EOR Service in Czech Republic

Hire, Onboard and Pay Employees in Czech Republic Quickly and Efficiently

Hiring in Czech Republic at a glance

CURRENCY
Czech Koruna (CZK)
working hours
40 hours per week
public/bank holidays
13 public holidays
capital
Prague
language
Czech
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1 to Dec 31st
minimum hourly salary
No minimum wage
CURRENCY
Czech Koruna (CZK)
working hours
40 hours per week
public/bank holidays
13 public holidays
capital
Prague
language
Czech
date format
DD/MM/YYYY
tax year
Jan 1 to Dec 31st
payroll frequency
Monthly
GDP
$287.8B approx(2021)

Employer of Record in Czech Republic

An Employer of Record (EOR) in the Czech Republic provides a comprehensive solution for businesses that want to hire talent without setting up a local entity. The EOR assumes the primary employer's role and takes responsibility for ensuring compliance with local labour laws, processing payroll, fulfilling tax obligations, managing employment contracts, and other related matters and reduces the risks associated with non-compliance and potential penalties.

Hiring an Employer of Record (EOR) in the Czech Republic can assist businesses in managing intricate labour regulations. Partnering with an Employer of Record (EOR) in the Czech Republic can provide several benefits, regardless of whether you are a small startup or a multinational corporation. By leveraging the local talent pool, businesses can access cost-effective hiring options and expand their presence in the Czech market.

Why use Czech Republic EOR?

To navigate the Czech Republic's labor laws, foreign employers can benefit from partnering with an Employer of Record (EOR) or Professional Employer Organization (PEO). These services, like Gloroots, provide expertise in Czech labor regulations, ensuring compliance and reducing legal risks. 

EOR/PEOs possess in-depth knowledge of employee rights, benefits, and working conditions, safeguarding employees and simplifying the complexities of the Czech labor market. They assist in drafting contracts that adhere to local laws and help determine worker classification.

EOR Costs in Czech Republic

The cost of Czech Republic EOR/PEO services in the Czech Republic may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Czech Republic EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers 

The Czech Republic  ranks 21st globally for talent competence in the Global Talent Competitiveness Index. The Czech Republic has relatively low labor costs compared to other Western European countries. This makes it an attractive destination for businesses looking to reduce their costs. The Czech Republic ranks 16th in the world for labor productivity, according to the World Economic Forum.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from the Czech Republic.

Factors Global Ranking Interpretation
Rule of law 26 Indicates effectiveness of law enforcement
Labour-employer cooperation 53 Indicates positive labor-employee relationships
Reading Maths, and Science 22 Indicates average scores in OECD's survey of 15-year old students
University Ranking 40 Indicates average QS rankings
Labour productivity per employee 32 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 128 Indicates findability of skilled talent
Workforce with tertiary education 57 Indicates % of workforce with PG degrees
Digital Skills 50 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in the Czech Republic.

Why work in Czech Republic?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Czech Republic

Growing a team means hiring the right employees at the right time and for the appropriate positions. To hire in the Czech Republic, employers must have a local entity n and use local resources to handle compliance, payroll, tax, and benefits management. However, the complexity around employment regulations in the Czech Republic makes compliance with employment laws demanding.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

Risks of misclassification

Misclassification refers to the improper classification of workers, particularly in terms of their employment status. 

Utilizing a PEO/EOR in the Czech Republic helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. 

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Czech Republic

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Employees and employers in the Czech Republic are subject to the following tax and social security contribution rates :

Employer Payroll Tax

Type of Contribution Rate
Social Security 24.8%
Health Insurance 9%

Employee Payroll Tax

Type of Contribution Rate
Social Security 6.5%
Health Insurance 4.5%

Employee Income Tax

Income Threshold Rate
0 - 1,867,728 CZK 15%
1,867,728 CZK Above 23%

Separation

Employment Termination and Severance

Termination Process

In the Czech Republic, employers are required to provide written notice with a stated reason when terminating an employee. Employees who voluntarily resign are not obligated to provide a reason for their decision.

Notice Period

 Employers must give a minimum of two months' notice to terminate an employee in the Czech Republic. The notice period officially begins on the first day of the following month. For example, if an employee receives a termination notice on March 15, their employment will not be fully terminated until June 1.

Severance Pay

  •  The amount of severance pay in the Czech Republic depends on the duration of an employee's tenure with the company. Employees who have worked for less than one year are not entitled to severance pay.
  •  For termination within the first year, severance pay is equivalent to one month's payment.
  •  For termination after two years, severance pay amounts to two months' payment.
  •  For termination after three years, severance pay amounts to three months' payment.

Probation Periods

Probationary periods in the Czech Republic are limited to a maximum of three months. However, for executive officers, this period can be extended to six months.

Start Hiring in Czech Republic today

When it comes to global hiring, ensuring compliance can be a daunting task. Employers need to navigate through employment laws, payroll procedures, DE&I compliance, GDPR, and other data protection regulations to ensure a smooth and legally compliant onboarding process. Setting up the necessary infrastructure and keeping up with the ever-evolving compliance landscape can add significant complexity to the hiring process.

At Gloroots, we are here to simplify this journey for you. Our comprehensive solutions offer a centralized platform to efficiently manage all aspects of hiring in the Czech Republic. With our in-house experts, you can confidently navigate cross-border employment and payroll compliance risks. We provide support in generating employment contracts, ensuring timely payments, and offering compliant benefits, allowing you to focus on screening and selecting the right talent.

Our promise is to provide you and your employees with a seamless global employment experience.

Contact our experts today to kickstart your global hiring campaign in the Czech Republic.

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Experience Seamless Hiring in Czech Republic?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Czech Republic.

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