Changes to agreements on work performer outside the employment relationship
The Labor Code underwent a number of significant legislative changes in 2023, which affected several important areas of labor law. One of these affected areas was agreements on work performed outside the employment relationship, i.e. the agreement to complete a job (DPP) and the agreement to perform work (DPČ).
Starting in 2024, employers will face a new reporting obligation towards the Czech Social Security Administration (ČSSZ). This entails providing personal data and settled incomes of employees engaged under DPP agreements for each calendar month.
- Employers must submit electronic notifications within 8 days of the start or termination of a DPP.
- By the 20th day of the following month, a detailed form must be submitted, encompassing employee details and income information.
One of the other changes is the newly extended obligation of the employer to provide information on the content of the legal relationship based on the agreements. Thus, if the agreement itself does not contain information on, for example, the name and registered office of the employer, the details of the agreed work, the amount of leave or, for example, the duration and conditions of the trial period, the employer is obliged to inform the employee of these details in writing within 7 days of the commencement of work.
This extension of the employer’s obligation to provide information is linked to another amendment concerning a more precise definition of conditions under which the work performed on the basis of an agreement is undertaken. The employer is now obliged to determine the employee’s working time in advance in a written work schedule and to inform the employee of the schedule at least 3 days before the beginning of the shift. At the same time, employees working on the basis of an agreement now have the right to vacation if the legal conditions are met, and this change will take effect from January 1, 2024. For vacation purposes, the working week for these employees will then be 20 hours per week. At the same time, from October 1, 2023, these employees will be entitled to additional payments for working on public holidays, at night, on weekends or in difficult working environments.
A new feature is the possibility to transfer to the main employment contract. An employee working under an agreement may submit a written request to the employer to transfer to an employment contract if the agreement between the employee and the employer has been in effect for at least 12 months and the employee has worked for a total of at least 180 days during these consecutive 12 months. The employer is obliged to furnish a written response to the employee’s request.
A significant change also applies to social security contributions in cases of concurrent agreements with multiple employers. Under the new rules, when multiple DPPs with different employers are concurrent, the cumulative income from DPPs exceeding 40% of the average wage (approximately CZK 17,500 for 2024) will be subject to social security contributions. There are no changes to the DPČ and contributions are only due if the remuneration exceeds CZK 4,000 per month.
