Social partners agree to Labour Code amendments

The largest employer and trade union organisations in the country, the Confederation of Industry of the Czech Republic and the Czech-Moravian Confederation of Trade Unions, have agreed to significant amendments to the Labour Code. Both sides presented a joint proposal to the Ministry of Labour and Social Affairs, which is currently drafting a technical amendment to the code.

Representatives of trade unions and employers agreed on 15 amendments to the Labour Code and one amendment to the civic court rule. These amendments should replace or eliminate questionable provisions which currently create complications for both employees and employers. The joint proposals put forward by the social partners to the Ministry of Labour and Social Affairs (Ministerstvo práce a sociálních věcí ČR, MPSV ČR) are also supported by four major international Chambers of Commerce in the Czech Republic – namely the US, German, Scandinavian and Dutch offices.

Content of agreed changes

The agreed changes between the social partners include several significant amendments. For example, in relation to working time accounts, it is recommended not to ask for individual agreements for employees in a company where trade unions are established if the working time account is defined in the collective agreement. In terms of the working hours of adolescents, it is recommended to increase the defined weekly number of working hours from the current 30 to 40 hours in all labour relations. The increase shall apply to young people aged over 16 years for a limited period of time, such as during summer holidays. It is further recommended that those employees caring for a child under the age of one year be permitted to work overtime on the basis of an agreement between the employee and their employer.

The proposal also includes amendments in legislation related to remuneration. These comprise, for example, a new surcharge rate on wages for night shifts and weekend work at a minimum of 10% of average wages in those cases where no collective agreement is negotiated.

The proposal to amend the civic court rule is based on the requirement to set time limits for negotiations related to labour disputes.

Agreement on proposals to supplement code amendment

Implementation of these changes is part of the Agreement on proposals for supplementing the amendment to the Labour Code, which was negotiated on 23 May 2007 between the Confederation of Industry of the Czech Republic (Svaz průmyslu a dopravy ČR, SP ČR) and the Czech-Moravian Confederation of Trade Unions (Českomoravská konfederace odborových svazů, ČMKOS). The agreement endorses the bipartite social dialogue as a necessary tool for reaching a consensus in economic and social matters, and follows the agreement on bipartite cooperation concluded between the employer and trade union representatives in the Czech Republic in late 2004.

Within the agreement on supplementing the Labour Code amendment currently being prepared, the social partners also committed to refrain from reinforcing further changes within the proposal for a technical amendment to the Labour Code. They have also committed to discuss within the bipartite social dialogue the modification of the potential amendment to the Labour Code. At the close of the May meeting, both the employers and trade unions entrusted their expert departments with the development of an official draft of proposed changes.

Views of social partners

Commenting on the results of the negotiations between the largest social partner organisations in the country, the Vice-Chair of SP ČR and member of the Board of Directors of Škoda Auto, Martin Jahn, stated: ‘Within a short space of time we have arrived at a compromise significantly simplifying the application of law in practice.’ The Vice-Chair of ČMKOS, Jaroslav Zavadil, added: ‘We perceive this as a positive step to the future. We believe that such agreements should be achieved more often in all areas which are at the forefront of the party’s interests.’

Jaroslav Hála and Soňa Veverková, Research Institute for Labour and Social Affairs