Hiring employees in the Czech Republic as a foreign company

Short answer

An employment contract in the Czech Republic must be in writing and state at least the type of work, the place of work and the start date (Labour Code, Section 34). A probation period can be agreed in writing (Section 35). Notice is at least two months (Section 51), and an employer may give notice only for the reasons listed in the Labour Code. The employer must register each employee with the social security administration and the health insurer within 8 days. Non-EU employees usually need an employee card.

Quick answers

What must a Czech employment contract contain?

At least the type of work, the place of work and the start date, in writing (Labour Code, Section 34). Pay, working time and holiday are usually set out too.

Can we dismiss an employee at will?

No. A Czech employer may give notice only for the reasons listed in the Labour Code, and the notice period is at least two months.

What registrations does an employer need?

Each employee must be registered with the Czech Social Security Administration and the health insurer within 8 days of starting, and the employer withholds payroll tax.

When this situation arises

• •Your company is hiring its first employee in the Czech Republic
• •You want to hire a Czech contractor instead of an employee
• •You need to let an employee go
• •You want to hire someone who is not an EU national

What options do you have

Recommended step-by-step process

1. 1.

   Choose the entity

   Hire through a Czech subsidiary or branch, or through an employer-of-record provider.

2. 2.

   Contract and internal rules

   Written contract, job description, working time and pay terms under Czech law.

3. 3.

   Registrations

   Social security and health insurance within 8 days; payroll tax withholding.

4. 4.

   Work permit if needed

   For non-EU employees, an employee card or other authorisation before the start.

What documents to prepare

• •Draft employment contract
• •Job description and pay
• •Company registration details
• •Employee's passport and residence status for non-EU staff

Common mistakes

• •Using a US at-will contract: Czech law does not allow dismissal without a statutory reason
• •Missing the 8-day insurance registration
• •Calling an employee a contractor to avoid employment rules

Risks and important deadlines

Estimated costs

The lawyer's fee for contracts and set-up is agreed in advance. Payroll and insurance contributions are separate employer costs.

When it's worth contacting a lawyer

Before the first hire, before any dismissal, and before hiring someone from outside the EU.

Frequently asked questions