Employers obliged to establish a company social benefit fund may pay their employees and family members cash benefits to cover vacation expenses. These benefits are most often paid during the holiday season, when most employees and their families go on vacation.

Such a benefit, often referred to as a vacation subsidy or self-arranged holiday, may be granted to employees, provided that the employer's Company Employee Benefit Fund (ZFŚS) regulations provide for the payment of such a benefit. Very often, although it is not a legal requirement, the granting of such a benefit is conditional on the employee submitting a request for at least 2 weeks of annual leave. This is an additional incentive for employees to ensure that at least one part of their vacation leave includes 2 weeks of rest, as we are mandated by Article 162 of the Labour Code.

Also, employers who are not obliged to establish a company social benefit fund are obliged to financially support employees taking a holiday vacation. In their case, they are obliged to pay employees taking a 2-week vacation, a vacation benefit, in an amount not higher than the amount of the social fund allowance in effect for the calendar year. This benefit is paid before the employee begins to take leave.   

Find more in the PRO HR June 2023