Legal Duties and Personal Liability of Managerial Employees in Czechia

23.4.2026 | ARROWS law firm

Senior employees in the Czech Republic face growing legal obligations imposed on them by the Labour Code. It is not only about completing occupational health and safety training – they must also know and apply the rules on working time, employee management, liability for data protection, and the duty of care for the employer’s property. Breach of these obligations may result in the personal liability of a managerial employee for damages, which can reach significant amounts. This article will explain why professional training is a necessity, what risks it entails, and how to prepare properly.

The photograph shows an expert consulting on the legal obligations of senior employees.

What it means to be a managerial employee from a legal perspective
Statutory duties of a managerial employee
Employment law training – what it must include
Risks arising from insufficient training
How to structure employment law training effectively
Final summary

What it means to be a managerial employee from a legal perspective

Section 11 of the Labour Code provides that managerial employees of an employer are those employees who, at individual management levels, are authorised to assign work tasks to subordinate employees, organise, manage and supervise their work, and issue binding instructions for that purpose. This definition sounds straightforward, but the legal reality is more complex and comes with specific implications under Czech law.

The status of a managerial employee has two consequences. On the one hand, they gain certain powers and deviations from the general regime—for example, the option for salary to already reflect potential overtime work, or a longer probationary period upon commencement (up to 6 months). On the other hand, stricter criteria apply to them, with higher expectations regarding legal awareness and proper performance of duties.

The key difference is that a managerial employee’s legal liability is incomparably higher. If a manager breaches work-related duties, it is not viewed merely as a minor breach, but as grounds for more serious sanctions—often up to immediate termination of employment, where the breach is particularly gross. Moreover—and this is critical—a managerial employee is liable to the employer for damage if they breach their duties related to organising and supervising the work of subordinates whom they failed to properly instruct or supervise.

There are also multiple levels of managerial employees. A trainer, team leader, department head, deputy, director—each bears a different scope of responsibility. The higher the level in the hierarchy, the broader the range of duties and the greater the risk of damage for which they are personally liable to the employer if caused by their culpable conduct.

Statutory duties of a managerial employee

The duties of a managerial employee are not limited to managing people; they extend into many areas. The Labour Code imposes a number of specific tasks on managers that may seem simple, but in practice conceal numerous legal pitfalls under Czech legislation.

Occupational health and safety

Occupational health and safety (OHS) is one of the most binding duties of a managerial employee. A manager must ensure that their subordinates do not perform work for which they are not professionally or medically fit, or for which they have not been properly trained and made aware of the risks. If a manager assigns work to an untrained employee and an accident occurs, this constitutes a direct failure on the part of the manager. At the same time, the manager must periodically verify their subordinates’ OHS knowledge and respond consistently to breaches of safety rules.

The manager’s duty also includes monitoring compliance with legal and internal regulations relating to OHS, motivating employees to behave safely, and leading by example. If a manager identifies deficiencies in the workplace that could endanger employees’ health, they must report them immediately and ensure they are remedied. Responsibility for OHS primarily lies with the employer, but in practice it is delegated to managerial employees at all management levels, who are required to carry out these tasks and monitor compliance.

Managing work discipline and communication

A managerial employee must actively lead their subordinates to comply with work discipline and monitor compliance. However, this does not mean merely issuing orders; it also requires timely and legally correct responses to breaches of duties. This is precisely where frequent mistakes and legal risks arise.

If a manager knows that a subordinate is breaching work-related duties and fails to intervene, the manager themselves breaches their duty under Section 302 of the Labour Code. That does not mean they can act chaotically. The response to a breach must be proportionate, documented, and must respect the graduated steps of sanctions—first a written warning of the possibility of termination, and only then, if applicable, termination of employment. Immediate termination is permissible only in the case of a particularly gross breach of discipline.

Managing working time and rest

A managerial employee must have a detailed overview of their subordinates’ working time schedules, obstacles to work, and holiday leave. Oversight of compliance with working time and rest limits is critical. A manager must know the maximum weekly working time, the rules for overtime, and mandatory breaks and rest periods. If a manager does not know these rules or breaches them, they expose the employer to the risk of sanctions from the Labour Inspectorate and may be personally liable to the employer for any damage incurred as a result.

In practice, this means: a manager cannot simply send employees to unlimited overtime; they must take into account the maximum overtime limits (typically 150 hours per calendar year, by agreement up to 416 hours), ensure adequate uninterrupted daily and weekly rest, and properly document all of this.

Property liability and data protection

A manager is often the person who proposes and ensures the conclusion of agreements on an employee’s liability for property assets entrusted for the performance of work (e.g., agreements on liability for entrusted valuables, or agreements on liability for the loss of entrusted items under Section 253 of the Labour Code). The manager also oversees inventory checks of such property and the handling of compensation for damage if a loss occurs.

Today, the protection of information and data is equally important. A managerial employee who unlawfully accesses a customer database or grants access to unauthorised persons commits a serious breach of work discipline and may be personally liable to the employer. This area is becoming increasingly pressing, especially with stricter GDPR rules (the General Data Protection Regulation) and the Czech Personal Data Processing Act, as well as the protection of trade secrets.

Professional development and selection of qualifications

A managerial employee is also responsible for creating conditions for improving the professional level of their subordinates. This duty is not merely general—it has a specific legal dimension. If a manager assigns work to an employee who lacks the required qualifications and certificates and, as a result, an accident, error, or damage occurs, the manager is liable for it.

Employment law training – what it must include

Effective employment law training for managerial employees should not be a once-a-year formal obligation with a certificate that then sits in a drawer. It should be structured, kept up to date, and practically focused on real-life situations that managers encounter.

Training content elements

The training content should be set so that the managerial employee truly understands their duties and knows what to do in specific situations. Under Section 103 of the Czech Labour Code, the content and frequency of training are determined by the employer (except for professional training required by special regulations). This means the employer has flexibility, but also responsibility to ensure the content reflects the actual operational risks and is up to date.

The training should include at least: definition of the managerial employee’s role, legal liability and sanctions, occupational health and safety (OHS) duties, working time and overtime management, supervision of work discipline and correct procedures when responding to breaches, liability for damage and data protection, handling workplace accidents and emergency situations, communication with authorities and inspection bodies.

Practical examples are essential. A manager will remember the correct procedure better when they hear an example: “If an employee is late three times repeatedly, it is a breach of work discipline, but probably only at a level that allows a warning about the possibility of termination. You could give notice of termination only if the behaviour continued over a longer period, or if it constituted a particularly gross breach of duty."

Training frequency and periodicity

The employer sets the interval for refresher training in an internal regulation depending on the level of risk. In manufacturing roles, the standard is once a year or once every two years. In administrative roles, it may be longer. The key point is that onboarding training and training upon a change of job must be carried out immediately, especially in the area of OHS.

A mistake many companies make is that all managers undergo the same training, regardless of their level and experience. A production manager, an HR manager and an IT manager have completely different specific risks and duties. The training should therefore be differentiated and tailored to specific needs.

Knowledge verification and documentation

OHS training must always be concluded with verification of the employee’s knowledge, typically by a written test. Documentation is critical. If a managerial employee later claims they did not know their duties and the employer has no record of proper training, this is highly disadvantageous for the employer. The Labour Inspectorate or a court will assume that the training did not take place or was insufficient.

Each training participant should receive a certificate of knowledge verification or a record of attendance. Posting a sheet of paper on a noticeboard is not sufficient—you must have an individual record for each managerial employee demonstrating that the employer’s obligation has been fulfilled.

What risks insufficient training creates

Insufficient or purely formal training often relies on ignorance. A managerial employee who has not completed high-quality training often makes mistakes in basic situations, which then lead to legal disputes, fines, or internal losses for the employer.

Incorrect procedures when terminating employment

One of the most common risks is an incorrect procedure when ending an employment relationship. A managerial employee who is not trained often gives notice without a clear reason, without proper documentation, or without meeting the statutory conditions. Subsequent court proceedings that end with a finding that the termination is invalid can then cost the company tens to hundreds of thousands of Czech crowns in wage compensation to the employee and legal representation.

The Supreme Court of the Czech Republic has repeatedly confirmed that even an invalid termination of an employment relationship with a subordinate employee may cause damage to the employer, and the managerial employee may be liable to the employer for such damage. In specific cases where a managerial employee gave notice without meeting the statutory conditions and the employer subsequently had to pay wage compensation to the employee, the Supreme Court confirmed such liability of the manager.

OHS breaches and workplace accidents

If a manager fails to ensure OHS training or does not monitor compliance with safety rules and a workplace accident occurs, they may face personal liability towards the employer. The Labour Inspectorate may then impose a high fine on the employer, and in the event of serious injury or death, criminal proceedings may also be initiated against the responsible persons.

Unauthorised monitoring or infringement of employee privacy

A managerial employee who, without a legal basis, reads an employee’s emails, monitors their computer or collects personal data commits a breach of the Czech Labour Code (Section 316), personal data protection legislation and the GDPR.
If the employee files a complaint, it may end in court proceedings and, in extreme cases, even a decision of the Constitutional Court, which has already addressed this issue. The employer faces high fines from the Office for Personal Data Protection (up to EUR 20 million or 4% of worldwide annual turnover).

Discrimination in selection, promotion or termination of employment

One of the most serious mistakes is discriminatory conduct. A manager who does not promote an employee because of their age, gender, religion or other protected characteristics commits discrimination, which is prohibited both by the Czech Labour Code (Section 16) and the Anti-Discrimination Act (Act No. 198/2009 Coll.).
The consequences may include: invalidity of the decision, claims for compensation for non-pecuniary harm, an adverse court judgment and significant financial compensation, in addition to substantial reputational harm to the employer.

Potential issues	How ARROWS law firm in Prague can help
Incorrect procedure when terminating employment of managers – invalid notices of termination that subsequently cost the company tens to hundreds of thousands of Czech crowns in wage compensation to the employee and legal representation	Attorneys from ARROWS law firm in Prague will prepare procedures and templates for proper termination of employment relationships in compliance with applicable legislation and will minimize the risk of litigation.
Breaches of occupational health and safety (OHS), failure to instruct employees, missing training – risk of workplace injuries, fines from the Labour Inspectorate of up to CZK 2,000,000, and the matter may end up in criminal proceedings	Employment law training with an emphasis on OHS from ARROWS will ensure that managers know their obligations; during Labour Inspectorate inspections, we can provide representation and defense.
Personal liability of a manager for damage – in the event of a culpable breach of an employment duty (e.g., an invalid termination, unauthorized access to data, security breach), the employer may claim damages against the manager.	ARROWS will help you document proper procedures so that managers’ responsibilities are clearly defined; if a lawsuit is threatened, legal representation for the manager can be arranged.
Discrimination in recruitment, promotion, or termination of employment – invalidity of the decision, financial compensation, reputational harm	ARROWS will prepare procedures for non-discriminatory decision-making and, if a claim arises, will present legal arguments in court proceedings as part of your defense.
Unlawful monitoring of employees, breach of privacy, collection of personal data without a legal basis – risk of a Constitutional Court ruling, GDPR fines (up to EUR 20 million), litigation	ARROWS will help you set up legally compliant procedures for monitoring and supervising employees so that they comply with the Czech Labour Code and the GDPR.

How to structure employment law training effectively

Training should not be a one-off event where all managers meet in one place and listen to the same content. It should be structured so that it is relevant to the specific role and level of the manager.

Onboarding training – introduction to the role and responsibilities

Every new manager should complete onboarding training in which they learn what it means to be a managerial employee under Czech law, what obligations they have, what risks may arise, and how to proceed in typical situations. This training should last at least 4–6 hours and should include specific real-life cases from the company’s practice.

Periodic training – updates and deepening

Every year (or according to internal regulations and current legislation), managers should complete periodic training that updates their knowledge, addresses new legislative changes where applicable, and at the same time focuses on areas where issues have arisen in the past period. For example, if handling workplace injuries was problematic last year, the training should prioritize this area.

Ad hoc training – after changes or incidents

If there has been a change in technology, a company reorganization, or a workplace injury, additional training should be provided focusing on the specific situation. Managers will learn the correct procedures and will be protected against future mistakes.

Differentiated training by level

Team leaders, department heads, and top management have different obligations and risks. A team leader must know OHS and working time control, but does not need to delve into complex legal issues regarding the employer’s legal form. By contrast, top management should also understand issues of liability for discrimination, GDPR compliance, or protection of trade secrets and the overall impacts on the employer.

Attorneys from ARROWS law firm in Prague can provide expert training precisely tailored to your company and to the individual levels of managerial employees.

Final summary

Employment law training for managerial employees is not pointless bureaucracy – it is a strategic investment in the company’s legal security and in protecting managers themselves. Managers who understand their obligations and know the correct procedures effectively prevent legal disputes, fines from supervisory authorities, workplace injuries, and internal losses for the employer.

The reality is that a manager who relies only on “common sense” and empathy often makes mistakes. The Czech Labour Code is a fairly precise and detailed document, and if a manager does not know the conditions for terminating employment, OHS obligations, or working time limits, ill-considered steps can cost both the company and the manager significant money and reputation.

Even more important is the manager’s personal liability for damage. If a manager causes damage to the employer by culpably breaching their duties, the employer may claim compensation from them up to the full amount in cases of intent. This is one of the reasons why managers should be trained consistently and should have clear procedures and an overview of their legal obligations.

If you do not want to risk a situation where your managers make mistakes and bring legal problems to the company, it is safer to entrust the matter to experts. Attorneys from ARROWS law firm in Prague have extensive experience in training managerial employees and can prepare a program precisely tailored to your company and the individual levels of management.

Start by contacting ARROWS law firm in Prague and arranging a consultation on what training you need and how to structure it. The cost of high-quality training and legal advice is a fraction of what legal disputes and managerial mistakes could cost.

FAQ

1. How long should employment law training for managers be?
The recommended length for onboarding training is at least 4–6 hours. Periodic training can then be shorter, typically 2–4 hours, depending on whether it is an update or a deeper dive into specific topics. The training should be structured to include a combination of a theoretical part (explanation of obligations and risks) and practical examples. If you are interested in high-quality training precisely tailored to your company, contact the attorneys from ARROWS law firm in Prague at office@arws.cz.

2. Who should attend the training?
The training should be completed by all managerial employees at all levels of management – from team leaders to directors. Each level has specific obligations and risks, so the training should be differentiated. New managers should also be trained immediately after their appointment to the position. Attorneys from ARROWS law firm in Prague can help you set up a training system that covers all required groups.

3. What happens if a manager completes the training but then fails to comply with it?
If a manager breaches their duties despite having completed the training, they may be personally liable. Training is not insurance—it is evidence that the manager had the opportunity to learn about their obligations.
If a manager knowingly breaches their duties, the employer may seek compensation for damages from them, or disciplinary action may be taken against the manager, including termination of employment. The attorneys at ARROWS, a Prague-based law firm, can assist you with addressing any damage if a breach occurs.

4. Are there any official certifications for managers in the Czech Republic?
In the Czech Republic, there is no unified state certification in employment law for managerial employees. It is up to individual companies and their legal departments or external advisers to set up a training system. High-quality training should be based on statutory law, current case law, and real-world experience from business practice. ARROWS, a Prague-based law firm, can provide training based on current legislation and court practice.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (office@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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