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What is an employment contract?

An employment contract is an agreement issued during the hiring or renewal process that establishes the terms of the work relationship of an employee at a new organisation. Typically, if the contract is a written document, both the employee and the employer sign it to signify the agreement. Contracts usually detail the rights and responsibilities of both parties, and organisations commonly use them to help all parties involved understand their obligations throughout the term of a new hire's employment. Here are a few aspects that may be explained in a contract:

  • Salary information
  • Duration of employment
  • Schedule
  • Medical insurance
  • Dental insurance
  • Paid time off (PTO) policy
  • Sick leave policy
  • Retirement plans
  • Protections
  • Limitations
  • Non-compete clauses
  • Conflict resolution protocol
  • Employment conclusion details

Typically, contracts are specific documents drafted by legal professionals to outline the binding particularities of the employment arrangement — in most cases, these particularities include specific start dates and provisions for the end of the employment. However, in some situations, the new employer may not require the employee to sign a physical contract, depending on their employment status or the form of contract they offer. Regardless of the situation, during the hiring process, it is common to discuss the terms of employment on record to ensure both parties agree on the same protections and stipulations.

Written contract

A written contract is one of the most common forms of employment contracts. Written contracts explain the specific details of the employment relationships, including the salary, schedule, employment duration, PTO policies, benefits eligibility, and more. Written contracts are popular because they can fully and legally document an employment agreement that both employers and employees explicitly sign. This means that if any discrepancies occur during the employment period, employees can return to the contract to reread it and clarify any questions or concerns that arise.

Sample image. Source: https://www.pexels.com/cs-cz/foto/psani-dokument-smlouva-dohoda-7841410/
Types of employment contracts

The type of contract offered in a new role is usually determined by factors such as the employee status, the organisation's needs, and the type of work performed. Here are three types of contracts to look out for during the hiring process:

Full-time/fixed-term contract

Full-time contracts are offered to permanent employees who work a full workweek, usually 35 hours or more. These contracts usually include information about benefits, paid holidays, sick time, and retirement plans. Even further, some full-time contracts present new employees with opportunities for other benefits, like professional development opportunities or workplace perks, such as discounts on company products and services, and commuter assistance. Full-time contracts are almost always written contracts since they include many components, and employers normally want to be thorough and clear when offering such an extensive agreement.

Part-time contract

Part-time contracts are extended to employees who work a reduced number of hours compared to full-time employees. Typically, part-time contracts are offered to those who serve less than 35 hours per week and often include some of the same stipulations and protections as full-time contracts. Many part-time schedules detail the employee's flexibilities, weekly schedule, and rate of pay. However, it is important to note that part-time contracts usually do not include information regarding insurance, salary, or PTO, which are benefits typically reserved for full-time employees.

Zero-hour contract

Zero-hour contracts are offered to employees who work irregularly or only when work is available. In zero-hour agreements, an employer agrees, in writing or verbally, that they will offer work when it is available, and an employee agrees to work such shifts or remain on call for availability purposes. Zero-hour contracts commonly specify that an employee will work a minimum number of hours or shifts per month. This number is set by the employer in most cases. The employee holds the right to refuse any work assignments that may be inconvenient. This work arrangement is primarily used in the UK.

Source: 10 Types of Employment Contracts | Indeed.com

Employment in the Czech Republic

Regular employment

Employment contract for a definite period: generally, it can be concluded for a maximum of 3 years, and it is possible to prolong such a contract only twice (maximum length 3×3 years).

Employment contract for an indefinite period: an employment relationship lasts for an unlimited period unless a definite period has been expressly agreed.

Work outside employment relationship

Furthermore, an employee may perform work outside employment relationship on the grounds of two agreements:

Agreement to complete a job (dohoda o provedení práce - DPP): the scope of work for which an agreement is concluded may not exceed 300 hours in one calendar year.

The said scope of working hours shall also include those hours of work for which a certain employee carried out some work for the same employer in one calendar year based on another agreement to complete a job. The agreement must specify a period for which it is concluded.

Agreement to perform work (dohoda o pracovní činnosti - DPČ): may be concluded by an employer with an individual provided that the scope of such work does not exceed 300 hours in one calendar year.
Where the average scope of work exceeds one-half of standard weekly working hours (20 hours), it may not be carried out on the basis of an agreement to perform work.

Observance of the agreed and maximum permissible scope of one-half of standard weekly working hours will be assessed for the entire period for which an agreement to perform work was concluded; however, for no more than a period of 52 weeks.

An agreement to perform work must include the agreed type of work, the agreed scope of working hours and the period for which it is concluded.

Probationary period

In Czech employment contracts, the probationary period can be concluded as:

  • Maximum three consecutive months for regular employees
  • Maximum six consecutive months for managers

A probationary period may not be longer than one half of the agreed period of the employment relationship and must be agreed in writing on the day of commencement of employment at the latest.

Benefits

The most common benefits for employees in the Czech Republic are:

Sample image. Source: https://www.pexels.com/cs-cz/foto/psani-dokument-smlouva-dohoda-7841410/
  • bonuses in terms of financial rewards
  • professional training
  • language courses and personal development
  • the option to work from home
  • additional days off (extra holidays, study leave, sick days)
  • discounts on company products
  • flexible working hours
  • meal vouchers
  • company phone
  • company car or transport allowance
  • insurance contributions
  • sports and recreation contributions
  • refreshments and beverages at workplace

Certain companies also offer temporary accommodation or housing allowances, recreation in the company’s facilities or holiday allowances, or free tickets by companies operating regular public transportation.

Sources

Drag and drop exercise:

What type of contract would be the most suitable for the following jobs? Put the jobs in the appropriate categories.

Full-time contract Agreement to perform work (DPČ) Agreement to complete a job (DPP)

Glossary

  • Seznam použitých symbolů a zkratek
    uvozuje slovo nebo frázi se stejným nebo podobným významem (synonymum)
    📖 uvozuje slovo nebo frázi s opačným významem (antonymum), případně podobně znějící výraz s odlišným významem
    [ ] obsahuje přepis výslovnosti
    ( ) obsahuje vysvětlení (například zkratky nebo zpřesnění významu), doplnění nebo část výrazu či slova, která může být v závislosti na kontextu vynechána
    i upozorňuje na nepravidelné (irregular) sloveso vyšší než mírně pokročilé úrovně a tím zároveň odkazuje na seznam těchto nepravidelných sloves na konci glosáře
    / zkracuje dvě (nebo i více) stejné syntaktické konstrukce do jediné (například „dosáhnout/docílit čeho“ místo „dosáhnout čeho, docílit čeho“)
    adj přídavné jméno (adjective)
    AmE výraz z americké angličtiny (American English)
    BrE výraz z britské angličtiny (British English)
    C počitatelné podstatné jméno (countable)
    n podstatné jméno (noun)
    pl množné číslo (plural)
    sb zájmeno někdo, uváděné po předložkách a/nebo slovesných vazbách (somebody)
    sg jednotné číslo (singular)
    sth zájmeno něco, uváděné po předložkách a/nebo slovesných vazbách (something)
    U nepočitatelné podstatné jméno (uncountable)
  • Glossary
    accountable ‹adj› (z)odpovědný
    acquisition ‹n› získání; osvojení si
    to arise nastat, vzniknout, naskytnout se
    to assess sth (o)hodnotit, vyhodnotit; stanovit co
    autonomous ‹adj› [ɔːˈtɒnəməs] autonomní, nezávislý
    availability ‹n› dostupnost
    benefits ‹n, pl› zde: zaměstnanecké výhody/benefity
    beverage ‹n› [ˈbevərɪdʒ] nápoj
    binding ‹adj› závazný
    to clarify sth objasnit, vyjasnit co
    commencement ‹n› začátek, zahájení; vznik
    to commute
    commuter assistance ‹n›
    dojíždět (do práce) příspěvky na dopravu (od zaměstnavatele)
    concern ‹n› obava, znepokojení
    to conduct sth vést; provádět co
    conflict resolution protocol protokol řešení konfliktů
    consecutive ‹adj› po sobě jdoucí, za sebou
    contracting party ‹n› smluvní strana
    core ‹adj› podstatný
    definite ‹adj› určitý
    dental insurance ‹n› pojištění na zubní ošetření /zubní péči
    to determine sth [dɪˈtɜːmɪn] určit, stanovit co
    disciplinary ‹adj›
    disciplinary action
    disciplinární, kárný disciplinární, kárné řízení
    discount ‹n› sleva
    discrepancy ‹n› rozpor, nesrovnalost, neshoda
    to document sth dokumentovat, doložit co
    to draft sth načrtnout co, navrhnout koncept
    duration ‹n› délka, trvání, doba
    eligibility ‹n› [elɪdʒəˈbɪləti] oprávněnost, způsobilost
    employee card ‹n› zaměstnanecká karta
    employee retention ‹n› udržení zaměstnanců
    employee turnover ‹n› fluktuace zaměstnanců
    employer ‹n› zaměstnavatel
    employment status ‹n› zaměstnanecký status, pracovní zařazení
    engagement ‹n› zapojení se, angažování se
    to ensure sth zajistit/zaručit co
    to equip with sth [ɪˈkwɪp] vybavit/vyzbrojit čím
    to establish sth založit co
    to exceed sth [ɪkˈsiːd] přesáhnout, převýšit, překonat co
    to execute sth [eksɪkjuːt] provést, uskutečnit, vykonat co
    explicitly explicitně, přímo
    to extend sth to sb zde: nabídnout co komu
    feedback ‹n, U zpětná vazba
    flexibility ‹n› flexibilita, pružnost
    freelance ‹adj› pracující na volné noze, nezávislý
    freelancer ‹n› osoba pracující na volné noze, nezávislý  pracovník
    grads ‹ pl, infml› AmE absolventi (univerzity)
    headcount ‹n› počet zaměstnanců
    hire ‹n› AmE nový zaměstnanec
    to hire sb nabrat/přijmout (zaměstnance)
    holiday allowances ‹pl› příspěvky na dovolenou
    housing allowances ‹pl› příspěvky na bydlení
    to implement sth zde: zavést
    indefinite ‹adj› neurčitý
    insurance contributions ‹pl› příspěvky na pojištění
    inconvenient ‹adj› nevhodný
    in writing písemně
    to issue sth vydat co
    limitation ‹n› omezení
    meal voucher ‹n› stravenka
    medical insurance ‹n› zdravotní pojištění
    morale ‹n› [məˈrɑːl] morálka, nálada
    mutual ‹adj› [ˈmjuːtʃuəl] vzájemný, oboustranný
    non-compete clause ‹n› konkurenční doložka
    notice of dismissal ‹n› oznámení o výpovědi (o ukončení pracovního poměru)
    notice period ‹n› výpovědní lhůta
    obligations ‹pl› povinnosti
    observance ‹n› [əbˈzɜːvəns] dodržování (předpisu)
    to occur stát se, nastat, přihodit se; vyskytovat se
    on call
    to be on call
    být dostupný na telefonu
    on record oficiálně/písemně zaznamenáno
    on the grounds of sth na základě čeho
    onboarding ‹n› nástup a adaptace (nového zaměstnance)
    on-site ‹adj› na místě; zde: na pracovišti
    to outline sth nastínit, načrtnout sth
    to oversee sth dohlížet na co
    paid time off placená dovolená
    particularities ‹pl› detaily, podrobnosti, specifikace
    party ‹n› (smluvní) strana (zde: zaměstnavatel nebo zaměstnanec)
    payroll ‹n›          seznam vyplácených zaměstnanců; výplatní listina
    perks ‹n, pl› zaměstnanecké výhody
    permanent ‹adj› trvalý; zde: (smlouva)na dobu neurčitou
    permissible ‹adj› dovolený, přípustný
    permit ‹n›
    employment permit
    povolení pracovní povolení
    policy ‹n› politika
    to present sb with sth představit komu co
    probationary
    →probationary period
    [prəˈbeɪʃnri]
    zkušební; zkušební doba
    to process [ˈprəʊses] zpracovávat, zpracovat
    professional training ‹n› odborný výcvik, zaškolení
    to prolong
    →to extend sth
    prodloužit co (zde: smlouvu)
    to promote sth zde: podporovat
    protection ‹n› ochrana
    provision ‹n› ustanovení, podmínka; opatření
    rate of pay ‹n› platové ohodnocení
    recreation contributions příspěvky na rekreaci
    regarding sth týkající se, vztahující se k čemu
    remote work ‹n›
    → work from home
    práce z domu, home office
    remuneration ‹n› odměna, plat, (platové) ohodnocení
    renewal ‹n› obnovení (smlouvy)
    to require sth vyžadovat co
    responsibility ‹n› zodpovědnost
    retirement ‹n› důchod, penze
    reward ‹n› odměna
    salary ‹n› plat
    schedule ‹n›
    BrE [ˈʃedjuːl]
    AmE [ˈskedʒuːl]
    harmonogram, (časový) plán, rozpis (práce)
    scope ‹n› rozsah
    seasonal ‹adj›
    seasonal worker
    sezónní sezónní pracovník
    shift ‹n› směna (pracovní)
    to shift sth změnit; posunout co
    sick day ‹n› pracovní den, kdy je zaměstnance nepřítomen na pracovišti kvůli nemoci
    sick leave ‹n› nemocenská dovolená, pracovní neschopnost
    to sign sth podepsat co
    to signify sth potvrdit, stvrdit sth
    stipulation ‹n› podmínka, požadavek
    study leave ‹n› studijní volno
    technology stack soubor informačních technologií
    temporary ‹adj› dočasný, přechodný; zde: (smlouva) na dobu určitou
    term ‹n› doba, období
    terms ‹n, usually pl› (smluvní) podmínky, požadavky
    test pilot ‹n› pilotní testování (za účelem ověření proveditelnosti)
    thorough ‹adj›
    [ˈθʌrə]
    důkladný, podrobný; úplný
    trade ‹n› zde: obor; řemeslo
    transport allowance ‹n› příspěvek na dopravu
    verbally ústně
    work assignment ‹n› pracovní úkol
    work hours ‹n, pl›
    →working hours
    pracovní doba
    workweek AmE
    →working week BrE
    pracovní týden

Definitions

  • Employment contracts
    ariseto start to happen or exist
    availabilityhaving free time to do something
    benefitsadvantages such as medical insurance, life insurance, and sick pay, that employees receive from their employer in addition to money
    bindingthat cannot be legally avoided or stopped
    clarifyto make something clear or easier to understand by giving more details or a simpler explanation
    commuter assistancefinancial incentives that allow employees to cover work related travel expenses
    concerna worry or nervous feeling about something
    conclusionthe act of arranging or agreeing something formally
    conflict resolution protocola set of procedures that guide employees on the steps to take when they arrive at disagreements in the workplace
    consecutivefollowing one after another without an interruption
    dental insuranceinsurance that pays for treatment by a dentist
    determineto control or influence something directly
    discrepancya difference between two figures, results, etc. that are expected to be the same
    documentto record the details of an event or a process
    draftto write the first version of a document such as a letter, essay, or law
    durationthe length of time that something lasts
    eligibilitythe fact of being allowed to do or receive something through satisfaction of the appropriate conditions
    employera person or organisation that employs people
    employment statusthe rights and protections that employees are entitled to at work
    ensureto make something certain to happen
    establishto start something that will last for a long time
    expresslyin a way that is clear
    extend to sbto offer or give something to someone
    flexibilitythe ability to change or be changed easily according to the situation
    hirea person to whom a company has recently given a job (mainly AmE)
    hirethe act of starting to employ someone
    issueto produce or provide something official
    limitationa fact or situation that allows only some actions and makes others impossible
    medical insurancepayment for the cost of health care (illnesses, injuries)
    non-compete clausea legally binding contract in which the employee agrees not to work with a rival company or start a similar trade or profession for a specified period of time after leaving their current employer
    obligationsthings that must be done or paid  because of a law, rule, agreement, etc.
    occurto exist or be present in, among
    on call / to be on callto be available for work if necessary
    on recordwritten down officially
    outlineto give the main facts about something
    paid time offa period of time employees get paid during their absence
    particularitiesdetails
    partyone of the people or groups of people involved in an official argument, arrangement, or similar situation
    perksan advantage or something extra employees are given in addition to a salary
    permanentlasting for a long time or for ever
    policya plan of action agreed or chosen by a political party, a business, etc.
    present sb with sthto give, provide, or make something known
    protectiona legal or other formal measure intended to preserve employees’ rights
    provisiona condition or an arrangement in a legal document
    rate of paythe amount of money that is paid over a period
    regardingin relation to; about
    renewalthe act of making an official document, agreement, or rule continue for more time
    requireto order someone to do something, esp. because of a rule or law
    responsibilitya job or duty to be dealt with
    retirementthe act of leaving one’s job and stopping working, usually because of age
    salarya fixed amount of money agreed as pay for an employee, usually paid directly into their bank account every month
    schedulea list of planned activities or things to be done showing the times or dates when they are intended to happen or be done
    shiftthe period that a person is scheduled to work
    sick leavea period of time that a worker is allowed to be away from work because they are ill
    signto write one’s name, usually on a written or printed document, to show agreement with its contents
    signifyto make something known; to show
    stipulationa rule that must be followed or something that must be done
    termthe period of time that a legal agreement lasts for
    termsthe conditions that control an agreement, arrangement, or activity
    thoroughdetailed and careful
    work assignmentthe collection of job duties that the employee is expected to perform
  • Employment in the Czech Republic
    assessto evaluate or estimate the nature, ability, or quality of something
    beveragea drink of any type
    commencementthe beginning of something
    consecutivefollowing one after another without an interruption
    definitefixed, certain, or clear
    discounta reduction in the usual price
    exceedto be greater than a number or amount, or to go past an allowed limit
    holiday allowancesa number of paid days off or vacation days that an employee is entitled to receive from their employer during a specified period, typically a year
    housing allowancesa financial benefit provided by an employer to assist an employee in covering housing-related expenses, such as rent or mortgage payments
    indefinitenot exact, not clear, or without clear limits
    insurance contributionsthe payments made towards national insurance, usually taken from the salary by an employer before the salary is paid to the person
    meal vouchera means of payment for meals or food
    observancethe practice of obeying a law
    on the grounds ofbased on, for the reason
    permissibleacceptable according to the law or a particular set of rules
    probationary perioda trial period at the start of employment during which the employer evaluates the employee's performance before confirming their permanent status
    professional trainingbuilding knowledge, skills and competence in individuals, a group or team
    prolongto make something last a longer time
    recreation contributionspayments provided by an employer that promote leisure, entertainment, and physical or mental well-being
    rewardsomething given in exchange for good behaviour or good work
    scopethe range of things that an activity, company, law, etc. deals with
    sick daya paid day in which an employee does not work because they are sick
    study leavetime off from work to complete education
    temporarynot lasting or permanent
    transport allowancea financial fringe benefit provided by the employer which is used by an employee to purchase transportation services for commuting to the workplace
    work from homeremote work, i.e., the practice of performing work remotely, typically from one's residence or any other location outside of a traditional office setting
  • Listening
    accountableresponsible for and having to explain your actions
    acquisitionthe process of getting something
    autonomousindependent and having the power to make your own decisions
    commuteto make the same journey regularly between work and home
    engagementthe process of encouraging people to be interested in the work of an organisation
    equip withto provide a person or a place with objects that are necessary for a particular purpose
    feedbackinformation or statements of opinion about something
    grads(infml) graduates of a particular school, college
    implementto start using a plan or system
    moralethe level of satisfaction felt by a person or group of people who work together
    on-siteexisting or happening in the place where people are working or involved in a particular activity
    pilot testingis used to test how good something is before introducing it
    remote worka type of flexible working arrangement that allows an employee to work from remote location outside of corporate offices
    shiftto change
    tradea particular business or industry
  • Video
    conductto organise and/or do a particular activity
    disciplinary actiona method for dealing with a worker who causes problems or does not obey company rules
    employee retentionan organisation's ability to prevent employee turnover
    employee turnoverthe total number of workers who leave a company over a certain time period
    executeperform a duty, put a plan into action
    onboardingthe process of ensuring a new employee or customer becomes familiar with an organisation or its products or services
    overseeto watch somebody/something and make sure that a job or an activity is done correctly
    payrolla list of people employed by a company showing the amount of money to be paid to each of them; the total amount of money paid to the employees of a particular company
    processto deal officially with a document, request
    promoteto encourage people to like, buy, use, do, or support something