Employer of Record in Czech Republic
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Hiring in Czech Republic at a glance
- The guide explains how an Employer of Record in the Czech Republic must hold a valid agentura práce licence to legally employ workers on behalf of client companies.
- Czech employer contributions total approximately 33.8% of gross salary, covering social security and health insurance, with a standard two-month statutory notice period on termination.
- The article compares four hiring paths EOR, s.r.o. entity, PEO, and contractor across setup time, compliance ownership, cost structure, and suitability for different operational scales.
- Misclassification risk under the švarcsystém framework carries fines of up to $478,721 (CZK 10 million) for employers, with retroactive tax and social contribution liability for the full misclassification period.
An Employer of Record in the Czech Republic serves as the legal employer on record, handling employment contracts, payroll, and compliance responsibilities on behalf of the client company. Hiring through an EOR typically takes one to two weeks, compared to four to six weeks required to incorporate a local entity, making it a faster route to establishing a workforce in the country.
Czech law imposes a specific compliance requirement on EOR providers: they must hold a valid temp agency licence, known as an agentura práce, to legally employ workers. Standard EOR models that operate without this licence expose client companies to legal risk. Employer contributions amount to approximately 33.8% of gross salary, covering social security and health insurance, and the Czech Labour Code sets a standard statutory notice period of two months.
What Is an Employer of Record in Czech Republic?
An EOR becomes the legal employer under the Czech Labour Code, holding the temp agency licence (agentura práce) that Czech law requires to employ workers on behalf of a client company. For a full explanation of how does EOR work, see our dedicated guide.
Companies use an EOR when entering the Czech market, scaling headcount quickly, or hiring specialists without committing to a local entity.
In practice, the client selects the candidate. The EOR then issues a compliant employment contract, registers the employee with the Czech Social Security Administration (ČSSZ) and the relevant health insurer, runs monthly payroll, administers statutory benefits, and manages day-to-day HR tasks on the client's behalf.
Your Hiring Options in Czech Republic: EOR vs. Entity vs. PEO vs. Contractor
Four paths exist for hiring in Czech Republic: an Employer of Record, a locally incorporated entity (s.r.o.), a PEO or co-employment arrangement, and an independent contractor engagement. Each carries different compliance ownership and cost structures. Choosing among them requires understanding your hiring volume, timeline, and risk tolerance. For guidance on selecting a provider, see our best employer of record comparison.
An EOR suits market entry, pilot hires, or situations where committing to permanent Czech infrastructure is not yet justified.
Entity setup is appropriate for large-scale, permanent operations where long-term Czech presence justifies the cost and time of incorporation.
Path | Setup Time | Compliance Ownership | Cost Structure | Best For |
|---|---|---|---|---|
EOR | 1 to 2 weeks | EOR holds full compliance responsibility | Monthly per-employee fee | Market entry, pilot hires, rapid scaling |
s.r.o. Entity | 4 to 6 weeks | Client company owns all compliance | Incorporation, ongoing legal and HR costs | Permanent, large-scale Czech operations |
PEO | 2 to 4 weeks | Shared between PEO and client | Per-employee fee plus client HR overhead | Companies with some local presence |
Contractor | Days | Contractor manages own compliance | Project or hourly rate | Short-term, project-based work |
How to Hire in Czech Republic Through an EOR: Step by Step
Hiring in Czech Republic through an EOR follows six steps, from the initial decision on employment structure through to ongoing management and, when needed, compliant exit. Each step has a specific compliance checkpoint tied to Czech Labour Code requirements and the agentura práce licence framework.
Step 1: Decide Between EOR and Direct Entity
Assess your hiring volume, the permanence of your Czech operations, and whether the EOR you are considering holds a valid agentura práce licence. Confirm these three factors before committing to either path.
Step 2: Vet and Select a Czech EOR Provider
Confirm the EOR holds a valid temp agency licence (agentura práce), owns its Czech legal entity directly, and maintains direct relationships with ČSSZ and the relevant health insurers. These three checks are non-negotiable.
Step 3: Issue a Compliant Employment Contract
Issue a written contract that includes the job description, workplace, salary, working hours, and start date. Add a probation period of up to three months (six for managers). Include IP, NDA, and non-compete clauses where applicable.
Step 4: Register the Employee and Run Payroll
Register the employee with ČSSZ and a health insurer before the first working day. Withhold income tax at 15% (23% above the threshold), employee social security at 6.5% plus 0.6% sickness insurance, and health insurance at 4.5%. Remit employer contributions of 24.8% social security and 9% health insurance each payroll cycle.
Step 5: Administer Benefits and Ongoing Compliance
Administer statutory annual leave, sick pay, and maternity and paternity benefits. Add market-standard perks to stay competitive. File monthly reports with ČSSZ and health insurers, and track any collective bargaining agreement obligations that apply to the role.
Step 6: Manage Offboarding and Exit
Issue written termination notice with a valid legal ground and observe the two-month notice period. Calculate severance based on tenure, issue all mandatory exit documents, and deregister the employee with ČSSZ and the health insurer within eight calendar days of the last working day.
How to Choose the Right EOR in Czech Republic
Evaluate any EOR provider in Czech Republic against six criteria before signing a contract.
Local Legal Knowledge and Temp Agency Licence
Confirm the EOR understands the Czech Labour Code and holds a valid agentura práce licence. Verify it has direct relationships with ČSSZ and health insurers, not a reseller arrangement that adds a layer of compliance risk.
Own Entity vs. Partner Network
Confirm whether the EOR holds its own Czech legal entity or relies on a third-party in-country partner. Own-entity providers reduce delays, costs, and liability transfer risks for your business.
Support Model and Response Time
Evaluate whether the EOR provides dedicated Czech HR and legal support. Czech Labour Code disputes require local expertise, not a shared global helpdesk with no country-specific knowledge.
Pricing Transparency
Request a full cost breakdown: EOR fee, employer contributions (33.8%), and any per-employee admin charges. Review Gloroots' pricing to compare against providers with opaque or bundled fee structures.
Security and Data Protection
Confirm the EOR is GDPR-compliant and processes Czech employee data in line with the Czech Data Protection Act (UOOU) and EU data residency requirements before signing any agreement.
Integration Capability
Check whether the EOR platform connects with your HRIS, expense, and equity management tools. This is especially relevant for tech companies offering stock options to Czech employees.
Workforce and Talent Pool in Czech Republic
The Czech Republic has a workforce of approximately 5.4 million, with around 65% of young adults holding tertiary qualifications in engineering, IT, and sciences.
Prague leads in finance and IT, Brno in technology and life sciences, Ostrava in manufacturing, and Plzeň in engineering.
Czech professionals are multilingual, with high English and German proficiency, and salary costs remain significantly lower than in Western European markets such as Germany. Approximately 373,312 people in the Czech Republic work remotely, reflecting a growing distributed workforce that global employers can access through entity-free employment. For a comparable Central European market, see employer of record Germany.
Indicator | Details |
|---|---|
Workforce Size | ~5.4 million |
Median Age | ~42 years |
English Proficiency | High (top 20 globally, EF EPI) |
Top Talent Hubs | Prague, Brno, Ostrava, Plzeň |
Key Industries | Automotive, IT Services, Engineering, Pharmaceuticals, Finance |
Employment Law Essentials in Czech Republic
Czech employment law is governed by the Czech Labour Code (Act No. 262/2006 Coll.), which sets binding rules on contracts, working time, wages, and termination.
All employment contracts must be in writing and include the job description, workplace, salary, working hours, and start date. Probationary periods run up to three months, or six months for managerial roles.
Contracts for managerial and key employees should include explicit clauses covering IP ownership, non-disclosure obligations, and non-compete restrictions. Non-compete clauses are valid only for managerial or key employees and must be clearly stated in the contract. GDPR and the Czech Act on Personal Data Processing (UOOU) apply to all employee data collected during onboarding and employment.
On performance management: before terminating an employee for unsatisfactory performance, the employer must issue a written warning. The employee must be given a reasonable opportunity to improve. If underperformance recurs within 12 months of the warning, the employer has valid grounds for dismissal under the Labour Code.
Overtime is capped at 150 hours per year unless otherwise agreed in writing. Overtime pay is set at 125% of base pay, or the employee may take equivalent time off instead.
Severance pay is mandatory for dismissals due to redundancy or health reasons. The amount depends on tenure: one month's salary for less than one year of service, two months for one to two years, and three months for two or more years.
Gloroots manages employment contracts, payroll, and statutory compliance in the Czech Republic, giving your team centralized governance without a local entity.
Employment Contracts
All contracts must be written and include job description, workplace, salary, working hours, and start date. IP ownership, NDA, and non-compete clauses must be explicit. Non-compete provisions are valid only for managerial or key employees. GDPR and UOOU govern all employee data collected during onboarding and employment.
Working Hours and Overtime
Standard working hours are 40 per week. The daily maximum is 12 hours. Overtime is capped at 150 hours per year and paid at 125% of base pay, or exchanged for equivalent time off.
Minimum Wage
The national minimum wage in the Czech Republic is $1,072 (CZK 22,400) per month (current rate). Industry collective bargaining agreements (CBAs) in sectors such as manufacturing and transport may set higher wage floors. Employers must track both the national rate and any applicable CBA thresholds to remain compliant.
Leave and Statutory Benefits in Czech Republic
Czech law provides a structured set of leave entitlements covering illness, family events, and annual rest. Employers must apply these rules correctly to avoid liability.
Sick leave works as follows: the first three calendar days carry no pay. From days four to fourteen, the employer pays 60% of the employee's gross wage. From day fifteen onward, the Czech state sickness insurance fund pays 60%. Sick leave is capped at 380 calendar days over any three-year period.
Beyond standard sick leave, Czech law recognizes several additional leave types:
Marriage leave: 2 days, paid.
Compassionate or bereavement leave: 1 to 2 days, paid.
Study leave: available as paid or unpaid, depending on the agreement.
Care for a family member: from the fourth working day onward, the employer pays 60% of the employee's wage.
Employees with children under 18 may also receive a vacation child benefit, which is a tax-free annual benefit provided by the employer.
Leave Type | Entitlement | Pay Rate | Key Conditions |
|---|---|---|---|
Annual leave | Minimum 4 weeks (20 working days) | Full pay | Public sector: 5 weeks; CBAs may grant more |
Sick leave (days 1-3) | Up to 3 calendar days | No pay | Per illness episode |
Sick leave (days 4-14) | Days 4 to 14 | 60% of gross wage (employer) | Employer obligation |
Sick leave (day 15+) | From day 15 onward | 60% (state sickness insurance) | Cap: 380 days over 3 years |
Maternity leave | 28 weeks (37 for multiple births) | 70% of daily earnings | Paid by social security |
Paternity leave | 2 weeks | Paid by social security | Must be taken around birth |
Parental leave | Up to 3 years | State financial support | Either parent may take |
Marriage leave | 2 days | Full pay | Per marriage event |
Bereavement leave | 1 to 2 days | Full pay | Immediate family |
Care for family member | From 4th working day | 60% (employer) | Qualifying family member |
Gloroots tracks leave accruals, sick pay obligations, and statutory benefit rules for Czech employees, giving your payroll team accurate, audit-ready records.
Annual Leave
Employees are entitled to a minimum of four weeks (20 working days) of paid annual leave per year. Public sector employees receive five weeks. Some collective bargaining agreements grant additional leave days above the statutory minimum.
Sick Leave
Czech sick leave runs in three phases. Days 1 to 3 are unpaid. Days 4 to 14, the employer pays 60% of gross wage. From day 15, state sickness insurance covers 60%, capped at 380 calendar days over three years.
Maternity and Paternity Leave
Maternity leave in the Czech Republic is 28 weeks, extended to 37 weeks for multiple births. Social security pays 70% of daily earnings throughout the leave period. Paternity leave is 2 weeks, also paid by social security. Parents may take parental leave for up to 3 years, with financial support from state programs.
Public Holidays
The Czech Republic observes 13 public holidays each year. These include New Year's Day, Easter Monday, Czech Statehood Day, and Christmas. All employees are entitled to paid leave on each public holiday.
Payroll, Tax and Statutory Contributions in Czech Republic
Czech income tax applies at 15% on annual income up to approximately $80,236 (CZK 1,676,052) to $92,659 (CZK 1,935,552) (the exact threshold is subject to verification) and at 23% above that band. Employers and employees both contribute to social security, health insurance, and sickness insurance each month.
Errors in monthly ČSSZ filings or health insurer remittances trigger financial penalties. The 8-day deregistration deadline on termination is a frequent compliance failure point that employers must track carefully.
Tax slabs
Income Band | Tax Rate |
|---|---|
Up to $80,236 (CZK 1,676,052)–1,935,552 (verify threshold) | 15% |
Above threshold | 23% |
Employer and employee contributions
Contribution Type | Employer Rate | Employee Rate |
|---|---|---|
Social Security | 24.8% | 6.5% |
Health Insurance | 9% | 4.5% |
Sickness Insurance | 2.1% | 0.6% |
Total employee deductions are approximately 11.6% of gross salary, covering social security, health insurance, and sickness insurance. Gloroots manages payroll filings, contribution remittances, and deregistration deadlines as part of its Compliance and Employment Governance service.
Work Visas and Permits in Czech Republic
Non-EU nationals working in the Czech Republic typically require an Employee Card or EU Blue Card. An EOR holding an agentura práce licence can sponsor both card types. The employer must advertise the role in the Czech Labor Office system before hiring non-EU nationals. For context on a comparable EU market, see employer of record Poland.
Two additional permit categories apply to non-EU nationals. A seasonal worker permit covers up to 6 months per year in agriculture and forestry. Non-EU citizens may also apply for a trade licence (živnostenský list) to work as self-employed in the Czech Republic.
Visa types
Visa Type | Purpose | Validity |
|---|---|---|
Employee Card | Long-term employment for non-EU nationals | Up to 2 years, renewable |
EU Blue Card | Highly qualified non-EU professionals | Up to 2 years, renewable |
Seasonal Worker Permit | Agriculture and forestry roles | Up to 6 months per year |
Self-Employment Visa (živnostenský list) | Independent trade or freelance work | Based on a long-term visa for the purpose of doing business |
Equity and ESOP Consulting in Czech Republic
Equity compensation is increasingly common in the Czech Republic's growing tech and IT sector, particularly in Prague and Brno.
Stock options and RSUs are permissible for EOR-employed Czech workers but require careful structuring. Gains are taxed as employment income at 15% or 23% depending on the employee's annual income band. EOR providers should clarify whether they support equity administration or require a separate cap table tool before onboarding equity-eligible employees.
Misclassification Risk in Czech Republic
Misclassifying employees as independent contractors, known locally as švarcsystém, is actively monitored by the State Labor Inspectorate and Czech tax authorities.
Inspectors assess the following criteria when determining whether a worker is an employee:
Control over hours and methods: If the company dictates when and how work is performed, the relationship is likely employment.
Integration into the organisation: Workers embedded in daily operations, reporting lines, or team structures are treated as employees under Czech law.
Exclusivity of service: A contractor who works solely for one client over an extended period raises reclassification risk.
Employer-provided tools and workspace: Supplying equipment, office space, or systems to a contractor is a strong indicator of an employment relationship.
Penalties for švarcsystém violations apply to both parties:
Employer fines: Up to $478,721 (CZK 10 million) for engaging workers under disguised employment arrangements.
Contractor fines: Up to $4,787 (CZK 100,000) for participating in a švarcsystém arrangement.
Retroactive tax and social contributions: Authorities may require back-payment of income tax, health insurance, and social security contributions for the full period of misclassification.
Worker claims: Reclassified workers may claim severance pay and unpaid statutory leave entitlements.
An employer of record Estonia comparison illustrates how EU-based EOR structures address this risk. Gloroots employs workers directly under a compliant Czech Labour Code contract, eliminating švarcsystém exposure entirely.
Hiring, Onboarding, Termination and Offboarding in Czech Republic
Hiring in the Czech Republic requires a written employment contract signed before the employee's start date, with registration completed at the Czech Social Security Administration (ČSSZ) and a health insurer before work begins.
Onboarding, termination, and offboarding each follow defined legal steps under the Czech Labour Code. Skipping any step creates compliance exposure and potential financial liability.
Onboarding
Before Day One: Issue a written employment contract signed before the start date; arrange a pre-employment medical check for the role; register the employee with ČSSZ and the health insurer; collect the signed tax declaration form (Prohlášení poplatníka).
Day One: Confirm payroll setup and first pay date with the employee; deliver mandatory health and safety training; provide the employee handbook and workplace policies; issue IT access and equipment.
First Week: Confirm ČSSZ and health insurer registration is complete; verify tax credits are applied correctly in the payroll system; introduce the employee to the team and line manager; confirm probationary period terms in writing.
Beyond: Run the first monthly payroll with correct deductions (11.6% employee, 33.8% employer); file the first monthly report with ČSSZ and the health insurer; schedule a probationary review at 3 months (6 months for managers); administer meal vouchers or other market-standard benefits.
Termination
Termination requires written notice and valid legal grounds. For performance-based dismissal, the employer must first issue a written warning. If the same underperformance recurs within 12 months, the employer has valid grounds for dismissal under the Czech Labour Code. Severance is mandatory for redundancy and health-related dismissals, calculated by tenure.
Offboarding
Settlement: Calculate final payroll including unused leave, overtime, and any bonuses owed; calculate severance based on tenure (1 to 3 months); confirm all ČSSZ and health insurer contributions are reconciled to the termination date; process the final payslip and net payment.
Documents: Issue the employment certificate (potvrzení o zaměstnání) confirming role, duration, and employment type; issue the income certificate (potvrzení o zdanitelných příjmech) for the employee's tax return; provide an optional reference letter for professional roles; confirm all statutory documents are delivered before the final day.
Exit: Deregister the employee with ČSSZ and the health insurer within 8 calendar days of termination; revoke IT system access and building entry on the final day; collect all company assets including laptop, phone, and access cards; conduct an optional exit interview for knowledge transfer.
What's New: Recent Regulatory Changes in Czech Republic
Three significant changes took effect in the Czech Republic from January 2025: the minimum wage increased to $1,072 (CZK 22,400) per month (up from $905 (CZK 18,900) in 2024); the employee sickness insurance contribution of 0.6% was reintroduced; and remote work agreement requirements were formalised under a Czech Labour Code amendment.
Minimum wage raised to $1,072 (CZK 22,400) per month from January 2025: Employment contracts and payroll configurations must reflect the updated statutory floor immediately.
Employee sickness insurance contribution of 0.6% now applies: Total employee deductions are now approximately 11.6% of gross salary.
Remote work agreements must be in writing: The Labour Code amendment requires written home office agreements specifying cost reimbursement terms for equipment and utilities.
Performance-based termination requires a documented written warning: The employer must allow a 12-month improvement window before proceeding with dismissal under the Labour Code.
Deregistration with ČSSZ and the health insurer must occur within 8 calendar days of termination: Non-compliance triggers administrative penalties for the employer.
Employers should review payroll configurations and employment contracts quarterly to reflect Czech regulatory updates as they are issued.
Action Required: Assign the Czech Payroll & Compliance Lead (or Regional EMEA Compliance Manager) to monitor updates from the Ministry of Labour and Social Affairs (MPSV), the Czech Social Security Administration (ČSSZ), and the Financial Administration of the Czech Republic on a quarterly basis. Any changes affecting payroll, social security contributions, employment law, tax withholding, or statutory benefits should be reviewed promptly and reflected in employment contracts, payroll systems, and compliance documentation before the next payroll cycle.
Costs and Financial Planning for Hiring in Czech Republic
Total employment cost in Czech Republic exceeds gross salary by approximately 33.8% once mandatory employer contributions are included. Understanding the full employer of record cost picture is essential before committing to a hiring model.
Hidden costs extend beyond payroll. Severance liability runs from one to three months depending on tenure. Employers also carry sick leave obligations for days 4 through 14 at 60% of salary. Companies operating their own entity must maintain an agentura práce licence, which carries ongoing administrative and renewal costs. Czech talent also expects market-standard benefits such as meal vouchers and supplemental pension contributions.
Cost Element | Direct Entity | Gloroots EOR |
|---|---|---|
Entity setup | Required: incorporation, trade licence, registered office | Not required |
Employer contributions | Employer registers and remits independently | Gloroots calculates and remits automatically |
Sick leave (days 4–14) | Employer calculates and pays at 60% | Gloroots manages calculation and payment |
Severance | Employer calculates based on tenure; liability sits with entity | Gloroots manages severance payouts |
Market benefits | Employer sources and administers independently | Gloroots provides statutory and market-standard benefits |
HR and payroll admin | Internal team or third-party vendor required | Included in Gloroots EOR service |
Compliance risk | Employer bears full liability for errors | Gloroots assumes compliance responsibility |
Common Challenges and How Gloroots Solves Them in Czech Republic
Practical challenges in Czech Republic go beyond payroll. The agentura práce licence requirement and strict termination rules create specific compliance risks that employers must address before their first hire.
Challenge | How Gloroots Solves It |
|---|---|
Agentura práce licence requirement | Gloroots holds a valid temp agency licence, enabling legal EOR employment under Czech law |
Sick leave employer obligation (days 4–14) | Gloroots calculates and remits correct sick pay automatically for each affected pay period |
8-day deregistration deadline | Gloroots files deregistrations with ČSSZ and the relevant health insurer within the statutory deadline |
Performance-based termination process | Gloroots manages written warning documentation and tracks the 12-month improvement period |
Income tax threshold discrepancy | Gloroots applies the verified current threshold and updates payroll configurations when rates change |
Non-compete and IP clause enforceability | Gloroots includes compliant NDA, non-compete (managerial roles only), and IP ownership clauses in all contracts |
Why Gloroots Is a Strong EOR Partner in Czech Republic
Gloroots suits international companies that need to hire employees in the Czech Republic without establishing their own local entity, particularly those entering the IT, engineering, finance, and other specialist talent markets.
Czech-specific capabilities can include employment contracts aligned with applicable Czech labour requirements, administration of statutory sickness absence and sick-pay processes, appropriate IP and confidentiality provisions, and management of applicable employee registration and deregistration requirements.
Where the employment model involves temporary assignment of employees to a client, Czech law regulates the arrangement as temporary agency employment and requires the relevant employment-agency authorization. Buyers should therefore verify the legal basis of the EOR structure and whether the employing entity holds any authorization required for the services it provides.
Gloroots can support Czech hiring within its standard onboarding timelines, subject to required employee documentation, payroll setup, and any applicable immigration or work-authorization requirements.
The service can be a practical fit for market-entry hires, pilot employees, and companies scaling teams across Central Europe without immediately establishing permanent Czech employment infrastructure.
Before selecting an EOR in the Czech Republic, buyers should verify the contractual employing entity, whether the provider holds the required employment-agency authorization where applicable, its payroll and social-security registration processes, and how employment, compliance, and termination responsibilities are allocated under the service agreement.
Conclusion
Czech Republic's EOR market is shaped by a unique legal requirement: the agentura práce licence. This requirement distinguishes compliant providers from those operating outside Czech Labour Code.
Companies evaluating Czech EOR providers should verify licence status, entity ownership, and sick leave calculation accuracy before signing. These three factors determine compliance exposure more than price alone. A provider that cannot confirm all three should not be the first choice for Czech employment.
Frequently Asked Questions About Employer of Record in Czech Republic
Is an Employer of Record legally recognised in Czech Republic?
Czech law does not recognise a standard EOR model. To legally employ workers on behalf of a client company, the EOR must hold a temp agency licence (agentura práce) issued by the Czech Ministry of Labour.
Without this licence, the arrangement is not legally valid under the Czech Labour Code. Buyers should verify licence status before signing any EOR agreement in Czech Republic.
How long does it take to hire an employee in Czech Republic through an EOR?
A compliant EOR can onboard a Czech employee in 1 to 2 weeks. Entity setup, by contrast, takes 4 to 6 weeks. The EOR handles contract issuance, ČSSZ registration, health insurer registration, and payroll setup. The main variable is the employee's start date and whether pre-employment medical checks require scheduling.
What are the total employer costs for hiring in Czech Republic?
Employer costs in Czech Republic total approximately 33.8% above gross salary: 24.8% for social security and 9% for health insurance. Employees contribute a further 11.6% (6.5% social security, 4.5% health insurance, 0.6% sickness insurance). Additional costs include sick leave employer obligation (days 4 to 14 at 60%), severance of 1 to 3 months, and market benefits such as meal vouchers.
What is the difference between an EOR and setting up an entity in Czech Republic?
Setting up an s.r.o. (Czech LLC) takes 4 to 6 weeks and requires notarised documents, a registered office, and ongoing Commercial Register and tax filings. An EOR lets you hire in 1 to 2 weeks without incorporation. In Czech Republic, the EOR must hold an agentura práce licence, a requirement that does not apply to companies employing their own staff directly.
Do employees hired through an EOR in Czech Republic receive full statutory benefits?
Yes. EOR-employed Czech workers receive all statutory entitlements under the Czech Labour Code. These include a minimum of 4 weeks annual leave, correct sick leave payments (no pay on days 1 to 3, 60% from the employer on days 4 to 14, and state insurance from day 15), maternity and paternity leave, and severance on redundancy. Market benefits such as meal vouchers and Multisport cards are also typically included.
Can an EOR sponsor work visas for non-EU employees in Czech Republic?
Yes. An EOR holding a valid agentura práce licence can sponsor Employee Card and Blue Card applications for non-EU nationals. The EOR must first advertise the role in the Czech Labor Office system before hiring. Processing times range from several weeks to months depending on visa type and applicant nationality. Seasonal worker permits and self-employment visas are separate categories not typically handled by an EOR.
What happens if an employee is terminated in Czech Republic?
Termination in Czech Republic requires a valid legal ground, written notice, and a 2-month notice period starting the first day of the following month. Severance of 1 to 3 months applies for redundancy or health-related dismissals. The employer must deregister the employee with ČSSZ and the health insurer within 8 calendar days of termination. Performance-based dismissal requires a prior written warning and a 12-month improvement window.
