10th August 2020

Breakthrough court ruling on differential regional pay

If the employees of one employer perform comparable work in different regions and the employer also takes into account the socio-economic conditions of the region (for example, higher housing costs or higher prices of services) where the work is performed when determining their remuneration, this is unequal treatment according to the Supreme Court in the field of remuneration.

This decision may thus have a significant negative impact on the common practice of setting higher wages for employees working in Prague and other larger cities compared to employees working in other locations.

For more information please contact

Radek Matouš

Principal Associate | Prague

T:  +420 255 706 554

M: +420 602 167 779

E:  radek.matous@eversheds-sutherland.cz

Members of the American Chamber of Commerce in the Czech Republic