14.05.2021 Labour law

[Czech Republic] Unpaid leave for a student

Unpaid leave is an institution that an employee can use if he or she is temporarily unable to work for the employer for personal reasons. In order to avoid having to conclude a termination agreement and subsequently conclude a new employment contract, the employee may ask the employer for unpaid leave. The employer may or may not approve such a request.

However, if the employer does approve it, the employee should take into account that he or she will not receive a wage from the employer for the period of unpaid leave and, if the wage does not reach the minimum wage, the employer will have to calculate a supplement to the minimum assessment base and the employee will be obliged to pay the employer this supplement. Either the employee sends the money to the employer’s bank account or the employee agrees with the employer that the supplement will be deducted from the employee’s wage at the earliest opportunity.

Does an employee, who is also a student need to worry about this? Since the supplement to the minimum assessment base does not have to be paid for state insured persons who are also students, there is no need to worry about the supplement when taking unpaid leave. However, the employee should check with the employer in advance that he or she has a valid certificate of study. Without it, the employer must calculate the supplement.

Students who have already reached the age of 26 should also pay attention. Such employees are no longer considered as students for these purposes. An exception is made for full-time doctoral students at a higher education institution in the Czech Republic studying for the first time during their standard period of study, but only if they are employed based on agreement on the performance of work or agreement on work activities that is not sickness-insured. However, such employees do not usually need to ask for unpaid leave.

Martin Svoboda Payroll Business Development Manager

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