Workplace Injuries and Their Long-Term Impact on Employees
Workplace injuries can affect an employee's life not only in terms of health but also financially, with consequences that extend over a longer time horizon. The result may be a prolonged impairment of the employee's work capacity. Initially, the employee operates under the regime of temporary incapacity for work. However, this regime is not intended by law to provide compensation over an extended period. The law grants employees income and protection even after the temporary incapacity period ends, but this is governed by a different legal framework. This system helps mitigate the economic impact of permanent consequences of workplace injuries.
Entitlement to Compensation for Loss of Earnings After Temporary Incapacity Due to Injury
Compensation for loss of earnings after the end of temporary incapacity is regulated by the Labour Code (Act No. 262/2006 Coll.), specifically Section 371. This entitlement is one of the claims for compensation for damages arising from workplace accidents or occupational diseases. It arises when an employee, as a result of a workplace injury or occupational disease:
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Is unable to perform their previous work at all;
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Is unable to perform their previous work in full capacity;
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Is reassigned to a lower-paid job;
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Earns a reduced income due to diminished work capacity.
As an employee, you must undergo a further assessment of your work ability due to the impact of the workplace injury. In addition to evaluating the reduced capacity of the employee to perform their previous work, state authorities will also address the issue of disability recognition and the possibility of granting a disability pension.
Conditions for the Entitlement to Compensation for Loss of Earnings After Temporary Incapacity Due to Injury
To be entitled to this compensation, several conditions must be met:
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Recognition of the workplace injury or occupational disease – There must be a record of the injury and confirmation that it is a workplace injury or occupational disease.
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End of temporary incapacity – The entitlement arises after the end of the temporary incapacity period, usually when the maximum duration of temporary incapacity (typically up to 380 calendar days) expires.
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Causal link – There must be a causal link between the reduced earnings and the consequences of the workplace injury or occupational disease – the reduction in the ability to perform work due to the injury.
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Earnings decrease – The employee must prove that their earnings are lower than before the injury – the employee’s income has decreased due to the workplace injury.
Amount of Compensation for Loss of Earnings After a Workplace Injury
The amount an employee could have earned is a purely hypothetical figure. The law, therefore, uses the concept of an average wage for these cases. The employee is paid an average monthly amount based on a reference period (usually the previous quarter). The compensation is calculated as the difference between the average wage before the injury and the earnings the employee receives after the workplace injury or the recognition of the occupational disease, including any disability pension granted for the same reason.
To simplify, the calculation is as follows:
Compensation = Average earnings before the injury - (Current earnings + Disability pension due to the injury).
For example: Mr. Novak suffered a workplace injury and could no longer return to his original position as a welder. He took a lower-paid administrative position. His average earnings before the injury were CZK 35,000, but after the injury, he earned CZK 25,000. He also receives a disability pension of CZK 3,000 per month due to the injury. The compensation for loss of earnings would be:
35,000 - (25,000 + 3,000) = 7,000 CZK per month.
It is important to note that when determining the amount of compensation, consideration is given not only to the current earnings but also to what the injured employee could earn based on their abilities, qualifications, and health condition. Often, employers deny the occurrence of a workplace injury, and therefore also deny the associated entitlement to wage compensation. As an employee, it is extremely difficult to assert your rights to compensation without the assistance of an expert (including us).
Indexation of Compensation for Loss of Earnings After Temporary Incapacity
Due to annual inflation, there may be a devaluation of the compensation paid to the employee. As an employee, you are entitled to have the compensation amount adjusted to reflect the rise in consumer prices. Compensation for loss of earnings after temporary incapacity is subject to indexation, which is determined by the government through a decree. This ensures that the compensation increases in line with wage growth in the national economy. You do not need to worry about the compensation not reflecting the development of prices over time (inflation).
Changes in the Amount of Compensation for Loss of Earnings After Temporary Incapacity
It is important to understand that the compensation amount is not fixed for the entire duration. It may change in the following situations:
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Change in the employee’s health condition;
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Change in the amount of the disability pension;
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Change in the employee’s ability to earn income through their own efforts;
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Change in average earnings in the national economy (indexation).
The compensation is provided for the entire period of reduced earnings due to the workplace injury or occupational disease, but no longer than until the end of the calendar month in which the employee turns 65 or reaches retirement age, if the retirement age exceeds 65.
How to Proceed with Claiming Compensation for a Workplace Injury
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Gather Documentation – Records of the workplace injury, medical reports, payslips before and after the injury.
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File a Written Claim – The claim must be filed in writing with the employer where the workplace injury occurred.
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Detailed Calculation – Provide the average earnings before the injury, current earnings, and, if applicable, the amount of the disability pension.
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Regular Updates – If there are changes in earnings or disability pension, the employer must be informed.
Common Issues When Claiming Compensation for a Workplace Injury
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Employer Denial of the Claim – If the employer refuses to recognize the claim for compensation, the employee may turn to:
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The Regional Labour Inspectorate;
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The Trade Union Organization;
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The Court (civil lawsuit);
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If the employer has been dissolved.
If the employer where the workplace injury occurred no longer exists, the responsibility for compensation passes to their legal successor. If there is no legal successor, compensation is provided by the state through the Czech Social Security Administration.
Statute of Limitations for the Claim
The right to compensation for loss of earnings after temporary incapacity is subject to the standard statute of limitations. However, it is important to remember that the compensation for loss of earnings is a recurring payment, and therefore individual monthly installments are subject to their own statute of limitations.
Employee Rights
Compensation for loss of earnings after temporary incapacity is a crucial tool for protecting employees who have suffered a workplace injury or contracted an occupational disease. It allows them to maintain an adequate standard of living despite health restrictions that prevent them from earning the same income as before the injury.
To successfully claim this entitlement, it is essential to have a good knowledge of labor law, keep all documentation related to the injury, and regularly monitor all factors that may affect the amount of compensation.
Contact Employee Rights
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📧 Email: info@pravozamestnance.cz
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We protect and enforce employees' rights. We strive to improve the working environment for employees in the Czech Republic and provide support in resolving occupational diseases. For news, advice, and employee rights tips, we recommend our blog section or following us on social media platforms Instagram, Facebook or LinkedIn. Thank you.
