Employment Law 2026

Which employers will be affected by the mandatory contribution to retirement savings products?

The aim of this new legislation is to help employees in high-risk professions save funds for so-called pre-retirement (the period before reaching retirement age). The contribution amount is 4% of the employee's assessment base, which is the same as the employee's assessment base for social security contributions.

When is an employee entitled to the contribution?

An employee is entitled to the mandatory contribution only if they work at least three shifts in the given high-risk category within a calendar month. If at least 3 high-risk shifts are not worked in a given month, the employer's obligation to pay the contribution does not arise. Also, remember that a high-risk shift is considered only a shift during the majority of which the employee performed high-risk work.

The employer's obligation to pay the mandatory contribution is activated only if the employee exercises their right, not automatically. The employee must give the employer written notice that they are requesting the mandatory contribution.

Beware of the information obligation!

The employer has an obligation to inform in writing every employee to whom the mandatory contribution applies about their right to the mandatory contribution and the method of exercising this right. The employee must receive this information before starting to perform high-risk work. If an employee is already performing high-risk work in the 3rd category (for the relevant factors) as of the law's effective date (1 January 2026), the law sets a 15-day period for supplementary fulfilment of the information obligation, i.e., by 16 January 2026. Failure to comply with the information obligation may result in a fine of up to CZK 200,000 for the employer.

The employer is also obliged to keep records of mandatory contributions. They must record, in particular, a list of employees performing high-risk work who have claimed their entitlement, with their names and dates of birth, the date the claim was made, the number of high-risk shifts worked in individual months, and the amount and dates of contribution payments. These records must be kept for 10 years.

Furthermore, the employer is obliged to issue a confirmation of payment of the mandatory contribution to the employee – free of charge and automatically (without request) no later than the end of the calendar month in which the contribution was first paid. Failure to comply with this obligation can result in a fine of up to CZK 200,000.

A major administrative revolution: Can you handle the transition to the Unified Monthly Report (JMHZ)?

From 2026, the so-called Unified Monthly Report for Employers (JMHZ) is being introduced, which replaces a number of forms submitted to the Czech Social Security Administration (ČSSZ), the Financial Administration, and the Labour Office. However, it does not include health insurance companies, whose reporting remains separate, so employers will operate in a dual system.

The JMHZ significantly expands the information that an employer must report, and for a single employee, it can amount to tens or even hundreds of data points, including new data that companies have not systematically tracked before, such as the highest level of education achieved, income data, or reporting of agreements on work activity (DPČ) below the limit.

Three implementation phases

The JMHZ is not being introduced all at once, but in three stages, each with different rules:

• From 1 January 2026 – data collection, but without submitting reports

Companies must start collecting all new data required by the JMHZ, even if they are not yet submitting it.

• From 1 April to 30 June 2026 – first live submission

Employers will submit the first JMHZ for April (by 20 May), May (by 20 June), etc., and will also retroactively submit data for January, February, and March 2026.

• From 1 July 2026 – full operation

A fundamental change occurs: an employee must be registered in the system before they even start working, not after they have started. This requires an adjustment of recruitment and HR processes.

And why not underestimate the JMHZ? The reporting will be subject to a strict penalty regime – for incorrect or delayed data, the fine can be up to CZK 5,000 per employee for whom the reporting obligation was not properly fulfilled, which could have million-crown impacts for larger companies with a large number of employees.

At ARROWS, we understand that the transition to the JMHZ is a complex project. Our lawyers can provide you with legal support and prepare internal processes to ensure a smooth transition. Do not hesitate to contact our office at konzultace@arws.cz.

The Flexi-Amendment to the Labour Code: a summary of the main impacts

From 1 June 2025, the so-called flexi-amendment to the Labour Code will be in effect, moving the Czech market towards a flexicurity model. It offers employers more room for flexibility, while providing employees with greater protection and security. The changes are reflected in the conclusion of contracts, termination of employment, employee rights, and administrative duties.

Changes to the probationary period

One of the most significant changes is the extension of the maximum length of the probationary period. It can now be agreed for up to 4 months for regular employees and up to 8 months for managerial staff. This gives companies more time to verify the abilities of a new team member.

A key new feature is the ability to subsequently extend the probationary period by written agreement with the employee, but only during its term and up to the statutory maximum. The law also clarifies that the probationary period is automatically extended by full-day absences (e.g., illness), and this is now calculated by working days, not calendar days.

Beware, incorrectly agreeing on or extending a probationary period is now classified as an offence, for which a fine of up to CZK 2,000,000 may be imposed. This is not just about the invalidity of the agreement, but a real financial risk arising from a flawed HR process.

Termination of employment: How will the acceleration of processes affect your company?

There is a fundamental change in the running of the notice period. It will now begin on the day the notice of termination is delivered, not on the first day of the following calendar month. This can shorten the entire process of terminating an employment relationship by almost a month and gives companies greater flexibility in personnel changes.

Moreover, in cases of termination due to a breach of work duties or failure to meet the prerequisites for performing work, the notice period is shortened to one month. However, this acceleration requires a completely flawless legal procedure. At ARROWS, we have extensive experience representing clients in labour law disputes and will ensure that every step is legally watertight. For an immediate solution to your situation, write to us at konzultace@arws.cz.

The law sets a minimum. It is possible to agree on a longer period, but it must be carefully formulated to comply with the law. Our lawyers are ready to help you prepare contracts – write to konzultace@arws.cz.New employee rights: From transparent wages to returning from parental leave

The amendment explicitly prohibits employers from restricting employees in any way from sharing information about the amount of their own salary or wage. Confidentiality clauses, which were previously a common part of contracts, are now illegal. Violation of this prohibition is an offence, for which a fine of up to CZK 400,000 may be imposed.

This change is the first step towards implementing the European directive on pay transparency (Gender Pay Gap). For companies, this is not just an administrative adjustment. An open debate about wages can reveal inconsistencies in remuneration, lead to dissatisfaction, and the departure of key people. It is therefore essential not only to remove the prohibited clauses but also to review the entire wage system and prepare for the new reality.

Security for parents: How to correctly set up work under agreements and guarantee the right to return?

The position of parents is also improving. Employees on parental leave can now work for the same employer under an agreement on the performance of work (DPP) or an agreement on work activity (DPČ), even in the same position.

A key change is the extension of the guarantee to return to the original job and workplace. This security now applies to all parents who return to work before the child reaches the age of two, not just after the end of maternity leave. This requires careful planning and correct drafting of contracts for replacement employees.

Wages and support in 2026: What will affect your costs and strategy?

The era of annual political negotiations on the minimum wage is ending. Its growth will now be predictable thanks to a valorisation mechanism that will link its level to the forecast of the average wage in the national economy. For 2026, the minimum wage is expected to increase to CZK 22,400 and CZK 134.40 per hour.

ARROWS: Your partner for a smooth transition to the 2026 labour law

New obligations, strict deadlines, and high sanctions present a significant challenge for companies. At ARROWS, we are ready to guide you through this process. We will help you set up processes for the mandatory contribution to retirement savings products, including drafting templates for internal notifications to employees, so that the employer fulfils its information obligation and avoids fines.

We will also help you with the preparation of internal guidelines for managing probationary periods and returns from parental leave. We will ensure the preparation of all documentation – from employment contracts to wage assessments – that will protect you from fines and administrative sanctions.

We offer expert training for your employees and management so that everyone understands the new rules, including a certificate of completion. In complex situations, we will provide legal opinions and represent you in courts and before administrative authorities. Our experience and emphasis on speed and quality are your guarantee of certainty and a smooth transition to the new legislative requirements.

Don't wait for the changes to catch you by surprise. Ensure a smooth transition to the new rules. Connect with our labour law experts today at konzultace@arws.cz and arrange a no-obligation consultation.