As of June 1, 2025, the so-called Flexi-amendment to the Labor Code entered into force. Among other changes, it introduced a strict ban on employers requiring employees to maintain confidentiality about the amount of their salary.
For many years, there were debates about whether this practice was in compliance with legal regulations. In 2020, the Public Defender of Rights issued a statement expressing disagreement with this practice, reasoning that it was contrary to the law, as the Labor Code prohibits employers from imposing obligations that go beyond the scope of the law.
At the same time, an amendment to the Labor Inspection Act introduces a new offence: if an employer imposes such restriction on an employee to handle information about the salary, wage or remuneration, the labor inspectorate may impose a fine of up to CZK 400,000.
Employers should therefore review existing employment contracts and agreements to ensure they do not contain clauses requiring confidentiality regarding remuneration. As this has been common practice to date, in our experience many historical employment contracts contain such a provision. If such clauses exist, they must be amended, and employees must be informed that such provisions have no legal effect and are unenforceable. The employers must also be able to demonstrate that these provisions have not been applied from June 2025 onwards and that employees have been made aware of their ineffectiveness.
