The umpteenth amendment to the Labor Code is supposed to – at least in some respects – bring about a more flexible labor market. It should thus go in the opposite direction to the changes in the last year, which on the contrary strengthened it. One of the proposed steps towards employers is the extension of the probationary period, i.e. the “testing” period, which allows for easy termination of employment.
Experts and employers are calling for changes in the Labor Code. The Government’s National Economic Council (NERV) also recommended modernizing it in its set of 37 steps to support economic growth. She mentioned, among other things, the dismissal of an employee without giving a reason. While the ODS is going to push it into the proposal together with severance pay, the Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL) completely rejects it in the current amendment.
Instead of easier dismissals, the extension of the probationary period is supposed to be a step that will allow, in a certain respect, a slightly longer time to “think” about whether to fire the employee immediately or not. The Ministry of Labor sees the change as potentially reduced costs for employers, who will be given a longer period to fire an employee practically immediately and without being bound by strict reasons, which subsequently significantly complicate the dismissal.
“The extension of the probationary period and the possibility of an additional extension of the already agreed probationary period (within the legal limits) will allow employers to check more thoroughly whether the newly hired employee is functioning in accordance with the original expectations and whether they are satisfied with the cooperation in all aspects. The general extension of this ‘testing’ period can potentially lead to cost savings that the employer would otherwise have to incur in the future if he wanted to terminate the employment relationship with the employee in the ‘standard’ way,” the ministry argues in the explanatory note to the proposal.
For senior employees, this will mean almost three-quarters of a year in the probationary period, which could now last up to eight months compared to the current six. For others, the option to set the trial period to four months instead of the current three will open up. It should be possible to agree on an extension of the trial period.
The Czech Republic has long been one of the countries with the lowest unemployment in the EU. Employers complain about labor shortages. According to NERV, it would be necessary to move the Czech labor market. In its set of recommendations, the Council stated that problem employees or employees without performance cannot be fired in the Czech Republic unless they grossly violate work discipline.
“Difficult layoffs, for example in response to external shocks, bind employees in less productive firms and thus also inhibit the development of more productive firms that are interested in hiring,” the council said. According to her, this leads to a loss of competitiveness. The extension of the probationary period is rather a small patch in this regard, but during this time, the employment relationship can be terminated from either side overnight and without giving a reason.
Unions oppose changes in the Labor Code. Representatives of the Czech-Moravian Confederation of Trade Unions (ČMKOS) have agreed on joint action against possible changes to the Labor Code with the Social Democrats. They refuse to terminate employment without giving a reason, extend the probationary period, shorten the notice period or terminate by e-mail. “All these proposals lead to a reduction in protection for workers in a rapidly changing labor market. “None of these points address the real problems of the Czech labor market, such as often disadvantageous working and wage conditions, a mismatch between labor supply and labor demand, an exuberant blackmail system or other problematic forms of employment,” the representatives said in a joint statement.
The government should receive Jureck’s proposal in May. He reckons that part of the workers in the Czech Republic could start receiving wages in euros or another currency from next year. Employers should keep parents in their position for two years. The notice period would not start at the beginning of the next month, but immediately from the delivery of the notice. It would be shortened to a month if the worker made a mistake. Fourteen-year-olds could start going to part-time jobs during the summer holidays.
