The Ministry of Labor and Social Affairs in the Czech Republic has introduced a new decree outlining compensation details for workers from home: 4.60 CZK per hour. It’s noteworthy that employers have the option to negotiate with employees regarding expense coverage.
As of now, these regulations are in effect, as reflected in the recent amendment to the Labor Code published in the Collection of Laws of the Czech Republic. Among the notable changes is the introduction of a fixed amount that employers are obligated to pay employees for their home office efforts.
A decree from the Ministry of Labor and Social Affairs establishes the precise amount in accordance with the dynamics of prices for pertinent goods and services. This lump sum is calculated based on the average hourly consumption of one adult in a typical Czech household, utilizing data sourced from the Czech Statistical Office.
Consequently, employees engaged in remote work are entitled to a one-time compensation of 4.60 CZK per hour. These updates aim to streamline the compensation process for home-based work, providing clarity and fairness for both employers and employees.
One-time compensation is an optional benefit, not a requirement
It’s important to note that receiving lump-sum compensation for expenses incurred while working remotely is not an automatic entitlement but rather a right, contingent upon a written agreement (either individually or collectively) or inclusion in internal regulations. Employers can also choose to pay particular expenses directly related to working from home.
Duplicating expenses of the same type will not be compensated if a one-time reimbursement method is agreed upon or established. This does not, however, remove the current need to reimburse other sorts of expenses based on proven amounts. Furthermore, companies and employees might mutually agree to forego compensation for some expenses linked with remote work.
Payments for gas, electricity, solid fuel, heating, centralized hot water supply, water supply, plumbing, sewerage, wastewater removal, septic tank cleaning, and home waste removal are typical expenses eligible for reimbursement. This guarantees that both employers and employees have a clear grasp of the remuneration framework.
Home-office: a written agreement
A significant change, that became effective October 2023, is that engaging in home-office activities will require a written agreement. This agreement may be terminated by mutual consent or by either the employer or the employee providing a 15-day advance notice.
However, the parties involved can mutually agree on a different time, which can be either extended or decreased, guaranteeing equity for both sides. Furthermore, the agreement may indicate that neither party may unilaterally end a transaction.
Home office arrangements can be structured as separate agreements or as part of an employment contract or a contract for work performed outside the boundaries of the employment relationship. This flexibility enables for the introduction of home office provisions either at the start of the employment relationship or through subsequent changes.
What should the agreement contain?
Crafting a comprehensive remote work agreement is crucial for the smooth functioning of remote work arrangements. The Ministry strongly recommends that employers go beyond the basics and consider including various essential elements in the agreement. Here are some key recommendations:
Remember, while a remote work agreement may seem straightforward, its implications can be complex. Taking the time to include these additional rules ensures clarity and helps mitigate potential issues down the line. By addressing these details upfront, both employers and employees can foster a more transparent and productive remote work environment.
Who Can Apply for Home Office
An essential update pertains to the conditions that determine eligibility for working from home. Individuals falling into the following categories are considered eligible:
In cases falling under these conditions, employees have the right to submit a written request to their employer for home office arrangements. Notably, the employer is obligated to provide a written justification if the request is declined.
It’s important to note that if an employee, not falling under the aforementioned categories, submits a request, the employer is not bound to respond or provide a written justification for refusal, as clarified in the explanatory note.
Initially, the legislative proposal suggested that the employer must accommodate requests from pregnant employees and those caring for children under 15 or dependent individuals in classes II–IV. Refusal was only acceptable for serious operational reasons or if the nature of the work made remote arrangements unfeasible.
However, the current wording introduces a degree of ambiguity, giving employers a broader range of justifications for refusing home office requests. This flexibility on the employer’s part raises concerns about potential misuse and warrants careful consideration in practice.
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