An employee is a person who is in employment relationship and who performs work that is dependent on an employer and whose nature and scope are subject to the employer’s instructions (dependent work). Employees in the cultural sector are, for instance, actors employed in brick-and-mortar theatres.
Many artists would like to work freely and independently (as freelancers). However, for economic and legal reasons, it may be more advantageous for them to enter into an employment contract.
Since employees participate in the state social security scheme compulsorily, employers are obliged to pay the contributions for them at the rate of 25 percent of the aggregate of their wage assessment base. These contributions consist of sickness insurance contributions (2.3 percent), state pension contributions (21.5 percent) and a contribution to the state employment policy (1.2 percent). At the same time, employers are obliged to deduct contributions from their employees’ wages at the amount of 6.5 percent of employees’ wage assessment bases and to transfer these amounts to the account of the relevant District Social Security Administration, the Prague Social Security Administration or the Brno Municipal Social Security Administration along with the employer’s contributions (for more details see section Social Security in the Czech Republic).
The labour law provides significant rights to employees. The self-employed, on the other hand, have considerably fewer rights. Employees are entitled to the statutory minimum annual leave, the statutory minimum and regular (stable) wage or salary, and a wage or salary compensation in the event of illness, are protected against unjustified dismissal and enjoy many more rights secured by law.
Who is considered an employee? The Labour Code sets out the criteria defining “dependent work”, which is work that has to be performed in an employment relationship. Dependent work means work that a person performs:
- within the relationship of the employer’s superiority and the employee’s subordination,
- on behalf of the employer,
- according to the employer’s instructions,
- in person,
- for wage, salary or other remuneration for the work done,
- at the employer’s expense,
- at the employer’s liability,
- during working hours,
- at the employer’s workplace or some other agreed place