A third of companies in the Czech Republic plan to lay off workers who work for them on the basis of contracts outside the employment relationship, as they will be less profitable for them as a result of the amendment to the Labour Code, reports the Czech News Agency, citing an online survey of the Predvyber.CZ staffing agency.

The survey found that 44% of employers believe that even after the rules are tightened, they will benefit from contract workers. The remaining fifth of companies do not consider the amendment to be a fundamental change. Besides the amendment to the Labour Code, the government's consolidation package also predicts a modification of the rules for work contracts outside the employment relationship. Employers would have to schedule the working hours of contract workers at least three days in advance. Contract workers would also be entitled to holiday pay and extra pay for working on weekends and public holidays.

Predvyber.CZ CEO Frantisek Boudny said, "Employers respond pragmatically. Tightening the rules does not rank among the steps the government would take to support the labour market. However, there has been a catastrophic shortage of job seekers for several years, so companies are trying to recruit anyone willing to work.” Meanwhile, Predvyber.CZ’s report showed that contract workers account for 5% to 10% of job positions. In 17% of cases, this type of contract is entered into because the contract workers are not interested in a permanent employment relationship.

SIA’s Europe Legal Update Q2 2023 includes more information on the Czech Republic’s ‘Amendments to regulations on temporary agency work and false self-employment’.