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.
The next in a series of articles we have prepared for you on the various changes brought about by flexiamendment is the institute of confidentiality of the employee’s wage conditions
Silence on pay conditions so far
The decision-making practice of the Czech courts and the CJEU concluded some time ago that it is not permissible to oblige an employee to keep his wage confidential. In fact, the courts consider the possibility for employees to disclose the terms of their remuneration to each other as the only means by which employees can find out whether they are being paid equally. If the employer negotiated such a confidentiality clause with the employee, it was unenforceable.
Despite the above, employers often included confidentiality clauses in employment contracts or concluded separate confidentiality agreements with employees. Although employers were generally aware of their unenforceability, they relied at least on the psychological effect of the clauses on the employee’s duty of confidentiality about his or her wage conditions.
New ban on confidentiality clauses
In the context of EU labour law trends regarding the protection of employees and the emphasis on equality and transparency of remuneration, as well as the current case law of the Czech courts and the opinion of the Public Defender of Rights, according to which such confidentiality is contrary to Section 4a of the Labour Code, the legislator has now made the inadmissibility of confidentiality clauses clear.
One of the approved amendments to the flexiamendment therefore now explicitly prohibits the negotiation of confidentiality clauses regarding the amount and structure of remuneration in employment documentation. Thus, the employer may not restrict the employee in any way (in law or in fact) from handling information about the amount and structure of employee’s wage, salary or remuneration under the agreement.
If the employer violates this prohibition, employee commits an offence under the Labour Inspection Act with a possible penalty of a fine of up to CZK 400,000.-.
However, it should be stressed that even under the new confidentiality legislation it is still possible to restrict employees from handling information about the amount and structure of wages, salary or remuneration of other employees.
What do these changes mean in practice?
As such clauses are a common arrangement in employment documentation, care must be taken to ensure that such a clause, agreement or provision is not part of the employment contract or any agreement after the flexiamendment has taken effect.
If confidentiality is provided for in the employment documentation in contravention of the new rules, this can be remedied either by (i) an amendment to the employment contract or agreement or (ii) an unilateral waiver by the employer, including a declaration that it will not enforce the provision.
For the sake of completeness, it should be noted that the obligation of confidentiality regarding the employee’s remuneration structure may not be established either in the employer’s internal regulations or by a separate confidentiality agreement.
Pay Transparency Directive and future prospects
The ban on pay secrecy clauses is one of the steps that bring the Czech Republic closer to the requirements of the European directive on transparent pay – the so-called Gender Pay Gap Directive[1] . Among other things, the directive provides that employers will be obliged to provide information on remuneration criteria, differences between different groups of employees or wage statistics. All this is intended to eliminate unjustified pay gaps. The deadline for the member states for transposition is 7 June 2026.
You can also read more about the Pay Transparency Directive and related equal pay news in our article here.
Summary
Flexiamendment brings significant changes in employment relations, for example, in addition to the prohibition of confidentiality clauses, it also regulates the notice period, extends the trial period or guarantees the return of employees to the same work position.
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.
[1] Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 reinforcing the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms, text available at the link here.
Rachel Kouklíková, legal assistant – kouklikova@plegal.cz
Mgr. Nikola Tomíčková, junior lawyer – tomickova@plegal.cz
Mgr. Jakub Málek, managing partner – malek@plegal.cz
28. 5. 2025