Severance Pay in the Czech Republic: 2026 Guide
Severance pay in the Czech Republic (odstupné) is governed by the Czech Labour Code and is payable only in specific situations. Unlike systems where employees automatically accumulate a termination fund, Czech severance pay generally arises when employment ends for certain organisational reasons or other statutory grounds.
Quick Facts: Czech Severance Pay in 2026
- Standard notice period: generally at least 2 months
- Organisational reasons: usually 1 to 3 average monthly earnings depending on length of service
- Disciplinary termination: statutory severance is generally not payable
- Challenge to termination: generally within 2 months of the date on which employment should have ended
When Is Severance Pay Due in the Czech Republic?
Severance pay in the Czech Republic is not automatically payable whenever employment ends. It generally applies where the employer terminates employment, or the parties agree to terminate it, for specified organisational reasons.
These may include:
- Closure of the employer or part of its operations
- Relocation of the employer or part of its operations
- Redundancy resulting from organisational changes, restructuring, changes in equipment or reductions in staffing
Statutory severance is generally not payable where the employee resigns voluntarily or where employment ends because of serious misconduct.
Severance Pay Amounts in 2026
For standard organisational grounds, the minimum amount of severance pay in the Czech Republic depends on the employee’s length of service.
| Length of Employment | Minimum Severance |
|---|---|
| Less than 1 year | 1 average monthly earning |
| At least 1 year but less than 2 years | 2 average monthly earnings |
| 2 years or more | 3 average monthly earnings |
An employment contract, collective agreement or internal policy may provide for higher severance than the statutory minimum.
Work-Related Injury or Occupational Disease
Since 1 June 2025, employees whose employment ends because they have lost the long-term ability to perform their existing work due to a work-related injury, occupational disease or risk of occupational disease may be entitled to a one-off compensation equal to 12 times their average monthly earnings.
This payment replaced the previous 12-month statutory severance arrangement for these cases.
Notice Period: Current Rules
Under the current Czech Labour Code, the notice period generally begins on the day the notice is delivered to the other party.
The standard minimum notice period is generally 2 months. However, for certain statutory termination grounds, including some performance-related or disciplinary grounds, a minimum notice period of 1 month may apply.
The notice period and its calculation may also be modified by written agreement, subject to the requirements of Czech labour law.
Disciplinary Termination and Severance Pay
Statutory severance is generally not payable where employment is terminated because of employee misconduct or other reasons attributable to the employee.
Immediate termination is permitted only in the specific circumstances provided by the Czech Labour Code and must satisfy the applicable formal requirements.
Challenging an Invalid Termination
An employee or employer who wants to challenge the validity of a termination must generally bring the matter before the court within 2 months from the date on which the employment relationship should have ended.
Depending on the circumstances, an invalid termination may result in continued employment and claims for lost remuneration.
For official guidance on Czech employment law, see the
Czech Labour Code guidance published by the Ministry of Labour and Social Affairs
.
Managing Employees in the Czech Republic?
Employment termination, severance and notice rules can depend on the exact reason for ending the employment relationship. We can help you review the practical requirements applicable to your situation.
