End of the Czech Civil Service Act: state employees move under the Labour Code

At the end of June 2026 the Czech Chamber of Deputies took a fundamental step that will transform how the entire state administration works. With the adoption of a new State Employees Act, the era of the public-law civil service relationship, governed until now by Act No. 234/2014 Coll., on the Civil Service, is coming to an end. It is being replaced by an ordinary private-law employment relationship under the Czech Labour Code.

For entrepreneurs and companies that regularly deal with the state administration, supply services to the public sector or take part in public procurement, this change has significant practical implications. Let us look at what the new law actually changes and how to prepare for it.

Employment instead of civil service: the main differences

The existing Civil Service Act created a specific legal regime for state employees, with its own rules on the creation, change and termination of the service relationship. The new law abandons that approach. State employees will now conclude standard employment contracts with the Czech Republic, and their legal status will be governed primarily by the Labour Code.

Under the new rules, a state employee will be anyone assigned to an administrative authority who performs statutorily defined activities as a service to the public. Employment will generally be for an indefinite period, providing a basic degree of stability. For senior state employees, however, the law introduces a five-year term of office, allowing their performance in management positions to be reviewed regularly.

The probationary period is extended to six months, or eight months for senior employees. The obligation to pass the civil service examination remains — it consists of a general and a special part. The good news for current officials is that examinations already passed remain valid.

Performance appraisal and termination of employment

The law introduces an elaborate system of performance appraisal that directly affects the possibility of terminating employment. If a state employee achieves unsatisfactory results in two consecutive appraisals, a legal fiction arises that the ground for notice for unsatisfactory work results under the Labour Code has been met.

Appraisal covers a period of at least twenty working days. An unsatisfactory appraisal is followed by another appraisal after thirty working days. This mechanism gives the employee a real chance to improve, while giving the employer an effective tool for dealing with an employee who persistently fails to perform as expected.

When employment is terminated for organisational reasons or redundancy, the state employee is entitled to increased severance pay. In addition to standard severance pay under the Labour Code, they may receive up to four times their average earnings on top if they have worked in the state service for at least twenty years. This provision is meant to soften the impact of any redundancies and recognises long service to the state.

For senior state employees, the law introduces removal from office. Removal may occur, for example, where management performance is unsatisfactory. For the highest positions — heads of administrative authorities, state secretaries and directors-general of sections — the opinion of an advisory committee is required. It replaces the existing service committee and has five members appointed by the government for a seven-year term.

An interesting novelty is the reversal of the burden of proof in disputes over the termination of a state employee's employment. This amendment to the Code of Civil Procedure strengthens employees' procedural position and places higher demands on the employer to prove that notice was justified.

For companies working with the state, it is important to know that the new law abolishes placement outside service for organisational reasons. The specific form of service regulations and proceedings in service matters also disappears. Administrative authorities will thus follow the general rules of Czech employment law, which should simplify and clarify mutual communication.

Collective bargaining takes on a new form. The government will conclude a higher-level collective agreement on behalf of all administrative authorities, which centralises social dialogue and may bring more uniform working conditions across the state administration.

Existing state employees in a service relationship will automatically become employees in an employment relationship on the date the law takes effect. If any of them disagree with working under the new law, this constitutes an obstacle to work on the employer's side and gives rise to a ground for notice on grounds of redundancy.

The law is proposed to take effect on 1 November 2026. The bill is now heading to the Senate. Entrepreneurs and managers of companies supplying the state should follow this legislative change, as it may affect dealings with officials, the length of decision-making processes and the stability of their contact persons in the state administration.

Source: Chamber of Deputies of the Czech Republic, legislative process, June 2026

Dealing with a change in an employment relationship or terms of employment? Within our employment law practice we will assess your specific situation and next steps. You can discuss your documents at a consultation with a lawyer.