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News

Breakthrough court ruling on differential regional pay

10.08.2020
Company: Amcham

The Supreme Court has currently commented negatively on the common practice of employers operating in several regions, who remunerate their employees differently depending on where the work is performed.

 

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

Tags: Law | Finance | Human Resources |

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