Czech Your Paperwork – Hiring Foreign Employees in the Czech Republic

In this episode of our Workforce Worldview podcast, we join Carine Elliott and Sabina Krajíčková from our Business Immigration team as they discuss the hidden pitfalls that Czech employers face when hiring foreign workers. From overlooked notification duties to issues of staffing agency licensing, the discussion highlights how immigration in the Czech Republic is a strategic HR priority.

A few key takeaways from the discussion:

Why is immigration a strategic HR issue for Czech employers?

The Czech labour market is one of the tightest in Europe, and key sectors rely on foreign workers, which can involve not only large amounts of paperwork, but also potential legal issues due to the nuances of hiring in the Czech Republic. Employers who fail to plan ahead risk fines, delays and losing talent.

Does hiring EU citizens carry particular risk in the Czech labour market?

While EU citizens do not require visas or work permits, they are still considered foreigners under Czech law. This means the Labour Office must be notified on their first day of employment, including for Slovak employees. In order to avoid issues with a failed notification, companies should run routine audits.

What mistakes are common when hiring non-EU workers?

The most common mistake when offering a job to a non-EU foreign worker is mismanagement of the timeline. Obtaining an Employee Card can take months, but some Czech employers promise candidates that they can start in a few weeks – even though they cannot yet legally employ them. This results in frustration for the candidates, who may then seek a position elsewhere.

How important are notifications for Czech employers?

Notifications to the Labour Office often are a complex part of hiring foreign nationals in the Czech Republic. These notifications must be given not just for hiring, but also events like residence status updates, marriages, student status changes and offboarding. Failure to keep up with these notifications could have companies facing legal issues and fines as a result of inspections.

How are staffing agencies affected by Czech labour regulations?

Czech laws strictly regulate employee leasing, and only licensed agencies are able to lease employees. This means that employers cannot simply “borrow” foreign workers from a partner company, as it would be illegal employment, which carries a large fine and reputational risk.

What is unique about hiring Ukrainian employees in the Czech Republic?

Temporary protections allowed Ukrainians direct access to the Czech labour market, but some are still working under permits and visas – creating confusion in the labour market. Despite having temporary protection, Ukrainian foreign workers still require the usual notifications and paperwork for registration with the Labour Office. This protection must also be renewed periodically to avoid illegal employment.

How can employers avoid the costliest mistakes when hiring foreign nationals in the Czech Republic?

The hiring of foreign nationals in the Czech Republic can be a complex undertaking. The processes are slow, and mistakes are common, but they can all be avoided with the proper planning. Employers should be setting up routine audits to keep documentation organised and stay on top of notification alerts. For more details on how to navigate Czech employment law, please contact a member of our Labor & Employment team.