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Czech Republic

How to Hire Workers in Czech Republic | Employer of Record (EOR) in Czech Republic

Entering the Czech Republic market? Our EOR services make it easy to establish your business in Czech Republic. We handle all aspects of local employment, including payroll, benefits, and compliance with Czech labor laws. With our expertise in the Czech market, you can confidently expand your business, knowing that you have a trusted partner managing your international employment requirements.

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Czech Republic, known for its stunning architecture, rich culture, and strategic location in Europe, is an attractive destination for businesses looking to expand internationally. TCWGlobal makes hiring in Czech Republic easy and hassle-free.

With a population of over 10.7 million people, Czech Republic boasts a highly skilled and educated workforce. From the historic streets of Prague to the picturesque countryside of Bohemia and Moravia, Czech Republic offers a unique blend of culture, history, and natural beauty.

When it comes to expanding your business into Czech Republic, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers customized benefits and services for your workforce. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Czech Republic will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Worker Classifications

There are no official subcategories of workers in the Czech Republic.

Fixed-Term Contracts

​Fixed-term contracts are permitted in the Czech Republic but may not exceed 3 years and cannot be renewed more than twice. In light of that, an individual can be on a fixed-term contract for a maximum of 9 years. If a Worker works beyond the end of the fixed-term without an official renewal, the contract will be automatically converted to indefinite.

Probationary Periods

Probationary periods are permitted in the Czech Republic up to 3 months (6 months for managers). Notice is not needed to terminate an engagement contract during a probationary period.

Holidays

In Czech Republic, Workers recognize 11 public holidays. Workers are entitled to a paid day off in recognition of public holidays. Workers that work on a public holiday are entitled to double pay.

Vacation

Most Workers are entitled to 4 weeks of vacation annually. Leave should be taken in the year it is accrued, but no later than the year following the year it is accrued. Accrued but unused leave must be paid to workers who are terminated.

Sick Leave

Workers are not entitled to benefits during the first three days of illness or injury. From the fourth to the fourteenth day, employers must pay 60% of the Workers average wage. The government picks up benefits as of the fifteenth day.

Working Hours

A standard workweek is 40 hours per week over 5 days. Shifts may not exceed 12 hours. Workers may not be asked to work more than 8 hours of overtime per week or 150 hours of overtime per year. Workers must receive 11 hours of rest between the end of one shift and the start of another.

Overtime

All work above the standard weekly hours is considered to be overtime and is regulated by the collective agreement. A maximum of 8 additional hours per week and 150 hours a year can be worked as overtime. All overtime hours in excess of 40 hours per week are paid at an overtime compensation rate of 125% of the worker’s regular pay rate. For night or weekend working an additional 10% pay must be given, and those working on a public holiday are entitled to an additional 100% pay or a compensatory day off.

Termination

Except in cases of criminal or serious misconduct, Workers must be given advanced written notice prior to termination and include one of the specific reasons for termination permitted by the Labour Code. If an adequate reason exists, Workers are entitled to two months’ notice, which begins in the month after the delivery of notice. Workers may be entitled to severance depending upon the reason for termination

Resignation

There are two parts to the monthly retirement pension. The first is a monthly payment of 10% of the average wage (around CZK 1,700). The second element is earnings related, which is calculated on 1.5% of the personal assessment base per year of coverage. People who are not permanent residents of the Czech Republic are still entitled to a pension, which corresponds to the time they spent in engagement in the country.

Unique Country Nuances

Parents are entitled to take parental leave up until the child turns 3 years old (or 4 years old is the company agrees). Parents are given a joint parental allowance for the entire period of the leave regardless of how long is taken.

Mandatory Employer Costs

Social Security contribution by companies is 24.8% and health insurance contributions is 9%, bringing the total employment cost to 33.8%.

Benefits

Full-time workers in the private sector are entitled to paid leave of 4 weeks (20 working days) per year. Workers in the public sector, and certain other fields, are entitled to paid leave of 5 weeks (25 days) per year, and teachers receive an entitlement of 8 weeks per year. Workers become eligible to take leave after 60 days of service has been working with a single company and the company reserves the right to accept or deny any leave requests due to the demands of the business. All leave should be used within the allotted year; however, if it is possible to permit workers to carryover a portion of their unused leave into the next calendar year, carryover requests must be in writing and shared in advance with the company. New fathers (or those who have taken into their care a child under the age of 7), are eligible to receive paternal post-natal care benefit for 2 weeks. This leave is paid at the rate of 70% of the worker’s regular salary. The paternity leave must begin within 6 weeks after the birth of the child and must be used on one block. To be eligible for this leave, contributions must have been made to Social Security for 270 days in the two years prior. Mothers can also choose to transfer a portion of their maternity leave to the father once the child has reached seven weeks of age. The father will receive parental pay during this leave. Workers cannot be terminated during Paternity leave.

Leave

Full-time workers in the private sector are entitled to paid leave of 4 weeks (20 working days) per year. Workers in the public sector, and certain other fields, are entitled to paid leave of 5 weeks (25 days) per year, and teachers receive an entitlement of 8 weeks per year. Workers become eligible to take leave after 60 days of service has been worked with a single company and the company reserves the right to accept or deny any leave requests due to the demands of the business. All leave should be used within the allotted year; however, it is possible to permit workers to carryover a portion of their unused leave into the next calendar year, carryover requests must be in writing and shared in advance with the company.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.