Concept of undeclared work in the Czech Republic – new obligations for employers | News Flash

From 1 October 2025, an amendment to Act No. 435/2004 Coll., on Employment (“Employment Act“) will take effect in the Czech Republic. This amendment primarily regulating employers’ notification obligations when employing foreigners.

Introduction of the Concept of Undeclared Work

The amendment introduces a new concept of undeclared work into Czech legislation and changes the procedure for employers regarding the notification of employing foreigners to the regional branch of the Labour Office (“Labour Office”). Until 30 September 2025, it is sufficient to send notification of employing foreigners no later than on the day the foreigner starts employment. From 1 October 2025, it is necessary to send notification of the foreigner’s commencement to the Labour Office before the moment of starting work.

If the employer fails to fulfil this obligation properly and in a timely manner, the performance of work by the foreigner will automatically be considered undeclared work (*). By enabling the performance of undeclared work, the employer commits an offence for which it faces a fine of up to CZK 3,000,000.

Whom Must the Employer Report?

The notification obligation to the Labour Office applies to employers when the following individuals are to start work:

• EU citizens or their family members
• Foreigners who are family members of Czech citizens
• Foreigners with free access to the labour market (**)
• Foreigners requiring employment permits, employment cards, intra-company transfer cards, or blue cards

If the situation changes and the foreigner no longer needs a permit for employment, employment card, intra-company transfer card, or blue card for work performance in the Czech Republic, the employer is again obligated to notify the Labour Office of this fact within 10 calendar days from when the given fact occurred.

The employer’s obligation to report all changes in its maintained records of employed foreigners, no later than 10 calendar days from the day the change occurred or when the employer learnt about it, continues to apply.

Similarly, the employer must inform the Labour Office about the termination of employing a foreigner or his/her work performance in the Czech Republic no later than within 10 calendar days. The employer does not have this obligation only when the employment of the foreigner or his/her work performance in the Czech Republic ended on the date originally notified by the employer (i.e., notification of fixed-term employment).

Our Recommendation

We recommend that employers review and possibly adjust internal procedures so that the timing of notifying a foreigner’s commencement of employment complies with the Employment Act requirements from 1 October 2025, meaning that notification occurs before the moment of starting work. Given the new wording of the law, it appears ideal to notify the foreigner’s commencement of work at least one day in advance to avoid potential questions about when exactly the moment of starting work occurred and when the employer made the notification.

* See Section 5 letter j) of Act 435/2004 Coll., on Employment: “undeclared work means work performed by a person specified in Section 87 par. 1 first sentence, where the employer failed to fulfil its obligation to inform the relevant regional branch of the Labour Office about starting employment or work performance no later than before the moment of starting employment or work performance of this person.”

** Free access to the Czech labour market according to provisions Section 98 letter a) to e), j) and l) to v) and in Section 98a of the Employment Act.

Aneta Zichová

Associate | Accace Czech Republic

Get in touch with us