Abstract:

The author discusses the possibilities that exist for dismissal of managers and executives in the Czech Republic, not merely during times of economic crisis. It is understandable that the economic situation has forced many businesses (employers) to reassess the effectiveness of their human resources. However, an employer may only make changes to this area in accordance with the legal regulations in force and effect in the country. Commercial enterprises as entities primarily formed to pursue profit want to be profitable at all times. This requires making correct and strategic decisions by management, i.e. both top management and other executives. The question remains, however, as to what a company can do if it is dissatisfied with the work performance of senior managers or other executives. Therefore, the issue of commercial law necessarily extends to cover the field of labour law. Employers in the Czech Republic have often criticized labour legislation in the past. They complained of rigidity, notably in terms of processes and reasons for terminating employment contracts.

In the Czech Republic, a law was in existence for over 40 years, this being No. 65/1965 Coll. on the Labour Code. It was adopted during the communist era, yet despite undergoing numerous amendments following the Velvet Revolution in 1989, it had drawn heavy criticism when it was actually being enacted. Since 1 January 2007, the country has had in place a completely new version of labour law, Act No. 262/2006 Coll. However, even though the legislation has been in force just 5 years, it has witnessed some major alterations over this period. The aim pursued by the author of this paper is to seek out, amongst other things, what possibilities for dismissal of managers and other executives can currently be explored in the Czech Republic. Another objective is to answer the question as to whether existing legislation permits companies to respond with adequate promptness to certain issues as regards labour.