In the last quarter of last year, we finally saw an amendment to the Labour Code, which introduced several significant changes in employment relations as of 1 October 2023. Not only due to the number, but especially due to the importance of these changes, we have decided to prepare an eight-part series of articles in which we will gradually focus on the individual sub-areas in detail.
In the first part, we looked at the electronic conclusion of contracts and agreements (you can read more here), through which bilateral legal negotiations leading to the creation of an employment relationship can be concluded with new employees. Closely related to its creation is the employer’s information obligation, which has been extended and modified by the amendment, and which we will focus on in this article.
Concept of employer’s information obligations
The Labour Code requires employers to inform their employees in writing of their rights and obligations arising from their employment relationship if the employment contract does not contain such information. This also applies to employment relationships established by appointment. The amendment significantly expands the existing information obligation of employers in relation to employees, not only in terms of content but also in terms of the range of persons to whom employers must comply with this obligation.
Content extension of the information obligation
Employers are obliged to provide their employees with much more information than has been the case to date. The exhaustive list of the information set out in Section 37(1) of the Labour Code, which the employer must disclose to the employee in writing (unless it is already included in the employment contract), has been expanded by:
- the duration and conditions of the probationary period;
- the procedure that the employer and the employee must follow when terminating the employment relationship, including the length and duration of the notice period;
- information about the employee’s professional development, if the employer provides it;
- an indication of the fixed weekly working hours;
- the method of staggering working time, including the length of the compensatory period if unequal staggering is applied;
- the extent of overtime work;
- the extent of the minimum continuous daily rest and continuous weekly rest periods and the time for providing meal and rest breaks or reasonable rest and meal periods; and
- the social security body to which the employer pays social security contributions in connection with the employee’s employment.
The employer must also provide all such information to employees within a much shorter period, namely within 7 days from the date of commencement of the employment relationship (i.e., from the date of commencement of work as agreed in the employment contract, not from the date on which the work commenced). The amendment therefore shortens the time limit, but the starting point remains the same. Even with the newly added information, it will still be possible (as was possible under the previous legislation) to replace it with a reference to a collective agreement or an internal regulation.
However, this does not exclude existing employees, who must be provided with the additional list of information upon their written request within 7 days from the date of receipt of such request.
However, the employer’s obligation to inform also applies to any other changes that occur during the employment relationship, which must also be communicated to all employees no later than the day they take effect (this obligation does not apply to changes in legislation and collective agreements).
Extension of the circle of addressees
As regards the scope of persons subject to compulsory information, the amendment to the Labour Code extends this to employees who are posted to the territory of another country, but only if such posting exceeds 4 consecutive weeks.
The employer is obliged to inform these employees under Section 37a(1) of the Labour Code of (i) the country in which the work is to be performed, (ii) the expected duration of the posting, (iii) the currency in which the wages or salary will be paid[1], (iv) the monetary or in-kind benefits provided by the employer in connection with the performance of the work, and (v) whether and under what conditions the employee’s return is assured.
In addition to the information referred to in paragraph 1, the employer shall be obliged to inform employees posted to another Member State of the European Union to perform work in the context of the transnational provision of services of (i) the remuneration for work to which the employee is entitled under the legislation of the host Member State, (ii) the conditions for the provision of travel allowances in connection with the performance of the work and other benefits provided by the employer in connection with the posting, and (iii) a link to the official national Internet address established by the host Member State.
Introduction of the obligation for employees with agreement outside the employment relationship
A special regulation of the information obligation is also newly established about employees working under agreements for work performed outside the employment relationship.
The scope of the information provided is set out in the new Section 77 of the Labour Code, to a similar extent as for employees under an employment contract, as the amendment to the transposed EU Directive[2] makes no distinction between the different forms of employment relationships.
Compared to the general regulation of Section 37 of the Labour Code, in this case, the employer must additionally inform the employee about the planned scope of working time for one day or week. The aim is to provide the employee with a framework for predictability of work performance, even though the actual working time may not be precisely defined.
The employee must also be informed whether the working time will be regularly or irregularly distributed over the weeks, and in the case of employees with agreement outside the employment relationship, information must also be provided on the length of the compensation period under Article 76(3) of the Labour Code.
There is also a special information obligation concerning employees with an agreement outside the employment relationship and who are posted to the territory of another state. This has been supplemented by the new Section 77b of the Labour Code, and the information provided corresponds to that applicable to the employment relationship under the general provisions of Section 37a of the Labour Code.
Information in electronic form
The Labour Code allows for mandatory information to be provided electronically. In such a case, the method of transmission of the information plays a role in the information process, during which the employer must ensure that employees are always able to save and print the information communicated.
The employer must have proof of the knowledge of the mandatory disclosures, confirming that the information was given to the employee. Especially for any future dispute, such proof may be crucial.
How to do it in practice?
Given the above changes in the information obligation of employers, it is necessary for employers to respond to them promptly, to adapt the content of existing employment law documentation, and to take other necessary measures to ensure that their procedures are in line with the new legislation. In this context, we recommend the following:
- Update internal documents and related procedures to reflect the new requirements for informing employees.
- Make sure you can provide all the necessary information within 7 days of starting the job or receiving a request from an existing employee.
- When sending employees abroad, make sure they are informed of all relevant working conditions in the destination country by the new regulations.
- Ensure that employees whose employment relationship has been established by one of the agreements on work outside the employment relationship are informed of the planned amount of working time per day or week and the length of the compensation period.
- Ensure electronic transmission of information to maintain the security of employees’ data by GDPR.
- Ensure that employees can save electronically delivered information and can retrieve and print it at any time.
- Keep a record of the information provided and remind employees of the importance of keeping these documents for future reference.
To comply with the information obligations, we also recommend that you use the services of a legal consultancy, or use the templates published by the Ministry of Labour and Social Affairs for inspiration when creating new documents.
Conclusion
The new legislation on employers’ information obligations brings major changes around employment relations. Employers are now obliged to provide much more detailed information to their employees, not only at the beginning of the employment relationship but also during its duration. In particular, the focus is on providing information regarding working hours, remuneration, the timing of working hours, and other important aspects of working life.
It is now crucial for employers to update all internal documents and procedures to ensure that information is provided to all employees promptly and correctly. If an employer chooses the option of sending information electronically, they must ensure that the security of employees’ data is always GDPR compliant.
If you have any questions about the amendment to the Labour Code or need help with updating your existing employment documentation, please do not hesitate to contact us at any time.
[1] In the previous regulation, it was enshrined in Section 37(2) of the Labour Code.
[2] Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life balance for parents and carers and repealing Council Directive 2010/18/EU and Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union.
Mgr. Jakub Málek, managing partner – malek@plegal.cz
Mgr. Kateřina Lansdorfová, junior lawyer – lansdorfova@plegal.cz
Mgr. Radim Šulc, junior lawyer – sulc@plegal.cz
Rachel Kouklíková, legal assistant – kouklikova@plegal.cz
5. 1. 2024