N.I. 87.17. República Checa. Ley de trabajadores desplazados

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8. 1 Information on the labour and wage conditions and terms for workers posted in the framework of the provision of services in the territory of the Czech Republic According to the legislation of the Czech Republic, posting of employees in the framework of the provision of services is regulated, in particular, by Act No. 262/2006 Coll., the Labour Code, as amended by later regulations (hereinafter referred to as "the Labour Code"), and Act No. 435/2004 Coll., on employment, as amende d by later regulations (hereinafter referred to as "the Employment Act"). A domestic legal entity or individual who enters into a contract with an employ er from another member state of the European Union ("EU") or the European E conomic Area, on the basis of which their employees were posted to perform tasks a rising from this contract in the territory of the Czech Republic, is required, under Section 87 of the Employment Act, to notify a competent branch office of the Labo ur Office of the Czech Republic, that their employees posted here have started to perform work for this domestic entity. They are obligated to do so no later than on the day on which the posted worker starts work, moreover, in accordance with Section 102 paragraph 2 of the Employment Act to keep a register of their posted workers. In case of failu re to comply with these obligations an individual commits an offence under Se ction 139 of the Employment Act, in the case of a legal entity or an individual running a business it is an offence under Section 140 of the same act, for which a fine o f CZK 100,000.- can be imposed. In the case when an employee from another EU member state is posted to perform work within the framework of the transnational provision of services in the territory of the Czech Republic, regulations of the Czech Republic in accordance with Section 319 of the Labour Code apply to such an employee on cond ition that it is considered more favourable for the employee, in respect of: a) the maximum length of working hours and minimum resting period, b) the minimum length of annual leave entitlement or its proportionate part, c) the minimum wage, the lowest level of guaranteed wages and supplemen ts for overtime work, d) health and safety protection at work, e) working conditions for pregnant employees, breastfeeding employees, workers employed until the end of their ninth month after childbirth and juvenile employees, f) gender equality and non-discrimination in the workplace, g) working conditions for temporary agency work. The provisions on the minimum length of annual leave entitlement o r its proportional part and the minimum wage, the lowest level of guaranteed salaries and overtime supplements shall not apply if the period for which an employe e is posted to work within the framework of the transnational provision of services in the Cze ch Republic does not exceed a total of 30 days in a calendar year. Thi s shall not apply if

1. Nº 87.17 Madrid, 20 de octubre de 2017 REPÚBLICA CHECA. LEY DE TRABAJADORES DESPLAZADOS

2. Nº 87 .1 7 Madrid, 20 de octubre de 2017 REPÚBLICA CHECA. LEY DE TRABAJADORES DESPLAZADOS Hemos tenido conocimiento de que las autoridades de la República Checa han introducido una legislación nacional que transpone las normas de la Unión Europea sobre el desplazamiento de trabajadores. La legislación también se aplica a los conductores de transporte de mercancías y transporte de pasajeros con la excepción de las operaciones de tránsito puro y tampoco se aplican a los viajes "a puerta cerrada" (transporte de pasajeros). Las empresas deben asegurarse de que sus conductores que trabajan en territorio checo dispongan de un documento que pruebe la existencia de su puesto de trabajo en su país de origen, dicho documento debe estar, según imponen las normas que han dictado, disponible en la lengua checa para su inspección. Tal documento puede ser un contrato de trabajo o un acuerdo similar entre el empleado y el empleador de acuerdo con la legislación del Estado en el que normalmente trabaja el empleado desplazado. También puede ser otra confirmación oficial por escrito del empleador con respecto al hecho de que el empleado desplazado entró a ocupar un puesto de trabajo con dicho empleador. Las reglas checas no parecen incluir ninguna exención sectorial, las reglas también se aplican a las empresas y los conductores de terceros países que no sean miembros de la UE. Si los documentos exigidos no pueden ser mostrados para inspección, se puede imponer una sanción de 500.000 coronas checas (alrededor de 19.500 euros).

3. La información sobre esta nueva regla está disponible en varios idiomas (al menos en EN, DE, FR) en http://www.suip.cz/english-documents/ Parte de ella, como el resumen básico para extranjeros y las condiciones laborales checas que hay que respetar, los adjuntamos a este email en formato pdf. Podrá usted, entre otras informaciones relevantes, constatar que el salario mínimo vigente en el presente año 2017 es de 66 coronas checas por hora, es decir, unos 2,6 euros/hora. Una vez más la aplicación de la Directiva de Desplazamiento de Trabajadores se convierte en norma local en forma de carga burocrática e inseguridad jurídica para los transportistas. Hay que recordar que otras leyes similares aplicadas por Alemania y por Francia están ya bajo procedimiento de infracción de la UE, lo cual además de no haber supuesto la suspensión de su aplicación en dichos países parece que tampoco está disuadiendo a las autoridades de otros países como Austria, Italia, Luxemburgo o República Checa de seguir ese camino. C/ Príncipe de Vergara, 74, 3 planta - 28006 MADRID Tlf.: 91 451 48 01 / 07 – Fax: 91 395 28 23 E-mail: astic@astic.net Nota: Prohibida la edición, distribución y puesta en red, total o parcial, de esta información si n la autorización de A ST IC

13. 6 Additionally, a pregnant employee cannot be employed for overtime. h) Working conditions for children and juveniles A general ban on work is applicable to children, except for artistic, cultural, sportin g, and advertising activities, under the conditions stipulated by Act No. 435/200 4 Coll., on employment. A person who has reached the age of 15 years and completed co mpulsory school attendance may enter into a contract to work. A juvenile employee (an employee aged less than 18 years) can only be employed in works that are commensurate with his/h er physical and intellectual development. It is forbidden to employ young people overtime, in works underground in mining or tunnelling. Works specified in Decree of the Ministry of Health No. 180/2015 Coll., laying down the conditions unde r which a juvenile can exceptionally be employed in these works. Night work can be done by a juvenile only in exceptionally exceptional circumstances and only one h our if necessary for his/her professional education It is forbidden to employ juvenil e workers in work in which they are exposed to an increased risk of injury or whose exercise could seriously jeopardize the safety and health of other individuals. Juve nile employees must be examined by the provider of occupational health serv ices before employment, before being transferred to another job and regularly at least o nce a year. Juvenile employees must be provided with a break for food and rest after no more than 4.5 hours of continuous work, a rest for at least 12 hours must be provided between shifts. In addition, juvenile employees must have a minim um of 48 hours of uninterrupted rest in a week. i) Equal treatment for men and women and other provisions on non- discrimination Employment relations allow for no discrimination. Employers are obligated to ensure equal treatment of all employees in terms of their working conditions, remuneration for work and the provision of other cash benefits and benefits of cash value, training and the opportunity to achieve a functional or other career path. Act No. 198/2009 Coll., Anti-Discrimination Act, and Act No. 262/2006 Coll., of th e Labour Code, are the basic sources of anti-discrimination legislation. II. Collective agreements It is possible to conclude two kinds of collective agreements in the Czech Republic, i.e. a corporate collective agreement and a higher level collective agreement. A higher level collective agreement may become, upon agreement of its parties, bind ing for other employers with a prevailing activity in the sector, for which the higher leve r collective agreement is concluded - a list of such agreements is available on this webpage: http://www.mpsv.cz/cs/3856

14. 7 III. How to enforce one’s rights? In case that the employer or user do not follow their duties imposed upon them by the legal order, an instigation to have an inspection carried out can be submit ted with the State Labour Inspection Office (http://epp.suip.cz/epp/index.php). If an employer did not pay wages to the posted employee, the unpa id employee, in addition to a civil legal procedure in which they would challenge their employ er to pay the due wages followed with submitting an action at a court in their ho me country, can take advantage of the regulation stipulated in Section 319, para. 3, of the Labour Code. According to this regulation the payment of wages or salary up to the am ount of the minimum wage, the corresponding lowest level of guaranteed wages and ove rtime supplements, are guaranteed to the posted employee by a person (service recipient) the employee was posted with on the basis of a binding contract, to per form tasks arising from this contract, under the conditions further set out in the Labour Code provision below, which include:  the fact that the remuneration for work up to the amount of the w age or salary up to the amount of the minimum wage, the corresponding lowest level of the guaranteed wages and overtime work supplements was not paid by the employer,  the situation in which the multinational employer has been imposed a penalty w ith a final order for an offence under Section 13, para. 1 (b) or Section 26 , para. 1 (b). of Act No. 251/2005 Coll., on labour inspection, as amended, or  the situation in which this person knew or if taking due care should have known or could have known of the unpaid reward. If the real length of work performance is not proven, it is to be a lleged that the posted employee has performed work for 3 months. If any discrimination or violation of the rights and/or breach of procedure ari sing from the equal treatment law have occurred, the person concerned has the right to claim refraining from such discrimination and eliminating the consequences of the discriminatory intervention with a court, and claim a satisfactory compensation. It is also possible to address the regional labour inspectorate. IV. Do you have further questions? The Ministry of Labour and Social Affairs, Na Poříčním právu 1/376, 128 01 Prague 2, e-mail:posta@mpsv.cz The contact person for further information: Matěj Gregárek matej.gregarek@mpsv.cz +420 221 922 253

9. 2 the employee is sent to work within the framework of the transnational provision of services through an employment agency. I. Working conditions a) Determined weekly working hours The length of determined weekly working hours is 40 hours per week. For employees under 18 years of age the length of a shift on individual days must n ot exceed 8 hours and in more fundamental labour relations the weekly working hours must n ot exceed 40 hours per week in total. With employees:  working in underground coal mining, with ores and non-metalliferous raw materials, in mining construction and geological survey mining sites an d employees working in three shifts and in a continuous operation workin g mode, determined weekly working hours shall be 37.5 hours per week ,  working in a two-shift mode 38.75 hours per week . The maximum length of a shift is 12 hours . After a maximum of 6 hours of continuous work, the employer is obligated to provide their employee with a break from work for meals and rest for at least 30 minutes . The break is not provided at the beginning or at the end of the day and it is not included in the working hours. b) Overtime work Overtime work can be performed only in exceptional cases. Compulsory o vertime for an employee must never exceed 8 hours per individual week and 150 hours per calendar year. Work exceeding this range of time can only be performed with the consent of the employee, again, with the restriction following the rule of the total extent of an average overtime work of 8 hours a week in the adjustment period. Overtime work and remuneration For a period of overtime work the employee is entitled to wages and sup plement amounting to at least 25% of their average earnings unless the employee has agreed with his employer to have a compensatory leave granted in to the sum of overtime work performed instead of the supplement. The employer is always obligated to pay the corresponding wages the employee is entitled to! c) Resting period Between the end of one shift and the start of the following shift employees are entitled to the uninterrupted rest of at least 11 hours . This rest may be reduced up to 8 hours during 24 consecutive hours in the case of employees aged over 18 years of age on condition that the following uninterrupted rest period will b e extended by a period of the shortened rest. Such shortening is only possible in continuou s operation, if the working hours are unevenly distributed, and with overtime work, w ork in

6. BASIC INFORMATION FOR FOREIGNERS ON EMPLOYMENT REGULATIONS APPLICABLE IN THE CZECH REPUBLIC II. 5 areas without a serious reason pertaining to the special nature of the employer¥s business ac%vity. Namely, the employer shall avoid either explicit or secret pursuing, observing, monitoring or record- ing of the employees and their phone calls, checking their e-mails or other correspondence addressed to an employee. The employ er is not allowed to observe his employees at work through the su rveil- lance camera system unless a serious reason exists, pertaining to the special nature of the employer¥s business ac%vity. The serious reason pertaining to the special nature of the employer¥s busine ss ac%vity is not usually established or cons%tuted during the produc- %on of ordinary products. The employer shall not require any infor- ma%on which does not closely relate to the performance of work and to the employment rela%onship of an employee. STATE LABOUR INSPECTION OFFICE INFORMATION C ONCERNING THE ISSUE OF EMPLOYMENT Illegal work is de&ned by the Act on Employment as a perform- ance of a dependent work (employment) by an individual, or a foreigner without an employment permit or resident alien permit or performed contrary to such a permit (in cases where the per- mit is required by virtue of applicable legal regula%ons), bey ond the frame of a labour-law rela%onship. Dependent work is de&ned by the Labour Code as work performed in the rela%on of superiority of the employer and subordina%on of the employee, on behalf of the employer, in accordance with the employer¥s instruc%ons, and pro- vided the employee performs it personally. A wage, salary or r emu - nera%on is paid for the work under the employment. Such depend- ent work is performed at the expenses and responsibility of the em - ployer, in working hours at the workplace or any other agre ed place. The dependent work may be performed exclusively within the b asic labour-law rela%onship; the basic labour-law rela%onships are called employment (established by the contract of employment) and legal rela%onships established by the agreement to perform work or the agreement to complete a job. COMPETENCE OF LABOUR INSPECTION AUTHORITIES Act no. 251/2005 Coll. on Labour Inspec%on, as amended, regulates the establishment and status of the labour inspec%on authori%es as inspec%on bodies in the area of employment, maintaining and pro- tec%ng the labour-law rela%onships and working condi%ons powers and competence of the labour inspec%on bodies, rights and obliga- %ons of inspectors and persons inspected and sanc%ons imposed for a breach of s%pulated obliga%ons. The State Labour Inspec%on O&ce and regional inspectorates are authorized: ï to inspect whether employers are observing all obliga%ons arisi ng out of the applicable legal regula%ons; ï to require removal of any defects found during the inspec%on; ï to impose sanc%ons. The State Labour Inspec%on O&ce and regional inspectorates are not authorized: ï to solve sa%sfac%on problems of individual en%tlements of em- ployees towards the employer (e.g. demanding wages, applying for proofs of employment, solving disputes about legal actís in- validity such as termina%on by no%ce, non-recogni%on of an oc- cupa%onal accident, etc.); ï to issue opinions and interpreta%ons on the individual provi sions of the labour-law and employment regula%ons. What can be done by an employee if he/she thinks the e mployer does not observe the labour-law regula%ons? ï the employee may take advantage of the consul%ng days and appear in person at the nearest regional labour inspectorate; ï the employee may send a query by e-mail; ï the employee may suďŵit a ĐoŵplaiŶt for an inspec%on. Informa%on is available at the State Labour Inspec%on O'ce web site -www.suip.cz/pracovnepravni-vztahy/kompetence-organu-in- spekce-prace/ The State Labour Inspec%on O'ce has issued informa%on materials and lea*ets concerning selected topics of the Labour Code. Infor- ma%on is available at the State Labour Inspec%on O'ce web site -www.suip.cz/informacni-materialy/pracovnepravni-vztahy Any further informa%on about the ac%vity of the State Labour In- spec%on O'ce in the area of protec%on of employment rela%on- ships and working condi%ons, the inspec%ons speci&ed in the Act on Employment and in the area of occupa%onal safety and health are available at the following website: www.suip.cz or the reg ional labour inspectorateís addresses which are placed on that website. What o'ce can a foreigner employed in the Czech Republic contact if he/she feels exploited by the employer? (The employer pays only a very low wage or retains his/her wage, forces the employee to work under demeaning condi%ons, does not respect his/her fun - damental rights cons%tuted by the Labour Code, in%midates the employee, seizes his/her documents). ï emergency help service ñ specialized non-pro&t organiza%on La Strada +R, o. p. s., www.strada.cz, ï unincorporated associa%on Centrum pro integraci cizinc# (Centre for Integra%on of Foreigners), www.cicpraha.org, ï non-pro&t organiza%on SdruûenÌ pro Integraci a migraci ( AssoĐi- a %on for IŶtegratioŶ aŶd MigratioŶͿ, w ǁ w.migrace.com. State Labour Inspection Of!ce Kol·"sk· 451/13, 746 01 Opava Czech Republic © 201 7 www.suip.cz

10. 3 agriculture, in the sector of providing services to the population (e.g. in pu blic catering, in telecommunications and postal services), for urgent repair work, in the case of averting threat to life or health of employees and in natural disasters, and in other similar extraordinary cases. In the case of seasonal work in agriculture, rest perio d can be shortened in the three week period following its shortening. The employee is also entitled to a continuous resting period of at least 35 hours , which may be shortened in accordance with the conditions laid down in the La bour Code where the following rest must always be extended by such reduction. d) Entitlement to holiday Holiday per calendar year and its proportionate part The Labour Code grants employees with the right to an annual leave ca lculated per a calendar year or its proportionate part in duration, at least 4 weeks (5 weeks in the case of employees of employers in Section 109, paragraph 3, of the Lab our Code and 8 weeks in the case of pedagogic workers and university academic workers). An employee who has worked at least 60 days in a calendar year in contin uous employment with the same employer is entitled to a holiday per a calendar ye ar, or its proportional part if the employment did not last continuously for the entire calendar year. A day is considered as worked if the employee has worked the majori ty part of his shift; parts of shifts worked on different days are not cumulated. A prop ortionate part of holiday per each completed calendar month of continuous work makes one twelfth of the annual leave entitlement. Holiday in lieu for worked days If no entitlement to a holiday per calendar year or its proportionate p art arose to an employee as he did not carry out work with the same employer for a t least 60 days, he is entitled to a holiday for the days worked in the length of one twelfth of the annual leave per calendar year for every 21 days worked in the given calendar year. e) Remuneration Minimum wage From the 1.1.2017 the basic minimum wage rate for the weekly worki ng hours determined to be 40 hours amounts to CZK 11,000 .- per month or to CZK 66. - per hour. Payments for overtime work and supplements for work on a publi c holiday, at night, or for work in difficult working environment and for work on Saturday and/or Sunday, are not considered when determining the minimum wage amount. Guaranteed wage Apart from the minimum wage, the Czech legal order also uses the te rm of a guaranteed wage, which means a wage to which the employee became e ntitled in accordance with to the Labour Code, contract, internal regulation or payroll assessment. The lowest level of guaranteed wages of employees whose pay is not agreed upon in the collective agreement (e.g. of a higher level or internal co mpany wage), is stipulated by t he regulation of the Government No. 567/2006 Coll ., on the

12. 5 risks, the results of risk assessment and of the measures for the protection against exposure to those risks which are relevant to their work and workplaces. If there are employees of two or more employers performing tasks in one wo rkplace, the employers are obligated to inform each/any other of the risks and measures taken to prevent the employees exposure to them, where the risks regard the pe rformance of work and the workplace itself, and to cooperate in ensuring safety a nd health at work for all workers in the given shared workplace. On the basis of a written agreeme nt of the participating employers, the employer who is authorized by this agreem ent shall coordinate the implementation of measures taken to protect the safety and h ealth of employees, and procedures to arrange them. The employer (the user) has the duty to prevent risks, to ensure there would b e the first aid provided, and to run entrance inductions and periodic trainings, e tc. The costs related to ensuring safety are paid by the employer and must not be transferred at the employee. The worker has a right to be informed about the risks associated with the performance of his work, a right to be trained in keeping safety regulations, the right to negotiation, the right to examination by a physician prio r to the performance of work and the subsequent preventive medical examinations, the right to p ersonal protective equipment, the right to abstain from work in case of immediate threat to health, the right to ask the employer, the right to complain to the employ er, the right to apply to the appropriate administrative (supervisory) body, etc. The duties and obligations are imposed, in particular, by Act No. 262/20 06 Coll., of the Labour Code, Act No. 309/2006 Coll. and other implementing legal regulations. g) Pregnant employees, employees who are breastfeeding, and employee- mothers till the end of the ninth month after their child’s birth It is prohibited to assign a female employee with tasks or work which would enda nger their maternity. The list of work activities which are prohibited to be carried out by the above mentioned employees is stipulated by the Health Ministry Decree No. 180 /2015 Coll. In the case that such an employee carries out work she must not do or which endangers her pregnancy or maternity, the employer is obligated to transfer her to carry out other work. The employer is obligated to inform these employees of any potential risk factor which they could be exposed to during work, affecting the foetus in the mother’s body. The employer is further obligated to acquaint them with the risks and their possible effects on pregnancy, breastfeeding or on their health and to take all necessary measures, including measures related to the reduction of mental and physical fatig ue and other kinds of mental and/or physical load connected to work performed by them, these apply all the time when it is necessary to protect their safety o r health of the foetus. The employer is obligated to adapt the working premises for these employees’ rest requirements. In case these women work at night (at least three hours as a part of a shift at least once a week working between 22:00 a nd 6:00 a.m.), the employer is obligated to transfer them to other work if they so request.

11. 4 minimum wage, the lowest levels of guaranteed wages, on the definition o f difficult working environment and the amount of supplements to wages for work in difficult working environment. It defines 8 groups of work and it determines the lowest level of guaranteed hourly and monthly wages for each of them. General characteristics of individual groups of work and examples of the classification of work in these groups are set out in the annex to the said regulation of t he Government. This regulation ensures that the employees work must be rewarded accordingly depen ding on its complexity, responsibility and difficulty, at least with such a wage stipulated as the lowest permissible for the given work group. From the 1.1.2017, the amounts of the lowest levels of guaranteed wag es for the determined weekly working hours of 40 hours are as follows: Group of work The lowest level of guaranteed wages in CZK per hour in CZK per month 1 66.00 11,000 2 72.90 12,200 3 80.50 13,400 4 88.80 14,800 5 98.10 16,400 6 108.30 18,100 7 119.60 19,900 8 132.00 22,000 In the case that the remuneration for work does not reach the minimum w age or the corresponding minimum guaranteed wage levels, the employer is obligated to pa y the residual sum to the employee. As is the case with the minimum wage, similarly, when comparing the lowest level of the guaranteed wage to the employee's w age, it does not include pay for overtime work and supplement for work on a pub lic holiday, at night, work in difficult working environment and work on Saturday and/or Sunday. f) Protection of health, safety and hygiene at work The employer is obligated to ensure the safety and the protection of health of employees in the work place with regard to the risk of potential threats to their life and health related to undertaking of work. In the course of time, an employment agency employee is assigned to perform work at the user’s, it is the user who creates favourable working conditions and ensures safety and health protection at work. The user is obligated to provide the employ ment agency employees, assigned to perform work with the user temporarily according to the requirements of the performed work, with sufficient and adequate information and instructions on safety and health at work, in particular in the form of presenting th e

4. BASIC INFORMATION FOR FOREIGNERS ON EMPLOYMENT REGULATIONS APPLICABLE IN THE CZECH REPUBLIC I. 5 POSTING OF EMPLOYEES A posted worker (an employee) is a worker (employee) who for a de!- nite and limited period of "me performs work in the territory of any EU member state other than the member state in which the worke r (employee) usually performs the work. In case an employee of an em- ployer based in one of the EU member states is sent to work wi thin the framework of the transna"onal provision of services in the territory of the Czech Republic, such an employment must comply with the legis- la"on of the Czech Republic, concerning the following issues: ï Maximum length of working hours and minimum length of breaks and rest; ï Minimum holiday en"tlement in a calendar year or its adequate por"on; ï Minimum wage, relevant minimum rate of guaranteed wage and bonuses for over"me work , rules aŶd liaďility for payŵeŶt of ǁa- ǁ ge or salary of a postedǁorker ; ï Occupa"onal safety and health; ï W orking condi"ons for pregnant employees, breas#eeding em- ployees and employees up to the end of the ninth month a$er giving birth and minors; ï Equal treatment of male and female employees, ban on discrimi- na"on; ï Working condi"ons for agency employment. The above men"oned is not applicable if the rights arising out of the legisla"on of the European Union member state, from which the employee is posted to perform work under the system of in- terna"onal provision of services, would be more favourable to the employee. The favourability is considered individually for each r ight arising out of employment rela"onship independently. OBSTACLES TO WORK ON THE EMPLOYEE¥S PART If the employee is informed about a certain obstacle to work in ad- vance, he/she has to ask the employer to provide "me o%. Other- wise, the employee is obliged to no"fy the employer of an obstacle and an es"mated "me of its dura"on without any undue delay; an obstacle to work must be proved by the employee. The employe r shall excuse the employee from being at work for the dura"on of the important personal obstacles to work which temporarily hinder the employee from performing work on the employee¥s part, such as: temporary incapacity for work; quaran"ne; maternity or parental leave; caring for a child under the age of 10 years or any other mem- ber of the household; caring for a child under the age of 10 years or any other member of the household in cases provided by Sec"on 39 of the Insurance Act and caring for a child under the age of 10 years for the reasons provided by Sec"on 39 of the Insurance Act or for reasons where an individual who normally cares for the child had to undergo a medical examina"on or a treatment at a health care facil- ity that was impossible to arrange outside of the employee¥s working hours and therefore the individual could not take care of the child. Other important personal obstacles to work If an employee cannot perform work for any other personal obsta- cles to work, the employer is obliged to grant this employee a leave from work to the speci!ed extent, and in speci!c cases, also com- pensa"on for wage or salary of the average earnings. OBSTACLES TO WORK ON THE EMPLOYER¥S PART If an employee cannot perform work: ï because of a temporary defect the employee is not responsible for, or because of any other opera"ng causes, it is regarded as dead "me and if the employee is not transferred to other work the employee is en"tled to the compensa"on for the wage or sal- ary in the amount of at least 80 & of average earnings; ï as a result of interrup"on of work caused by bad weather or a natural disaster and if the employee is not transferred to othe r work, the employee is en"tled to the compensa"on for the wage or salary in the amount of at least 60 & of average earnings. If an employee cannot perform work due to any obstacles to wor k on the employer¥s part other than dead "me and interrup"ons of work caused by bad weather or a natural disaster, the emplo yer is obliged to pay the employee a compensa"on for the wage or sal- ary in the amount of average earnings. In cases when the employer without his fault is not able to ensure temporarily su'cient work for the employee to the extent of the s"pulated weekly worki ng hours for the reasons of temporary reduc"on of sales of his prod- ucts or reduc"on in demand for his services, the employer shall compensate the employee for the wage in the amount of at least 60 & of average earnings provided that this obstacle to work and the reduc"on of the compensa"on are subject to an exis"ng agree- ment between the employer and the trade union organiza"on. If the trade union organiza"on is missing, the agreement between the employer and the trade union organiza"on may be cons"tuted by an internal regula"on. EQUAL TREATMENT AT THE WORKPLACE Employers are obliged to ensure equal treatment of all emp loyees with respect to their working condi"ons, remunera"on for work, provision of any other pecuniary payments and performance of monetary value, specialist training, opportunity to achieve a pro- fessional or other promo"on, etc. The employer must avoid making di%erences in pay between individual employees who perform the same work or work of the same value. The employer also cannot di%eren"ate between employees when gran"ng various bene!ts (e.g. meal vouchers, contribu"ons in insurance of employees, etc.). No discrimina"on is allowed in employment rela"onships. An em- ployee has the right to be treated equally as other employees and to not be discriminated against because of race, ethnic origin, n a- "onality, sex, sexual orienta"on, age, handicap, religion, belief or world opinion. State Labour Inspection Of!ce Kol·"sk· 451/13, 746 01 Opava Czech Republic © 201 7 www.suip.cz

7. 2 3 4 REIMBURSEMENT OF TRAVEL COSTS Travel costs incurred in rela%on to the performance of work are any expenses spent by the employee during his/her business trip, a tr ip outside the regular place of work and a trip realized in rela%o n to an extraordinary performance of work beyond the rota schedule in the place of work or regular place of work, further in rela%on to the employee¥s transfer, temporary assignment, commencement of employment, or performance of work in a foreign country. T he terms and condi%ons that can a4ect the reimbursement of the travel costs and their amounts (date and place of commencement, the end of the business trip, place of ful&lment of the work tasks, means of transport and accommoda%on), shall be speci&ed by the employer in advance in wri%ng, taking the legi%mate interests of the employee into account. The employee who performs work fo r his/her employer on the basis of the agreements to perform work or to complete a job is en%tled to such a reimbursement of travel costs only if this right has been arranged in the relevant agreeme nt as well as the regular place of work of the employee. The employ er is obliged to provide an accountable payment in advance of the business trip up to the expected amount of travel costs. However, he may agree with the employee that the payment in advance will not be provided. The reimbursement of travel costs applies to any use of the determined means of public transport in the proven amount or in the amount equivalent to the price of travel by the determined means of transport. If the employee, at the request of the employer, uses his or her own road motor vehicle, the em- ployee is en%tled to receive a basic rate reimbursement for every 1 km of the ride and reimbursement for the fuel used. Reimbursement of travel costs to visit a family member In case of a trip taking longer than 7 calendar days, the employee is en%tled to the reimbursement of travel expenses to visit a family member in his/her place of residence or in any other place agreed on in advance and then back again, in the reasonable amount maximum equivalent to the travel costs into the place of work or regular workplace or place of residence within the Czech Republi c; the amount which is most favourable for the employee is deemed limi%ng. The employer shall provide this reimbursement during the fourth week from the beginning of the business trip or from the last visit of a family member at the latest, unless they agree on a shorte r period. Reimbursement of accommoda%on costs The employer shall reimburse the employee¥s accommoda%on costs in the provable amounts. Meal allowance The employer shall provide the employee working for emplo yers in the business branch with a meal allowance for each calendar day of the business trip in the minimum amount as follows: ï CZK ϳϮ .00 if the business trip takes 5 to 12 hours; ï CZK 10 ε .00 if the business trip is longer than 12 hours but up to a maximum of 18 hours; ï CZK 1 ϳϭ .00 if the business trip is longer than 18 hours. If during the business trip a meal (breakfast, lunch or dinner) is su p- plied to the employee to which he/she does not contribute & nan- cially the employer is then en%tled to reduce the meal allowance for each free meal as follows: ï 70 9 of meal allowance if the business trip takes 5 to 12 hours; ï 35 9 of meal allowance if the business trip is longer than 12 hours but up to a maximum of 18 hours; ï 25 9 of meal allowance - over 18 hours. Reimbursement of necessary incidentals In rela%on to the business trip the employee is further en%tled to the reimbursement of any necessary incidentals in the amount proved by the employee or corresponding to the cost of th ings and services usual at the %me and place of the business trip (parking fees, ferry fares, phone charges, charges for sending a telegr am, fax, etc.). REMUNERATION FOR WORK AND REMUNERATION RE SULTING FROM AGREEMENTS For work duly performed an employee is en%tled to a wage, salary or remunera%on from the relevant agreements to perform work or from agreements to complete a job. A wage and a salary are paid according to the di'culty, responsibility and complexity of work, according to the demands of working c ondi%ons, work e'ciency and work results achieved. All employer¥s employees are en%tled to the same wage, salary or remunera%on resul%ng from the rel e vant agreements for the same work or work of the same value. It is payable upon the due performance of work, in the calendar month following the month in which the employee¥s en%tlement to the wage, salary or remunera%on or any of their components was cre- ated at the latest. Minimum wage is the lowest permissible amount of the remunera%on for work. For this purpose, a wage or a salary does not include any bonuses for over%me work, for work on public holidays, night work, work in worsened working environments and for work on Saturdays and Sundays. The basic rate of the minimum wage is CZK ϭϭ , Ϭ 00.00 for <0 hours of work per week, i.e. CZK ςς . Ϭ 0 per hour. Should the wage, salary or remunera%on from the rel- evant agreements not reach the minimum wage the employer is obliged to pay the employee a supplement. A guaranteed wage is a wage or a salary to which the employee has become en%tled in ac- cordance with the Labour Code, contract of employment, internal regula%on or pay sheet. The lowest level of the guaranteed wage must not be lower than the amount of the basic minimum wage. If the wage or salary of the lowest level does not reach the level of the guaranteed wage the employer is obliged to pay the employee a supplement. WAGE Wage is agreed upon in a collec%ve agreement, contract of employ- ment or any other contract or agreement, or alterna%vely it is speci- &ed by the employer in an internal regula%on or a pay sheet. On the date of commencement of the employment, the employer is obliged to issue a wri=en pay sheet for the employee, which shall include in- forma%on on the method of remunera%on and the date and place of payment, unless they are contained in the contract of employment or an internal regula%on. In case of any changes in the facts stated in the pay sheet the employer is obliged to no%fy the employee of such a change in wri%ng no later than on the day this change comes into e4ect. An a=ained wage and a bonus or %me o4 shall not be awarded if the wage is agreed upon considering and including also over%me work on the condi%on that a scope of the over%me work must be agreed on at the same %me. In case of over%me work, an employee is en%tled to a wage and a bonus of at least 25 9 of aver- age earnings or %me o4 in lieu of money for the over%me work. For work on public holidays, an employee is en%tled to the relevant wage and %me o4 with wage compensa%on up to the amount of average earnings or a bonus to the a=ained wage in the amount of at least average earnings. For night work, an employee is en%tled to the a=ained wage and a bonus of at least 10 9 of average earnings unless the par%es agree otherwise. For work in a worsened work - ing environment an employee is en%tled to the a=ained wage and a bonus of at least 10 9 of the basic minimum wage for each impact worsening the environment. For work on Saturdays and Sundays, an employee is en%tled to the a=ained wage and a bonus of at least 10 9 of average earnings. However, a di4erent minimum amount or a method of bonus determina%on may be agreed on. WAGE FOR PERFORMANCE OF OTHER WORK If an employee is transferred to another posi%on than what was agreed on between the employee and the employer and for this work a lower wage is awarded, the employee is en%tled to the pay - ment of the supplement up to the di4erence between his/her aver- age earnings a=ained before the transfer and his/her earnings a>er the transfer. REMUNERATION FOR BEING ON-CALL An employee is en%tled to the remunera%on of at least 10 9 of aver- age earnings for the %me of being on call. REMUNERATION RESULTING FROM AGREEMENTS The amount of remunera%on resul%ng from an agreement and the condi%ons for its provision are nego%ated in an agreement to per - form work or an agreement to complete a job and the amount of remunera%on must not be lower than the minimum wage. PROTECTION OF PERSONAL RIGHTS OF EMPLOYEES AND PROTECTION OF EMPLOYER¥S PROPERTY INTERESTS Employees are forbidden to use any produc%on or working device s, tools and equipment of the employer, including computers and telecommunica%on equipment, for their personal needs without the consent of the employer. The employer shall not in any case invade the privacy of an employee at the workplace and in common

5. 2 3 4 FORMATION AND CHANGING OF EMPLOYMENT E mployment is established by a contract of employment made by and between an employee and an employer. The Contract of em- ployment: shall be made in wri"ng; in the contract of employment the employer is obliged to agree with the employee on a certai n job "tle, place of work and the date of commencement of the employ- ment. If the contract of employment does not include provisions of rights and obliga"ons arising out of the employment, the employer is obliged to no"fy the employee of them in wri"ng within one (1) month from the forma"on of the employment. The Proba"onary period shall not be longer than three (3) consecu"ve months from the date of the forma"on of the employment, and no longer than six (6) consecu"ve months for chief o'cers; it cannot be extended addi"onally and its dura"on cannot be longer than one half of the agreed period of the employment. Dura"on of employment: we dis"nguish between two types of employment: employment for an inde!nite period of "me where the dura"on of the employment is not limited and !xed-term employment where the dura"on of the employment is limited. Changing of employment: a contract of employment may only be altered in wri"ng and upon mutual agree- ment of the employer and the employee. AGREEMENTS TO PERFORM WORK AND TO COMPLE- T E A JOB BEYOND EMPLOYMENT The employer and the employees may enter into an Agreement t o Complete a Job for a maximum of 300 hours per year or an Agree- ment to Perform Work provided that the scope of such work doe s not exceed a maximum of one half of the determined weekly work- ing hours. Both agreements must be concluded in wri*en form. TERMINATION OF EMPLOYMENT Employment may be terminated only by: Agreement: The agreement shall be made in wri"ng and shall in- clude a date of the termina"on of employment agreed upon by both par"es. No"ce: The no"ce of termina"on shall be made in writing and deliv- ered to the other party. Employment shall terminate no sooner than a$er the expira"on of the no"ce period which must be at least two months, excep"ng a no"ce given by the employee in rela"on to the devolu"on of rights and du"es arising out of the employment. The employee can hand in his/her no"ce to the employer for what- ever reason or without sta"ng a reason. The employer can give no"ce to the employee only for a reason s"pulated by the Labour Code. The employer shall not give no"ce to the employee during the protec"ve period. Immediate cancella"on: the eŵployŵeŶt ŵay ďe ĐaŶĐelled iŵŵediately ďy the eŵployee, or the eŵployer, for reasoŶs stipulated iŶ the Laďour Code ; immediate cancella"on of the employment must be made in wri"ng and no no"ce period is provided in this case, but the eŵployŵeŶt is terŵiŶated i mmediately upoŶ its delivery . Termina"on during proba"onary period: Both the employer and the employee may terminate the employment during the proba"on- ary period for whatever reason or without sta"ng a reason. Employ- ment cannot be terminated during the proba"onary period within the !rst ϭ4 days of temporary incapacity for work. The termina"on of employment during the proba"onaryperiod shallbe madeinwrit- ing. Employment shall then terminate on the day of the wri*en no- "ce delivery, unless any later date is speci!ed in this wri*en no"ce. Lapse of an agreed "me in the $xed-term employment. Employment terminates upon death of an employee. Employment of foreigners terminates on the day of expira"on of their residence in the Czech Republic on the basis of an enforceab le decision on revoca"on of the resident alien permit rendered by a competent authority, on the day when a judgement of the court imposing the sentence of expulsion from the Czech Republic comes into e%ect, or by the expira"on of the "me allowed by the employ- ment permit. In some cases, an employee is en"tled to a severance pay upon termina"on of his/her employment. At the termina"on of employment the employer is obliged to issue a proof of employment for the employee. THE EMPLOYER FAILED TO PAY A WAGE TO AN EMPLOYEE In case the employer fails to pay a wage to an employee within a due date determined by the employer, the employee: ï shall serve a wri*en request to the employer to pay the owed amount, including the speci!ed due date; ï is en"tled to cancel the employment with immediate e%ect if the wage is not paid within 15 days a$er the due date (e.g. the wage for January is due by the end of February then the immediate cancella"on is possible on 16 March at the earliest); ï can suďŵit a ĐoŵplaiŶt ǁith a proposal for aŶ inspec"on to the releǀaŶt iŶspeĐtorate ; ï can bring an ac"on for the owed amount to a competent court; ï can appeal to the Labour Bureau in case of the employer¥s insol- vency. WORKING HOURS The length of the determined weekly working hours must not exceed 40 hours. Employees who work on a two-shi$ schedule must not exceed 38.75 hours per week. Employees who work un der ground and extract coal, ores or non-metallic raw materials, or work on the construc"on of mines, or who are engaged in geologi- cal prospec"ng on mining sites, and also employees on a three-shi$ or con"nuous work schedule must not exceed 37.5 hours per week. With employees under the age of eighteen (18) years, the length of a shi$ for each day must not exceed 8 hours a day and in case of two or more employment rela"onships, the length of weekly work- ing hours must not exceed 40 hours per week in total. The length of a shi$ must not exceed ϭϮ hours. A Work ďreak is proǀided to aŶ employee who has been working con"nuously for a maximum of six hours (a$er a maximum of 4.5 hours of con"nuous work for minors) and such a break lasts at least 30 minutes. A Con"nuous rest be- tween individual shi$s must be at least 1 1 hours ;ϭϮ hours for ŵiŶorsͿ within 24 consecu"ve hours. A con"nuous rest in a week within every period of seven consecu"ve calendar days must be at least 35 hours (48 hours for minors). Over"me work may be taken only in excep"onal circumstances. Any mandated over"me work must not exceed an average of Θ hours per ǁeek ǁithiŶ a period of Ϯς ĐoŶseĐutiǀe weeks (52 weeks if speci!ed iŶ a collec"ve ďargaiŶiŶg agreement) and 150 hours within one calendar year. Over"me work beyond the scope men"oned aďoǀe ŵay be required only if agreed upon by the employee. HOLIDAY ENTITLEMENT Annual holiday en"tlement of an employee is at least 4 weeks a calendar year. The employee with con"nuous employment with the same employer having performed his/her work for at least 60 days in one calendar year is en"tled to the annual holiday. Holiday en"tlement for days worked is one twel$h of the annual holiday for every 21 days worked. An addi"onal holiday is provided for a spe- ci!c group of employees engaged in par"cularly hard work. When an employee performs such work for the en"re calendar year, he/ she is en"tled to 1 week of addi"onal leave, otherwise there is en- "tlement to one twel$h of the addi"onal holiday for every 21 days worked. Reduc"on of holiday en"tlement is made in the case that an employee did not work due to obstacles to work which fo r the purpose of holiday en"tlement are not considered a performance of work. The holiday en"tlement is then reduced by one twel$h for the !rst 100 missed shi$s and again by one twel$h for every further 21 working days (shi$s). AGENCY EMPLOYMENT AŶ eŵployŵeŶt ageŶĐy ĐaŶŶot teŵporarily assigŶ aŶ eŵployee ǁ ho is a holder of a Ŷ eŵployŵeŶt card, a blue card or an employment per ŵ it (foreigners outside the E U). An employment agency temporarily assigns its employee to perform work for a client on the basis of a temporary assignment agreement entered into by and between the agency and the client. The ag ree- ment must be in wri"ng. The employment agency assigns an em- ployee to perform temporary work with the client on the basis o f a wri*en order which must contain the following elements: corporate name and registered o'ce of the client, place of work, dura"on of the temporary assignment, speci!ca"on of a person in charge who will be authorized to impose tasks and jobs on the employee and check them, condi"ons of a unilateral statement of !nishing the work before expira"on of the temporary assignment, informa"on about working condi"ons, and wage or salary condi"ons for a com- parable employee of the client. The employment agency and the cli- ent are obliged to secure that the working and wage condi"ons for the temporarily assigned employee are not or would not be wor se than those under which a comparable employee works or would work. Time of temporary assignment to perform work for the same client shall not exceed 12 consecu"ve calendar months.

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