Hire in Czech Republic

EOR in the Czech Republic

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in the Czech Republic, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in the Czech Republic―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in the Czech Republic and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in the Czech Republic

The main sources of employment law in the Czech Republic are the Labor Code and the Act on Employment.

Employment contracts in the Czech Republic

As you look to hire employees in the Czech Republic, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The provisions related to working hours are based on the European Union directives and the International Labor Organization Convention. The standard work schedule cannot exceed 40 hours in a week.

Certain categories of employees have shorter weekly working hour limits, including 37.5 for employees working underground in the mining industry or for employers with continuous or three-shift work regimes and 38.75 for employees working for employers with two-shift work regimes

Employees should be given a break of a minimum of 30 minutes for having a meal and rest after working for 6 continuous hours. The break must be given to underage employees after four and a half hours of work.

Uninterrupted rest breaks between two shifts must be at least 11 hours within each consecutive 24 hours. Uninterrupted rest in a week must be at least 35 hours within every period of seven successive calendar days.

Overtime is generally permitted up to eight hours per week and 150 hours per year. With the employee's consent, additional overtime is allowed, provided the overtime in a working week does not exceed eight hours on average for 26 weeks.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective 2025, the minimum monthly wage is 20,800 koruna based on a 40-hour workweek and the minimum hourly wage is 124.40 koruna.
• Under the Labor Code, employees are entitled to at least 10% more than their regular wages for working at night and on weekends. The rate is subject to collective bargaining and internal rules.
• The hourly minimum wage is also specified as corresponding to a 40-hour workweek, which the labor code did not previously specify. The hourly minimum wage is to be increased proportionally for employees entitled to a shorter workweek by the labor code.
• Employees working in arduous environments are also entitled to a wage supplement of at least 10% (of the minimum wage set by decree), which may be raised (but not lowered) by government decree.
• For overtime work, employees are entitled to a premium of at least 25% of their average earnings in addition to regular wages. The employee may agree to take compensatory time off instead of premium payments.
• Managerial employees can agree to have overtime wages included in their regular pay. Rank-and-file employees can agree to have their wages include compensation for up to 150 hours of overtime per year.
• Employees required to work on a holiday are entitled to either a compensatory day off or compensation equal to 200% of their pay.

As your employer of record in the Czech Republic, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Bonus schemes are common in the Czech Republic, but there are no specific regulations or standards that govern them.

Probationary period

A trial period of up to three months for rank-and-file employees and up to six months for managers may be specified and a non-competition clause included.

Termination and severance

An employer can immediately terminate the employment relationship only within two months of the day on which the employer learned of the reason for giving notice and within one year of the day the reason for the notice arose.

Under the Labor Code, either the employer or the employee may terminate the employment relationship by giving notice of termination. The notice must be in writing and delivered to the other party. An employee may give notice of termination to the employer without stating any reason. An employer may only give notice of termination to an employee for a reason explicitly stated in the Labor Code.

The notice period is two months starting on the first day of the month following the delivery of the notice of termination or longer by mutual agreement.

The Labor Code regulates severance pay. The severance pay is calculated based on the length of service. Employees with less than one year of service receive one month's average wages, employees with one year’s service twice their average monthly earnings, and employees with over two years’ service triple their average monthly earnings(in addition to paying the affected employees during the two-month termination period).

Employee benefits and paid leave in the Czech Republic

When negotiating terms of an employment contract with a candidate in the Czech Republic, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to 28 weeks of maternity leave and 37 weeks in cases of multiple births. It is obligatory to take 14 weeks, including at least six weeks after the birth.

Employees on maternity leave receive about 70% of their salary from the state. Maternity leave may begin no earlier than the beginning of the eighth week before the expected date of birth.

If a child is stillborn, the mother is entitled to 14 weeks of maternity leave; in the case of an adopted child, the mother is entitled to 22 weeks, which is extended to 33 weeks in the case of multiple adoptions. Mothers must have worked 270 days of covered employment during the two years before the start of paternity leave.

Vacation

Leave is calculated in hours as a multiple of the basic amount of annual leave, the employees set weekly working hours and the number of weeks in a calendar year.

Employees who work a full year with 40 hours as set weekly working hours are entitled to 160 hours of annual leave. Employees who have not worked for the employer for the entire calendar year are entitled to a proportional part of the annual leave if they work for the employer for at least four weeks. In such cases, employees are entitled to 1/52 of their total annual leave entitlement for the calendar year for each week worked.

The employer, in agreement with the trade unions, may determine when the leave will be taken. Employers must notify employees about their vacation schedule at least two weeks in advance. If the employer fails by June 30 of the next calendar year to specify when holidays will be taken, the employee has the right to specify when his or her holiday is to be taken.

Holidays

The law establishes 12 public holidays: seven national holidays and five other holidays. These are all rest days. National holidays are intended to celebrate Czech statehood, whereas the other holidays are related to historical events.

Employees are entitled to the following holidays:

• New Year/The Day of Restoration of Czech Independence
• Easter Monday
• Labor Day
• Liberation Day
• Saints Cyril and Methodius
• Jan Hus Day
• St. Wenceslas Day
• Independent Czechoslovak State Day
• Struggle for Freedom and Democracy Day
• Christmas Eve
• Christmas Day
• St. Stephen’s Day

Holidays are always observed on the day on which they fall, even if they fall on a weekend. Holidays are not moved to the nearest Monday, nor do workers get a free day in compensation for a holiday falling on a non-work day.

Sick leave

If an employee becomes incapable of work due to sickness or injury, the employer must pay sickness benefits up to the fourth to the 14th day of work incapacity. The sickness benefit is equal to 60% of the employee’s average wage.

Employers may check an employee's compliance with a physician's instructions during the first 14 days of being unable to work; employers can reduce sick benefits or, in the case of a gross breach, refuse to pay sick benefits at all if employees violate the prescribed regimen.

The government pays sick benefits from the 15th day of work incapacity.

Health coverage

Employers in the Czech Republic are responsible for Social Security and workers’ compensation withholding and payments. Social Security is administered by the Czech Social Security Administration and includes a pension insurance fund, the state unemployment policy fund and the sickness insurance fund.

Employees also are eligible for voluntary pension insurance, a program where a portion of participant contributions to the District Social Security Administration is allocated to a private insurance company.

Additional benefits

In addition to healthcare benefits, employees in the Czech Republic are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in the Czech Republic, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: October 03, 2024

Employee onboarding with an employer of record in the Czech Republic

We write and validate all local employment contracts, streamlining the onboarding process for you and your Czech Republic employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in the Czech Republic, we will:

• Schedule a welcome call to discuss HR and employment information for the Czech Republic, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Czech Republic employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in the Czech Republic. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.