Quick Summary: Czech Republic Employment Contracts
Every employment relationship in the Czech Republic must be grounded in a written contract that meets the minimum requirements of Act No. 262/2006 Coll., the Labour Code.
For a foreign company bringing on its first Czech hire, that means understanding not just what must go into the contract, but which contract type applies, how fixed terms are capped, and what the June 2025 flexinovela changed.
Independent rankings of EOR providers by Czech compliance depth, contract handling, and onboarding speed are covered in the Czech Republic EOR hub.
Three Types of Employment Arrangement
Czech law provides three ways to engage a worker, and the choice affects contract structure, contribution obligations, and leave entitlements.
The standard employment contract (pracovní poměr, or HPP) covers full-time and part-time work, on either a fixed or indefinite basis. This is the arrangement most foreign employers will use when hiring a Czech employee through an EOR. The other two arrangements sit outside the standard employment relationship and are governed by separate rules.
The Agreement to Perform Work (dohoda o pracovní činnosti, DPČ) is used for ongoing part-time engagements capped at 20 hours per week. The Agreement to Complete a Job (dohoda o provedení práce, DPP) is suited to project or temporary work and is limited to 300 hours per calendar year with a single employer.
Since January 2024, workers under both agreements have been entitled to paid annual leave, provided they have worked at least 80 hours under the same agreement within a four-week period.
Standard employment vs flexible work agreements
Mandatory Written Requirements
Section 34(1) of the Labour Code sets out three clauses that every employment contract must include: the type of work the employee will perform, the place or places of work, and the date on which work begins. These are not defaults that can be implied or filled in later. If any of the three is missing, the contract is deficient.
Beyond these three essentials, employers must also provide written information about the scope of the role, working hours, leave entitlement, notice periods, salary, and collective agreements in force, where applicable.
Following the transposition of EU Directive 2019/1152 through Act No. 281/2023 Coll., this disclosure can be included directly in the contract or delivered in a separate written document within seven days of the employment starting.
The written form requirement has been tested in Czech courts. The Supreme Court has ruled that a standard email without a valid electronic signature does not constitute a written employment contract.
A properly executed electronic contract, where both parties sign using a recognised electronic signature and the employee starts work, is generally treated as valid.
Fixed-Term Contracts: Limits and Conversion Risk
A fixed-term contract in the Czech Republic can run for a maximum of three years. It can be renewed or extended twice, giving a theoretical maximum of nine years in total across the same employer-employee relationship.
If either limit is breached, or if the employee continues working after the contract expires with the employer’s knowledge, the arrangement automatically converts to an indefinite contract.
The three-year reset clause matters for forward planning. If at least three years pass after a fixed-term relationship ends, the clock resets and a new fixed-term contract with the same employee is treated as the first in a new sequence.
One exception was introduced in 2024 and clarified by the flexinovela: when a fixed-term contract is used to cover for an employee on maternity, paternity, or parental leave, the two-renewal limit does not apply. The nine-year ceiling still holds.
Czech fixed-term contract rules: key legislative milestones
Probationary Periods
Probationary periods are not mandatory under Czech law, but when used they must meet strict conditions. The agreement must be in writing and must be concluded no later than the employee’s first day of work. An oral probationary period, or one agreed after the employee starts, has no legal effect.
As of 1 June 2025, the flexinovela extended the maximum durations under Section 35 of the Labour Code. Standard employees can now serve a probationary period of up to four months.
For employees in managerial roles, the ceiling is eight months. For fixed-term contracts, the probationary period cannot exceed half the agreed duration of the contract regardless of the employee’s seniority.
Prior to June 2025, the limits were three months and six months respectively. Contracts in place before the amendment took effect continue under the old rules for their existing probationary term.
Notice Periods and Termination
The standard notice period under Czech law is two months. This applies equally to employer and employee: the Labour Code does not permit a longer notice period for one party than the other, though both can agree in writing to extend it symmetrically.
The flexinovela changed when the notice period begins to run. Before June 2025, the two months started on the first day of the calendar month following delivery of the notice. Since the amendment, it runs from the day after the notice is delivered. That is a meaningful difference for anyone calculating a last working day.
A one-month notice period applies in specific circumstances: where the employer terminates on grounds of serious breach of work obligations, or where the employee has failed to meet the requirements for performing their role.
Termination during probation requires no notice at all and takes effect immediately, though it must be given in writing.
Non-Compete Clauses
Non-compete clauses are optional and governed by Sections 310 and 311 of the Labour Code. They can only be agreed with employees for whom such a restriction is genuinely justified by the nature of the information, knowledge, or technical processes they acquired during employment.
This typically covers senior, technical, and commercial roles with access to confidential business data.
For a non-compete clause to be enforceable, it must be in writing, specify the restricted activities and geographic scope, and run for no longer than one year from the date employment ends.
The employer must pay financial compensation of at least 50% of the employee’s average monthly earnings for every month the restriction applies. If the employer fails to pay within 15 days of a payment falling due, the employee can withdraw from the clause in writing, and it ceases to apply from the first day of the following calendar month.
The 2021 Constitutional Court ruling (Case No. II. ÚS 1889/19) clarified that an employer can withdraw from a non-compete clause during the employment relationship, but cannot do so arbitrarily.
Courts will assess the timing and circumstances of any withdrawal, particularly where the employee can show they made career decisions in reliance on the clause being in force.
What EOR Providers Handle on Your Behalf
When a foreign company hires in the Czech Republic through an EOR, the EOR acts as the legal employer and takes on the contract drafting obligations directly.
That means preparing a compliant written contract with the three Section 34(1) essentials, issuing the required transparency disclosures within the seven-day window, and registering the employee with the Czech Social Security Administration (ČSSZ) and the relevant health insurance fund before work begins.
The EOR also manages fixed-term tracking, flagging renewal limits before conversion risk materialises, and applies the correct probationary period caps based on the role. For DPP and DPČ arrangements, the EOR handles the contribution threshold monitoring introduced in 2024.
What the client company specifies is the role type and description, the place of work, the start date, the agreed salary, and whether a probationary period or non-compete clause is required.
Those inputs are contractual decisions that sit with the hiring manager, not the EOR. For a detailed breakdown of which Czech EOR providers cover contract compliance most thoroughly, the Czech Republic EOR rankings compare providers on exactly this dimension.
Frequently Asked Questions
What must be included in a Czech employment contract by law?
Under Section 34(1) of the Czech Labour Code, every employment contract must include the type of work, the place of work, and the start date. Additional disclosures covering working hours, leave, salary, and notice periods must also be provided in writing, either in the contract or in a separate document within seven days of the employment starting.
Can a Czech employment contract be signed electronically?
Yes, provided it carries a valid electronic signature. The Czech Supreme Court has ruled that a standard email without an electronic signature does not satisfy the written form requirement. A properly executed digital contract, where both parties sign electronically and the employee begins work, is treated as valid.
How many times can a fixed-term contract be renewed in the Czech Republic?
A fixed-term contract can be renewed or extended twice, giving a maximum total duration of nine years. If either limit is exceeded, or if the employee continues working after the contract expires with the employer’s knowledge, the contract converts to indefinite by operation of law. An exception applies when the contract covers an employee on parental leave: the two-renewal limit does not apply in that case, though the nine-year ceiling still does.
What is the maximum probationary period in the Czech Republic?
Since 1 June 2025, the maximum is four months for standard employees and eight months for managerial employees. The probationary period must be agreed in writing before the employee’s first day. It cannot be agreed retrospectively, and for fixed-term contracts it cannot exceed half the agreed contract duration.
Do Czech non-compete clauses require the employer to pay compensation?
Yes. A post-employment non-compete is only enforceable if the employer commits in writing to paying at least 50% of the employee’s average monthly earnings for every month the restriction applies. Without that compensation clause, the agreement has no legal effect. If the employer fails to pay within 15 days of a payment falling due, the employee can withdraw from the clause entirely.
Are salary confidentiality clauses legal in Czech employment contracts?
No. Since 1 June 2025, the flexinovela prohibits clauses that prevent employees from disclosing their wage amount or structure. The Labour Inspectorate can fine employers who include such clauses in contracts or standalone agreements.
What is the difference between a DPP and a DPČ in Czech law?
A DPP (dohoda o provedení práce) limits work to 300 hours per calendar year with a single employer and is suited to short-term or project-based work. A DPČ (dohoda o pracovní činnosti) covers ongoing part-time work, capped at 20 hours per week. Both arrangements have carried paid leave entitlements since January 2024, subject to minimum hour thresholds being met.
