Hiring in Czech Republic

The contract must state the type of work, place of work and start date, with salary in CZK, working time, leave and notice confirmed in writing within seven days of the start. Czech law treats the EOR model as agency employment, so the provider needs an employment agency permit to act as your employer.

Bilingual Czech and English contracts are standard for commercial roles.

Fixed-term contracts are permitted and most EORs default to indefinite terms, but an assignment to the same client is capped at 12 consecutive months unless the employee asks for longer.

Set probation from day one. An extension needs the employee's written agreement, signed before the original period ends, and cannot go past the statutory maximum.

Full days of sickness or holiday during probation push the end date back automatically. Ask the EOR how it tracks that before you rely on a probation exit.

The premium is calculated on average earnings, or replaced with time off by agreement. With consent, overtime can go beyond 150 hours as long as it averages no more than 8 hours a week.

Salaries can be agreed as inclusive of overtime, up to 150 hours a year for most staff and all permitted overtime for managers. Put the position in writing either way.

Market practice for professional roles is 5 weeks, a week above the statutory floor, so quote the market figure when you budget.

The employer pays the first 14 days of sickness at 60% of reduced average earnings, after which the state sickness scheme takes over. Maternity, paternity and parental benefits are state funded, so confirm the EOR is not billing them to you.

An employer can only give notice on grounds listed in the Labour Code, such as redundancy, health, poor performance after a written warning or breach of duties. There is no unilateral pay in lieu of notice, so most exits are settled by a written termination agreement.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any severance. Employees have two months to challenge a dismissal in court, so keep a documented reason.

Meal vouchers or a tax-free meal allowance, a fifth week of holiday, paid sick days and employer pension contributions are standard for professional roles even though they are not mandatory. Statutory accident liability insurance is compulsory and should already sit with the EOR.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 33.8% on top of gross salary, with social security capped at CZK 2,350,416 a year and health insurance uncapped. That is before the EOR fee.

Registration is the trap. Since July 2026 every new hire must be registered for social insurance before their first day, with fines of up to CZK 100,000 for missing it, so build that into the onboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. Applications through an employment agency need extra documents about your company as the user, and the Blue Card needs a salary of at least CZK 73,823 a month.

Set start dates after approval, not before. The Labour Office must also be notified before a foreign national starts work.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is straightforward and a limited company needs only CZK 1 of share capital, but the running cost is the point: accounting, monthly employer reporting, separate health insurer filings and audit thresholds set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.