Learn all the requirements and guidelines to manage the posting of workers to the Czech Republic, obligations, documents, and penalties in case of non-compliance.
Act No 262/2006 Coll. (Labour Code) and Act No 435/2004 Coll. (Employment Act) regulate the posting of workers to the Czech Republic. These Acts transpose Directive 96/71/EC into national legislation. In the following sections you will find a summary of the obligations provided by local legislation and European Law on transnational posting of workers to the Czech Republic.
Table of contents
- Preliminary obligations for the posting workers to the Czech Republic
- Working and salary conditions applicable during the assignment in the Czech Republic
- Social security in the Czech Republic
- Assignments in the Czech Republic lasting more than 12 months and termination of posting
- Documents’ availability during the assignment in the Czech Republic
- Penalties for non-compliance as defined in the local legislation
- Regulatory framework
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1. Preliminary obligations for the posting of workers to the Czech Republic
According to Directive 96/71/EU and its national transposition, employers based in EU/EEA countries may post their workers to the Czech Republic for a provision of services, as long as they fulfill preliminary conditions.
Foremost, the posting must be based on an agreement between the posting company and the recipient of services in the Czech Republic. Alternatively, a foreign-based company may post a worker to a place of business in the Czech Republic when both companies belong to the same group. If the posting company is a temporary employment agency, they may post a worker to an entity based in the Czech Republic if, during the period of the posting, there is an ongoing employment relationship between the temporary employment agency and the worker himself.
The posting of workers gives rise to reporting obligation for the employer, regardless of the duration of posting. Each posting shall be notified to the relevant regional branch of the Labour Office according to the place of work. The posting company must submit an online form via email or post to the competent authority. This fulfillment is due at least one day prior to the start of work.
Among others, the registration requires the following data:
- Identification data of the worker;
- Address in the country of residence;
- Type of service;
- Work’s location and duration of the activities.
2. Working and salary conditions applicable during the assignment in the Czech Republic
Pursuant to the Section 319 of the Labour Code, general conditions of employment provided for by Czech legislation apply to posted employees. These provisions concern working and rest time, safety, health and hygiene in the workplace, minimum wage, further remuneration, allowances, reimbursement, holiday pay and vacation allowance, among others. In particular, following to the transposition of Directive (EU) 957/2018 the employer’s obligation to provide remuneration to the posted workers has been extended to all compulsory wage components.
Concerning the minimum wage requirements, Czech legislation sets out a statutory fixed minimum wage. However, collective bargaining agreements are also negotiated in some industries. Therefore, when posting workers to the Czech Republic it is necessary to consider whether a collective bargaining agreement is applicable.
However, these provisions only apply if they are more favorable to the foreign worker.
3. Social security in the Czech Republic
When posted to the Czech Republic by an employer in an EU/EEA-country, an employee temporarily works in the Czech Republic. Yet he continues to be employed in another country. Thanks to the EU harmonized social system, employees posted abroad pay social contributions to the country where they are employed.
As a matter of fact, pursuant to Regulation (EC) 883/2004, the posting company must apply to the competent social institution for the issuing of an A1 Certificate for each posted worker. This document states in which country the holder pays for social security contributions. Therefore, posted workers remain under the social security system legislation of the country in which they are employed.
4. Posting of workers to the Czech Republic lasting more than 12 months and termination of posting
When the period of posting exceeds 12 months, the law provides for a further obligation. The posting company must submit a written notice to the regional branch of the Labour Office of the Czech Republic within 12 months from the beginning date of posting. This notice must state the reason of the extension. Where the application of the Labour Code is more favourable, the posted workers are entitled to all rights provided for by the law of the host State.
In case the posting terminates on a different date than the one originally reported, a notification is due. The posting company must inform the relevant regional branch of the Labour Office within 10 days at the latest.
5. Documents’ availability during the assignment in the Czech Republic
All documents related to the posting of workers must be available at the workplace during the period of posting. Among others, the main documents requested during inspections are personal IDs, work permits (when applicable), employment contracts, pay slips and an overview of working hours. Such documents must be available either in Czech or Slovak. Therefore, a translated version is necessary.
6. Penalties for non-compliance as defined in the local legislation
All general conditions of employment are applicable to posted workers to the Czech Republic. Any breaches of such provisions may entail penalties in the form of administrative offences. Among others, failure to register posted workers may give rise to a fine of up to CZK 100,000.