A company can employ people on the basis of an employment contract, an agreement to complete work (DPP) or an agreement to perform work (DPČ). Each form has different rules, different costs and is suitable for different situations.
An employment contract is the basic form of an employment relationship — it provides the highest protection to both parties and is suitable for employees who form the core of the team and work regularly. Agreements (DPP, DPČ), on the other hand, are more flexible forms for a limited scope of work.
| Employment contract | DPP | DPČ | |
|---|---|---|---|
| Scope of work | Full or part-time | Lower, limited annually | Limited weekly average |
| Typical use | Permanent team member | One-off tasks | Regular part-time cooperation |
The specific limits, entitlements and contributions for each form are set by legislation and change over time — verify the current rules with an accountant or lawyer.
An employment contract typically defines mainly the type of work, the place of work and the starting day. Other conditions (wage, working hours, probationary period) can be arranged directly in the contract or in separate documents. The exact mandatory requirements are set by legislation — when drafting the contract, rely on an accountant or lawyer.
A startup hires a tester on an agreement, with the understanding that they will work roughly 20 hours a week. If the company does not track hours worked, it can easily overlook that it is approaching the statutory scope limit of the given agreement. An HRIS tracks the hours of people on these agreements automatically and alerts in time.
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