The amendment to the Labour Code unifies the approach to the calculation of damages for the loss of earnings in the case of termination of temporary incapacity for work or qualification for retirement on grounds of invalidity

Act No. 181/2018 Coll.
Effective from: 1 October 2018

The employer shall be responsible for the loss of earnings in the case of the termination of temporary incapacity for work or qualification for retirement on grounds of invalidity caused to the employee by an accident at work or an occupational disease. The aim of this amendment is to unify the employers' practice in enumerating damages with respect to former employees registered by the Labour Office after the termination of their temporary incapacity for work.

These employees were in legal uncertainty regarding the amount of the minimum wage used for the calculation of their claimed damages. Used practice has recognized two different approaches for the assessment of the minimum wage: i) the amount of the minimum wage valid as of the day of employee's registration by the Labour Office; ii) the amount of the minimum wage depending on its increase at any time. This caused decrease of the amount of damages for the loss of earnings. The usage of higher amount of the minimum wage was more favourable for the employer as it decreased the amount of damages. The employers were allowed to choose which assessment of the minimum wage would be used because of the ambiguous legislation.

Newly amended provision s. 271b par. 3 of the Labour Code now explicitly defines that earnings after the accident at work or after detection of the occupational disease shall be considered as earnings in the amount of the minimum wage valid as of the day of the employee's registration to the job-seekers' evidence. The assessment of the minimum wage is determined with certainty now.