Work agreements outside employment relationships

Besides an employment contract, an employer can also conclude with you a contract on services (DPČ – agreement to perform work, or DPP – agreement to complete a job). These are additional forms of an employment relationship which apply to special legislation, and they should be concluded rather exceptionally.

If you want to stay in the territory of the Czech Republic based on an employee card, it is possible to conclude only an agreement to perform work.

It is important to see that with these types of agreements, not all the rules apply which are otherwise in effect with regular employment contracts. If you for instance want to arrange for the following in DPP/DPČ agreements: overtime work, occasions when you are hindred from working by an obstacle (illness), vacation and other, you need to agree on that with the employer explicitely, otherwise your are not entitled to them. Before you sign an agreement, consult its content with a lawyer!

1. Agreement to complete a job (DPP)

DPP must be concluded in writing. It can be concluded only in such a case that the range of your work will not exceed 300 hours in a calendar year. If you conclude another DPP with the same employer, the overall hours per year are counted together (for instance, upon concluding with one employer a DPP for 100 hours in the given calendar year, another DPP can only be concluded for the maximum of 200 hours in the same calendar year with the same employer). However, if you want to conclude another DPP with a different employer, you have the maximum of 300 hours per calendar year at your disposal all over again.

If you need an employment permit, you must posses one also when your work is based on a DPP agreement. Without an employment permit, it would be illegal employment!

DPP must contain:

  • specification of the time for which the agreement is concluded (fixed-term or indefinite)
  • work description (what exactly will you do)
  • specification of the place, where the work is supposed to be carried out
  • the estimated range of working hours, remuneration and the conditions for its payment (it must not be lower than the minimum wage of 50,60 CZK gross per hour in the year 2014)
  • It may also include the following: the possibility and manner in which the DPP can be terminated, arrangements for holidays, or specification of personal obstacles to work.

For each month in which your income will be higher than 10000,- CZK, your employer is required to pay for your social security and health insurance premiums. You are not entitled to holidays when performing work based on the DPP, yet it may be agreed upon in the written contract or in an ammendment to it. You must always receive one written copy of the DPP.

Following the DPP termination, the employer is required to issue to you a confirmation of employment. If you request an assessment of your work performance, your employer is obliged to issue it within 15 days.

2. Agreement to perform work (DPČ)

DPČ must be concluded in writing. If you need an employment permit, you must also posses one when entering into a DPČ. Without an employment permit, it would be illegal employment!

For the entire period for which the agreement was concluded (which is for a maximum period of 52 weeks), work performance may not exceed half of the set weekly working hours.

DPČ must contain the following:

  • the specification of the agreed upon work activity
  • the range of working hours (work performance must not exceed 12 hours within 24 consecutive hours)
  • the period of time for which the agreement is concluded
  • the remuneration and the conditions for its payment (it must not be lower than the minimum wage of 50,60 CZK gross per hour in the year 2014).

If you want to stay in the territory of the Czech Republic based on an employee card, the amount of your wage must equal at least to the specified minimum wage amount. It is CZK 8,500 for the year 2014 and working time shall be at least 15 hours a week.

You must always receive one written copy of the DPČ.

If your contract or agreement does not contain any specificaton of how the DPČ can be terminated, you can terminate it either by mutual agreement or by a notice of dismissal where no reason needs to be given. In such a case, a 15 day notice period comes into effect, beginning on the day of having delivered the notice to the other contracting party. An immediate termination of DPČ is only possible in the same cases as the immediate termination of an employment relationship.

Following the DPČ termination, the employer is required to issue you a confirmation of employment. If you request an assessment of your work performance, your employer is obliged to issue it within 15 days.