Flexi-amendment to the Labor Code 2025: what your HR or business owner needs to know

Main changes of the flexi-amendment (from 1 June 2025)

• Agreement-based work for parents: An employee on parental leave can now perform work for the same employer under an agreement on work activity (DPČ) or an agreement on completed work (DPP) – specifically, the same type of work they performed before starting parental leave. For example, an HR manager in a manufacturing company can hire an employee on parental leave under a DPČ agreement to maintain her professional practice (historically, an employee on parental leave could not legally earn extra income "on the side" in the same field). This change significantly improves conditions for parents, as it provides motivation and facilitates their return to work. At the same time, a guarantee of return to the original position is introduced: if a parent returns to work before the child reaches 2 years of age, they have the right to their original position and workplace (previously, such a guarantee existed only after maternity leave).
  
  
• Leave for agreement-based workers: Since 1 January 2024, persons working under agreements (DPČ/DPP) already have a full entitlement to annual leave upon meeting statutory conditions. This means that employers must also accommodate these agreement-based workers and calculate their leave similarly to regular employees (at least after working 4 weeks and 80 hours of agreed work per year).
  
  
• Self-scheduling of working hours: From 1 January 2025 (Act No. 230/2024 Coll., not the flexi-amendment), the Labor Code allows employees to schedule their own working hours under pre-agreed conditions. This self-scheduling previously existed only for remote work or shared jobs, but from 1 January 2025, it is generally permitted (the employee can agree on when they will work, naturally while respecting statutory limits for breaks, maximum shifts, etc.). In practice, this means that companies can offer even more flexible working arrangements – such as alternating or "stacked" shifts – which must, however, be contractually regulated and recorded (to make it clear who worked how much and when).
  
  
• Notice of termination and the start of the notice period: The notice period now begins on the day the notice is delivered to the other party (not from the 1st day of the following month). This means that as soon as the employee receives a written notice, the period starts running immediately. In practice, this allows employees to start a new job sooner and employers to fill the vacant position earlier. At the same time, an exception was introduced: if the employer gives notice for reasons under Section 52(f) to (h) of the Labor Code (failure to meet prerequisites or requirements for the performance of work, breach of duties), the notice period is at least 1 month (previously, this right was not explicitly codified).
  

• Compensation for termination due to serious reasons: If the employment relationship is terminated (by notice or agreement) due to long-term incapacity for work or injury (e.g., occupational injury, occupational disease), the employee will now receive special compensation corresponding to twelve times their average earnings – this will be paid from the employer's statutory insurance (previously, they always received severance pay directly from the employer).
  
  
• Other changes: The flexi-amendment introduces the possibility of reducing daily rest to as little as 6 hours in crisis situations (e.g., during accidents restoring critical infrastructure); this reduced rest must then be compensated for the following day. The maximum length of the probationary period is extended to 4 months for regular employees and 8 months for managerial employees, and it can be additionally extended during its course by written agreement between the employer and the employee, up to these maximum lengths. Furthermore, 14-year-olds (who have not completed compulsory school attendance) can now perform light work during the main summer holidays, only with the written consent of their legal representative, which brings opportunities for young people to take on summer jobs. Conversely, a ban on wage confidentiality clauses in employment contracts has been introduced (this strengthens transparency).
  

(Note: In addition, the amendment concurrently changes the Act on Unemployment Support – e.g., support in the 1st period will temporarily increase to 80% of the average wage. These changes are closely linked to the motivation to accept new work.)

Practical impact on employers

These changes mean that your company will have to adapt its internal regulations and contracts. You need to discuss and update, for example, the following points:

• Employment contracts and agreements: For agreements on work performed outside an employment relationship, check the paragraph on leave (the law now mandates calculating leave for agreement-based workers as well) and consider whether you will utilize the new rights of parents (e.g., allowing part-time work or agreements for employees on parental leave). Also check how you have regulated the option to arrange homeworking / remote work – the flexi-amendment does not change the existing regulation of "home office", but introduces self-scheduling of hours, which you can incorporate into directives on working from home or flexible workplaces.
  
  
• Notice and termination arrangements: To avoid misunderstandings, it is necessary to adjust employment contracts to state that the notice period indeed runs from the day the notice is delivered. Internally, define the conditions for the new shorter notice periods (at least 1 month) for termination under Section 52(f) to (h) of the Labor Code and the entitlement to compensation for long-term sick employees. At the same time, let employees know how the obstacle to work of "insufficient medical fitness" now works.
  
  
• Recording of working hours: If you plan to use self-scheduling, agree with workers on the recording of working hours – as you must still keep records (e.g., to what extent the agreed schedule was observed). Similarly, you can update internal directives on breaks and rest for crisis situations – the daily rest period can now be reduced to 6 hours in extraordinary cases.
  

• Wages and remuneration: The guaranteed wage in the private sector already ended as of 31 December 2024 (Act No. 230/2024 Coll.); the flexi-amendment did not change this. You can set wages according to your own system (the minimum wage remains the statutory floor), but beware, the principle of equal treatment must not be violated (you must not discriminate). Check your contracts to ensure you do not have wage confidentiality clauses (this is now prohibited).
  
  
• Other: Ensure your HR system is ready for the newly permitted summer jobs for 14-year-olds (you will issue them a DPČ or DPP agreement, if you allow it), and verify that transitions to longer probationary periods are in line with company policy. If you employ foreign workers, also monitor changes to the Employment Act – such as the digitalization of processes related to the amendment.
  

Overall, HR staff and company management should check as soon as possible that all comprehensive contracts, internal directives, and collective agreements reflect the new conditions. We recommend consulting with our Prague-based Czech legal team or an HR agency to thoroughly prepare you for procedures under Czech legislation.

Risks of unpreparedness: fines and disputes

If you do not carefully comply with these changes, you expose yourself to risks from the labor inspection as well as lawsuits. Allowing illegal work (the "švarcsystém" / false self-employment) carries a fine of CZK 50,000 to CZK 10,000,000 and the publication of the decision (Section 140(4)(f) and (6) of the Employment Act). Inspections are more targeted – recently, inspectorates have also received new powers to make audio/video recordings and link up with tax offices.

Likewise, employees can file lawsuits if their rights are not respected. Labor disputes are common: according to statistics, proceedings concerning employee rights are among the most frequent of all (approx. 14% of disputes). For example, if you refuse to allow a parent to return to a guaranteed position or to work under an agreement, there may be a risk of a claim for damages or a court order (courts now strongly protect returns from parental leave). An inaccurately drafted contract can lead to errors in determining the probationary period or notice period, which courts sometimes penalize (see recent disputes over the running of the notice period).

Warning: State inspection of working conditions is therefore tightening. Inspectorates are actively cracking down on the "švarcsystém" ("employment disguised as trade") this year, and even a self-employed person (OSVČ) can be fined up to CZK 100,000 for a fictitious contract. Therefore, it is better to prevent sanctions: make sure you comply with everything in the Code.

What to do now with the flexi-amendment in your company?

Do not delay putting the new rules into practice – have your contracts and internal regulations reviewed by our Prague-based Czech legal team or an HR specialist. Update employment contracts, agreements, collective agreements, and rules (e.g., regarding family benefits, flextime, or home office) in accordance with the new legislation. Train managers and HR departments so they are familiar with the new rights and obligations. Continuously monitor the effective dates of the changes and communicate them to employees (e.g., that notice ends sooner, that a parent on parental leave can work under an agreement, etc.). This will ensure that your company is prepared, and you will avoid unnecessary fines or lawsuits.