Treat your people well: Guide to unlimited vacation in Czechia

To really stand out in the competitive talent market, offering the right perks and creating a positive work environment is key. Unlimited time off, a fresh trend in the Czech market, can give you a major edge. It means your team gets incredible flexibility, a better work-life balance and builds trust. But before you jump in, let's take a closer look at the legal side to ensure everything goes smoothly.

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Understanding current vacation rules

According to the Czech Labor Code, employers must give their employees a minimum of four weeks of vacation per year. If they don't use all their vacation days, they can carry them over to the next year. And if an employee leaves the company, the employer has to pay them for any unused vacation days.

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The amount they receive is calculated based on time worked and compensation received in the past quarter. If the employee received any bonuses, the payment may be higher than the regular salary.

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Employers can also ask employees to come back from vacation if they need them, but they have to cover any costs involved.

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Unleashing the power of unlimited vacation

Traditional vacation rules may not fit perfectly with unlimited time off. But don't worry, there's a simple solution. Instead of using the word "vacation," you can call it "unlimited (paid) time off." This makes things clear and you can define the specific rules in your company's own guidelines.

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Creating easy-to-follow guidelines

When it comes to setting up your guidelines, keep things straightforward:

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1. Eligibility and timing

Clearly state who can enjoy this benefit and when they become eligible. You can decide if it starts right when someone joins, after a trial period, or after they've been with the company for a year. It's up to you!

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2. Approval process

Set up a simple process for employees to request time off and for you to approve it. Make sure to define how long they can be away and how often. Also, make it clear that you have the right to say no or ask them to come back if needed, but you'll cover any costs involved.

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3.Compensation

Let your employees know how they'll be compensated during their time off. Will it be their regular salary or something different? And make it clear that any unused time off over the required 4 weeks won’t be paid out if they leave the company.

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4. Usage conditions

Be clear about when employees can use this benefit. Is it for personal illness, to recharge or other situations that align with your company's policies?

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Offering unlimited time off is a game-changer when it comes to work-life balance and overall well-being. But before you roll it out, make sure you understand Czech labor laws and create guidelines that everyone can easily follow. Clear guidelines benefit both employees and employers, creating a seamless experience.

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In a nutshell

• Unlimited time off gives you a competitive advantage in the Czech talent market.
• Czechia guarantees employees four weeks of paid vacation, which they can carry over.
• During vacation, employees still get paid.
• Instead of saying "unlimited vacation," call it "unlimited time off" to avoid any confusion.
• Be clear about who's eligible, how to request time off, if and how they'll get paid, and when they can use it.

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If you’re thinking of introducing this benefit to your team, leave us a message and we’ll help you cover the legal side. Reach out to us here.