreement workers such a major topic from 2024?

It is crucial to realize that these new rules do not only apply to newly concluded agreements. They apply without exception to all existing and future DPPs and DPČs, effective from January 1, 2024. Therefore, you cannot rely on previously signed contracts being exempt from this obligation. For employers, this means only one thing: it is necessary to revise their internal processes immediately.

This change is not just a minor adjustment; it represents a fundamental shift in the understanding of work based on agreements. Along with other new obligations, such as the duty to schedule working hours in writing, provide supplements, or fulfill an extended information duty, these agreements are becoming a complex labor law relationship. The era of simple and undemanding administration for agreements has thus definitively ended.

When does your employee on an agreement become entitled to leave? Two conditions you must monitor

For an employee working on an agreement to become entitled to paid leave at all, they must simultaneously meet two key conditions with one employer in a given calendar year. It is not enough to meet just one of them; the law requires the cumulative fulfillment of both.

Condition #1: Duration of the agreement

The labor law relationship based on an agreement (DPP or DPČ) must last continuously for at least 4 weeks, i.e., 28 consecutive calendar days, with the given employer. It is important that the duration of the contract itself is assessed, not whether the employee actually worked on each of these days. If multiple agreements (including a combination of DPP and DPČ) immediately follow one another with the same employer, their durations are added together for the purpose of this condition and are considered a continuous relationship.

Condition #2: Time worked

The employee must work at least 80 hours in the relevant calendar year. This limit is based on the rule of "four times the notional weekly working time," which is set at 20 hours per week for leave purposes (4 x 20 = 80).

Let's imagine some simple scenarios:

• A student has a DPP for a period of 6 months but works only 70 hours. They will not be entitled to leave because they did not meet the second condition.

• A temporary worker works 120 hours on an intensive three-week project. Although they have worked enough hours, they will not be entitled to leave because their agreement did not last for at least 28 days.

Attempting to evade these obligations by artificially stringing together contracts for periods shorter than 28 days is very risky. Such a practice can be assessed by the labor inspectorate as circumventing the law with the aim of depriving an employee of their rights, which can lead to penalties.

Leave is just one of the obligations associated with these agreements—you can find a complete overview of limits, levies, and reporting duties in the article rules for agreements on work performance in 2026.

Our Prague-based lawyers at ARROWS will help you set up contractual relationships to be flexible, yet legally sound and defensible in the event of an inspection.

How to correctly calculate leave in hours? A practical guide and the key rounding rule

The calculation of the leave entitlement itself may seem complicated, but if you follow the correct procedure, it is logical and straightforward. The entire mechanism is based on several solid pillars defined by the Labour Code.

Step 1: The notional weekly working time is always 20 hours

The cornerstone of the entire calculation is the so-called notional weekly working time. For the purpose of calculating leave for agreement workers, the Labour Code stipulates that the calculation is always based on a weekly working time of 20 hours. It is completely irrelevant what the employee's actual scope of work is—whether they work 5 or 15 hours a week, this notional value is always used for the calculation.

Step 2: Determine the number of full "weeks worked"

In the next step, you need to find out how many full multiples of this notional working time the employee has worked. You can achieve this by simply dividing the total number of hours worked in the calendar year by 20. Only the whole number is used for the subsequent calculation; the remainder is disregarded.

• Example 1: An employee on a DPP worked 300 hours during the year. Calculation: 300÷20=15. For the leave calculation, we will therefore use 15 full weeks worked.

• Example 2: An employee on a DPČ worked 416 hours during the year. Calculation: 416÷20=20.8. For the leave calculation, we will use 20 full weeks worked.

Step 3: Apply the calculation formula

You can now proceed with the actual calculation using the statutory formula, which takes into account the number of "weeks" worked, the employer's annual leave allowance, and the notional working time.

The formula is:

Number of full weeks worked ÷ 52 × annual leave allowance (in weeks) × 20

Let's apply the formula to our first example with 300 hours worked and a standard 4-week leave allowance:

15 ÷ 52 × 4 × 20=0.28846×4×20=23.0769 hours

Step 4: The golden rule – always round up!

This is the most critical and error-prone point in the entire process. According to Section 216(5) of the Labour Code, the resulting leave entitlement in hours is always rounded up to the nearest whole hour. It does not matter how small the decimal remainder is.

• A result of 23.0769 hours is therefore rounded up to 24 hours of leave.

• If the result were 21.01 hours, it would be rounded up to 22 hours.

• If the result were 30.77 hours, it would be rounded up to 31 hours.

Using standard mathematical rounding rules is a gross error and a clear violation of the law, which the labor inspectorate will not forgive during an inspection.

Errors in leave calculation and how to prevent them

The new legislation brings a number of pitfalls that can lead to financial losses and legal disputes. In the following table, we summarize the most common risks and show how experts from ARROWS can help you with them.

DPP vs. DPČ: Do you know the key difference in the impact of leave on work limits?

At first glance, it may seem that the rules for leave are identical for both DPP and DPČ. However, there is one crucial, often overlooked nuance that has significant practical implications for monitoring the statutory limits of time worked.

Let's recall the basic limits:

• For a DPP, an employee can work a maximum of 300 hours per calendar year for one employer.

• For a DPČ, the scope of work must not, on average, exceed half of the standard weekly working time, which is typically 20 hours per week.

And here is the critical difference:

• For an agreement on work performance (DPP): The time during which an employee takes leave (or for which they are provided with wage compensation) is NOT included in the annual 300-hour limit. Thus, an employee can actually work 300 hours, and on top of that, they will be entitled to and paid for, for example, 24 hours of leave.

• For an agreement on work activity (DPČ): Conversely, the time spent on leave IS included in the time worked for the purpose of monitoring the average 20-hour weekly work limit.

This detail represents a hidden trap, especially for employers using DPČ at the edge of the legal limit. When planning shifts, it is necessary to account for the fact that leave taken "consumes" the available hourly fund, and the limit can easily be unintentionally exceeded. Our Prague-based lawyers at ARROWS alert clients to these specifics daily and help them set up recording and planning systems to avoid these costly mistakes.

Specific pitfalls with agreements and the international element

Besides basic calculation errors, there are other, more complex risks that can threaten your company. Special attention must be paid to situations with an international element, where the complications multiply.

It's not just about the calculation: Other obligations you must not forget

The entitlement to leave is just the tip of the iceberg. The amendment to the Labour Code has brought a whole range of other obligations for employers, which further complicate agreements and increase the administrative burden. It is crucial to perceive these changes in their entirety.

• Written work schedule (for DPP and DPČ): Employers are now obliged to schedule the employee's working hours in writing in advance and to inform them of the schedule at least 3 days beforehand, unless they agree otherwise.

• Payment for unused leave: If an employee does not use their leave entitlement, they must be paid wage compensation equal to their average earnings upon termination of the agreement.

• Supplements and obstacles to work: Agreement workers are now entitled to supplements for work on weekends, at night, on public holidays, and in a difficult working environment. They are also entitled to time off for obstacles to work (e.g., a doctor's visit), although usually without compensation for remuneration.

• New administration and records: From July 2024, an obligation was added to report all employees on a DPP to the Czech Social Security Administration, which further increases the administrative burden and costs.

This comprehensive summary clearly shows that the changes affect many areas of the HR agenda. At ARROWS, we therefore provide comprehensive services that cover all these aspects – from the preparation of labor law documentation and the revision of internal processes to expert training for your HR and payroll teams.

Don't get caught off guard. ARROWS is your partner in labor law.

The new rules for leave under DPP and DPČ are complex, full of hidden risks and administrative pitfalls. Mistakes are not just a theoretical possibility, but a real threat that can cost your company hundreds of thousands of crowns in fines and wage back-payments. Correctly setting up processes is not a luxury, but a necessity for every responsible employer.

As the Law Firm of the Year 2024 in the Labor Law category, we have proven expertise and experience. Our team deals with these issues daily for an extensive portfolio of clients, including more than 150 joint-stock companies and 250 limited liability companies.

We don't just solve one section of the law. We provide a complete service: preparing internal guidelines, reviewing contracts, preparing documentation for inspections, providing expert training, and representing clients before authorities and courts. Thanks to our international network, ARROWS International, we are also able to effectively handle complex cases of employing foreigners and cross-border labor relations in more than 70 countries worldwide. We understand that you need clear and practical advice, which is why we speak the language of business, not just legalese.

Don't wait for an inspection from the labor inspectorate or for the first dispute with an employee. Contact us today. Our team of experts will conduct a no-obligation audit of your current procedures, identify risks, and propose specific, effective solutions tailored to your company. Ensure peace of mind and legal certainty with ARROWS by your side.