This article continues our examination of individual grounds for termination when assessing the invalidity of a dismissal under Czech employment law.
We now turn to the termination ground based on the relocation of the employer or one of its units, and the conditions under which an employment relationship may be lawfully terminated for this reason. This is one of the statutory grounds connected to so-called structural changes of the employer (including employer dissolution or organisational changes).
Employee’s Place of Work
The place of work is a mandatory element of every employment contract. An employer may agree on a place of work with the employee as one specific location (e.g., a workplace) or more broadly (a town, region). The parties may even agree on multiple places of work.
The employer may not assign work to the employee at a different location than the one agreed in the contract. This is the so-called fixed place of work (the regular place where work is performed), which defines the location in which the employee will carry out activities for the employer. Naturally, the employer and employee may also agree on business trips. They may also agree on other arrangements.
Relocation results in an actual change of the employer’s operational base. The location where work is performed will differ from the originally agreed contractual place. This geographical change then gives the employer the possibility to terminate the employment relationship by notice.
Changing the Employer’s Registered Office Outside the Original Contractual Location
If the place of work is agreed as a municipality, then changing the registered office within the same municipality does not pose a problem. For example, if the place of work is Prague and the employer changes its registered office but remains within the boundaries of Prague, this does not automatically entitle the employer to terminate your employment. If the new office is still located within Prague, the employer may not proceed with termination.
However, if the place of work is agreed as the employer’s registered office at a specific address and the registered office is relocated, the employer may rely on this statutory ground for termination.
Actual Relocation of the Employer as a Condition for a Valid Termination
In cases of employer relocation, the assessment — as with employer dissolution — depends on the actual state of affairs, not merely on a recorded entry. What matters is the location of the employer’s operational activities (e.g., where production actually takes place). A mere change of the registered office in the commercial or other register, or removing the signage of a workplace, does not automatically constitute relocation. Only when the real centre of the employer’s activities is moved can we speak of employer relocation. Simulated or artificial steps do not constitute a valid reason for termination.
The court cannot review the employer’s motives or reasons for relocation. It only examines whether the employer actually relocated a part of its business or the business as a whole — and whether it issued notice to those employees who worked in the relocated unit.
Which Employees May Be Affected by the Termination?
If only part of the employer’s operations is relocated, the employer may terminate the employment relationship only with those employees who worked in the relocated part. The termination ground cannot be applied to employees who are not affected by the change or who, under the employment contract, may continue performing work at another agreed place of work.
Employee Protection Period
The employer may not give notice due to relocation to a pregnant employee, an employee on maternity leave, or an employee on parental leave for the period during which the mother is entitled to take maternity leave. For other employees within a protection period (such as employees temporarily unfit for work), the employer may terminate the employment relationship.
For the termination to be valid, the employer must clearly specify the termination ground in the notice and describe the circumstances of the relocation.
Protect Your Employee Rights
We have now covered termination by the employer for so-called organisational reasons (dissolution of the employer, relocation of the employer or part of it, termination due to employee redundancy).
Have you received a notice of termination because your employer relocated its registered office? Consult us about the next steps. If the notice was invalid, we will gladly represent you in a potential dispute with the employer.
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