Ending employment by agreement in the Czech Republic: what to check before signing
An employer is abolishing a role and proposes ending employment on Friday. That may suit an employee who has another job lined up. It may also mean giving up income they would otherwise receive while still employed. Before choosing a date, both sides should work through the figures and agree how the handover will work.
Compare the proposed end date with the notice scenario
Under Czech law, both sides must agree in writing and each receives a copy. Use a specific termination date where possible. If the employer proposes an early departure, compare the total payable under the agreement with what the employee would receive if the employer gave notice. Include any severance payable in either scenario.
Record the reason if it matters for severance
A Czech termination agreement generally does not need to state a reason. If the role is being made redundant, recording that fact can prevent a dispute. A qualifying organisational reason can trigger statutory severance even when employment ends by agreement. Omitting the reason does not by itself extinguish the entitlement, but the employee may find it harder to prove why employment ended.
Spell out any extra payment agreed for an early departure, including the amount and payment date. Keep it distinct from final salary, earned bonuses and any compensation due for unused leave.
Agree what happens on the last day
Identify who will take over open tasks and when the employee will return equipment. Agree how the employment certificate will be provided and when outstanding expenses will be paid. Before signing a clause that says all claims have been settled, list the payments and documents still outstanding.
Czech Ministry of Labour – Termination by agreement · Czech Labour Code, sections 49 and 67