Ministry Proposes Labor Code Amendment for Pay Transparency

The Czech Ministry of Labour and Social Affairs has presented a draft amendment to the Labor Code aimed at transposing the EU Directive on pay transparency. The amendment seeks to enhance transparency in remuneration and address gender pay gaps.

Key Provisions

• Prohibition of Salary History Inquiries: Employers will be prohibited from inquiring about a candidate's previous salary during the hiring process.
• Disclosure of Salary Information: Employers must disclose the minimum salary for a position in job advertisements or prior to interviews.
• Regular Reporting: Companies with more than 100 employees will be required to prepare regular reports on gender pay differences.

Implementation Timeline

The Czech Republic is obligated to transpose the directive by June 7, 2026. However, the proposed amendment is set to take effect on January 1, 2027, with reporting obligations for larger employers commencing in 2028 and 2031, respectively.

Employers are advised to begin preparations to comply with these forthcoming obligations to avoid potential fines and reputational risks.

For more information, refer to: Labor Code Amendment on Pay Transparency