Sep 20

BEWARE THE PENALTIES

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Did you know that not only the minimum wage but also the so called guaranteed wage were in place? As of 1 January 2018, the minimum and guaranteed wages will be increased, in terms of both hourly and monthly rates!
Unlike the minimum wage which represents the lowest permissible amount of remuneration for work, the guaranteed wage represents the lowest price of labor in respect of the complexity, responsibility and onerousness of the performed work; it is graded in 8 groups.

The minimum wage relates to work under the basic labor contracts, i.e. employment contracts and agreements on works performed outside employment (agreements to complete job and agreements to perform work), whereas the guaranteed wage does not relate to agreements on works performed outside employment, nor does it relate to employers who have wages agreed under collective agreements.

These issues are regulated by Act No. 262/2006 Coll., the Labor Code, and by Governmental Regulation No. 567/2006 Coll., on Minimum Wage, Lowest Grade of Guaranteed Wage, Definition of Difficult Work Environment and Amount of Additional Fee to Wage for Work in Difficult Work Environment.

If correct wages are not paid, the employer may be subject to the penalty up to CZK 2,000,000.00, irrespective of whether he is a natural person or legal entity. The State Labor Inspection Office supervises over correct wage payments.