The flexi amendment in practice: flexibility, return from parental leave, fixed-term contracts, transparency and HR strategy
author: Mgr. Romana Szutányi
In June, the so-called flexi-amendment to the Czech Labor Code came into force, introducing a number of significant changes to the Czech labor law landscape. These changes were primarily meant as a response to the dynamic developments in the domestic labor market in recent years. It is therefore not surprising that one of the key areas that the amendment intensively addresses is the provisions directly related to work-life balance. If successful in practice, the flexi amendment could represent a further shift away from labor law formalism towards greater flexibility and adaptability in employment relationships. However, its effectiveness will depend on the implementation of functional control mechanisms and a willingness to embrace change on both sides of the employment relationship.
Flexibility and return from parental leave
Return from parental leave
An important innovation supporting work-life balance is the two-year job guarantee for employees returning from parental leave. Under the flexi amendment, returning from parental leave is seen as a natural continuation of the existing employment relationship, rather than merely a second opportunity to re-enter the workforce. However, this change may present challenges in practice. Some employers may find it challenging to hold the original position for up to 2 years. On the other hand, the measure offers a way to avoid losing reliable and experienced employees.
Mini agreements during parental leave
Another change impacting the concept of work-life balance is the introduction of the option to conclude a “mini-agreement” with an employee currently on parental leave, for the same work as specified in their employment contract. This modern provision opens the way for parents to return to work more gradually, enabling them to remain professionally active during parental leave. At the same time, it helps alleviate concerns about the employee’s ability to readapt to work after parental leave. Thanks to the mini agreement, the employee can stay connected to the workforce.
Trial periods and fixed-term contracts: more options, more risks
Changes in the trial period
The amendment has also brought changes to existing employment law aimed at increasing flexibility and mobility. For example, the maximum length of the trial period – during which the employment relationship can be terminated more easily and without a formal reason – has been extended. The extension applies to both ordinary employees and those in managerial positions – from three to four months for ordinary employees, and from six to eight months for managers. This gives both employers and employees a longer period to assess whether the employment relationship meets their expectations. However, such flexibility is associated with specific risks. For example, a longer probationary period may inadvertently encourage higher turnover.
New rules for fixed-term contracts
The flexi amendment also introduces the possibility of unlimited repetition of fixed-term employment contracts when hiring a substitute for an employee on maternity, paternity or parental leave. It thus abolishes the previous restriction that limited such contracts to a maximum of three consecutive terms in such cases. However, employers must still bear in mind that the maximum duration of a single fixed-term employment contract remains three years, and the total duration of a fixed-term employment relationship also remains nine years. In practice, this increases the room for maneuver when planning substitutions, for example in the case of repeated parental leave or the gradual return of a parent to part-time work. However, it will be crucial to keep consistent records and ensure statutory time limits are met to avoid the risk of a fixed-term employment relationship automatically converting into an indefinite employment relationship.
The changes introduced under the amendment are reflected not only in the content of employment contracts, but also in internal regulations, directives and HR manuals. For example, employers should revise the terms and conditions of probationary periods, the structure of mini agreements during parental leave, the rules for the delivery of documents or the guidelines governing the communication of salary levels. In view of potential litigation and inspection oversight, it is recommended that processes be transparently set up and documented to reflect the new legal realities. Legal certainty in this respect can save companies not only reputational but also financial costs.
Globalization of labor relations and a more expat-friendly regime
Expanded options for wage payments in foreign currencies
The amendment also introduces several subtle but significant changes that will affect the operations of cross-border employers and the employment of expats. In some cases, it will now be possible to pay employees’ wages in a foreign currency – not just in euros, but also, for example, dollars or pounds. The several prerequisites that have to be met, reflect the international nature of such employment relationships. For companies with branches in the Czech Republic, this removes a significant bureaucratic barrier for several categories of employees – one that the business community has long viewed as unnecessarily restrictive.
Making digital payroll processes more efficient
Another change relates to the digitization of payroll processes. The amendment introduces clearer rules for the electronic delivery of itemized wage statements, thereby increasing legal certainty when using internal digital HR systems. This will be particularly appreciated by multinational companies that already routinely work with cloud platforms and centralized wage agendas. The new rules thus bring local legislation into better alignment with corporate realities in an international context. In terms of long-term development, the last two changes signal that Czech labor law is gradually reflecting the needs of the globalized labor market. This increases legal predictability, reduces administrative burdens, and promotes legal flexibility in HR management across various jurisdictions. For foreign employers and their Czech HR teams, this means easier integration of procedures and a lower risk of conflicts between internal directives and national legislation.
Simplification, transparency, and strategic challenges for employers
Key changes in employment termination rules
The flexi amendment also introduces changes in the area of employment termination. The amendment consolidates the grounds for termination due to health reasons into a single category, extends the time limits for employers to give notice or immediate termination of employment for disciplinary reasons, and reduces the notice period to one month when notice is due to disciplinary grounds. These changes strengthen legal certainty, particularly in more complex situations where breaches of employment obligations need to be investigated in detail. Under the previous legal framework, employers had to carefully select the correct health-related ground for termination and often operate within tight timeframes, which frequently led to working on the edge and risking the invalidity of the notice. Another positive development is that the notice period will now begin from the date of delivery. However, in cases such as collective redundancies or organizational changes, it will be important to keep careful records of the delivery dates to clearly determine when the employment relationship ends.
And many other changes…
Finally, several cross-cutting changes have been incorporated into the Czech Labor Code. The abolition of compulsory initial medical examinations for jobs classified in the first – i.e. non-hazardous – category will significantly lighten the recruitment process, especially in administration and other less hazardous enterprises. Another innovation concerns the strengthening of transparency in the area of remuneration. It will now be prohibited to restrict employees from sharing information about their salary (e.g. for employees to discuss their salary among themselves), which aims to help reduce pay inequalities, especially those based on gender. This change also heralds the arrival of a new European regulation on transparent remuneration, which employers should also prepare for in advance – for example, by reviewing pay processes and establishing a transparent and predictable internal remuneration system.
The ban on restricting employees from sharing information about their wages can be viewed as a first step towards implementing the European Transparent Remuneration Directive. This is set to significantly reshape most employers’ internal pay policies in the foreseeable future. The amendment thus gives companies the opportunity to consider in advance whether their remuneration systems will stand up to the rules of the directive. A proactive audit of payroll data and remuneration policies can already lead to reduced regulatory risk going forward.
However, the flexibility introduced by the flexi amendment will only work in practice if the changes are clearly and understandably communicated to employees. Thus, HR departments will play a key role not only in setting up the new processes, but also in explaining why and how the conditions for returning from parental leave are changing, what the new rules on termination are, or what pay transparency means. Effective internal communication can help prevent misunderstandings and legal disputes while fostering greater employee loyalty during the turbulent changes brought about by new legislation.
An opportunity to rethink corporate HR strategy
The flexi amendment is one of the most significant interventions in employment legislation in recent years. It provides employers with a wider range of tools to flexibly manage labor relations, recruit more efficiently, and respond more effectively to the changing needs of the workforce. At the same time, it introduces new obligations that require a review of internal processes, employment contracts, and pay policies. Companies should therefore view the changes not merely as a formal legal update, but as an opportunity to strategically rethink their HR policies – considering not only compliance, but also long-term sustainability, employee motivation, and company culture. As initial reactions show, the flexi amendment offers positive potential, but its success will depend on a responsible and proactive approach from all stakeholders.
Would you like to know more about the flexi amendment? Contact us.
