How to create offer letters for employees in the Czech Republic

When you hire an employee in the Czech Republic, one of the first things you'll do is send an employment offer letter (referred to in the Czech Republic as an employment contract). 

Czech labor laws require a written contract to be in place before the new employee's start date. They also require employers to provide employees with a rights and obligations document within one month of their start date. You can save time by consolidating them into one offer letter that includes all the required information for both.

That means crafting an offer letter that hits on all the crucial rights and obligations that need to be included—making the offer of employment and conditions of employment clear and staying compliant with labor laws in the Czech Republic so you can avoid costly legal disputes and penalties.

Here’s everything you need to send a legally compliant offer letter to hire a full-time employee in the Czech Republic.

Czech Republic job offer letter checklist

• Position (job title), job description, start date. Clearly describe the job, including the type of work, function, and expected duties. Include the exact place or places of work, and the start date. This information is required for an employment contract in Czechia, which must be signed before the employee starts work.
• Details about contract parties. Include the employee's name and surname, and the name and registered office of the employer.
• Probation period. Explain that the employee will be evaluated during an initial probation period, if applicable. Explain the terms and duration of the probation period, but note that in the Czech Republic, probationary periods are limited to three months for regular employees and six months for chief officers.
• Working hours. Outline the expected working hours and any overtime policies that the employee will be subject to. Under the Czech Republic's labor laws, the maximum number of hours an employee can work per week is 40 hours before overtime laws apply. Employees cannot work more than 150 overtime hours per year, and they must be compensated with either higher wages or additional time off.
• Compensation & Benefits.
  • Salary. Specify the employee's salary or hourly compensation in CZK, as well as any other compensation they may receive. Include information about the frequency, date, place, and method of payment.
  • Equity. If applicable, specify any equity compensation they will receive.
  • Benefits. Benefits could be outlined in the offer letter, but be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In the Czech Republic, the following benefits are mandatory for full-time employees:
    • Pension
    • Employment insurance
    • Paid vacation
    • Paid sick leave
    • Paid parental leave
  • Supplemental benefits and perks. In the Czech Republic, it's becoming more common for companies to offer supplemental benefits and perks to help them attract and retain the best talent. Some common supplemental benefits include:
    • Additional retirement savings
    • Group life and accident insurance
    • Meal vouchers
    • Transportation benefits
    • Personal development benefits, like gym memberships or language courses
• Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more leave than the statutorily required vacation in the Czech Republic.

• Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and any conditions that may lead to termination. Note that in the Czech Republic, employees are entitled to severance pay if their employment is terminated. The amount of severance depends on how long they've been employed:
  • One month's gross salary for up to one year of employment
  • Two months' gross salary for up to two years of employment
  • Three months' gross salary for more than two years of employment
• Collective bargaining agreement information. Outline any collective bargaining agreements (CBAs) that will apply to the new employee's position. Outline any working conditions that are governed by the CBA.
• Health and safety details. Detail the conditions of employment and any internal company rules about health and safety at work.
• Non-compete and non-solicit agreements. Include a clause outlining the employee’s non-competition and non-solicitation responsibilities after leaving your company—but only if they’re appropriate for your employee and their role. Non-compete agreements in the Czech Republic are enforceable for up to one year, and only if the employer pays the employee at least half of their average earnings for the entire duration of the non-compete.

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