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Expand Your Employer of Record Services In Czech Republic

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Expand Your Employer of Record Services In Czech Republic
We Make Visas Easy For You
Expand Your Employer of Record Services In Czech Republic
We Make Visas Easy For You

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Expand Your Employer of Record Services In Austria

Expand Your Employer of Record Services In Austria
Expand Your Employer of Record Services In Austria

From onboarding, HR management to payroll and compliance, we ensure your hiring and expansion plans in the Middle East meet all local regulations.

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Czech Republic At a Glance

Czech Republic At a Glance
Czech Republic At a Glance

Expand & Grow your business 10x faster with tailored services, designed to meet your specific needs and requirements.

Capital

Prague

Currency

Czech

Payroll Frequency

Monthly

Language

Czech

Employer Taxes

About 34% of gross salaries, including health and social security contributions.

Employee Taxes

N/A

Date Format

DD/MM/YYYY

Calling Code

+420

Population

10.9 million

GDP

$383 billion USD

Working Hours

40 hours per week

National Holidays

13

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Country Information

Easily navigate Czech Republic Employment Landscape

Easily navigate Czech Republic Employment Landscape
Easily navigate Czech Republic Employment Landscape

Everything you need to know about working in the Czech Republic (Czechia), explained in one place. Our resources cover the essentials of the Czech Labour Code, including the fact that an employment contract must be in writing and should clearly state the job role, place of work, and start date—plus the wider employee protections that apply in practice.

Understanding Weekly Working Hours in Czech Republic

Explore Work hours Employee rights in Czech Republic

Explore Work hours Employee rights in Czech Republic
Explore Work hours Employee rights in Czech Republic

In the Czech Republic (Czechia), working hours are regulated to protect employees and ensure fair labour practices. The standard working time is 8 hours per day and 40 hours per week, typically spread over five working days. Certain sectors may apply different schedules, but the average weekly working time must comply with legal limits.

Any work performed beyond standard hours is classified as overtime and is strictly regulated. Overtime is generally limited to 150 hours per year by law, with additional overtime possible only by employee agreement and within an overall cap of 416 hours annually.

Overtime must be compensated with:

  • At least a 25% wage premium above the employee’s average earnings, or

  • Compensatory time off, if agreed between the employer and employee

Work performed on public holidays entitles employees to paid time off plus a wage supplement, as defined by law or collective agreement. Additional premiums may apply for night work or weekend work, depending on the employment contract or sector rules.

Public Holidays and Employee Leave in Czech Republic

Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave

In the Czech Republic (Czechia), employees are entitled to paid leave on national public holidays, giving them time off to observe state, cultural, and religious celebrations. In addition to public holidays, Czech labour law provides a strong framework of statutory leave entitlements that support employee health and work–life balance.

Employees are entitled to paid annual leave of at least 4 weeks per year, with many employers offering more through collective agreements or company policy. Czech law also guarantees paid sick leave, maternity leave, paternity leave, and parental leave, with income support coordinated through the social security system.

The Labour Code further provides special paid leave for specific life events, such as marriage, the birth of a child, bereavement, medical examinations, or relocation, typically for a limited number of days as defined by law or collective agreements.

Understanding Weekly Working Hours in Czech Republic

Explore Employment Contracts & Costs in Czech Republic

Explore Employment Contracts & Costs in Czech Republic
Explore Employment Contracts & Costs in Czech Republic

In the Czech Republic (Czechia), employment relationships are governed by a well-defined legal framework that sets out clear employee rights and employer obligations. The standard form of employment is an open-ended (indefinite) contract, and employers are legally required to register employees with tax authorities, social security, and public health insurance providers from the first day of work.

Written employment contracts are mandatory and must specify essential terms such as job role, place of work, start date, salary, working hours, and applicable workplace rules.

Types Of Employment

Czech labour law recognises several employment arrangements, including:

  • Permanent (open-ended) employees

  • Fixed-term employees, permitted only under specific legal conditions and duration limits

  • Temporary or seasonal workers

  • Agency workers, hired through licensed temporary employment agencies

  • Independent contractors, engaged under civil or commercial contracts and not covered by standard employee protections

Correct worker classification is essential, as misclassification can result in financial penalties, back payments of contributions, and legal disputes.

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ICC classifications, labor leasing, and wage rules in Czech Republic

Labor Regulations & Independent Contractor Classification in Czech Republic
Labor Regulations & Independent Contractor Classification in Czech Republic
Labor Regulations & Independent Contractor Classification in Czech Republic

In the Czech Republic (Czechia), the distinction between an independent contractor (freelancer) and an employment relationship is primarily based on independence versus subordination. Independent contractors operate on a self-employed basis, controlling their own schedules, work methods, tools, and business risks

Labor Leasing

In Czechia, assigning workers to perform duties at a third-party workplace—known as temporary agency work—is strictly regulated. Only licensed temporary employment agencies may legally supply workers to client companies. These agencies must comply with labour, wage, and social security obligations, and equal-treatment rules apply to agency workers. Both the agency and the host company may bear joint liability if legal requirements are breached.

Minimum Wage Requirements

The Czech Republic enforces a statutory national minimum wage, which is set and updated by the government. All employers must comply with this minimum wage regardless of sector or occupation. In addition, guaranteed wage levels apply to different job categories based on complexity, responsibility, and working conditions. Collective bargaining agreements may establish higher minimum pay, but wages may never fall below the statutory minimum.

How pay and health coverage apply during employee illness in Czech Republic

Medical Benefits in Czech Republic

Medical Benefits in Czech Republic
Medical Benefits in Czech Republic

In the Czech Republic (Czechia), employee health protection and sick pay are an integral part of labour law, ensuring income continuity during illness or injury through a shared employer–state system.

When an employee is unable to work due to a non-work-related illness or injury:

  • Days 1–14 of sick leave: The employer pays wage compensation, calculated as a percentage of the employee’s reduced average earnings, in accordance with statutory rules.

  • From day 15 onward: Sick pay is provided by the state social security system through sickness benefits administered by the Czech Social Security Administration (ČSSZ).

Sick leave requires medical certification, and benefit amounts are subject to legally defined reduction thresholds and caps.

For work-related accidents or occupational diseases, employees are entitled to full compensation for lost earnings and medical costs, funded through the employer’s mandatory accident insurance, with stronger protection than ordinary sick leave.

Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Czech Republic
Probationary Periods & Termination Notice in Czech Republic
Probationary Periods & Termination Notice in Czech Republic

Probation Period in the Czech Republic

In the Czech Republic (Czechia), employment contracts may include a probationary period (zkušební doba), which must be expressly agreed in writing at the start of employment.

  • The standard probation period is up to 3 months

  • For managerial positions, it may extend to up to 6 months

  • Probation cannot be extended, except by mutual written agreement within legal limits

During the probation period, either the employer or the employee may terminate the employment for any reason or without stating a reason, with very short notice. Termination generally takes effect on the day of delivery, unless a later date is specified.

Termination Notice Periods After Probation

Once the probation period ends, statutory notice periods (výpovědní doba) apply:

  • The minimum notice period is 2 months

  • The notice period is the same for employers and employees

  • Notice periods do not increase with length of service

Notice must be given in writing, and it begins on the first day of the calendar month following delivery of the termination notice.

Collective bargaining agreements or employment contracts may provide longer or more favourable notice periods, but they cannot reduce the statutory minimum set by Czech law.

How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Czech Republic
Severance Pay & Pre-Hire Checks in Czech Republic
Severance Pay & Pre-Hire Checks in Czech Republic

In the Czech Republic (Czechia), severance pay is paid at the time of termination, not accumulated through ongoing employer contributions. When an employee is dismissed for organizational or other statutory reasons (such as redundancy), they are entitled to statutory severance pay (odstupné).

The minimum severance entitlement is based on length of service with the employer:

  • Less than 1 year: at least 1 month’s average earnings

  • 1–2 years: at least 2 months’ average earnings

  • More than 2 years: at least 3 months’ average earnings

Higher severance amounts may apply if provided by an employment contract, internal regulation, or collective agreement. In addition to severance, employers must also settle unused vacation, outstanding wages, and other accrued entitlements.

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