Czech Republic: Home Working Legislation
Updates to Labour Code 2023
Following much anticipation throughout 2023, the final amendments to the Czech Labour Code were approved on 12 September 2023 and were published in the Collection of Laws on 19 September 2023 under No. 281/2023 Coll.
The changes see important updates for home working provisions and the rights to reimbursement for remote working costs, meaning an urgent requirement for employers to update their home working provisions.
Home Working Agreement
Under the amendments to the original Labour Code (Act No. 262/2006), employers must execute a written agreement for the provision of home working.
Although there is little guidance as to the contents of the agreement, it is advised that as a minimum the agreement specifies the designated home office location(s), the scope and management of work, the agreed terms for reimbursements of costs associated with remote working and equipment and the notice period for termination of the home office agreement.
Health & Safety Obligations
Employers have an obligation to ensure the worker’s home office meets health and safety requirements and the internal health and safety policies.
The employer is entitled to perform checks on the employee’s home office and equipment to ensure they are ergonomic, are suitable for the work activity and are compliant with OSH requirements.
Remote Working Allowance
Under the updated provisions for remote working, employees are entitled to compensation for the increased costs associated with working from home.
Employers may choose how they wish for this reimbursement to be processed and this must form part of the written agreement signed with employees.
Employers may opt to:
- provide reimbursement for actual costs (agreed within the Home Office agreement) and processed as expenses
- provide a flat-rate compensation to employees to cover home-working expenses in line with the hourly rate determined by the Ministry of Labor and Social Affairs. (4.60 CZK per hour – 2023)
- agree with the employee that no additional compensation will be due for remote working expenses.
Should employers opt to provide the flat-rate lump sum compensation, this will be tax-free up to the hourly rate declared by the Ministry of Labor and Social Affairs. Any amount offered above this would be tax deductible.
The minimum hourly rate for flat-rate compensation will be determined annually on 1 January each year.