Working life country profile for Czechia
This profile describes the key characteristics of working life in Czechia. It aims to provide the relevant background information on the structures, institutions and relevant regulations regarding working life.
This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.
The central concern of employment relations is the collective governance of work and employment. This section looks at collective bargaining in Czechia.
In Czechia, it is possible to conclude both higher-level collective agreements (HLCAs) and company-level collective agreements (CLCAs). Both HCLAs and CLCAs are legally binding. The most common level of collective bargaining in Czechia consists of that held at company level. Collective bargaining at national level does not exist.
Collective bargaining is relatively stable; there is no centralised approach, as trade union confederations and employer organisation are entirely autonomous.
Wage bargaining coverage is slightly above 30%: this figure has been relatively stable since 2006.
Collective bargaining coverage (%), national data, 2012–2022
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
| Sectoral level (i.e. higher-level agreements) | 15.8 | 15.2 | 13.7 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Company level | 33.9 | 33.2 | 31.3 | 31.6 | 30.4 | 31.2 | 31.5 | 32.1 | 33.9 | 31.2 | 32 |
Source: ČMKOS (data for ČMKOS members only)
Collective wage bargaining coverage of employees from different sources, all levels
| % (year) | Source |
| 34.2 (2018) | OECD and AIAS, 2021 |
| 9 (2019) | Eurofound and Cedefop, 2020 |
| 47 (2010)* | Structure of Earnings Survey 2010 |
| 50 (2014)* | Structure of Earnings Survey 2014 |
| 47 (2018)* | Structure of Earnings Survey 2018 |
Note: * Percentage of employees working in local units where more than 50% of the employees are covered under a collective pay agreement against the total number of employees who participated in the survey.
Sources: Eurofound and Cedefop (2020), European Company Survey 2019 (including private sector companies with establishments of > 10 employees (NACE codes B–S), with multiple answers possible); Eurostat [earn_ses10_01], [earn_ses14_01], [earn_ses18_01], Structure of Earnings Survey 2010, 2014 and 2018 (including companies with > 10 employees (NACE codes B–S, excluding O), with a single answer for each local unit)
Collective bargaining at a higher (sectoral) level and company level, 2012–2022
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||
| Number of HLCAs concluded | 24 | 24 | 24 | 21 | 23 | 22 | 23 | 22 | 23 | 23 | 22 | |
| Number of employers to which HLCAs apply | 7,933 | 7,156 | 7,046 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | |
| Number of employees covered by HLCAs concluded | 629,733 | 620,665 | 557,825 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | |
| Company level | Number of employers in which parent organisation of union operates | 5,356 | 5,087 | 4,913 | 4,803 | 4,660 | 4,617 | 4,531 | 4,613 | 4,504 | 4,233 | 4,202 |
| Number of CLCAs concluded | 4,680 | 4,739 | 3,966 | 3,910 | 3,849 | 3,767 | 3,770 | 3,690 | 3,605 | 3,590 | 3,611 | |
| Number of employees covered by CLCAs concluded | 1,351,127 | 1,361,065 | 1,289,998 | 1,315,259 | 1,291,339 | 1,338,937 | 1,384,711 | 1,414,788 | 1,466,112 | 1,358,588 | 1,389,199 |
Note: The national data are for ČMKOS members only, except for the number of HLCAs, which is for Czechia as a whole. Unfortunately, no information is available on the number of employees covered by HCLAs for 2015 and the following years (ČMKOS was unable to obtain such data from individual member trade union associations).
Source: ČMKOS, 2022.
HLCAs serve as a framework for the determination of CLCAs: they set out minimum standards with respect to wages and working time that are subsequently adhered to in CLCAs. CLCAs can set higher, but not lower, standards than HLCAs. HLCAs and CLCAs are legally binding.
No register is maintained of CLCAs concluded in Czechia; however, HLCAs are monitored by the MPSV.
The most important level of collective bargaining in Czechia is company level. The HLCAs that are concluded serve as a framework to determine the form of CLCAs in the sector. HLCAs are usually concluded between social partners in the following sectors: chemicals and energy; machinery, including the aviation industry; the mining and oil industry; construction; wood processing, forestry and water management; the textile, apparel and leather industry; the banking and insurance sector; the wholesale, retail and tourism industry; postal, telecommunication and newspaper services; agriculture; transportation (road transport services); road transport management; and car repairs.
The number of employees covered by HLCAs declined continuously between 2012 and 2022.
Levels of collective bargaining, 2022
| National level (intersectoral) | Sectoral level | Company level | ||||
| Wages | Working time | Wages | Working time | Wages | Working time | |
| Principle or dominant level | X | X | ||||
| Important but not dominant level | X | X | ||||
Articulation
HLCAs set out minimum standards of wages and working time – this standard is then followed by CLCAs. CLCAs can set higher, but not lower, standards than HLCAs.
The vast majority of negotiations on a new collective agreement (or amendment to a collective agreement) begin in the fourth quarter of the year. Contracts are signed mostly in the period between December and January. This applies to bargaining at company level and at sector level. Previously, HLCAs were concluded for a period of one year, but they are now gradually being replaced by those with multiannual validity. However, the wage-related parts of these contracts are still negotiated with annual validity (in the form of appendices). CLCAs are usually concluded for a period of one year.
There is no coordination mechanism for collective (wage) bargaining in Czechia, but HLCAs usually set out minimum standards for collective bargaining at company level.
The extension of a binding HLCA to another employer is possible under the conditions of Act No. 2/1991 Coll. on collective bargaining. The MPSV has the relevant powers to ensure agreements are extended, based on a proposal made by both contractual parties to the agreement, provided that the conditions determined by law are met. There are no voluntary mechanisms of extension.
From a total of 22 HLCAs conducted in 2022, 5 were extended; in 2021, from a total of 23 HLCAs, 6 were extended. Unfortunately, the number of employees covered by these HLCAs is not known (ČMKOS was unable to obtain such data from individual member trade union associations).
Derogation mechanisms, such as opening or opt-out clauses, do not exist in Czechia.
If the collective agreement expires and no new collective agreement is concluded, the employment relationship is then regulated by legislation, mostly by the Labour Code.
Czech social dialogue is considered to be well established and functional, in both formal and informal ways. Social partners, especially at peak level, are proactive and discuss a wide range of current issues with the government – digitalisation and automation, e-learning, teleworking, new forms of work and climate change.
Collective bargaining is, however, still very conservative; ‘new’ topics are hardly ever reflected in collective agreements at either sectoral or company level. Evidence of this can be seen, for example, in the implementation of European framework agreements, frameworks of actions and other joint documents, which are outlined in the European social dialogue work programmes. In its reports on collective bargaining at the higher and company levels, ČMKOS regularly states that the implementation of these work programmes through HLCAs is insufficient, and it calls on member unions to devote greater attention to this topic (despite HLCAs in Czechia having only limited impact and covering only around 20–25% of the labour force).
