From 1 January 2025, major changes to work performance agreements (DPP) and work activity agreements (DPČ) are set to take effect. The goal is to simplify administration, give employees greater certainty, and prevent circumvention of the law. What does this mean in practice?
Mandatory records and a new income limit
Mandatory record-keeping for DPP agreements continues to apply. From 1 January 2025, however, the threshold for compulsory social and health insurance contributions is set to change to 25% of the average wage. For 2025, that means CZK 11,500.
If a worker's monthly income from a DPP agreement with a single employer does not reach this limit, that income will not be subject to social and health insurance contributions. Employees will be able to apply this limit separately to each agreement with different employers.
The option of “self-scheduling” working hours
From 2025, employees should be able to schedule their own working hours by agreement with their employer, not only when working remotely but also when working at the employer's premises. This may be especially welcome for parents or students who need greater flexibility.
Changes to pay for work performed
For DPP and DPČ agreements, it will be possible to agree on pay that already factors in night work, weekend work, or work in a hazardous environment. Employers will no longer have to calculate and pay these surcharges separately, significantly reducing the administrative burden.
Working while on parental leave
Parents on parental leave will newly be able to perform the same work they did before going on leave, under a DPP or DPČ agreement with their employer. This change will allow parents to stay active in the labor market and earn extra income even while on parental leave.
Work by young people from age 14
There are plans to allow young people from age 14, with the consent of a legal guardian, to perform light work during summer holidays. These DPP or DPČ jobs must meet the conditions for protecting young employees and must not exceed 35 hours per week. This is a step intended to support young people's first work experience.
Abolition of the mandatory vacation planning requirement
Employers will no longer be required to draw up written vacation schedules. This step will reduce the administrative burden without disadvantaging employees in any way — vacation will simply be agreed as usual.
Impact of the changes to the Labor Code
The planned changes are meant to contribute to fairer working conditions and greater protection for all employees, including those working under agreements. For example, agreeing on pay that already includes surcharges, or the option of “self-scheduling” working hours, brings flexibility for employees and more efficient administration for companies. However, their real impact will only become clear once they have been in practice for a while after 2025.
Nevertheless, some companies may be discouraged by the greater administration and costs associated with the new rules that took effect during 2024. According to Jiří Halbrštát of Manpower, in an interview for Czech Radio, seasonal workers on agreements are no longer as advantageous as before, which is why some companies choose overtime instead of agreements.
All changes are planned to take effect from 1 January 2025, though amendments may still occur. For up-to-date information, follow the website of the Ministry of Labor and Social Affairs.
