In its judgment of 1 July 2026, Case No. I. ÚS 970/25, the Constitutional Court of the Czech Republic dealt with the case of an employee who first sought a declaration that the termination of his employment was invalid and subsequently also claimed compensation for lost wages under Section 69 of the Labour Code for the period during which he was unable to work as a result of the invalid termination of his employment. During the proceedings concerning compensation for lost wages, the employee applied for an early retirement pension, which was granted to him. The ordinary courts subsequently refused to award compensation for lost wages for the period following the grant of the early retirement pension, taking the view that the employee was no longer able and ready to perform work for the employer. “The Supreme Court based its conclusion on the fact that the employee’s source of income was no longer his employment, but the pension granted to him, and that he was therefore no longer ready and willing to continue performing work for the employer under the employment contract … an insured person cannot continue to perform work under an employment contract while simultaneously receiving an early retirement pension.”
The Constitutional Court therefore considered whether the mere filing of an application for an early retirement pension and the subsequent granting of that pension automatically means that the employee is no longer willing, ready and able to continue working for the employer and is therefore not entitled to compensation for lost wages under Section 69 of the Labour Code for that period.
The Constitutional Court emphasised that the filing of an application for an early retirement pension and the granting of such pension to an employee who has brought an action seeking a declaration that the employer’s termination of employment is invalid does not automatically — i.e. irrespective of the employee’s actual intention and the reasons that led the employee to submit the application (in this case, the need to secure income in the event of invalid termination of employment)— mean that the employee is unwilling, unprepared or unable to continue working for the employer. The Constitutional Court stated that it was “understandable that, in a situation where, as a result of the unlawful conduct of his employer, he was unable to work and earn income from that work, he applied for an early retirement pension, since this was a means by which he could secure a stable income to meet his living needs in the circumstances. Such conduct, however, says nothing about his internal attitude towards continuing to work for his employer and does not indicate that he was no longer willing to perform the work if the employer were to start assigning work to him again.” When assessing an entitlement to compensation for lost wages, it is therefore necessary to take into account the specific circumstances of the case and the employee’s actual intention..
HR Legal Update 07,08/2026 here.