Amendment to the Labor Code – abolition of the waiting period with effect from 1 July 2019

At its meeting held on 22 January 2019, the Chamber of Deputies of the Czech Republic decided to abolish the waiting period (i.e. the first three days of the employee’s incapacity for work).

As a result of this decision made by the Chamber of Deputies, the first three days of temporary incapacity for work will be reimbursed to employees from 1 July 2019 in the form of compensation of their wage, salary or agreed remuneration in the amount of 60% of their reduced average earnings.

Given that this amendment entails increased employer costs due to employees’ temporary incapacity for work, employers’ obligation to pay sickness insurance premiums will be reduced by 0.2%.