The year 2018 saw many changes in labour law. In this article we will focus on the increase of the minimum and guaranteed wage, the introduction of a paternity allowance, and the newest case law on concurrence of functions.

As at 1 January 2018, the minimum monthly wage for working a 40-hour work week was increased to CZK 12,200 and the minimum hourly wage was increased to CZK 73.20. There was also an increase in the so-called guaranteed wage under Government Regulation No. 567/2006 Coll. This wage reflects the complexity and degree of responsibility of the work performed and is graded into eight groups. In addition to the minimum wage, employers are obliged to provide a guaranteed wage according to the classification of the work performed.

The paternity allowance is a medical insurance benefit, which can be requested through the employer. Fathers who hold insurance policies can request it as at the date of the start of paternity leave. Self-employed persons must hold insurance policies at least for a period of three months immediately prior to the date of application. The allowance is provided for a period of seven calendar days. The paternity allowance must start at most six weeks from the date of birth of the child and must be taken all at once.

The Supreme Court has confirmed that the relationship between a member of a statutory body and a company is a commercial law relationship, not a labour law relationship. In a managerial contract, however, it can be agreed that the relationship between the member of the statutory body and the company may instead be governed by the Labour Code. Nevertheless, it is not possible to deviate from the provisions of the Civil Code and the Act on Business Corporations, which regulate the relationship between the member of the statutory body and the company. Such provisions shall include, for example, those governing the appointment and recall of a member of a statutory body, prerequisites for the performance of the office and the consequences of their absence, remuneration of members of statutory bodies, the form of the managerial contract and the obligation for it to be approved by the competent body. It is also not possible to contractually exclude or limit the obligation of the statutory body to perform the function with due managerial care and the consequences of its violation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.