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Notice of termination in Czechia 2026 and 2027: notice period, grounds and severance pay

Tým P&T Europe Services 10/27/2026 12 min
Notice of termination in Czechia 2026 and 2027: notice period, grounds and severance pay

The notice period runs from delivery, lasts at least 2 months, and severance pay is 1 to 3 times average earnings. Grounds for notice, protected periods, delivery, severance pay and unemployment benefit. The Labour Code rules apply in 2026 and 2027; for unemployment benefit we flag the government bill for 2027.


Table of Contents
Notice of termination is the most common way an employment relationship ends in Czechia, and also where most mistakes happen: a notice delivered incorrectly, a reason not described specifically enough, or notice given during a protected period. The result is often an invalid termination and a court dispute. This guide summarises the rules under the Czech Labour Code as in force in 2026. The termination provisions (Sections 48 to 72) do not change on 1 January 2027, so everything applies next year as well.

Ways to end employment

Employment can be ended in only four ways (Section 48 of the Labour Code):
  • by agreement,
  • by notice,
  • by immediate termination,
  • by termination during the probationary period.
A fixed-term employment also ends when the agreed term expires. All of these acts must be in writing, otherwise they are disregarded (Section 49(2) for agreements, Section 50(1) for notice).

Notice period: when it starts and ends

Since 1 June 2025 (Labour Code amendment No. 120/2025 Coll.) the notice period starts on the day the notice is delivered and ends on the day with the same number. If that day does not exist in the final month, the notice period ends on the last day of the month (Section 51(1)). The old statutory rule “from the first day of the following month” no longer applies. Watch out for older employment contracts. If a contract expressly states that the notice period runs from the first day of the following month (typically contracts signed before 1 June 2025 that copied the rule then in force), the Ministry of Labour (MPSV), in its non-binding interpretation, considers that this clause takes precedence over the law, because Section 51(3) allows the parties to agree on how the notice period runs. MPSV itself notes that experts do not fully agree on this. If the contract merely refers to Section 51 or to the law, the new rule applies. To be certain, amend the contract.
Notice deliveredNotice periodEmployment ends
15 Nov 20262 months15 Jan 2027
31 Dec 20262 months28 Feb 2027 (February has no 31st)
31 Oct 20261 month (grounds under Section 52(f) to (h))30 Nov 2026
The notice period is at least 2 months. The exception is notice given to an employee for not meeting requirements, unsatisfactory results or breach of duties (Section 52(f) to (h)): there the notice period is at least 1 month (Section 51(2)). A written agreement can extend the notice period or change how it runs, but it must be the same for employer and employee (this does not apply to notice under Section 52(f) to (h)). The statutory notice period cannot be shortened by agreement. Anyone who wants to leave sooner must end the employment by agreement. Special shorter rules apply only to notice given by an employee because of a transfer of rights and obligations to another employer (Section 51a).

Notice given by the employee

An employee may give notice for any reason or without giving a reason (Section 50(3)). The notice period is at least 2 months for them as well, and they keep working during it. No severance pay is due when the employee resigns.

Notice given by the employer: statutory grounds only

An employer may give notice only on the grounds listed in Section 52 and must describe the facts of the ground so that it cannot be confused with another one. The ground cannot be changed later (Section 50(4)).
Ground (Section 52)Notice periodSeverance pay
a) employer or part of it is dissolved2 monthsyes
b) employer or part of it relocates2 monthsyes
c) redundancy due to an organisational change2 monthsyes
d) long-term loss of medical fitness under a medical report2 monthsno (for a work injury or occupational disease, compensation of 12 times under Section 271ca)
e) maximum permissible exposure reached2 monthsyes, 12 times average earnings
f) not meeting requirements, unsatisfactory work results1 monthno
g) grounds for immediate termination, serious or persistent minor breaches of duties1 monthno
h) particularly serious breach of sick-leave rules (Section 301a)1 monthno
What to watch for with the individual grounds:
  • Redundancy (c) requires a genuine decision on an organisational change made before the notice. If the employer hires someone else for the same job shortly after the notice, it casts doubt on whether the redundancy was genuine and may lead to the notice being invalid in a dispute. What matters is whether the organisational change really took place and the employee became redundant because of it. Because the notice period runs from delivery, do not deliver the notice too early: employment should not end earlier than the working day immediately before the organisational change takes effect, otherwise the notice may be invalid for lack of a causal link (MPSV interpretation).
  • Unsatisfactory results (f): notice is possible only if the employer asked the employee in writing in the last 12 months to remedy the shortcomings and they did not do so within a reasonable time.
  • Persistent minor breaches of duties (g): the employee must have been warned in writing of possible dismissal within the last 6 months.

Deadlines for notice and immediate termination

An employer does not have unlimited time to act on a breach of duties. Notice or immediate termination must be given within 3 months of learning about the ground, and no later than 15 months after it arose (Section 58(1)). For a breach of sick-leave rules (Section 52(h)) the deadline is 1 month after learning of it, at the latest 1 year (Section 57). An employee can terminate immediately within 2 months of learning of the ground, at the latest within 1 year (Section 59).

Protected period: when notice cannot be given

An employer must not give notice during a protected period (Section 53(1)), for example:
  • during sick leave or ordered quarantine (unless the employee caused it intentionally or it resulted from drunkenness or substance abuse),
  • during pregnancy and maternity, paternity and parental leave,
  • while caring for a sick child under 10 or another person, looking after a child under 10, or providing long-term care under the Sickness Insurance Act,
  • during military exercises or operational deployment, and during long-term release for a public office,
  • when an employee working nights is temporarily unfit for night work under a medical report.
The ban does not apply to all grounds. Notice can be given even in a protected period when the employer or part of it is dissolved (Section 52(a)), when it relocates outside the agreed place of work, and on grounds for immediate termination or breach of duties. For pregnant employees and those on maternity, paternity and parental leave the exceptions are narrower (Section 54). If notice was given before the protected period began and the notice period would end during it, the protected period is not counted. The employment ends only when the remainder of the notice period runs out, unless the employee says they do not insist on the extension (Section 53(2)). Example: notice delivered on 1 Nov 2026 would end on 1 Jan 2027. The employee falls ill on 20 Dec 2026 and recovers on 10 Jan 2027. When the illness started, 13 days of the notice period remained (20 Dec to 1 Jan); they run after the illness ends, so employment ends on 23 Jan 2027.

How to deliver notice correctly

Notice, immediate termination and termination during probation are delivered into the person's own hands under Sections 334 to 337. These rules do not apply to a termination agreement. The employer delivers (Sections 334a to 336):
  • by handing it over at the workplace or wherever the employee is found. If the employee refuses it, it is delivered at the moment of refusal.
  • to the employee's data box. If the employee does not log in within 10 days, it is deemed delivered on the last day of that period.
  • by e-mail only if the employee consented in a separate written statement and gave an address the employer does not control. The document must carry a qualified electronic signature. It is delivered when receipt is confirmed, at the latest on the 15th day after it arrives.
  • by post only if delivery at the workplace is not possible. If the employee does not collect it within 15 days, it is deemed delivered on the last day of that period.
The employee delivers to the employer (Section 337) usually by handing it over at the employer's registered office (the employer confirms receipt in writing on request), or by e-mail to an address the employer designated for this purpose (signed document), or to the employer's data box. Because the notice period now runs from the day of delivery, the delivery date directly determines when employment ends. It always pays to have proof of delivery.

Severance pay 2026 and 2027

Severance pay is due when the employer gives notice for organisational reasons under Section 52(a) to (c), or when employment ends by agreement for the same reasons (Section 67(1)). A special severance of 12 times average earnings is due on notice or agreement because the maximum permissible exposure has been reached (Section 52(e), Section 67(3)). If you end employment by agreement because of an organisational change, have the reason written into the agreement. Without it, the employee will find it hard to prove a right to severance pay.
Length of employment with the employerMinimum severance pay
less than 1 year1 times average monthly earnings
1 to 2 years2 times
2 years or more3 times
ending while the working-time account procedure under Section 86(4) appliesadditional 3 times
notice under Section 52(e) (maximum permissible exposure)12 times
A previous employment with the same employer counts if the gap between them did not exceed 6 months (Section 67(2)). Severance pay is paid on the next regular payday after employment ends, unless the parties agree in writing on payment on the last day or later (Section 67(5)). The law sets a minimum; higher severance pay can be agreed in the contract, an internal regulation or a collective agreement. Example: an employee with average monthly earnings of CZK 42,000 worked for the company for 3 years and was made redundant. Severance pay is at least 3 × 42,000 = CZK 126,000. You can calculate it in our severance pay calculator.

Contributions and tax on severance pay

  • No social or health insurance is paid on severance pay. Statutory severance pay is excluded from the assessment base (Section 5(2)(b) of Act No. 589/1992 Coll. and Section 3(2)(b) of Act No. 592/1992 Coll.).
  • Income tax is paid. Severance pay is employment income and is taxed in the month it is booked, together with other income. If the monthly base exceeds CZK 146,901 (2026) or CZK 154,989 (2027), the part above that threshold is subject to a 23% advance. Advances are settled in the annual tax reconciliation or tax return.

Severance pay and unemployment benefit

Under the current Employment Act, severance pay no longer postpones unemployment benefit (former Section 44a has been repealed). A jobseeker is entitled to benefit if they have at least 12 months of pension insurance in the last 2 years (Sections 39 and 41). The benefit period is 5 months up to age 52, 8 months from 52 to 57 and 11 months over 57 (Section 43). In 2026, up to age 52 the benefit is 80% of average monthly net earnings for the first 2 months, 50% for the next 2 months and 40% thereafter; jobseekers over 52 get 80% and 50% for 3 months each (Section 50(3)). The maximum benefit is 80% of the average wage, CZK 38,537 a month in 2026. The amount does not depend on who gave notice. A change is planned for 2027. The government approved a bill on 31 August 2026 and submitted it to the Chamber of Deputies on 8 September 2026 (parliamentary print 300). From 1 January 2027 it would mean:
Parameter2026 (in force)Government bill from 1 Jan 2027
Benefit rates80% / 50% / 40%, higher rates for longer over age 5265% / 50% / 45% for all age groups
Benefit period5 / 8 / 11 monthsunchanged
Maximum benefit80% of average wage (CZK 38,537)60% of average wage (CZK 28,903 at 2026 values)
Retraining benefit80% of earnings60% of earnings
The bill passed the first reading (20 October 2026) and is being discussed by the social policy committee. An amendment has also been filed that would keep the current rates. The final form will be confirmed once the law is passed and published in the Collection of Laws. A jobseeker is not entitled to benefit if, in the 6 months before registering, the employer ended their employment for a particularly serious breach of duties (Section 39(2)).

Immediate termination and termination during probation

An employer may terminate immediately only in exceptional cases: a final conviction for an intentional crime with an unconditional prison sentence (over 1 year, or at least 6 months if the crime was work-related), or a particularly serious breach of duties (Section 55). Never for a pregnant employee or during maternity, paternity or parental leave. An employee may terminate immediately if the employer has not paid their wage or part of it within 15 days after it fell due, or if a medical report says they cannot keep working without serious risk to health and the employer did not offer other suitable work within 15 days. They are then entitled to wage compensation equal to average earnings for a period corresponding to the notice period (Section 56). During probation either party may end employment for any reason, in writing. Employment ends on the day of delivery unless a later date is stated. The employer, however, must not do so during the first 14 calendar days of sick leave or quarantine (Section 66). The probationary period may last at most 4 months, or 8 months for managers, and no more than half of the agreed term of a fixed-term employment. While it runs, it can be extended within these limits by written agreement (Section 35).

What to handle when employment ends

  • Pay out untaken holiday. Compensation for untaken holiday is due only when employment ends, at average earnings (Section 222). Additional (extra) holiday cannot be paid out.
  • Issue a certificate of employment under Section 313. On request, also issue a separate confirmation of average earnings and other details for the labour office.
  • Pay severance pay on the next payday unless agreed otherwise.
  • Deregister the employee from insurance. Since 2026 sickness insurance is reported through JMHZ; the health insurer must be notified separately.
  • Settle wage deductions and state any ongoing garnishments in the certificate of employment.

Summary

  • The notice period is at least 2 months (1 month for grounds under Section 52(f) to (h)) and runs from the day of delivery.
  • An employer gives notice only on statutory grounds, described precisely, outside the protected period and within the statutory deadlines.
  • Severance pay is 1 to 3 times average earnings; no insurance contributions are paid on it, but it is taxed.
  • The Labour Code rules are the same in 2026 and 2027. For unemployment benefit the government proposes new rates from 2027; the bill has not been passed yet.
Dealing with a termination, a severance calculation or a final payslip? With payroll outsourcing we will handle it correctly and on time. Sources (as of 27 October 2026): Labour Code No. 262/2006 Coll. (Sections 35, 48 to 67, 222, 271ca, 313, 334 to 337; the version from 1 January 2027 is unchanged in these provisions), Act No. 120/2025 Coll. (Labour Code amendment effective 1 June 2025), Act No. 435/2004 Coll. on Employment (Sections 39, 41, 43, 50), Act No. 589/1992 Coll. (Section 5), Act No. 592/1992 Coll. (Section 3), Government Regulation No. 177/2026 Coll. (2027 average wage, the basis of the CZK 154,989 threshold for the 23% advance), parliamentary print 300 (government bill, status as of 27 October 2026), MPSV — government approved changes to unemployment benefit and MPSV — what the flexible Labour Code amendment brings (interpretation of the notice period).

Legal Notice

This article is for informational purposes only and does not replace professional legal or tax advice. Information is processed according to Czech law valid at the date of publication. We always recommend consultation with an expert for specific situations.

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Tým P&T Europe Services

Specialists in payroll accounting, HR and accounting