ROLE OF THE PARTIES OF AN EMPLOYMENT RELATIONSHIP

EMPLOYMENT CONTRACT Free form Employer must give a written description over the principal terms if the contract Is not made in writing or Does not include all information stipulated by the law and The employment relationship continues at least for one month

POSITION OF EMPLOYEE (1) Employee works For the employer Personally On basis of a contract Under supervision of the employer For remuneration

POSITION OF EMPLOYEE (2) If exceptionally agreed, Employee may hire assistants Employees may form a team The work can be carried out at the employee’s home Employee may use his own machines and tools and it still remains an employment relationship

CONTRACT PERIOD Unspecified period Specified period If nothing else agreed, the contract is deemed to have been made for an unspecified period the employment relationship lasts until terminated by either party Specified period Permissible On the employee’s initiative always On the employer’s initiative only for a well-grounded reason If no such reason, the contract is regarded as one made for an unspecified period

DUTIES OF EMPLOYEE (1) GENERAL PROVISIONS Employee shall Perform the tasks conscientiously Follow instructions as to The manner in which the work is to be performed The quality and extent of the work The time and place of the work Refrain from anything that is contrary to what may be expected from an employee in his position or liable to cause prejudice to the employer

DUTIES OF EMPLOYEE (2) FIDELITY Business secrets For the duration of the employment relationship employee shall not exploit the employer’s business secrets Not even after the end of employment relationship may the employee exploit business secrets concealed to him illegally or in other way than doing his job

DUTIES OF EMPLOYEE (3) Competing activities and contracts For the duration of the employment relationship employee shall not carry out competing activities Except with his employer’s consent Employee is liable for damages under either or both of the contracts After the end of employment relationship Main principle: employee is free to compete On especially weighty grounds: it is possible to conclude an agreement to restrict this freedom by a covenant of non-competition

DUTIES OF EMPLOYEE (4) Covenant of non-competition May only last for 6 months (12 months, if specific compensation) Penalty for violation of the covenant may not exceed employee’s 6 month’s salary Restriction not applied to employees in managerial position Unduly restrictive agreements always adjustable (Contracts Act) If the employment relationship ended because of a reason attributed to the employer, no covenant binds the employee

DUTIES OF EMPLOYEE (5) OCCUPATIONAL SAFETY AND HEALTH Employee shall co-operate with the employer in safety and health matters and Take care of his own safety and that of the fellow workers Specific duties concerning protective equipment, machinery, tools, medical examinations In case of serious danger, employee is entitled to interrupt the work

DUTIES OF EMPLOYER (1) GENERAL PROVISIONS Improve good relations in the company Improve the employee’s possibilities to develop their working skills and to proceed in their career Observe the general applicability of collective agreements TREAT EMPLOYEES IMPARTIALLY WITHOUT DISCRIMINATION As to the origin, religion, age, political activities or comparable circumstances As to the type of their employment relationship (permanent or temporary, full-time or part time) OBSERVE OCCUPATIONAL SAFETY AND HEALTH Take all precautions reasonable to protect the employees against accidents and health defects Have programs to promote safety and health In all respects co-operate with the employees in these matters

DUTIES OF EMPLOYER (2) PAY REMUNERATION In accordance with Payment The applicable collective agreement or The agreement with the employee or Ordinary and reasonable remuneration Payment Twice a month: wages based on a day or shorter period and piecework wages Once a month: in other cases On the last workday of the pay period To the employee’s bank account or in cash Payment during sick leave Payment for 9 weekdays’ sick leave If the employment relationship has lasted for less than 1 month, only 50% of the salary Failure to pay wages Overdue interest Employee is entitled to rescing the empl. relationship In case of termination of the empl. relationship, employee is entitled to full wages for the period of delay of wages (max 6 days) Employer’s bankruptcy / insolvency Employee is entitled to a payment for 3 months’ wages out of public funds

DUTIES OF EMPLOYER (3) PROVIDE WORK PROVIDE TOOLS AND WORKING MATERIAL A sufficient amount of work must be given In case employer would be entitled to terminate the employment relationship by notice: he may transfer the employee to part time work Employer must inform part time and temporary employees on available jobs PROVIDE TOOLS AND WORKING MATERIAL Shall be provided by the employer, unless Otherwise agreed Another practice prevails in the industry

LAYING-OFF EMPLOYEES = Temporary interruption of duty to work and pay for remuneration Temporary lay-off maximum 90 days, permanent one indefinitely Agreeing on a lay-off => immediately Unilateral lay-off => must be grounded by an financial and production-related reason Pre-notice 3 months in advance, lay-off notice 14 days in advance, in writing During the lay-off the employees can terminate their employment contract without a term of notice