Just recently we informed you about the amendment to the Labour Code, with partial effect from 1 October 2023, which introduced several significant changes.

The ink on that amendment to the Labour Code has barely dried and the legislator is already preparing another one with a proposed effective date of 1 July 2024.

What significant innovations is the amendment expected to bring?

- Support for collective bargaining for employers with multiple trade unions. The principle of compulsory consensus on one side of the table is currently in place, meaning all trade unions operating at an employer must agree to the wording of a collective agreement. This creates a risk of blocking by small trade unions. The amendment will allow employers to break the principle of compulsory consensus and conclude a collective agreement with the most representative trade union or group of trade unions, provided all the conditions are met.

- Abolition of the obligation to issue a written annual holiday schedule, a mostly formal affair that needlessly increases the administrative burden on employers.

- Introduction of a new mechanism for indexing the minimum wage, including changes to the current legislation on the guaranteed wage.

We will keep you informed about the development of this amendment.

Author: Nathalie Hofmanová

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