Flexible Amendment to the Labour Code
On 29 April 2025, the so-called “flexi amendment” to the Labour Code (Act No. 262/2006 Coll., as amended) was published in the Collection of Laws. It represents the most extensive change to labour law in recent years. Most of its provisions will take effect on 1 June 2025.
The amendment to the Labour Code introduces a number of changes aimed at increasing flexibility in labour relations and better adapting the labour market to current needs. The adjustments respond to practical demands and aim to modernize working conditions for both employees and employers. An overview of the main changes has been prepared by our colleagues in the April edition of our Payroll Newsletter HERE.
The reform also includes a revision of the rules concerning unemployment benefits, aimed at accelerating the return of job seekers to the labour market and reflecting demographic trends. Although this is not directly an amendment to the Labour Code, both changes were discussed together and jointly support the goal of greater activation of the labour market.
During the first two months of unemployment, unemployment benefits will increase from the current 65% to 80% of the applicant's average net earnings. Conversely, in the final phase of the support period, the benefit will decrease from 45% to 40%. The purpose of these measures is to ensure sufficient financial protection for individuals without work while also supporting their motivation to find new employment quickly.
The length of time unemployment benefits are paid will also change. People under 52 years of age will now be entitled to 5 months of benefits (currently up from 50 years), those between 52 and 57 will receive benefits for 8 months (currently between 50-55 years), and applicants over 60 years old will receive benefits for up to 11 months (currently over 57 years). This shift reflects demographic trends and efforts to better adapt the system to an aging population and longer working lives.
All changes regarding unemployment benefits will take effect from 1 January 2026, to give employment offices and employers enough time to prepare for the new conditions.
The new changes strengthen the competitiveness of companies without reducing the protection of employees' rights. They place special emphasis on supporting parents returning from parental leave and improving the work-life balance. The measures adopted thus represent a comprehensive step towards a more modern and flexible form of Czech labour law.
If you have any questions regarding the above, please feel free to contact our experts.
Authors:
Gabriela Ivanco, Tax Department Manager
Anna Klímová, Newsletter Editor
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