Opportunities and Limits of the Flexinovela

On April 9, 2025, the Senate approved the so-called Flexinovela – a legislative reform designed to bring greater flexibility to the Czech labor market. While it represents a step towards labor market modernization, it mainly introduces parametric changes whose effectiveness will strongly depend on specific industries, regions, and employer sizes.

What is changing?

The Flexinovela introduces adjustments aimed at speeding up certain processes, reducing administrative burdens, and responding to the current needs of employers and employees. It includes provisions such as extending the probationary period, shortening the notice period, allowing students to work from the age of 14, shortening daily rest periods in extraordinary situations, and enabling salary payments in foreign currencies. It also affects parents and modifies unemployment support.

Let's look at some of the key changes.

Parents and returning to the "same seat"

A positive change is the opportunity for parents (mothers) to work for their employer under an agreement during parental leave, performing the same job as before. Previously, this was often circumvented by creatively renaming job positions, so this adjustment is a thumbs up. It helps parents, especially mothers, stay connected with their employer and maintain their skills in a rapidly changing environment.

However, the requirement to keep the "same seat" for parents for two years could be complicated for many employers, given today's turbulent times and constant changes. Many things can change within months, making two years a very long period. Although there is an evident effort to attract parents, especially mothers, back to work, it remains to be seen whether it will be effective. There is also a risk of an unintended consequence – increased employer hesitation to hire young women.

Earlier return of parents to work? Difficult without available childcare

However, the return of parents to employment faces another barrier – insufficient preschool care availability. Financial and capacity access to kindergartens or childcare groups remains problematic, as does the low proportion of part-time work in the Czech Republic (only 6%, including temporary and seasonal jobs, compared to 20% in the EU).

Companies that view diversity and inclusion as part of their strategy often find solutions. Elsewhere in the labor market, prejudices persist – part-time jobs are seen as organizational challenges, causing higher absenteeism due to child illnesses, etc.

According to the Diversity Index 2022 results, which we conduct regularly as part of our Diversity Charter activities, "parents at work" are the top priority for companies in developing workplace diversity and inclusion.

We need to open a societal debate about shortening parental leave in the Czech Republic. Therefore, at the 10th annual "Mothers and Fathers Welcome 2025" conference, we are returning to the topic – taking a detailed look at the economic benefits and impacts of such a major change.

 
Notice and probation periods: efficiency or risk?

Shortening the notice period is welcomed primarily by employees – they will no longer have to remain in a job for up to three months if no agreement is reached. However, for employers, it may result in greater administrative burden and more complex workforce planning, especially in larger companies or sectors with high turnover.

Conversely, extending the probationary period is up for discussion. With effective onboarding (training, adaptation, feedback), the current periods are sufficient. Proper onboarding is crucial – up to 30% of employees leave during probation due to inadequate onboarding. While a longer probation period could be advantageous for employers (e.g., for short-term projects or when employee benefits apply after probation), employees may also reconsider their position over a longer period, increasing the risk of departures even after several months of investment. It will be interesting to see how it plays out in practice. Keeping a Gen-Z manager under probation for eight months might be quite a challenge.

Confidentiality about salary ends

The Flexinovela also bans salary confidentiality clauses. Previously common in many companies, these clauses were intended to prevent employees from sharing information about their pay. Employees can now openly discuss their wages without fear of retaliation. This step aligns with the forthcoming European Pay Transparency Directive, currently being transposed into Czech law. We at Business for Society are actively following this topic and will provide more detailed information soon.

What next?

While the Flexinovela does not represent a revolution, it can be seen as a step within the "art of the possible" – achieving consensus across the government coalition and opposition. Whether it will truly improve and liberalize labor market conditions remains to be seen in practice.

In the long term, however, the Czech labor market needs more significant changes. For example, with a stronger emphasis by the state on integrating groups such as mothers, employees over 50, or people with disabilities, the Czech labor market could gain not only a much higher quality workforce but also much greater flexibility.

Business for Society has been actively involved since 2018 with the Danish Flexicurity model, which combines flexibility for employers with security and a high level of social protection for employees. In collaboration with the Danish Embassy and experts from employer and union organizations, as well as responsible companies, we monitor how this approach works in practice (link & link).

We will soon bring more news on Flexicurity.

Webinar on the Flexinovela Amendment to the Labor Code was organized with the professional support of Accace, s.r.o, a signatory of the Diversity Charter. Special thanks go to Accace attorneys Andrea Drhová and Aneta Zichová.

The presentation and webinar recording are available upon request to all members of Business for Society and signatories of the Diversity Charter at info@byznysprospolecnost.cz.