Czech workers may soon gain new tools to challenge unfair pay practices, but employers are pushing back against a European Union directive designed to enforce greater wage transparency.
While labor law already guarantees equal pay for equal work, legal experts and unions say workplace reality often falls short, with inconsistent pay scales, unpaid overtime, and regional disparities persisting across the country.
At the center of the debate is the EU’s Pay Transparency Directive, scheduled to take effect in Czechia from June 2026. The measure would require companies to publish average salaries for specific roles, justify pay differences exceeding 5 percent, and disclose pay ranges to job applicants.
Proponents argue the rules will give workers clearer information and strengthen their ability to challenge wage discrimination. But major employer groups warn the change could impose heavy administrative burdens and spark legal disputes, and are pushing to delay the implementation.
Wage practices under scrutiny
Šárka Homfray, a labor lawyer and vice chair of the Trade Union of State Bodies and Organizations, said that many Czech firms still set wages in ways that contradict the Labor Code.
“Employers often determine wages arbitrarily, pay differently for the same work, or fail to record overtime hours,” she told SeznamZprávy. “The law clearly states that equal work or work of equal value must be compensated equally.”
Regional pay differences are one of the most common violations. Courts have ruled that employees cannot be paid less for identical work simply because they are based outside Prague.
In a prominent case, an Olomouc driver for Czech Post successfully sued for back pay and damages after earning less than colleagues in the capital. Despite that decision, Homfray noted, many companies continue to rely on local pay scales.
Other questionable practices include failing to document working hours, which makes unpaid overtime difficult to prove, and using short-term agreements to sidestep higher overtime rates. Homfray said that while unions have long warned of these problems, few cases reach court because employees fear retaliation or lengthy legal battles.
Directive sparks employer resistance
The new EU directive is intended to close those gaps by forcing companies to adopt clear internal pay structures and disclose salary information. Under the rules, workers could demand explanations for significant wage differences and challenge them if left unresolved.
Employers would also be barred from asking job applicants about past salaries, a practice critics say helps perpetuate inequality.
Business groups, however, argue that the rules are premature. In a joint letter to Labor Minister Marian Jurečka, the Confederation of Industry, the Chamber of Commerce, and the Confederation of Employers’ and Entrepreneurs’ Associations called for delaying implementation.
“The directive’s aim of equal pay is legitimate,” the letter stated, “but rushed adoption without analytical tools and guidance may cause more harm than good.” They warned that without sufficient preparation, companies could face confusion and rising costs.
The Czech government has yet to confirm whether it will seek an extension for adopting the directive. Until then, the tension between European policy goals and entrenched workplace practices remains unresolved. For employees, the key question lingers: are they being paid what they deserve?