Statement to the Maturity of Wage

The Supreme Court of the Czech Republic has recently issued a judgement (Reference Number 21 Cdo 403/2014) in which it expressed its opinion to the delay of the employer to fulfil his obligation to provide the employee wage, public sector pay or their compensation, namely in connection with default interest.

The key factor for the decision if the employer is in delay with the payment of the wage, is to distinguish between the terms “maturity of wage” and “regular date of payment of wage” (public sector pay, their compensation).

In the above mentioned decision the Supreme Court dealt with a situation when wage is paid to the employee at the workplace and the employee does not collect it without serious reasons in the regular date of payment or the employer does not send wage to the employee who cannot collect the wage for serious reasons.

In these cases the employer (according to the opinion of the Supreme Court) is in delay with payment of wage if the wage is not paid to the employee during the maturity period, i.e. not later than in the calendar month following after the month in which the employee incurred the right to wage or public sector pay or any component thereof. At the same time also the obligation of the employer to pay default interest arises as a result of the payment after the maturity period.