EMCC European Monitoring Centre on Change

Czechia: Severance pay/redundancy compensation

Phase: Management
Severance pay/redundancy compensation
Senast ändrad: 18 June, 2021
Lokalt namn:

Zákon č. 262/2006 Sb., Zákoník práce v posledním znění (novelizován v roku 2011 zákonem č. 365/2011 Sb.)

Engelskt namn:

Law No. 262/2006 Coll., Labour Code - latest edition (amended by Law No. 365/2011 Coll.)




An employee whose employment relationship is terminated by notice given by an employer due to reorganisation or by agreement for the same reason is entitled to receive severance pay. The severance pay amounts to one month's payment for termination of employment in the first year, two months for the second year and three months for those who have worked more than two years for the employer.

For the purpose of paying the severance pay to the employee concerned, average monthly earnings are considered as average earnings.

This regulation applies to collective dismissals of employees as well as to individual dismissals and is commonly applicable both for full-time and part-time contracts, for permanent and fixed-term contracts.


According to the 'Information on working conditions' survey, in 2018 higher severance pay was agreed than stipulated in legislation in 429 (32.8%) company-level collective agreements (CLCA) for employment contracts of up to 1 year, 440 (33.6%) CLCAs for employment contracts of up to 2 years and 679 (51.9%) CLCAs for employment contracts of more than two years of a total of 1,309 CLCAs monitored in the private sector. In the case of organisations operating in the public services and administration sector, higher severance pay was agreed in 38 (9.6%), 39 (9.8%) and 64 (16.2%) CLCAs (same employment contract durations as above) of a total of 396 such agreements monitored in the public sector. The above figures do not differ significantly from year to year.

Cost covered by
  • Employer
Involved actors other than national government
  • Trade union
No, applicable in all circumstances
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