Oct 18

Employee and Entitlement to Benefits

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The employer is obliged to negotiate with the employee or to determine the employee’s salary before the beginning of the performance of the work for which the wage is payable, as stated in Section 13 (3) by Act No. 262/2006 Coll., the Labour Code (the „LC“). This obligation, however, also applies to the non-demanding wage component, which is also a personal valuation, or a so-called power performance component.
The Supreme Court in its decision No. 21 Cdo 4254/2016 addressed an issue if the employer is entitled to inform the employee about withdrawn the benefits for the past period therefore the period during which the employee should have been provided with such benefits.
The Supreme Court took the view that Section 13 (3) LC shall apply not only in relation with negotiation or determination of the salary however also with every change in remuneration conditions. With reference to Section 13 (4) LC, the employer is obligated to notify any amendment in a wage assessment at the latest the day the change is becoming effective. Therefore, it is employer’s obligation to announce the employee withdrawal of the power performance component before the beginning performance of the work for which so far the employee was provided with.
Employers can be recommended with regard that the evaluation of criteria for determination benefits requires certain time offset to define condition in the wage assessment for providing benefits as accurately as possible and to pay benefits for a period longer than a month, ideally for a past quarter. It is necessary to keep in mind principles of equal treatment in remuneration for a work if the employer has more than one employee and some of these employees are provided with benefits even though they do not fulfill same conditions for payment of the benefits.