The long-discussed so-called flexiamendment, which amends the Labour Code and other legislation, brings a number of important changes in the field of labour relations. With effect from 1 June 2025, the changes and novelties will affect many areas and institutes of employment law, an overview of which you can also find basic information in our information leaflet.
We have also prepared a series of articles on the various changes that flexiamendment brings, and in this episode we will take a closer look at the changes that affect wages and pay statements.
Current wage and pay statements
The Labour Code regulates wages or salary as primarily a monetary compensation for work performed by an employee. All current regulations and future changes we will discuss here concern both wages and salary, therefore we use the aggregate term wages for both cases.
In the context of payment of wages, the law currently favors payment in cash, while a non-cash form of payment is possible, but only on the basis of an agreement between the employee and the employer. The employer pays wages in legal tender, i.e. in Czech crowns, but if the employee has a place of work abroad, he or she may also receive wages in foreign currency if he or she agrees to do so. The employee and the employer can agree on any currency, but the condition is that the exchange rate for this currency must be announced by the Czech National Bank.
As regards the wage statement, the employer must now deliver it on the day the employee starts work, which is not necessarily the day the employee starts work. However, the wage statement belongs to the category of special documents, the delivery of which via an electronic communications network or service is only possible with the informed consent of the employee. The employee must acknowledge service in writing within 15 days, failing which the employee shall be deemed to have been served on the last day of that period.
Preferred method of wage payment
Instead of paying wages in cash, the law now prefers a non-cash form of payment to a bank account, thus adapting to the current widespread practice
Exceptions are situations where objective obstacles prevent this, typically if the employee does not have a bank account or does not disclose it to the employer. In addition, the employee may refuse the non-cash form of payment and must do so in writing. In practice, this means that the employee’s consent to the payment of wages into a bank account will no longer be required.
Payment of wages in foreign currency
As regards the payment of wages, it will still be possible to pay wages or part of them in foreign currency only on the basis of an agreement between the employee and the employer
The condition is no longer a place of work abroad, but an objective link to the foreign country is sufficient, e.g. the employee is a foreigner or pays expenses or its family members abroad, its place of work is abroad, etc. This also applies to citizens of other EU Member States who do not have permanent residence in the Czech Republic. However, the foreign currency in which the employer will pay wages must be based on the exchange rate according to the Czech National Bank’s exchange rate list.
Pay statement and its delivery
The employee must now receive a pay statement before starting work, even if the work is performed under the new pay conditions.
The changes also apply to electronic delivery. Although the wage statement remains in the list of special documents to be served in accordance with the procedure under Section 334a to Section 336 of the Labour Code, the conditions for service via an electronic communications network or service in the manner provided for in Section 335 have been loosened.
Now the pay statement can be delivered electronically without the employee’s prior consent and even to the employee’s work e-mail. However, the condition is that the employer must deliver the pay statement via an interface that allows the employee to save and print the pay statement. At the same time, the pay statement must bear the employer’s qualified electronic signature.
An important condition for delivery is confirmation by the employee. The employee has 15 days to confirm delivery in writing if he fails to do so, the statement is deemed not to have been delivered. In practice, this means that the effects of service only take effect when the employee acknowledges receipt and the employer cannot rely on the fiction of service. The employee can also comply with the written form by simply clicking on the receipt of the message containing the statement or, within the internal system, by clicking on the acknowledgement of reading the document, which is recorded by the system.
What will the changes bring in practice?
The amendment brings the law closer to practice and simplifies electronic delivery. The law prioritizes the method of payment of wages in a non-cash form, which does not require the employee’s consent (however, employee’s cooperation is required) and the employer will thus be relieved of at least some administrative obligations. At the same time, a compromise has been reached on the issue of payment of wages in foreign currency, where exceptions to the general principle of using the legal currency have been extended. This is particularly beneficial for employees, as it will reduce the transaction costs associated with converting wages into the required currency.
The pay statement must now be submitted before the start of work, if the work is performed under the new wage conditions. There is a significant relaxation in the electronic delivery of the pay statement, where the employee’s consent is no longer required and it can be delivered to the work email. The fact that the employee’s consent is not required is then counterbalanced by the absence of the fiction of service, whereby without the employee’s confirmation, service is ineffective.
Summary
Flexiamendment brings several major changes that will have a significant impact on the daily functioning of employee relations.
One of the most significant changes introduced by flexiamendment is the change of the preferred method of payment of wages to a cashless form, whereby the employee’s consent is not required. At the same time, it is possible to pay wages in foreign currency to employees with an objective link to a foreign country by agreement. It will be possible to deliver the pay statement electronically even without the employee’s consent to work e-mail, but the obligation to deliver the pay statement with a qualified electronic signature before the start of work is essential.
If you have any questions regarding the flexible amendment to the Labour Code or labour law in general, please do not hesitate to contact us.
Rozálie Polášková, legal assistant – polaskova@plegal.cz
Mgr. Nikola Tomíčková, junior lawyer – tomickova@plegal.cz
Mgr. Jakub Málek, managing partner – malek@plegal.cz
23. 5. 2025