Collective Redundancy

Collective redundancy means the ending of employment relationships within a period of 30 calendar days based on notices given by the employer due to winding-up or relocation of the employer’s company or any part thereof or due to redundancy of an employee, in relation to at least:

a.10 employees for an employer employing from 20 to 100 employees, or

b.10 % of the employees, for an employer employing from 101 to 300 employees, or

c.30 employees, for an employer employing more than 300 employees.

Prior to giving notice to the individual employees, the employer is obliged to notify the trade union or council of employees of its intention in writing not later than 30 days in advance.

The employer is also obliged to inform the competent labour office of the reasons for these measures, the total number of employees, the number and professional structure of the employees with whom the collective redundancy is to be concerned, the period during which the collective redundancy will take place, the proposed criteria for the selection of employees made redundant and severance pay and any other rights the employees subject to the collective redundancy may have.

The employer is obliged to demonstrably deliver to the competent labour office a written report on its decision on the collective redundancy and on the results of negotiations with the trade union or the council of employees. In the report, the employer is obliged to specify the total number of employees and the number and professional composition of those employees with whom the collective redundancy is concerned. One counterpart of the report shall be delivered by the employer to the trade union or council of employees. The employment relationship of an employee shall end by notice not sooner than upon expiry of 30 days from delivery of the employer’s written report to the competent labour office.

Severance Pay

If the employment relationship is terminated with an employee by notice of termination given by the employer by reason of termination or relocation of the employer’s company or any part thereof, or due to redundancy of the employee or by agreement for the same reasons, the employee is entitled, upon termination of the employment relationship, to severance pay equal to at least

  • the amount of his/her average monthly earnings if his/her employment relationship with the employer lasted for less than 1 year
  • twice his/her average monthly earnings if his/her employment relationship with the employer lasted for at least 1 year and less than 2 years
  • three times his/her average monthly earnings if his/her employment relationship with the employer lasted for at least 2 years
  • the sum of three times his/her average monthly earnings and the above amounts if the employment relationship is terminated at a time when the employee is subject to a procedure in the account of working hours where it is agreed in the collective agreement that overtime hours worked in the account of working hours in a compensatory period which does not exceed 52 weeks may be included, to the maximum extent of 120 hours, in the working hours in the next compensatory period.

An employee whose employment relationship is terminated by notice given on grounds of an accident at work, occupational disease or threat of such a diseases or reaching the maximum permissible exposure or by agreement on the same grounds is entitled to severance pay equal to at least twelve times the average earnings. (If the employer is relieved from its liability for an accident at work or occupational disease in full or in part, the employee is not entitled to severance pay). The collective agreement or an internal regulation may stipulate that the severance pay may be increased by additional multiples of average earnings and may stipulate other conditions under which an employee is entitled to an increased severance pay. The severance pay is provided after termination of the employment relationship on the next payment date unless the parties agree on some other date; however, an employee whose rights and obligations under labour-law relationships passed to another employer in organisational changes is not entitled to severance pay.

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    Labour Office of the Czech Republic
    Regional branch in Brno
    Rosice contact office Tyršova 75
    665 01 Rosice u Brna

    JUDr. Daniela Kubišová
    daniela.kubisova@bo.mpsv.cz