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Czech Republic: New Rules for Sick Leave Benefits

(June 2, 2008) On May 15, 2008, the Constitutional Court of the Czech Republic invalidated the package of reform legislation initiated by the government that had provided for the elimination of payments to all employees nationwide during the first three days of an illness. The current legislation allows people to receive payments in an amount equal to 60 percent of their salary from the fourth to the thirtieth day of illness, and 72 percent of their salary later. Assessing the law at the request of the opposition, the Constitutional Court stated that the situation where people receive no sickness benefits for the first three days of an illness contradicts the Constitution. The ruling will enter into force as of June 30, 2008, but it will not have retroactive force. Newly proposed legislation now being considered by the legislature provides for tax credits for employers who will be obligated to pay employees their salary during the first two weeks of sickness. (Czechs to Get “Early” Sickness Benefits Again in July, CTK-DAILY NEWS, May 15, 2008, available at