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Odstupné

severance pay

What does “Odstupné” mean in Czechia?

Severance Pay — payment when you are dismissed for organizational reasons (§ 67 of the Labor Code). The amount depends on how long you have worked:

  • less than 1 year — 1 average monthly salary;
  • 1 to 2 years — 2 salaries;
  • more than 2 years — 3 salaries;
  • for a work injury — 12 salaries.

A Trap That Costs Money

The right to severance pay also remains when you leave by mutual agreement, called dohodou — if the reason is organizational. Many people sign a dohodou without stating the reason because "it's easier and faster," and by doing so, they give their employer two or three salaries.

The wording in the dohodou is important. If the reason is organizational, it must be stated there.

Important. When you sign an agreement to end your employment, ask for the organizational reason to be included. Without it, the severance pay of 2-3 salaries simply disappears, even though you had the right to it.

Examples of use

SK
Employees are entitled to severance pay equal to three times their average earnings.
The employee is entitled to severance pay equal to three times their average earnings.
SK
The agreement must state the organizational reason.
The agreement must state the organizational reason.

Articles on this topic

Frequently asked questions

Will there be severance pay if I resign by mutual agreement?
Yes, if the reason is organizational and it is stated in the agreement. It is precisely because the reason is not in the text that people lose 2-3 salaries.
What is the severance pay amount?
1 average salary for service up to 1 year, 2 — for service 1-2 years, 3 — for service over 2 years. In case of work injury — 12.

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