Guide to Restructuring a Cross-Border Workforce

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13. If employees are entitled to redundancy/severance payments, are there eligibility criteria and how is the payment calculated? 

13. If employees are entitled to redundancy/severance payments, are there eligibility criteria and how is the payment calculated? 

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Czech Republic

Czechia

  • at Legalité
  • at Legalité
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The severance payment amount differs based on the length of the employment as follows:

  • one gross average monthly salary of the employee if the employment lasted less than one year;
  • two gross average monthly salaries of the employee if the employment lasted at least one year but less than two years; and
  • three gross average monthly salaries of the employee if the employment lasted at least two years.

If the working hours account applies (specific working hours distribution scheme under the Czech Labour Code) the statutory severance is the relevant amount above plus three gross average monthly salaries of the employee.

The severance payment may also be higher if stated so by:

  • agreement between the parties;
  • the employer’s internal regulations; or
  • a collective bargaining agreement.

A gross average monthly salary of the employee must be calculated for each employee separately using the specific rules of the Labour Code.

Last updated on 11/10/2023