[Czech Republic] Overtime and wages - Part 1

25.08.2021

Incorrect or insufficient recording of working time is one of the most common offences of employers. Time records are crucial for determining whether an employee has worked overtime or not. Overtime work can only be ordered on an exceptional basis and it should be work outside the shift schedule and in excess of the settled working hours. How should a payroll accountant properly pay such overtime to an employee?

It always depends on whether a compensatory time off will be granted to the employee. The Labour Code implicitly assumes that compensatory time off will not be granted. Therefore, compensatory time off can only be granted if the employee and the employer agree on it. Note that this is the opposite situation to working on public holidays, where the law implicitly assumes that compensatory time off is taken - see article dated 8 July 2021 (last paragraph).

The employee is always entitled to the wage earned for overtime work. This applies both to the case when the employee will take compensatory time off and to the case when he/she will not take compensatory time off. However, overtime premium shall be due only if no compensatory time off is taken.

The amount of wage for overtime depends not only on the amount of overtime worked but also on the number of working hours in a month. For example, if February has 160 working hours and the employee's monthly salary is CZK 30,000, 8 hours of overtime will be paid as (30,000/160) x 8 = CZK 1,500. However, if the overtime is worked in March, which will have 184 hours, the wage for overtime would be (30 000/184) x 8= CZK 1 304.

For more information on overtime premium and compensatory time off, see the next article.

Author:

Martin Svoboda
Payroll Development Specialist
Contract Administration
Subscribe our newsletter

If you want to be up-to-date, subscribe our newsletter!

Contract Administration

City Business Center 5 Karadžicova 16
821 08 Bratislava
✆: +421 901 911 197

Contract Administration
Sp. z o.o.

ul. Hrubieszowska 2
01-209 Warszawa
✆: +48 22 295 3200

Contract Administration

Masarykova 34/413
602 00 Brno
✆: +420 542 425 824

Contract Administration
Sp. z o.o.

ul. Strzegomska 142A
54-429 Wrocław
✆: +48 71 733 1300

Contract Administration
Sp. z o.o.

ul. Smoleńsk 18/1
31-112 Kraków
✆: +48 12 334 9100

Contract Administration
Sp. z o.o.

ul. Nawrot 114
90-029 Łódź
✆: +48 42 671 8560

Contract Administration

U Garáží 1611/1 Praha 7 Holešovice
Prague
✆: +420 221 111 611

Slovakia

Bratislava

Poland

Warszawa, Wrocław, Kraków, Łódź

Czech Republic

Brno, Prague

Choices pertaining to cookies on this website

Contract Administration Sp. z o.o. may use the cookies to store login information, collect data for the purposes of optimising website operation, and provide advertisements tailored to your interests. Choose, in the manner described below, whether this website may use functional or advertising cookies

zamknij This website uses cookies to provide services in line with Cookies policy. You can define terms and conditions of storing or accessing cookies in your browser.