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Updated on 13th of February, 2025
On 30 January 2025, an amendment to Act No. 65/2022 Coll. and related acts relating to the conflict in Ukraine was submitted for signature by the President of the Czech Republic. The amendment plays a key role for companies looking to employ refugees from Ukraine in the Czech Republic, as it grants foreigners special protection and free access to the labour market. Thanks to the changes, temporary protection is to be extended again until 31 March 2026.
Persons who have fled from Ukraine before the armed conflict can currently reside in the Czech Republic on the basis of different types of residence permits. In addition to ordinary residence permits, such as an employment card, a large number of Ukrainian citizens reside in the Czech Republic on the basis of:
Please note that, with a few exceptions, it is not possible to apply for another residence permit after the start of the conflict. The only exceptions are applications covered by Government Regulation No. 308/2022 Sb. According to this regulation, it is possible to apply to the embassy in Ukraine for, for example, a blue card or a permit for the purpose of study.
Embassies in Ukraine are also now accepting applications for employment cards, but only for government-approved programmes (e.g. Skilled Worker Programme, Key and Scientific Personnel Programme, etc.).
For more information on the conditions for inclusion in the economic migration programme, please click here.
Temporary protection will be extended again by affixing a new visa. Given that it is not technically possible to extend temporary protection in a single day, the process will again take place in two steps, first by registration and then by visiting the Ministry of the Interior (OAMP).
Online registration will take place on the website of the Ministry of the Interior and will be possible until 15 March 2025.
By registration itself, the temporary protection will be extended until 30 September 2025. Registration must be completed by booking an appointment to visit the Ministry of the Interior.
Data on family relations will also be filled in as part of the registration. Specifically, it will be necessary to fill in information about the spouse and children under 18 years of age, who are also holders of temporary protection.
After online registration, it is necessary to arrive at the booked date at the Ministry of the Interior and collect new visa. The visit to the OAMP must be completed by 30 September 2025. A foreigner needs to bring:
New visa will be valid until 31 March 2026.
Holders of a visa for the purpose of toleration in connection with the conflict in Ukraine will have their visas automatically extended again, until 31 March 2026. They do not have to take any further steps.
However, to avoid inconsistencies and uncertainty when dealing with the authorities, we recommend that you apply for a new visa with an updated validity date. This requires an appointment at OAMP.
We would like to remind you that the employer of a foreigner is obliged, among other things, to keep a copy of the documents proving the employee’s right to reside. The employer should therefore be concerned with whether employees who hold temporary protection have applied for its extension properly and in time.
Employers are advised to ensure that their employees register on time and then attend the appointment for the visa to be affixed. The registration will be supported by a pdf certificate which can be downloaded from the OAMP portal.
Temporary protection holders have free access to the labour market, so they do not have to deal with work permits (unlike, for example, holders of a tolerance visa).
In addition to matters related to the extension of residence titles, please note that the foreigner is obliged to report to the OAMP any significant changes concerning him/her, e.g. change of residence address, change of surname, change of marital status or change of travel document. Find the form on the OAMP’s website for this purpose. The form shall be delivered along with the necessary documents in person, sent by post or by data box.
Foreigners should also note that they may be subject to obligations such as paying utilities or health insurance.
We are ready to help you with the employment of refugees from Ukraine, do not hesitate to contact us or browse through our services in the Czech Republic.
Persons who have fled from Ukraine before the armed conflict can currently reside in the Czech Republic on the basis of different types of residence permits. In addition to ordinary residence permits, such as an employment card, a large number of Ukrainian citizens reside in the Czech Republic on the basis of:
Please note that, with few exceptions, it is not possible to apply for another residence permit. The only exceptions are applications covered by Government Regulation No. 308/2022 Sb. According to this regulation, it is possible to apply to the embassy in Ukraine for, for example, a blue card or a study permit.
Embassies in Ukraine are also now accepting applications for employment cards, but only for government-approved programmes (e.g. Skilled Worker Programme, Key and Scientific Personnel Programme, etc.).
For more information on the conditions for inclusion in the economic migration programme, please click here.
Temporary protection will be extended again by affixing a new visa. As it is not technically possible to extend temporary protection in one single day, the process will be carried out in two steps, first by registration and then by a visit to the Asylum and Migration Policy Department of the Ministry of the Interior (OAMP).
If the holder of temporary protection fails to register by the deadline or fails to present the visa after registration by the end of September 2024, the temporary protection will expire.
Online registration will be open until 15 March 2024. The registration portal will be available on the following website: www.frs.gov.cz/docasna-ochrana/#3.
The registration itself extends the temporary protection until 30 September 2024. However, it is necessary to complete the registration by booking a date to visit the Ministry of the Interior.
If the registration is not done in time and the temporary protection expires, the foreigner has the possibility to reapply for temporary protection. However, there is a risk of not being found to meet the conditions for its granting.
After registering online, it is necessary to arrive at the OAMP on the scheduled date and have a new visa marked. The visit to the OAMP must
be completed by 30 September 2024. The foreigner should submit following documents:
New visa will be valid until 31 March 2025.
For holders of a visa for the purpose of tolerance in connection with the conflict in Ukraine, the visa will be extended again automatically until 31 March 2025. There is no need to take any further steps to do so. The visa for the purpose of tolerating the conflict in Ukraine is coded D/SD/91.
However, to avoid inconsistencies and uncertainty when dealing with the authorities, we recommend applying for a new visa with an updated validity date. This requires an appointment at OAMP.
We would like to kindly remind that the employer of a foreigner is obliged to keep a copy of the documents proving the employee’s right to stay. Therefore, the employer should be concerned with whether employees who hold temporary protection have properly and timely applied for its extension.
Employers are advised to ensure that their employees register on time and then attend the appointment for the visa to be affixed. The registration will be supported by a pdf certificate which can be downloaded from the OAMP portal.
Temporary protection holders have free access to the labour market, so they do not have to deal with work permits (unlike, for example, holders of a tolerance visa).
In addition to matters related to the extension of residence titles, please note that the foreigner is obliged to report to the OAMP any significant changes concerning him/her, e.g. change of residence address, change of surname, change of marital status or change of travel document. Find the form on the OAMP’s website for this purpose. The form shall be delivered along with the necessary documents in person, sent by post or by data box.
Foreigners should also note that they may be subject to obligations such as paying utilities or health insurance.
We are ready to help you with the employment of refugees from Ukraine, do no
Persons who have fled from Ukraine before the armed conflict can currently reside in the Czech Republic on the basis of different types of residence permits. In addition to ordinary residence permits, such as an employment card, a large number of Ukrainian citizens reside in the Czech Republic on the basis of:
This type of residence will generally be given to those who fled Ukraine after the invasion by the Russian Federation. Alternatively, those whose residence permits have expired but cannot return for the time being due to the situation in Ukraine.
Please note that persons who have obtained temporary protection in another Member State cannot obtain temporary protection in the Czech Republic. At present, it is not even possible for persons with temporary protection or a visa for the purpose of toleration to switch to the employment card regime.
The most significant change is the possibility for persons with temporary protection granted in another country to apply for a blue card at the embassy in Ukraine.
We would like to remind you that holders of temporary protection issued by the Czech Republic can only stay in the Schengen area countries in a limited regime according to the so-called 90/180 rule. Thus, within any 180 days they can stay outside the territory of the Czech Republic in another Schengen area country only for 90 days.
Temporary protection was granted until March 31, 2023. Those who wished to continue to reside in the Czech Republic had to register online by March 31, 2023.
If the registration was not carried out, the temporary protection expired. In this case, the person can reapply for temporary protection. If he or she continues to meet the conditions, temporary protection will be granted.
If the registration has been duly and timely carried out, this extends the validity of the temporary protection until September 30, 2023. Until then, the holder of temporary protection is obliged to appear in person at the Asylum and Migration Policy Department of the Ministry of the Interior (OAMP) and have a new visa affixed. This will be valid until March 31, 2024. The date at the OAMP is assigned during online registration.
As part of the in-person visit to OAMP to mark the new visa, you must also provide the necessary documents. These are:
If the deadline for extending temporary protection has been missed, any entitlement to benefits (e.g. humanitarian benefits, housing assistance, free access to the labour market, access to health insurance) has also been lost.
The foreigner has the possibility to reapply for temporary protection if the circumstances that led to the first application continue to exist.
More information can also be found on the website of the Ministry of the Interior of the Czech Republic.
If you do not meet the conditions for temporary protection, you can apply for a tolerance visa. In this case, the person does not automatically have free access to the labour market and must obtain permission from the Labour Office.
Those who already have a tolerance visa in connection with the conflict in Ukraine have their visa extended automatically until 31 March 2024 and do not need to take any further steps. However, in order to avoid inconsistencies and uncertainty when dealing with the authorities, it is recommended to request a new sticker with an updated validity date. This label is marked with the code D/SD/91. A prior order is required for its marking.
There is also an exception for visas issued in connection with the armed conflict in Ukraine in relation to exit from the territory. Persons holding this type of visa for the purpose of toleration do not lose their visa by leaving the territory.
Since the employer is obliged to keep a copy of the documents proving the alien employee’s eligibility to stay, the employer should take a proactive interest in whether employees who hold temporary protection have applied for its extension in a proper and timely manner.
By March 31, 2023, temporary protection holders should have completed online registration. By doing so, they extended their temporary protection until September 30, 2023. They must then appear in person at an OAMP office to have their visa affixed by that date. The visa will be valid until March 31, 2024.
The employer can then verify the validity of the authorisation with the newly affixed visa. Between the online registration of the person with temporary protection and the affixing of the visa, the employer should request a confirmation of registration from the person with temporary protection in order to check his/her residence (see image). The registration number can be read from this confirmation. The employer can use the registration number to check the validity of the registration online.
As of April 1, 2023, employers are obliged to register all employees who have temporary protection with the CSSA. This obligation now also applies to employers who have a work performance agreement or a work activity agreement with a holder of temporary protection. The deadline for registering a person is normally 8 days.
Otherwise, the same rules apply to the employment of persons with temporary protection as to the employment of other foreigners with free access to the labour market, e.g. the employer’s obligation to report the start of employment of the foreigner and other changes to the Labour Office or to keep a register of foreign employees.
It’s possible to only employ Ukrainian refugees with free entry to the Czech labour market.
Free entry to the labour market means, that Ukrainian citizens and their family members which comply with conditions further described may work in the Czech Republic without any formal restrictions, i.e. without having to obtain a work permit in advance or the employer having to submit a job position vacancy form beforehand.
The Ukrainian citizen and his family members may work in an employment relationship, as well as on the basis of some of the agreements of performing work outside the employment relationship. Of course, the standard legal conditions must be adhered to, in particular minimal and guaranteed wage, length and schedule of worktime etc.
The Ukrainian refugee must be granted the temporary protection (or perhaps the special long-term visa, which was issued at the begging of the war conflict).
Temporary protection (special long-term visa) is marked with a sticker or stamp in the passport.
Until the above-mentioned law came into effect, Ukrainian refugees were granted a so-called special long-term visa. Since the effective date of the law, only the so-called visa for the purpose of temporary protection has been granted. According to information from the Ministry of the Interior, however, persons who obtained a special long-term visa before the effective date of the law will be automatically transferred to the temporary protection system, i.e. without having to take any action.
Temporary protection may be granted:
For the grant of temporary protection it’s necessary to file the submission personally at one of the District assistance centres for helping Ukraine – the list of these centres according to individual districts may be found HERE.
It’s advised that the Ukrainian citizens who don’t comply with the above-mentioned conditions to sort out their situation individually at the Department of Asylum and Migration Policy of the Ministry of Interior (contact points HERE).
Necessary documents to submit for the application:
The employer has the following administrative obligations:
The employer must have a record of information regarding the foreign employee in the extent:
In the language that the Ukrainian refugee understands, i.e. ideally a bilingual CZ/UA document.
The same rule applies to any other labour law documents of the employer which the Ukrainian refugee should be acquainted with.
The law nor any other legal regulation doesn’t impose this obligation upon the employer to retrieve the extract from the Criminal Records for this purpose and Ukrainian refugees are perceived as citizens of the EU.
In principle the temporary protection which as well means free entry to the labour market is only applicable in the Czech Republic, i.e. the holder of the temporary protection may not use this permit to work abroad.
Nevertheless, if the foreigner is posted within the framework of the Directive regarding posting of workers by his employer to a different entity for the purpose of performance of provision of services, the necessity to have a permit to perform work doesn’t apply to him in the Czech Republic. Nevertheless, it’s necessary to comply with other conditions according to the Directive regarding posting employees (e.g. information obligation, obligation to ensure certain equal working conditions etc.).
A similar regulation should also be applicable within harmonisation in the whole EU. However, it’s not excluded that some EU countries have made use of the possibility to apply an exception to this rule. Therefore, we recommend that you check the local regulation before sending the holder of the temporary protection to another EU country.
On the territory of the Czech Republic there are no limitations to performing business trips. However, on business trips foreigners should always have the necessary documents (mainly copy of the employment contract and travel document with the sticker/stamp proving temporary protection with them).
Yes, it’s necessary to comply with the registration obligation upon arrival and when the place of residence in the territory of the Czech Republic is changed.
For both cases the deadline is 3 days.
The registration upon arrival is done in person at one of the offices of the Foreign police.
The change of place of residence may be announced via post or at the appropriate office of the Department of the Asylum and Immigration Policy of the Ministry of Interior (territorial jurisdiction according to the new place of residence), when announcing this change the document confirming accommodation at the new address (see the forms above) must be submitted together with the form which is available here.
No, every EU Member State states its own rules for the performance of work of Ukrainian refugees. The temporary protection granted in the Czech Republic applies exclusively to the performance of work in the Czech Republic.
Yes, the entrance medical examination shall be performed before commencement of performance of work. In case there is not a chance to obtain the extract from medical records an extended medical examination must be performed.
Free entry is granted by law only temporarily, currently it’s valid till 31 March 2023. In case Ukrainian citizens will want to reside and work in the Czech Republic even after this date they will have to obtain the necessary permit in due time.
Of course, it can’t be ruled out that the effectiveness of the exemption will be extended as the situation evolves.
The limitation of the validity of the law doesn’t mean that the employment contract / agreements on work performed outside of employment must be concluded for a definite period. In our opinion, they may also be concluded for an indefinite period.
Firstly, it’s the failure to fulfil the duty to inform the Labour office when an employee commences performance of work, when the employee’s reported data changes or when the employee’s employment terminates (for more details, please see the question What are the obligations of the employer when hiring Ukrainian refugees?).
Secondly violation of the condition regarding retention of copies of documents proving the existence of employment relationship at the workplace, i.e. employment contract or agreements on work outside employment. An exception to this obligation is the situation when the employer has fulfilled the obligation to notify the District Social Security Administration of the date of the employee’s commencement of employment, which established the employee’s participation in sickness insurance under the Sickness Insurance Act (and therefore only from the moment of fulfilling this obligation) – the supervisory authority is entitled to obtain the relevant information from the Social Security Administration.
Another frequent violation of conditions which occurs during employment of Ukrainian refugees is enabling illegal work which primarily is
Lastly, the most frequently violated legal condition is the disguised employment placement of holders of temporary protection from Ukraine, when most likely the signs of job placement were fulfilled, but without the appropriate license of the employment agency or without the necessary documentation, typically disguised under a contract for work or a contract for the provision of services.
On 31 July 2024, an amendment to Act No. 226/2006 Coll., the Labour Code, was published in the Collection of Laws. It is mainly a transposition amendment to the Labour Code in the Czech Republic that incorporates the requirements of the European Union into the Czech legal system. However, other provisions relevant to labour law were also inserted by the amending legislative proposals.
The transposition amendment to the Labour Code in the Czech Republic brings several important changes that will affect both employers and employees. You may read below about the new mechanism for calculating the minimum wage, the abolition of the guaranteed wage in the private sector and other changes brought by this amendment.
Although the transposition amendment to the Labour Code in the Czech Republic was effective literally hours after its promulgation, there is no urgent need to rewrite contracts and agreements. Most of the changes are in fact applicable only from 2025; there are only a few changes that need to be or can be considered now.
From 1 August 2024, the following changes apply:
On the contrary, the following changes will only take place as of 1 January 2025:
The transposition amendment to the Labour Code in the Czech Republic introduces a new method of calculating the valorization of the minimum wage in accordance with the requirements of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.
The new valorization will be linked to the forecast of the average gross monthly wage for the calendar year for which the minimum wage is set. An indicative reference value of 47 % of the average gross wage in the national economy is set. The indicative reference value is not a target but serves for the purpose of comparing the current level of the minimum wage in relation to an assessment of its adequacy.
The minimum wage will thus rise in line with the increase in the ratio to the average wage in the national economy. Practically, this mechanism will mean a significant increase in the minimum wage. It is already expected that the minimum wage will rise to CZK 20,600 from next year (press release of the Ministry of Labour and Social Affairs available in Czech). The specific amount of the minimum monthly and hourly wage for the following year will always be decided by decree of the Ministry of Labour and Social Affairs by 30 September of the preceding year.
WHEN: Under this valorization mechanism, the minimum wage will be stipulated for the first time for the year 2025. From the date of effect of the amendment until the end of 2024, employees will be entitled to the minimum wage at the level in force before the amendment, i.e. at the level set by the Government in Government Decree No. 567/2006 Coll.
The guaranteed wage is abolished in the private sector altogether.
According to surveys, the vast majority of companies provide wages above the guaranteed wage levels. There are also often problems with correct job classification. The legislator has therefore decided to abolish the guaranteed wage in the private sector altogether. Protection against unreasonably low valuation of work will now be ensured by the minimum wage, which is expected to increase significantly.
The institution of guaranteed salaries in the public sector will remain effective. The lowest levels of guaranteed salary are set in four job groups according to a government regulation, instead of the previous eight.
WHEN: Under transitional provisions, employers will still have to respect the lowest guaranteed wage level for 2024 until the end of 2024.
The so-called self-scheduling of working hours by the employee is introduced. The employee and the employer will now be able to conclude a written agreement under which the employee will be able to schedule his or her own working hours. This will extend the possibility of self-scheduling from remote workers (as was possible before the amendment) to employees working at the workplace.
The length of a self-scheduled work shift must not exceed twelve hours and employees must observe the legal limits for daily and inter-shift rest and breaks. Since the employer is still responsible for compliance with these conditions, it is advisable that the employer continuously monitors compliance with them, for example by means of the employee’s timesheets (it is advisable to negotiate the obligation to keep such records with employees). It is also possible to negotiate other restrictions directly in the agreement, e.g. a prohibition to schedule working hours at night, on Saturdays and Sundays, on public holidays etc., in order to avoid the employer’s obligation to pay the corresponding premiums.
The agreement may also specify whether the employee is to have an even or uneven weekly working hours and how long the compensation period will be in such a case. It is necessary that the shifts scheduled correspond to the scope of the employee’s working hours and the compensation period (in the case of an uneven working hours schedule).
It may be preferable for the employer not to include the above limitations directly in the agreement, but to inform the employee of them in writing because of possible later changes. The agreement may be terminated by mutual agreement or by unilateral notice with 15-day notice period. Please note that this period already starts from the date of delivery of the notice to the other party.
This will also affect persons working under agreements for work performed outside the employment relationship, with whom an agreement may also be concluded. The employer would then be no longer obliged to schedule their working hours in advance, which was rather formal in practice anyway. However, it is advisable to negotiate a maximum number of working hours for a certain period with such workers (in particular to avoid exceeding the maximum limits of agreements for work performer outside the employment relationship). A fine of up to CZK 300,000 may be imposed under the Labour Inspection Act for failure to conclude a written agreement, for breach of obligations under the agreement or breach of the rules for terminating the agreement.
The new regulation on self-scheduling of working time will apply generally, both to the performance of work at the workplace and outside the workplace. It may be practical to enter into such agreements already within the framework of employment contracts or agreements for work performed outside the employment relationship (however, this does not affect the possibility of terminating said agreement).
WHEN: The effective date of this change is delayed until 1 January 2025.
Until now, the premium for work in difficult working environment in the public sector has been set at 5 % of the minimum wage, but the amendment sets a new amount ranging from 5% to 15% of the minimum wage. The final amount of the allowance will be determined by the employer within such specified range, considering the degree of risk, intensity and duration of the aggravating influences. The range will be determined annually for the following year by the Ministry of Labour and Social Affairs by 30 September.
WHEN: Under the transitional provisions, the increase in the premium will only apply from 1 January 2025.
Thanks to the amendment, it is now possible to negotiate remuneration from the agreement on work outside the employment relationship explicitly taking into account possible night work, work in a difficult working environment or work on Saturdays and Sundays. It is conditional upon agreeing on the scope of work in the given harder work regimes.
WHEN: 1 August 2024
The transposition amendment to the Labour Code in the Czech Republic abolishes the obligation for employers to issue a written annual leave schedule at the beginning of each calendar year. This step will reduce the administrative burden on the employer and better reflect the established practice, where it is quite common to proceed differently, and situations arise where the dates of annual leave are usually decided by the employees themselves during the calendar year and the employer only approves them.
However, it remains the case that the date of taking annual leave is ultimately determined by the employer according to its operational needs, while considering the legitimate interests of the employee.
WHEN: 1 August 2024
The transposition amendment to the Labour Code in the Czech Republic extends the regulation of collective bargaining and negotiations with trade unions. The amendment is intended to address situations in which several trade union organizations operating at an employer have disagreed on the content of a collective agreement and thus blocked its conclusion.
If the trade unions fail to reach an agreement within a certain period of time, the employer is entitled to conclude a collective agreement with the trade union organization with the largest number of members or with several union organizations with the largest collective number of members. This may be prevented only by written opposition of a majority of the employees.
WHEN: 1 August 2024
In the case of employees working in the healthcare sector in continuous operations, the possibility of scheduling a shift of up to 24 hours (from the normal 12 hours) is introduced. This is to avoid situations where healthcare workers are scheduled to work shifts with overtime. By definition, overtime cannot be scheduled in advance.
In connection with this, a new premium is also introduced for the increased workload of a healthcare worker of at least 20 % of average earnings for the 13th and each additional hour worked in such a shift.
In addition to the above, the obligation of employers to allow healthcare workers to improve their qualifications, which is considered to be the performance of work, and the right of healthcare workers to paid time off when increasing their qualifications are set (this change is regulated by Acts No. 95/2004 Coll. and No. 96/2004 Coll.).
WHEN: 1 August 2024
The transposition amendment to the Labour Code in the Czech Republic specifies the liability for wages of employees of subcontractors in the building industry. Specifically, the guarantee applies to the supply of the following: construction work provided during the execution of the construction, alteration or maintenance of the completed construction or during the removal of the construction on the construction site, in particular excavation work, earth moving, actual construction work, assembly and disassembly of prefabricated parts, installation of plant or equipment, construction modifications, construction renovation, construction repairs, construction disassembly, construction demolition, construction maintenance, painting and cleaning work as part of construction maintenance, construction remediation.
WHEN: 1 August 2024
Since the transposition amendment to the Labour Code in the Czech Republic was promulgated at the last possible moment in July and entered into force on the first day of the calendar month following its promulgation, it became effective as early as 1 August 2024, with the exception of the provisions on the distribution of working time and the amendments to the Labour Inspection Act, which enter into force on 1 January 2025. However, according to the transitional provisions, most of the substantive changes are also applicable only as of 1 January 2025, as mentioned above.
We will be happy to assist you with any obligations related to these changes, please do not hesitate to contact our team.
With effect from 1 July, there are changes in the area of labour law and the employment of foreigners resulting from the amendment to the Act on Social Security Contributions and the Employment Act. The changes regarding the agreements to complete a job (in Czech: “dohody o provedení práce”; “DPP”) have so far settled on the notification and record-keeping obligations of employers. As for the employment of foreigners, the adopted amendments have the potential to speed up and slightly simplify the procedure for obtaining the employment card.
Please find below the brief summary of the changes in employment law in the Czech Republic affecting employers as of 1 July 2024:
The effectiveness of the much discussed and somewhat controversial regulation of the aggregation of chained DPPs has been postponed to January 2025. Thus, there are no changes in regard to insurance premiums for the time being (i.e. no contributions to remuneration of up to CZK 10,000 for a single employer) and it is questionable whether and in what form they will eventually apply in 2025. We will of course monitor the situation.
However, as of this July employers must already comply with the newly regulated administrative obligations in relation to the DPPs, as follows:
From 1 July 2024, employers are required to keep records of all DPPs, regardless of whether they are subject to insurance premiums or not.
The records must contain information that is subsequently reported to the Czech Social Security Authority (”CSSA“) (see (Error! Reference source not found. below), i.e.:
Employers will be required to report a list of all employees employed on a DPP (insured and uninsured) on a monthly basis on the “DPP Statement” form.
The reporting obligation must be met electronically by the 20th of the following month, i.e. for the first time for July by 20 August 2024, to the locally competent SSA. The notification will apply to both DPPs concluded from 1 July 2024 onwards and DPPs concluded before 1 July 2024, if the DPP continues into July 2024
Non-registered employers who have so far employed employees only on DPPs which are not subject to insurance premiums must register with the Employer Registry by 30 July 2024. The SSA will assign them a variable symbol and they too will send their first DPP Statement by 20 August 2024.
Entry into and termination of employment of persons working under a DPP will also be reported through the DPP Statement. Therefore, DPPs subject to insurance premiums will no longer need to be separately notified via the “Notification of entry into or termination of employment”.
The statement will then be sent for each calendar month until the last employee on a agreement to complete a job has left the employment. When the decisive amount is reached (when the employee becomes insured), the employer also completes and files the Statement of Assessment and Premium Amount.
The purpose of the registration and reporting is to enable the authorities to collect the data needed to administer the new system of insurance of the DPP (as planned from next year), while the CSSA should also communicate the data found to the health insurance companies.
Relatively significant changes are also expected in the area of employment of foreigners as of 1 July 2024. In particular, the system for reporting the commencement and termination of employment of foreigners will change. And the establishment of free access to the labour market for employees from selected countries will help the labour market.
The Labour Office is introducing a new system of reporting the entry/termination of a foreign employee in employment by means of so-called notices and information cards, compulsorily from 1 July 2024. However, it is already possible to use the system at this time.
There will no longer be the option to complete using the paper forms previously used, but employers will be required to use one of the following methods:
For the information cards, only one form will be used from now on, through which employers will report both the entry and the departure of an alien employee. If, on joining, the employer also specifies a termination date (e.g. for fixed-term employment relationships) which will be met, there is no need to send an additional card.
Please note: The report must always be sent either by the direct employer or by a third party through a proxy report. If a third party sends the report instead of the employer (or an entity authorized by the employer), this third party would automatically be registered as the employer of the foreigner. Thus, the third party must first obtain authorization the CSSA system and then select the “file proxy” option for the submission or send the submission through their mailbox.
It is always possible to submit only one XML file per data message. If the employer has multiple reports (XML files), each must be sent separately.
A new reason for free access to the labour market has been added to Section 98(u) of the Employment Act for persons whose performance of work in the territory of the Czech Republic is in the interest of the Czech Republic.
This provides that, across the board, foreigners from certain countries will have free access to the labour market. The countries concerned will be determined by the government by regulation, currently the following countries:
The inclusion of Taiwan is envisaged in the future.
Please note that this is not a reciprocal regime, i.e. in the case of posting an employee to these countries from the Czech Republic, it is still necessary to verify whether a work permit is required in addition to a residence permit. These persons then still need some type of residence permit (e.g. a short-term visa; cannot be used for visa-free entry), but do not need any work permit.
Given the current labour market situation, the labour market test for employment cards will be “abolished” as of 1 July 2024. Employers will still have to notify the Labour Office of a vacancy for foreigners without free access to the labour market via a vacancy notification form. However, there will no longer be a labour market test.
Thus, foreigners will be able to apply for an employment card immediately after the vacancy has been published in the central register of vacancies to be filled by employment card holders. This will level the playing field with Blue Card applicants, who will not be subject to the labour market test from 1 July 2023.
The labour market test will not disappear completely, but it will no longer be automatic, however, it may be set in certain specific cases (e.g. in case of high unemployment or if the local regional branch of the Labour Office of the Czech Republic has enough suitable applicants or job seekers for a given job position). Especially in Prague, where the unemployment rate is very low, it can be expected that a labour market test will not be set.
In practice, this means that while the employer is obliged to report the vacancy, it will be able to do so just before the potential employee applies for an employment (blue) card.
The above changes will particularly affect employers who report vacancies to the Labour Office in advance as a precautionary measure, for which they have not yet found a foreign employee.
From 1 July 2024, the Labour Office will be able to remove a job from the vacancy register after 6 months from the date of its notification by the employer. This does not apply to a job for which there is a pending application for an employee card or blue card or a work permit for a foreigner, until the administrative proceedings are completed.
In addition, another – less obvious – reason for removing a job from the register has been introduced. This is the employer’s failure to provide cooperation. This rule was only inserted into the Act by amendment and is intended to allow for the removal from the register of those employers who are not at the specified contact address or otherwise reachable.
We can therefore only recommend that employers provide valid contact addresses in their reports and do not report vacancies too far in advance lest they expire in the meantime.
From 1 July 2024, new rules apply to the obligation to notify the posting of workers to the Czech Republic.
After 1 July 2024, it will no longer be possible to send notifications of the commencement of posting to the Czech Labour Office, such notifications will not be registered by the Czech Labour Office. Newly, foreign employers will have to notify the State Labour Inspection Office via the information system, according to the specifications, format and structure published by the State Labour Inspection Office.
More information can be found here.
We will be happy to help you with any obligations related to changes in employment law in the Czech Republic, please do not hesitate to contact our team.
Updated on 28 January 2022
From 17 January 2022, according to the Extraordinary Measure of the Ministry of Health MZDR 461/2022-1/MIN/KAN (the “MoH Measure“), employers are once again obliged to testing employees for COVID-19 in the Czech Republic. The current testing conditions differ only in certain details compared to the last testing, with mandatory bodies being all employers (whose circle is not limited by a minimum number of employed persons), together with self-employed persons as well as bodies and members of the bodies of legal persons (if they are not also employees of such persons).
Based on the questions of clients and our past experience in the area of testing employees we have prepared answers to most frequent questions in the form of Q&A that also include our recommendations regarding some practical aspects of testing of employees.
The following employees are exempt from testing employees for COVID-19 in the Czech Republic:
Proof of being tested elsewhere is demonstrated by:
If an employee refuses to undergo testing:
Employers who ensure testing for their employees must keep a record of the tests carried out for record-keeping purposes. This is expressly required by the MoH Measure and may be subject to control by the public health protection authority. The employer is obliged to keep the records for 90 days.
Extent of the record:
Furthermore, the employer must send in an electronical form a list of employees who tested positive to the locally competent public health authority (according to the district) at the latest on the day after the testing occurred. The list must be sent together with the records in the extent of the evidence as mentioned above together with the phone number of the employee who tested positive via an electronical form, which is filled out in an online application here. For logging into the online application, the data box of the employer is used or if appropriate NIA is used.
If the result of the employee’s rapid antigen test is positive, the following procedure must be followed:
As was the case with the last compulsory testing of employees, contributions from health insurance companies towards the testing costs shall be announced online on this website. The entitlement to contribution is applicable to self-employed persons as well members of the bodies of legal persons. We believe that since the company is responsible for testing members of bodies of legal persons and these members have health insurance, the entitlement to this contribution shall be claimed by the company nevertheless, this information wasn’t yet confirmed in any official sources. The employer shall apply for the contribution as previously that is via the app on the above-mentioned linked website.
The maximum amount of the contribution shall be CZK 60 incl. VAT per one test. The contribution entitlement shall be provided according to the test frequency as stated in the MoH Measure, i.e., for two tests per week per employee. It may be only applied for those antigen tests approved by State Institute for Drug Control, which were purchased from 1 January 2021. Their list may be found here.
Tests from approved suppliers may be purchased via standard distribution networks, i.e., directly from a distributor (which is the most cost-efficient way for large orders), or in pharmacies.
Yes, self-employed persons performing their main self-employed activity in the Czech Republic are also obliged to undergo a rapid antigen test for self-testing twice a week. Testing is carried out by the self-employed persons themselves, and they also bear the costs of this testing. Exemptions from the testing obligation are the same as for employees, as well as the obligation to start testing from 17 January 2022.
Self- employed persons must as well keep records of testing in the same extent as employers. In case of a positive result the self- employed person must:
After being quarantined:
After undergoing a confirmative PCR test:
We shall gladly assist you in case you are unsure of any of the questions regarding testing of employees or in case you would have any further questions or comments.
Updated on 12.4.2021
Beginning on 3 March 2021, employers must deal with “self-testing” for COVID-19, i.e., mandatory testing of all employees without assistance from medical personnel. The category of employers is constantly expanding – of the original large employers, employing at least 50 employees, the newly obliged entities are now even employers with a single employee.
Since employee testing is a completely new duty with which employers have no prior experience, we have created this practical Q&A guide on how to tackle employee testing at the workplace.
The duty to test employees for COVID-19 applies to all employers with at least 1 employee as follows:
Mandatory testing is being introduced in the following phases, the first one applying to large-scale employers (with over 250 employees) and the second one to smaller employers to completely small ones.
Employers must in principal test all their employees, whether they are employed under regular employment contracts or under different arrangements, such as DPP or DPČ and where appropriate also other persons entering the employer’s workplace (please see above point 2.).
There are however certain exceptions:
The employee is obliged to prove the illness with an appropriate medical certificate. It is not quite clear how to prove or verify that the employee has no symptoms of COVID-19. To make sure, we would recommend having the employee sign a declaration that he/she has no symptoms of the disease which will also include an obligation to immediately contact the employer by phone in case any symptoms should appear in order to coordinate next steps. Since it is obviously not possible to submit each employee to a comprehensive medical check daily, we suggest measuring the employee’s temperature before they enter the workplace, since high temperature is a typical symptom of the disease and the practice is currently routinely used by medical and similar facilities before allowing access to visitors.
Employers do not need to carry out the tests themselves (or via their designated employees), but may also:
Employers must make sure that tests used for employee testing be delivered by a provider who was granted an exception for antigen testing by non-medical personnel by the Ministry of Health – a list of such providers and the tests they supply is available HERE and is regularly updated. All types of tests have been granted the exception and it is therefore possible to test from saliva or to use nose or mouth swabs, none of which is a preferred option.
Using a test which has not been approved may result both in the employer failing to meet its obligation to test employees and in health insurance companies refusing to pay for the test (or demanding that the amount paid be returned).
Tests from approved suppliers may be purchased via standard distribution networks, i.e., directly from a distributor (which is the most cost-efficient way for large orders), or in pharmacies.
All tests must include a manual in Czech.
(!) Note: Keep invoices for the tests purchased – the invoices may in the future be requested for checks by a health insurance companies.
Employers should take the following steps before they start testing employees:
(!) Note: Health insurance companies prepared an online application on their websites (same one for all health insurance companies), through which it’s possible to apply for a contribution for the antigen tests. The application can’t be filed by any other means other than through this application. The application can be found HERE.
The test result is of crucial importance to employers:
Please note that materials used/produced during testing may possibly qualify as hazardous waste, employers should therefore, in accordance with recommendations issued by the Ministry of Environment:
Since self-testing will generate considerable expenses for employers, health insurance companies will partially reimburse employers as follows:
Costs of more frequent testing of employees will be borne solely by the employers.
How the employer shall proceed in case of an application for a contribution for testing:
| Date when the test was carried out | The number of the insured person | Name | Surname | Health insurance company | Negative test result | Positive test result |
A detailed user manual to be filled out is to be found HERE.
From the given dates, employers cannot allow access to the workplace to employees who have not been tested and employees are obliged to undergo testing (with exceptions described above).
From the perspective of employment law, if an employee refuses to test, it will be considered as absence from work for reasons on the part of the employee. Since this does not entail a right for salary compensation under statutory provisions, such absence will be unpaid.
Taking into account all circumstances, we believe that employers may conclude that if there are no serious reasons to reject testing on the part of the employee, his/her refusal to test may be considered a breach of employment-related obligation, which, after a warning and a period of time to remedy may result in the employee’s termination.
Supervising authorities have already made clear that they will check whether employers meet their obligations related to employee testing. Inspections will be carried out primarily by the Regional Hygiene Office. However, due to their full capacities, their powers may also be shared by Labour Inspectorates. Sanctions might therefore be imposed under the Public Health Protection Act as well as under health and occupational safety rules set forth in the Labour Inspection Act. According to information shared by the authorities, penalties of up to CZK 500,000 may be imposed.
We recommend that all employers keep accurate records of the testing (in particular by keeping the requested Test Charts as described in Article 6 above) and require submission of documents from testing of employees by other parties and documents attesting to employees having already had Covid-19 (see Article 3 and 4 above).
Same obligation as for other employers from the 6 April 2021 is set out for self-employed persons performing their main self-employment located in the Czech Republic, who from this date must not enter their workplace or place of performance of work without a negative test, unless they are given the exception (described in point 3 above).
There is another exception for self-employed persons, which is that self-employed persons don’t have to be tested if on their workplace or place of performance of work they don’t come into contact with third persons, with the exception of persons living in the same household.
Self-employed persons who’s result as part of the self-testing is positive for the presence of the virus, are from the 28 March 2021 obliged to leave the workplace or place of performance to their current residence and without delay inform their GP about the result (other health service provider or the relevant hygiene station, if applicable).
All employers located in the Czech Republic, which are non-governmental non-profit organizations and are employing at least 1 person have the same responsibilities as the smallest employers, i.e.:
Non-governmental non-profit organizations are the following:
The conditions as well as exceptions from testing are the same as conditions described above for business entities.
In connection with the new governmental measures aiming to prevent the spread of disease Covid-19, the Government, apart from the current programs (mainly Antivirus, compensation bonus and other sectoral programs), approved new compensation programs in the Czech Republic, namely COVID-2021 and COVID-Uncovered costs (hereinafter each as “Program”). Receipt of applications starts these days – the applications will be submitted through the AIS MPO portal (portal of the Ministry of Industry and Trade).
Please, be advised that one applicant cannot apply for financial aid under COVID-2021 and COVID-Uncovered costs at the same time, since they are alternative programs. Also, they cannot be combined with compensation bonus provided by the Ministry of Finance for the same or part of the relevant period.
| Program | COVID-2021 | COVID-UNCOVERED COSTS |
| Relevant period | From the 11 January to the 31 March 2021 | From 1 January 2021 to 31 March 2021 |
| Eligible applicant | An applicant is an entrepreneur (natural or legal person) who carries out a business activity under Act No. 455/1991 Coll., on Trade Licensing (Trade Licensing Act), as amended; An applicant did not exceed limit under point 3.1 of the EU Temporary Framework up to the amount of EUR 1,8 million. | An applicant is an entrepreneur (natural or legal person) who carries out a business activity under Act No. 455/1991 Coll., on Trade Licensing (Trade Licensing Act), as amended; An applicant did not exceed limit under point 3.12 of the EU Temporary Framework which amounts to EUR 10 million. |
| Terms of provision | Applicant’s sales (revenue from business activity and sale of goods) decreased by 50% in comparison to the same period of year 2019 or 2020 (an applicant, who was established or started to carry on business after 1 January 2021 can pick any three consecutive months in year 2020 for the comparison); An applicant has at least one employee that can be expressed as an equivalent to a full-time job; Eligible costs are for example personnel costs, material costs, services (e.g. leasing), depreciation, taxes and charges, loan repayments, overheads, etc., incurred from 1 February 2020 to 31 March 2021. | Applicant’s turnover decreased by minimally 50 % in comparison to the same period of year 2019 or 2020 (an applicant, who was established or started to carry on business after 1 January 2021 can pick any three consecutive months in year 2020 for the comparison), and; At the same time has “uncovered costs” incurred during the Relevant Period which means, for the purposes of the Program, loss reduced by temporary aid that was granted to the applicant or for which he applied under point 3.1 of the EUR Temporary Framework (such as COVID-Rent, Antivirus, COVID-Gastro or other targeted programs). |
| Documents required | Identification of the comparison period and justification for the decrease in sales; Identification of employees (in an employment relationship, co-operating persons, managing directors with a contract of performance that were to the date of registered at the Czech Social Security to pay premiums on 11 January 2021); An affidavit of an applicant stating that he is an eligible applicant and fulfils all the requirements of the Program – this part is included in the application itself. | Modified profit and loss account for the Relevant Period compiled according to Annex No. 2 of the Call released by the of the Ministry of Industry and Trade (MPO); Statement on turnover decrease for the Relevant Period compared to corresponding period compiled according to Annex No. 2 of the Call released by the MPO; Overview of all state aid granted to the applicant or for which he applied under point 3.1 of the EUR Temporary Framework compiled according to Annex No. 2 of the Call released by the MPO; An affidavit of the applicant stating that he is an eligible applicant and fulfils all the requirements of the Program – this part is included in the application itself. |
| Submission of applications | 12 April 2021 from 9:00 to 31 May 2021 to 16:00 | 19 April to 19 June 2021 |
| Maximum amount of financial aid per applicant | CZK 500 multiplied by the number of employees multiplied by the number of days in the Relevant Period; In case the applicant had less than 3 employees to the date of the 11 January 2021 the financial aid amounts to CZK 1,500 per day. | CZK 40,000,000 |
We will be happy to provide you with our advisory services regarding this financial aid. We can offer you a professional assessment of whether the financial aid applies to you, the preparation of a list of all the essential steps and documents necessary to participate in the financial aid program, or we will gladly represent you in the entire grant procedure. This will save you a lot of time and hassle associated with submitting applications (also taking into account the significant technical problems reported by the systems).
Updated on 5.2.2021
In the context of the new government measures aiming at preventing the spread of Covid-19 disease, the government apart from the current programs in force (mainly Antivirus, Covid-Rent II and others) approved new financial aid in the Czech Republic, namely Covid-Gastro-Closed enterprises and Covid-Accommodation II.
Program under the patronage of Ministry of Industry and Trade (“MIT”)
The subsidy is granted for operating costs and maintaining business, such as personnel costs, material costs, services (including e.g. leasing), depreciation, taxes and charges, loan repayments, overheads, etc.
The financial aid falls under the so-called Temporary frame and is therefore subject to application of the maximum of 800 thousand EUR (in which is also included the financial aid received from other programs, i.e. Antivirus A+, Covid-Rent I and II etc.). Negotiations are currently under way to extend the Temporary frame until the end of 2021 and to double the ceiling, i.e. EUR 1.6 million.
There is no legal right to the granting of a subsidy.
Under the patronage of the Ministry of Local Development (“MLD”)
Two subsidy titles are opened, one for collective accommodation establishments and the other for individual accommodation establishments.
Unlike the first wave of the COVID program – Accommodation shall be the new wave extended by financial support for individual accommodation establishments, namely private accommodation, small guesthouses, apartments, rooms, recreational objects providing temporary accommodation for tourists.
However, the financial aid is not intended for accommodation services in an apartment building (e.g. Airbnb), as these apartments can be rented out on the real estate market.
The precise definition of authorized entities will be provided in the Call.
Accepting applications will commence after the Call is published by the MLD, with the following days of publication:
We will gladly provide you with advice on the financial aid. We can offer you professional assessment of whether the financial aid applies to you, preparation of a list of all essential steps and documents necessary to participate in the financial aid program, or we will gladly represent you throughout the procedure for granting the financial aid, and we will spare you the considerable amount of time and concern associated with the submission of applications (also taking into account the significant technical problems reported by the systems in recent days).
The amendment to the Czech Labour Code, which came into effect as of 30 July 2020, has also affected the calculation of employees‘ average earnings, whereas this change is significant especially to employees with lower incomes. According to the previous legislation, it was necessary to comply with the minimum wage limit only, but employers must now ensure that the amount of the average earnings also reaches the guaranteed wage limit. And if it does not, the average earnings must be adjusted to this limit by the employer.
To explain, the guaranteed wage is an instrument similar to the minimum wage. However, while the minimum wage is a general remuneration for work limit, the guaranteed wage is a minimum limit of remuneration according to the strenuousness, complexity and responsibilities associated with such work. The amount of the guaranteed wage is determined by the Government Regulation no. 567/2006 Coll., which divides individual jobs into 8 groups, where the simplest jobs that do not require any special qualifications fall into the first group (and the guaranteed wage equals the minimum wage here, i.e. CZK 14,600; e.g. cleaning), while the most demanding jobs in terms of complexity and responsibility, with high psychological strain and demands on creative and abstract thinking, fall into the eighth group (with a guaranteed wage of CZK 29,200; e.g. financial and capital market trading). Similarly to the minimum wage, the amount of the guaranteed wage is valorised annually.
Therefore, in order to be able to ensure compliance with the guaranteed wage when calculating the average earnings of its employees, the employer must assign each employee to one of the guaranteed wage groups. If the employer fails to fulfil this obligation and does not take into account the guaranteed wage limit when calculating the average earnings, there is a risk of recourse, among other things, in the form of a penalty for committing an offense in the area of employee remuneration in the amount up to CZK 1 million, depending on the circumstances and severity.
Employers in the Czech Republic with up to 50 employees have now the opportunity to lower the contributions to social security and to the state employment policy paid by the employer for employees in the months of June, July and August 2020. The aim of the waiver is to support the employers to maintain employment. The relevant government proposal has passed through the entire legislative process and is awaiting for publication in the Collection of Laws.
As an employer, you can use this opportunity if you are not already drawing compensation under programs Antivirus A and Antivirus B; you are not a healthcare provide and answer the following questions affirmatively:
If you answered YES to all of the above questions, you are allowed to reduce contributions to social security and to the state employment policy. The conditions for the waiver of contributions need to be determined for each month separately.
In practical terms, the number of employees does not only include employees who are actively employed and perform their activities, but also those who are on maternal or parental leave, unpaid leave, or do not work due to obstacles on the part of the employer. On the contrary, company executives working under an executive employment agreement and employees who work part time based on i.e. Agreement to perform work (DPČ) or Agreement to complete a job (DPP), even if their total remuneration exceeds the limit for social security contributions, are not included in the number of employees. These individuals are excluded for calculation purposes from the comparison of the assessment bases. The calculation should not be affected by the decrease in the number of employees due to resignation or retirement.
You do not have to apply for a waiver. Employers only need to verify if they meet the above conditions with their payroll accountant. If the above conditions are met, you may claim the waiver for the relevant month via the “Overview of social security contributions” form by reducing the employer’s assessment base. This form is usually submitted on monthly basis by the payroll accountant to the Czech Social Security Administration.
Only contributions paid by the employers in the amount of 24,8% of their assessment base up to the assessment base of CZK 52,253 (1.5 times the average wage) per employee is waived. Hence, employers can save almost CZK 13,000 per employee on contributions to social security. However, please note that it is not allowed to deduct assessment base for an employee who has been fired due to organizational changes or redundancy. Contributions for these employees thus remain unchanged. In addition, the reduction of the assessment base should not have an impact on the calculation of the super gross salary of an employee.
As an employer, you will need to carefully consider which support is more beneficial; whether compensation under Antivirus A or Antivirus B, or reduction in social security contributions under program Antivirus C in the Czech Republic. In case of any questions our legal, tax and payroll department will be pleased to assist you.
Updated on 10.6.2020
With the aim to support employment, the Czech Ministry of Labor and Social Affairs (MoLSA) has prepared several packages that should aid employers in a difficult economic situation and prevent mass redundancies.
Under the project, employers receive a contribution to compensate the wage they have been forced to pay even though employees have not been working due to closures, restrictions of business activities or quarantines (scheme A) or due to partial unemployment (scheme B).
The project was initially limited to wage compensation paid for March and April 2020. The government first agreed to extend the compensation until 31 May 2020, and so employers may apply for a contribution to wage compensation paid to employees in May, both under scheme A and B.
At a meeting on 25 May 2020, the government approved a further extension of the project until 31 August 2020. However, this extension only applies to scheme B i.e. employers who have initiated partial unemployment.
At its meeting on 9 June 2020, the government approved the extension of the Antivirus program until 31 August 2020 also for scheme A. The reason is that even today, employees are still ordered to quarantine (and a growing number of such employees cannot be ruled out) and that despite the release of measures, there are still employers who cannot fully carry out their activities with regard to the restriction on events over 500 people (festivals, cultural events, exhibitions, etc.).
Please find more information about the Antivirus project summarized in this article.
On 20 May 2020, the Senate approved a bill to reduce the penalties on delayed payments of social security contributions and contributions to the state employment policy paid by the employer. According to the newly approved legislation, employers may only defer payment of social security contributions (24.8%) for May, June and July 2020.
However, they are still obliged to withhold and pay contributions from gross wages of the employees (6.5%) and submit a monthly overview of the total amount of contributions to the Czech Social Security Administration (CSSA). According to the amendment, it will also be possible to provide an overview of the total amount of contributions in electronic form, starting with the overview for June 2020.
However, the deferral of the payments to social security will not remain without any penalties. If the contributions for May, June and July 2020 are paid no later by 20 October 2020, employers will be penalized at a reduced rate of 4%. Otherwise, the penalties would be at the full rate of 18%.
In the event that employers decide to defer payments of contributions paid by the employer, it will not be necessary to notify the CSSA. According to CSSA, employers will not be penalized if the total amount of penalties does not exceed CZK 1,000.
The unfortunate amendment to the legislation above approved the moving forward the deadline for filing the registration and deregistration of the employees to CSSA. Until recently, employers are obliged to report the employee’s entry or exit within 8 calendar days. However, with effect from 1 September 2020, the deadline has been bought forward and the employers will be obliged to notify the CSSA (electronically) no later than the next working day. If the CSSA is not notified by the next working day, the employers may receive a fine of CZK 20,000.
This amendment causes additional administrative burdens for employers and payroll accountants, although reducing administrative burdens should be the goal of government proposals. The Chamber of Tax Advisers, the Association of Accountants and other institutions consider this change to be disproportionate. Unfortunately, according to the latest information, the MoLSA is not currently considering changing the law.
In the Chamber of Deputies, the government bill on the waiver of social security contributions and contributions to the state employment policy is now also awaiting discussion.
The waiver of contributions means a reduction in the assessment base for the employer, i.e. a waiver of 24.8% of the total income of employees, and the waiver for June, July and August 2020 is expected.
The waiver of contributions will only apply to smaller companies – they will be available only to employers who do not employ more than 50 employees in the employment relationship participating in sickness insurance.
The employer will also have to meet the following conditions:
The achievement of the conditions will be assessed each month separately.
The aid will not be provided to public sector employers or health insurance providers covered by health insurance. Concurrent drawing of contributions from schemes A and B is also excluded.
It will not be necessary to apply for a waiver of contributions. The employers only need to decrease the amount of contributions in monthly overviews sent to CSSA and pay the corresponding reduced amount.
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