Are confidentiality clauses on the amount of remuneration in an employment contract or an employer's internal regulation always justified? According to the Labour Code, an employer may only impose a confidentiality obligation on employees if this obligation is based on a legitimate interest. Absolute confidentiality (e.g. the impossibility to disclose the amount of wages to anyone, including family members) or confidentiality between colleagues is usually contrary to the law and the employer may be in breach of the Labour Code by this behaviour.

Why is this important? Pay transparency is key to ensuring equality in the workplace and eliminating discrimination. If employees do not know whether their pay is commensurate with their position and qualifications, the supervisory authorities believe they cannot effectively defend their rights. That is why labour inspectorates are now more intensively monitoring whether employers are exceeding the legal limits in this respect.

What to watch out for? A valid confidentiality clause may only exist where confidentiality protects a specific legitimate interest of the employer (e.g. confidentiality of remuneration in relation to competitors for persons employed in highly professional and specific positions). If this interest does not exist or is not proven in any proceedings, the consequence is that the clause is invalid.

The issue of confidentiality clauses in employment contracts has been thoroughly addressed by the Public Defender of Rights, who has also published an extensive text dealing with the issue in detail.

Want to know more? Our colleagues will be happy to help you analyse your employment contracts and check their compliance with the law. Contact us!

Mgr. Jaroslav Hroza, partner

Bc. Lucie Šalanská, paralegal