The Czech Parliament
has recently adopted an amendment to the Czech Labour Code. The
amendment is one measure, amongst others, which changes the
provisions relating to the treatment of non-competitive clauses in
employment contracts and introduces new rules on
concluded fixed term employment contracts. The amendment came into
legal force on 1 March 2004.
For
further details on the above amendment, on how it may influence
your relationship with your employees, and other practical
implications on your business, please contact
Lukáš
Janíček on +420 22 109 8833 or at: lukas.janicek@cms-cmck.com
The major
changes introduced by the amendment to the Czech Labour Code
are:
-
Further development and detailed specification of the
concept of non-discriminatory treatment.
Discriminatory treatment is defined as including discrimination on
the basis of sex, sexual orientation, racial and ethnic origin,
nationality, citizenship, language, marital status, health
condition, age, religion and politics. Such discrimination, direct
or indirect, is forbidden;
-
Rules on sexual harassment;
-
The modified provisions allow for the inclusion of
non-competition arrangements in contracts of
employment. If a non-compete clause is
introduced to an employment contract, under the new regime the
employer will be obliged to pay the employee financial compensation
equal to the employee's salary in the period prior to the
termination of employment. A non-compete clause
may be agreed for a maximum period of one year and the law sets out
the parameters within which a non-compete clause may be agreed in
an employment contract. A non-compete clause may
not be agreed during the probation period;
-
The
introduction of the concept of employment contracts for a fixed
term. Employment contracts for a fixed term may be agreed upon, or
extended by agreement for a maximum period of two years from the
date of establishment of employment. The same applies to any
subsequent employment for a fixed term agreed between the same
parties within the specified period of time. If more than 6 months
have elapsed since the termination of the previous employment, the
previous fixed term between the same parties will not be taken into
account.