[Czech Republic] Public holidays from the perspective of a payroll accountant
The arrival of Cyril and Methodius and the burning of Jan Hus are commemorated annually on the fifth and sixth of July. These days are public holidays, which means that most employees do not have to work if their shift falls on these days. We will discuss the main points about the public holiday from an employee's wage perspective in the following article.
If an employee is not called to work on a public holiday by his/her employer in accordance with the Labour Code, he or she stays at home and does not work for the employer. In this case, his wage is not reduced if he or she has a fixed monthly wage. If the employee is on an hourly wage, the payroll accountant shall reimburse him/her for the hours not worked on account of the public holiday at the rate of average earnings. Thus, for these employees, time not worked on account of a public holiday shall be paid in the same way as standard holiday. However, for employees with a monthly salary, the holiday is "paid" as time worked.
Section 91(4) of the Labour Code defines when an employer may order work on a public holiday. If such a situation arises, the employee naturally receives standard wage for the time worked. However, since he or she missed a day off, he or she is entitled to a compensatory day off. This day off should be determined by the employer so that it is taken within 3 calendar months at the latest. For the period of compensatory day off, the employee is entitled to a wage compensation equal to the average earnings (i.e. it is paid in the same way as holiday).
The use of compensatory time off is provided for by law as the primary "satisfaction" for working on a public holiday. Only when the employer and the employee agree, may an additional payment for working on public holidays be granted instead of compensatory time off. Such additional payment is paid in at least 100% of the average hourly earnings.
Payroll Development Specialist