Recovery of outstanding wages

Should the employer not pay you your wages within the pay term, you can proceed as follows:

1. If you are the only one who has not been paid their wages, you can proceed by the way of court debt recovery (i.e. wages recovery) under the Code of Civil Procedure. In this case, you will have to file a complaint against your employer (within the general limitation period, i.e. within three years from the date on which the wage became due). Before filing a complaint, it is recommended that you ask the employer in writing to cover the wage claims, and draw the employer's attention to the option of their recovery via legal proceedings if s/he fails to pay. It is also worth trying to draw the employer's attention to the fact that you intend to inform the competent national authorities (e.g. labour inspectorate, labour office, customs administration and financial authority) regarding the violations of labour legislation.

The preparation of filing an action is a rather complicated legal procedure, which non-governmental organizations' lawyers will help you with free of charge or regular lawyers will be of assistance to you for financial compensation. If you are a member of a trade union in your company, the relevant trade union organization may be of help with the recovery of wages and legal assistance.

2. If there are more of you who have not been paid their wages (at least twice), and a period of at least 30 days after the due date of the outstanding wages has expired, you can submit the so-called insolvency proposal against your employer. If a staff member or someone else declares the employer insolvent , they may apply to the labour office for the payment of the outstanding wages up to the amount of three monthly salaries. Following that, the labour office enters into negotiations with the employer.

An insolvency petition can be filed with the competent court. You can do it yourself, but we recommend that you seek assistance either with non-governmental organizations' lawyers, or if you are a member of a trade union, then with the trade union organization, or with the labour office or, as a last resort, use the services of regular paid lawyers.

In the event of insolvency, your wage demands may entitle you to become a priority creditor. In this way, you can recover your wages in the longer-term and you can also greatly complicate the business of your employer, who would have to face insolvency proceedings.

When applying for the payment of outstanding wages to the labour office, you have to prove the legitimacy of your claims either by producing your employment contract, wage assessment, construction diary, witnesses, etc. The wages which you can obtain from the labour office range from the minimum wage (i.e., 8500,- CZK) up to a maximum amount of 35000,- CZK.

3. If you had worked without both an employment and a residence permit, thanks to the so-called EU Sanctions Directive (2009/52 /EC), you have a choice between filing an action and calling on the competent government authority to start procedures to recover outstanding wages.

Again, we recommend that you first notify your employer on your outstanding wages, and draw his or her attention to the high sanctions imposed for illegal employment, as well as to possible criminal liability and duty to pay both back payments to public budgets, as well as to return the funds paid to the employer out of public budgets, including the resources gained through public procurement and from EU funds. Consult your course of actions with a lawyer!

It comes to your advantage if you cannot prove the amount of your outstanding wages, then the law presumes that your employment lasted for three months at minimum, for which you are entitled to wages.

Besides that, third parties (trade unions, non-profit organizations) have the right to engage on your behalf or in your support in any administrative or civil proceedings, including the recovery of wages, even in your absence from Czech territory.

If you are an illegally employed minor or you had been employed without a residence permit and under particularly exploitative conditions, you may even be granted a residence permit.

Possible steps to be taken during the recovery of outstanding wages