Remuneration and the Agreement to Perform Work

15.09.2015

The Supreme Court of the Czech Republic issued a judgement as of 14.05.2015, Reference Number 21 Cdo 918/2014, in which it expressed its opinion to the absence of stipulation of the amount of remuneration in the agreement to perform work. 

According to Act No. 262/2006 Coll., the Labour Code, an agreement to perform work must contain the specification of agreed work, agreed scope of working hours and term for which the agreement is concluded. If the agreement does not specify one of these requirements, the agreement would be invalid.

The amount of remuneration does not belong to essential requirements of the agreement to perform work. Nevertheless, the amount of remuneration and the conditions for its provision shall be stipulated in the agreement to perform work according to the Labour Code.

In accordance with the opinion of the Supreme Court of the Czech Republic, the absence of the amount of remuneration in the agreement to perform work does not mean that the agreement is invalid. Nevertheless, the amount of the remuneration cannot be stipulated in another agreement concluded between the employer and the employee. In case such agreement was concluded the agreement would be invalid. The employee, who would claim the invalidity, would obtain the remuneration in the amount that is specified in a collective agreement, in an internal regulation of the employer or which was determined by the employer.