ELA EU Pay Directive
CZECH REPUBLIC

Legislation Addressing the EU Pay Directive
Draft legislation implementation:
Yes, draft proposal for an act is available. Please note that it is still in the form of governmental proposal, at the start of the legislative process, the wording and implementation details are not final yet.
The Pay Transparency Directive (EU) is to be implemented in the Czech Republic through a draft amendment to the Labour Code (Act No. 262/2006 Coll.) and related legislation, including the Civil Procedure Code, the Act on Public Defender of Rights, and sector-specific regulations (e.g. for members of armed forces and security forces).
a. The transposing legislation governmental draft proposal for act is available here (in Czech only): ODok Portál - VeKLEP - Návrh zákona, kterým se mění zákon č. 262/2006 Sb., zákoník práce, ve znění pozdějších předpisů, a některé další zákony
b. The draft legislation provides for a staggered implementation:
The majority of core obligations (e.g. pay transparency in recruitment, internal pay systems, and employees’ information rights) are planned to apply from 1 January 2027. Other obligations are planned to become effective as from
1 January 2028 and 1 January 2031.
c. The draft proposal for the act counts with secondary legislation to be issued, including the decree of the Ministry of Labour and Social Affairs which shall, among others, specify the methodology for calculating pay and related benefits for the purposes of information rights and reporting obligations.
At this stage, only principles of the secondary legislation are published.
ii. a. In the Czech Republic, the draft legislation appears to follow a largely minimalist transposition approach, however, the draft legislative act contains some provisions that are unclear.
ii. b. The Directive does not fully replace existing national obligations but supplements and strengthens them, mainly by introducing binding transparency and enforcement mechanisms.
• Transition period: The proposal introduces staggered entry into force (e.g. 2027–2028-2031) for different obligations, meaning that employers will need to gradually comply with new transparency and reporting duties as they take effect.
Application
Under local law, who are considered to be workers?
The concept of “workers” shall not be newly defined, but relies on the existing concept of “employees” (in Czech „zaměstnanci“) under the Labour Code. This reflects the Directive’s wide personal scope, which applies to all individuals performing work under an employment relationship, regardless of its form.
Has local legislation clarified what should be considered as "pay structures"?
Yes, Czech draft transposing act is to require the employers to establish a formal remuneration system (new § 109a of the Labour Code) comprising:
• the form and components of pay,
• the method for determining remuneration,
• the criteria for differentiating pay levels, and
• the classification of jobs into groups based on their value, according to objective criteria such as complexity, responsibility, and strenuousness.
Has local legislation clarified how employers should categorise "work of equal value"?
The „work of equal value“ is concept already defined under Section 110(2) of the current Labour Code (i.e. work of the same or comparable complexity, responsibility and strenuousness which is performed in the same or comparable working conditions and which is of equal or comparable work efficiency and brings equal or comparable work results).
Recruitment and job applicants
What information must an employer provide to job applicants in relation to pay (i.e. what does "initial pay range" include – basic pay, bonus, family leave payments, pension, stock options, etc)?
The minimum level of salary or wage and other monetary benefits and benefits of monetary value that the employee would be entitled to from the beginning of the employment relationship.
How and when must this information be provided?
Under the Czech draft transposing legislation, the information on pay would have to be provided in a demonstrable manner no later than before the commencement of negotiations on the conclusion of an employment contract.
Does the salary history ban apply equally to internal candidates?
The prohibition on asking about salary history applies to job applicants; the draft law does not make a specific distinction between internal and external candidates.
Can employers' use salary history information already known to them when determining salaries for internal hires/ promotions?
The draft legislation does not specifically regulate the approach to internal candidates applying for a new role.
Does local law require that the job vacancy notices and job titles are gender neutral?
Current legislation, the Employment Act (Act No. 435/2004 Coll.) prohibits discriminatory job advertisements, and thus deals with this topic already.
Transparency of pay and pay progression policy
What information must an employer make available to workers about workers’ pay, pay levels and pay progression under local law?
The employer will have to provide, upon a written request by employee:
• information on the employee’s individual level of pay (including wages/salary and other monetary benefits) and on the average level of pay for a group of employees performing the same or equivalent work, as the employee performed in past calendar year,
• this information must be broken down by gender,
• and expressed both in total annual and hourly terms.
The employer will also be obliged to provide, upon request, completion or clarification of the information, if incomplete or unclear.
How should this information be provided?
Under the Czech transposing legislation, information on pay must be provided upon request and in a structured, verifiable manner. Pay system will have to take form of internal regulation or be a part of collective bargaining agreement, which have to take written form.
Has local law clarified what are the "objective and gender-neutral criteria" that should be used to determine pay, pay levels and pay progression?
The legislation focuses on terms "objective and anti-discriminatory“ criteria, which provide broader protection than only "gender-neutral“.
Are there any exemptions based on headcount?
No
Individual rights to pay information
A worker is entitled to request and receive information on:
- their individual pay level; and
- the average pay levels broken down by sex for workers performing the same work as them or work of equal value to theirs
What is considered to be "pay" for the purpose of this provision?
“Pay” under the Czech draft legislation is to be understood as a comprehensive concept, including not only base salary but also all monetary and non-monetary benefits with monetary value.
Can any pay components be excluded for the purposes of calculating gross hourly pay (for example, can voluntary benefits, stock options or "pay" components that do not appear on a payslip be excluded?)
There is no general rule allowing employers to exclude specific pay components at their discretion.
Within what period of time must the information be provided?
The information must be provided within two months from the employee’s request.
How should this information be provided?
The form is not stated, however, the employer should be able to evidence compliance with the regulation. Under some views, this implies obligatory written form (unsure).
Are there any exemptions based on headcount?
No.
Is a worker entitled to request this information individually and/or through workers representatives and/or through an equality body?
Employees shall be able to submit the request individually, through employee representatives (e.g. trade unions or works council), or through the Public Defender of Rights (equality body).
What rights does a worker have where the information is alleged to be inaccurate or incomplete?
The workers would have a specific right to request clarification and correction where the information provided is inaccurate or incomplete.
Does an employer need to inform workers of their entitlement to request this information?
Yes, the information is to be provided to all employees at least once a calendar year.
Does local law require that employers provide this information in the local language, or can it be provided in English?
The Czech transposing legislation does not explicitly require that pay information be provided in the local language. However, under general principles of Czech labour law, information provided to employees must be clear, understandable and accessible. This implies that it should be communicated in a language the employee understands, which will typically be Czech in most cases.
Prohibitions on workers disclosing pay information
Contractual clauses that prevent employees from disclosing information about their pay are prohibited under the Directive.
Can employers impose any restrictions on workers to prevent them from disclosing their own pay, and/or average pay information obtained pursuant to an information request?
Employers cannot prevent workers from disclosing their own pay, but they may impose limited restrictions on the use of other pay-related information obtained through transparency mechanisms, in order to protect confidentiality and ensure it is used only for enforcing equal pay rights.
If existing contracts contain pay secrecy clauses, what actions (if any) are required to bring those contracts into compliance (e.g., must such clauses be formally rescinded or is the existing pay secrecy clause simply unenforceable)?
This prohibition already existed under Czech law, the draft transposing legislation further specifies and aligns this rule with the Directive.
Gender pay gap reporting
Are the pay gap reporting deadlines the same as those set out in the Directive?
The reporting obligations are planned to become effective as from 2028 for employers with 150 or more employees (meaning that in year 2028 the reports for 2027 shall be prepared), for employers between 100–149 employees as from 2031.
Please confirm what gender pay gap information employers must provide under local law (and include detail on headcount thresholds).
Under the Czech draft transposing legislation, employers would be required to provide gender pay gap information through structured reporting obligations, depending on their headcount. Under draft amendment of the Act on Labour Inspection the report will include data on pay differences between men and women, based on groups of work defined, and shall enable comparison of pay levels and identification of gender pay gaps.
The obligation to report will depend on the size of the employer:
• employers with 250 or more employees will have to report annually,
• employers with 150/100–249 employees will have to report once every three years,
• employers with fewer than 100 employees will not be subject to reporting obligations.
Does local law specify a uniform reference or “snapshot” date for assessing headcount or pay data for reporting purposes?
The headcount of employees as at 1 January for the purpose of reviewing pay gaps and reporting. Manner of counting of employees for this purpose will be determined by secondary legislation.
What pay information (if any) is an employer required to publish and where does it need to be published (i.e. on its website).
Under the Czech draft transposing legislation, employers will be required to publish certain pay-related information internally and the information will have to be shared with employees’ representatives. The legislation does not require the report itself to be published externally or provided to the public.
Is an employer required to provide the information to an authority and if so when?
The employer will have to submit the pay gap report by groups of work to the Ministry (via data mailbox) by 30 April of the relevant calendar year. Ministry of Labour is then to prepare a broader report on pay gaps at employers in past calendar year by 31 March of the following calendar year.
As regards publication by authorities, the current legislation does not provide that individual employers will be publicly identified. Instead, the available materials suggest that the data will be used for monitoring and analytical purposes, and any published outputs are likely to be aggregated, sector-based and anonymised rather than employer-specific.
Does local law specify how employers should consider employees that choose not to identify with a particular gender?
No. The system is planned as based on a male/female comparison.
National Wrkforce Thresholds
Does national law apply different workforce thresholds than those set out in the Directive (100/150/250 employees) for any pay transparency or reporting obligations?
Czech law does not introduce different workforce thresholds from those in the Directive, as it includes the same key thresholds (100/150/250 employees).
Are there any sector-specific or size-specific exemptions or adjusted requirements?
Under the Czech transposing legislation, there are no sector-specific exemptions Smaller employers are subject to fewer administrative requirements, while still being bound by the fundamental principles of pay transparency and equal pay. The principles of the Directive are to be implemented for certain groups of works, such as soldiers, taking into account specific regulations they are subject to by amendment to the profession-specific legislation (acts).
Dealing with Gaps & Joint Pay Assessments
Where gender pay differences are not justified on the basis of objective, gender-neutral criteria, in what timescale must an employer remedy the situation?
An employer has six months to remedy unjustified gender pay differences.
Does local law specify how an employer should remedy the situation?
The Czech transposing legislation requires employers to identify, analyse and address unjustified pay differences, including through corrective measures outlined in the pay assessment that such employer will have to conduct in written form
How must an employer work in close cooperation with workers’ representatives, the labour inspectorate and/or the equality body in remedying the situation?
The employer must consult the pay assessment conducted with workers' representatives.
As regards public authorities, the labour inspectorate acts in a supervisory and enforcement capacity, the Public Defender of Rights may be involved, for example, by providing opinions for which the employer may ask, but neither is required to participate directly in the remedial process itself.
Does local law define ‘close cooperation’ – is it just in consultation with, or must there be agreement?
Czech law does not define “close cooperation” and does not require reaching agreement with workers’ representatives.
In what circumstances does local law require an employer to conduct a joint pay assessment?
Pay assessment will have to be carried out if:
• a gender pay gap of at least 5% is identified at a work group in the pay system,
• the gap is not legitimately justified, and
• the employer fails to remedy it within 6 months.
What information must be included in the joint pay assessment?
Pay assessment will have to be conducted in writing and will have to include, in particular:
• an analysis of the proportion of men and women in each group of work,
• information on the average pay levels of men and women within those groups,
• identification of pay differences (gender pay gaps),
• identification of the causes of those differences,
• data on pay developments in specific situations (e.g. after return from parental-related leave, where relevant),
• measures aimed at eliminating unjustified pay differences, including a timeline for their implementation,
• and an evaluation of the effectiveness of measures adopted in previous assessments.
To whom must an employer make the joint assessment available?
The employer will have to:
• publish the assessment internally in a manner accessible to all employees,
• provide it to workers’ representatives, if they operate at the employer,
• provide it to the Ministry of Labour and Social Affairs,
and additionally:
• provide it to the labour inspectorate and the Public Defender of Rights (equality body) upon their request
Data Protection
Where the provision of information would lead to the disclosure of the pay of an identifiable worker, does local law limit access to the relevant information and if so, how?
Yes, Czech law explicitly limits access to information where disclosure would reveal the pay of an identifiable employee by requesting the employer to fulfill the information obligation of the employer towards the Public Defender of Rights instead of the requesting party, prohibiting publication of the information within the assessment. The workers’ representatives are also limited in handling with the information – they must take steps to ensure that no information regarding the amount of remuneration for work or other monetary payments and payments of monetary value of a specific employee is disclosed or provided.
Breach of pay transparency and pay gap reporting requirements
What sanctions, penalties or other measures may be imposed on an employer in the event of breach of gender pay reporting or pay transparency requirements under local law?
Under the Czech draft transposing act, breaches of gender pay transparency and reporting obligations are subject to administrative sanctions, primarily fines imposed by labour inspectorates, under the Act on Labour Inspection.
The amount of penalties that can be imposed onto the breaching employer vary – the penalties limits are set at up to CZK 200,000, CZK 400,000 or CZK 1, 000,000, depending on the type and seriousness of the administrative offence.
Rights to equal pay – rights of action
What rights of action under local law are available to a worker as a result of any alleged infringement of the right to equal pay?
The worker could enforce his/her rights by means of civil law action against the employer. In the proceedings, the worker would benefit from reversed burden of proof (the employer would be required to prove that the principle of equal treatment has not been violated in such case). Finally, the worker would be entitled to compensation of harm resulting from breaches of equal pay, including compensation for immaterial harm based on Anti-Discrimination Act (as well to be amended). The worker could also claim its rights via assistance of the Public Defender of Rights.
Workers Representatives
How does local law define ‘workers’ representatives?
The Czech transposing legislation does not introduce a new or autonomous definition of “workers’ representatives” for the purposes of pay transparency. Under the Czech Labour Code, “workers’ representatives” are defined as including trade unions, works councils, and employee representatives for occupational safety and health. Consequently, the draft implementing act refers to trade unions and/or work councils explicitly where appropriate.
If the employer does not have any workers’ representatives, what are its obligations in relation to the provisions of the Directive referring to workers' representatives?
In such case, the employer will have to publish in a manner accessible to all employees the information about the obligation to carry out a pay assessment, and right to carry out the pay assessment without consultation with the employees’ representative, unless there are trade unions or the employer receives a proposal for election of works council after 30 days from information publication date. If representatives are established within the deadline, the employer must carry out the assessment and discuss it with them at that stage.
What rights do workers' representatives have?
Under the Czech transposing legislation, the rights of workers’ representatives are implemented primarily through rights to information and mandatory consultation. The draft legislation follows this approach.
If workers’ representatives have not been engaged in the right way and/or in a timely fashion, what are the consequences under local law?
Failure to comply with these obligations would constitute an administrative offence, potentially leading to fines, and an obligation to remedy the non-compliance.
What obligations exist in relation to workers’ representatives’ rights to be consulted on pay gap information and access to the relevant methodologies applied?
The employer will have to consult with the employees’ representative on the pay gap report prior to its provision to the ministry and consult with them on the pay assessment prior to its publication at the employer.
What rights of action are available to a worker or workers’ representatives in event of breach of gender pay reporting or pay transparency requirements under local law?
Employees could raise a complaint with supervisory body – Labour Inspection, revert to workers’ representative at the employer, to the Public Defender of Rights. They could also initiate civil law proceedings, in case of discrimination.
Member State Support
What support in terms of technical or other assistance and training has been provided, or is promised, for employers?
Based on the Czech draft act of transposing legislation, there is no explicit, detailed framework of technical assistance or training for employers set out directly in the statutory text.
However, the legislation does envisage institutional and methodological support in a more indirect way, primarily through the role of the Ministry of Labour and Social Affairs and the role of the Public Defender of Rights (the latter, for example by means of provision of opinion on implementation of measures resulting from a pay assessment within the remedial measures adoption process).
Is this available to all employers or, for example, are there headcount limits?
N/A
To whom must an employer make the joint assessment available?
N/A
Other/Additional
Is there anything else notable in your jurisdiction? For example, additional secondary legislation or guidance.
The draft law transposing the Directive into Czech legislation is still at the start of the legislative process and may still be subject to changes.
The replies to the questions raised in this questionnaire are thus not final and may change with the development of the legislative process.

