Mgr. ANNA VEJMELKOVÁ, advokát

business, signature, contract, document, deal, paperwork, hand, ready, to write, ok, contract, contract, contract, contract, contract, paperwork-962358.jpg

Is Software Development a Work Contract in Czech Law? Sometimes Yes, Sometimes No

Print

You order a custom app or a new website. It feels like a work contract. But in Czech law, not every software deal is covered by a work contract.

Why does it matter? Because:

  • each contract type implies different legal obligations,

  • including who owns the code,

  • who is liable for defects,

  • and how payment and VAT work.

⚖️ When Is It a Work Contract?

Under the Czech Civil Code (§ 2586), a work contract applies if:

  • the output is custom-made,

  • based on the client’s specifications,

  • and results in a deliverable product.

Typical examples:

  • custom software solutions,

  • web development from scratch,

  • tailored mobile apps.

The contract covers results, not just effort.


📜 When Is It Not a Work Contract?

When:

  • the client only rents access to an app (SaaS),

  • it’s based on templates with minimal changes,

  • the deal is ongoing support or hosting,

  • or the focus is on continuous cooperation (e.g. Agile or T&M teams).

Then it may be a:

  • license agreement,

  • service contract,

  • or a hybrid.


🧱 Real Case: Custom Portal vs. Ongoing Support

Company A hired a developer for a unique portal.
Work contract – specific output.

Company B hired a freelancer to maintain their existing e-shop.
Service contract – ongoing care.

Result: different rights, liabilities, and legal frameworks.


📌 What to Watch For?

  • Always define the contract type clearly.

  • If the client wants usage rights, include licensing clauses.

  • For Agile or time-based work, clarify deliverables and milestones.

  • Be specific about what constitutes completion.

✅ Not sure how to structure your software contract?

📩 Short legal consultation from CZK 1,500 excl. VAT.
Let me help you define legal boundaries, IP rights and responsibility.

Contact a legal professional – I specialize in contract law.
Learn more here.

Scroll to Top