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Good practice Imported

Czechia's Pay-Secrecy Ban in the Labour Code (2025) — Employees May Openly Discuss Pay, Fines up to CZK 400,000

Czechia · Prague · See the Czechia profile · See the Prague profile

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Since 1 June 2025 the Czech Labour Code bars employers from enforcing pay-secrecy clauses, with fines up to CZK 400,000, ahead of the planned 2027 EU Pay Transparency Directive transposition.

Czechia's Pay-Secrecy Ban in the Labour Code (2025) — Employees May Openly Discuss Pay, Fines up to CZK 400,000

Details

Promoter
Czech Ministry of Labour and Social Affairs / Parliament of the Czech Republic
Period
2025-
Keywords
pay transparency, labour law, pay secrecy

Description

An amendment to the Czech Labour Code took effect on 1 June 2025. Employers can no longer restrict staff from discussing their own pay, and salary-confidentiality clauses in employment contracts became unenforceable. Press and law-firm sources report fines of up to CZK 400,000 for violations.
The measure is a first step toward Directive (EU) 2023/970. Czechia missed the 7 June 2026 transposition deadline; a minimalist draft bill presented in March 2026 targets 1 January 2027 for most provisions, including the salary-history ban that is not yet law.
No evaluation of the ban's effect on the Czech gender pay gap has been published, and enforcement data are not available. Evidence from other jurisdictions (e.g. US pay-secrecy bans) suggests such rules can modestly raise wages, but this has not been tested in Czechia.

Read the full analysis: https://gpa.net/blogs/emea-1/czechia-employees-may-now-openly-discuss-their-salaries

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