Contracts in the Czech Republic

Overview by

The Active Population in Figures

Main Indicators 2004200520062007
Labor Force 4706600476400048281004907000
Labor Force (Annual Growth, %) -0.601.201.301.90
Rate of Activity (%) 59.259.459.358.7
Unemployment Rate (%)

Source: Czech statistical office

Note: 2007 estimated

Employed Persons, by Occupation (% of Total Labor Force) 2006
Legislators, senior officials and managers 6.6%
Professionals 10.8%
Technicians and associate professionals 21.9%
Clerks 7.0%
Service workers and shop and market sales workers 12.1%
Skilled agricultural and forestry workers 1.5%
Craft and related trades workers 18.2%
Plant and machine operators and assemblers 14.3%
Elementary occupations 7.3%
Armed forces 0.3%
Not identified 0.0%
Total 100.0%

Source: Czech statistical office


Management of Human Resources



Method of Recruitment
The recruitment process takes place more and more via internet. Selection is made on the basis of a job interview (for SME). But for manufacturing it is better to take a recruiting agency. Also labor office can be used.
Recruitment Agencies
There are only private recruiting agencies. Most important are: Grafton, Robert Half, ManPower, Synergie.
Recruitment Websites

The Contract

Type of Contract
Legal clauses regulate employment contracts and to a lesser degree collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid and the limits for dismissal are less strict.
Breach of Contracts
  • Retirement
When reaching retirement age - most of people work one or several years more.
  • Dismissals
  • mutual agreement ? terminates the employment contract on an agreed date
  • expiration of employment contract ? employment contract concluded for a limited period
  • termination during the probation period . notice of termination ? usually 2 month notice period
  • immediate termination - can be used in specific cases (very bad work discipline)
  • Other Possible Methods
Resignation is not standard way of the breach of contract. It is possible only in the case of top management and only in the context of resignation from specific function. That means even if anybody resigns his employment contract still remains valid until other forms of the breach of contract come into being.
Labor Laws
Ministry of Labor and social affairs

Dispute Settlement


Conciliation Process

  • Procedure
Labor Code (act. No.262/2006 Coll.)

Judicial Structures

  • Legal Framework
Labor Code (act. No.262/2006 Coll.), collective agreements, arbitration awards or court decisions

Social Partners

Social Dialogue and Involvement of Social Partners
The Czech Republic operates on the principle of free establishment and competition of unions. Establishment of an union is not mandatory in companies. The minimum number of employees needed to establish a company union is three.
The most powerful is Czech-Moravian Confederation of Trade Unions (so called CMKOS). It is an important social partner in tripartite negotiations in the framework of the Council of Economic and Social Agreement of the Czech Republic. It works in the regions of the Czech Republic through Regional Councils of Trade Unions (RROS) and Regional Offices for Legal Assistance (RPP). There are 33 trade unions in the framework of CMKOS.
Unionization Rate
11% of all employees.
CMKOS, Czech-Moravian Confederation of Trade Unions
Other Unions affiliated to CMKOS
Regulation Bodies
Ministry of Labor and Social Affairs
Confederation of Industry of the Czech Republic (SPCR)
Czech Council for Safety, Hygiene and Health at Work

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