Changes in Employment Laws due to our entry to the EU

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Changes in Employment Laws due to our entry to
the EU

• Ladislava Jasanská
• 26 February 2004

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Content

• Amendment to the Labour Code
• equal treatment, non-discrimination
• fixed-term contracts
• non-competition clauses
• New Act on Employment
• free movement of workers
• equal treatment, non-discrimination
• definition of illegal work
• work agencies, employee lease agreements
• childrens work

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Amendment to the Labour Code

• Effective on 1 March 2004
• equal treatment and non-discrimination
• fixed-term contracts
• non-competition clauses

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Equal Treatment

• Prohibition of discrimination on the grounds of
• sex, pregnancy, motherhood, sexual orientation,
  social origin, property, disability, marital or
  family status
• racial or ethnic origin, religion, belief
• nationality, citizenship, language, membership of
  trade unions or political parties
• During employment and when hiring employees

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Equal Treatment

• Implementation of Directives
• Directive 2000/43/EC implementing the principle
  of equal treatment between persons irrespective
  of racial or ethnic origin
• Directive 2000/78/EC establishing a general
  framework for equal treatment in employment and
  occupation
• Directive 76/207/EEC implementing the principle
  of equal treatment for men and women as regards
  access to employment, vocational training,
  promotion and working conditions, as amended by
  Directive 2002/73/EC

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Equal Treatment

• Definition of direct and indirect discrimination,
  harassment and sexual harassment
• Indirect discrimination apparently neutral
• decisions or actions but having discriminatory
• effects
• Harassment actions which an employee justly
• perceives as improper or creating hostile
• atmosphere

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Equal Treatment

• Discrimination is not
• different treatment on the grounds of the
  character of work
• affirmative action
• temporary measures taken to reach the equal
  number of men and women employed by the same
  employer

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Equal Treatment

• Penalty for discrimination
• suspension of discrimination
• restitution
• satisfaction
• financial satisfaction if dignity gravely
  affected
• fine of up to CZK 1,000,000, imposed by the
  Labour Office
• The burden of proof lies with the defendant
• Section 133a of the Civil Procedure Code
• Directive 97/80/EC on the burden of proof in
  cases of discrimination based on sex

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Fixed-term Contracts

• Implementation of Directive 1999/70 EC
• concerning the framework agreement on
• fixed-term work concluded by ETUC, UNICE and
• CEEP
• two-year maximum duration of successive
  fixed-term contracts, then six months break
• if this is not observed, the employee may request
  in writing indefinite-term contract
• disputes - petitions to be filed within two months

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Fixed-term Contracts

• Exemptions
• serious operational reasons, nature of work
• replacement of a temporarily absent worker
• special regulations (pensioners)

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Non-competition clauses

• Non-EU related change
• no "golden handshakes"
• equal conditions for all employees
• agreement in writing and only after probation
  period
• maximum duration of one year
• obligatory minimum compensation of average
  monthly salary
• contractual penalty
• current non-competition clauses remain valid

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New Act on Employment

• Legislative process stage Parliament
• free movement of workers (reference to Regulation
  1612)
• transitional period (232 years)
• equal treatment and non-discrimination
• definition of illegal work, penalties
• work agencies, employee lease agreements
• children's work
• extension of activities of competent authorities
• special conditions for disabled persons

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Free Movement of Workers

• Regulation 1612/68 EEC - directly applicable
• Implementation of Directives
• Directive 90/364/EEC on the right of residence
• Directive 93/96/EEC on the right of residence for
  students
• Directive 96/71/EC concerning the posting of
  workers in the framework of the provision of
  services
• Directive 90/365/EEC on the right of residence
  for employees and self-employed persons who have
  ceased their occupational activity
• Directive 95/46/EC on the protection of
  individuals with regard to the processing of
  personal data and on the free movement of such
  data

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Free Movement of Workers

• Regulation 1612/68 EEC on freedom of movement of
  workers within the Community
• Equality of employment of all EU citizens and
  their family members within the EU
• employment, residence, education, accommodation,
  participation in trade unions etc.
• worker performs dependant work of a considerate
• extent for a remuneration
• family member the spouse and descendants under
  21
• years or dependants, and dependant relatives in
  the ascending line of the worker and his spouse

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Free Movement of Workers

• New Act on Employment
• equal treatment of all EU citizens and their
  family members (no work permits)
• transitional period
• reciprocity towards current member states
• independent decisions on measures towards new
  member states if there is a threat of serious
  distortion of the Czech labour market

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Definition of Illegal Work

• dependant work outside employment (varc systém)
• foreigners working without a work permit or in
  breach of it
• Employers can be penalised up to CZK 2,000,000
• "Employees" can be penalised up to CZK 10,000

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Work Agencies

• entrepreneurs with a permission from the Ministry
  of Labour (qualification required)
• mediation of employment (within the EU)
• active approach on matching the requests of
  employees and employers in the market
• information and consultation activities
• employee leasing (within the EU)
• Work Agencies can be penalised up to CZK
  1,000,000 if acting without a permission from the
  Ministry

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Childrens Work

• Implementation of Directive 94/33/EC on the
  protection of young people at work
• Child is a person under 15 years of age or older
  until the end of an obligatory school attendance
• Children can perform only cultural, artistic,
  sports or advertising activities subject to the
  Labour Office's prior permission and for up to
  one year

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Childrens Work

• Obligations of the "employer"
• protection of health
• insurance against damage, etc.
• Maximum weekly "working hours" (10-20)
• Parents can be penalised up to CZK 100,000
• "Employers" can be penalised up to CZK 2,000,000

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Changes in Employment Laws due to our entry to EU

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• Contact Ladislava Jasanská
• advocate
• Linklaters, v.o.s.
• Palác Myslbek
• Na Príkope 19
• 117 19 Praha 1
• Direct (420) 221 622 169
• Tel [phone]
• Fax [phone]
• ladislava.jasanska_at_linklaters.com
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