Regulations for working in the Czech Republic

Overview

Czech Republic attracts an increasing number of international professionals, mobile teams, and digital nomads with its central location, stable infrastructure, and high quality of life. Whether for a short-term project, a longer business trip, or a flexible workation, those working in the Czech Republic must comply with certain legal requirements. These range from reporting obligations with Czech authorities to regulations on working hours and remuneration, as well as tax and social security obligations. As an EU member state, the Czech Republic offers harmonized frameworks but also implements its own national regulations that companies and employees should be aware of and follow.

EU Posted Workers Directive

What are the requirements?

Foreign employers are required to report the posting of their employees in writing to the Czech Employment Office by the first day of work. The notification must include personal details of the posted employee, the type and location of the work, and the planned duration of the posting. If there are changes during the posting—such as in the workplace, the duration, or employment conditions—these must be reported within 10 calendar days.

Required Documents

During the posting, certain documents proving the existence of an employment relationship, such as the employment contract, must be kept in copies at the Czech workplace. These documents must be in the Czech language. A certified translation is only required if explicitly requested by the authorities. The documents must be kept for three years after the posting ends.

Legal Representative in the Czech Republic

Czech law does not mandate the appointment of a local legal representative for the posting. In the case of a labor inspection, the foreign employer can be represented by its legal representative, such as an authorized manager, HR manager, or a designated representative. It is important that this person can access all relevant information and documents related to the posting in case of an inspection.

Penalties for violation

Non-compliance can result in penalties from the labor inspection authority against the foreign employer.

Examples include:

Non-compliance with the minimum wage: Fines up to 2 million CZK (approx. 84,000 EUR)
Non-compliance with documentation/translation requirements: Fines up to 500,000 CZK (approx. 21,000 EUR)
Non-compliance with reporting obligations: Fines up to 500,000 CZK (approx. 21,000 EUR) for certain violations

Labor Law

Minimum Wage

The minimum wage in the Czech Republic, effective from January 1, 2025, is 20,800 CZK (approximately 815 EUR) per month. Czech labor law sets eight levels of the "guaranteed wage," reflecting the difficulty and responsibility of the work.

Working Time

Standard working day: 8 hours per day, up to 48 hours over 6 days a week.

Flexible extension: The daily working time may be extended to 10 hours, provided that the average working time over a reference period of 6 months (or 24 weeks) does not exceed 8 hours per day.

Exceptions

30-day threshold:
Some minimum standards of Czech labor law only apply if the posted employee stays in the Czech Republic for more than 30 days in a calendar year.

Temporary Employment Agencies:
Different (often stricter) conditions may apply if the posted employee is sent through an agency.

Important Hints

Non-compliance with the applicable labor law may lead to financial obligations, fines, or liabilities under local termination and working time laws.

Social Security

When an employee is posted to the Czech Republic from an EU country, the EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate is available: The employee remains insured by their home country.
Without A1 certificate: The Czech social security regulations apply, and the foreign employer must act as a Czech employer.

Important Hints

Violations may result in extensive administrative obligations, back payment of contributions (with interest), increased audits, significant penalties, and potential reputational damage.

Income Tax

A posted employee who stays in the Czech Republic for no more than 183 days in a calendar year (or 12-month period) and whose compensation is not paid by/on behalf of a Czech company generally does not trigger Czech tax liability
Exceeding the 183-day threshold usually means that the foreign employer must withhold monthly income tax (acting as a tax intermediary)

Important Hints

The consequences of non-compliance vary but often result in an immediate obligation to file a tax return in the host country, leading to extensive consequences for both employees and employers.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints