GLOBAL EMPLOYER OF RECORD IN THE CZECH REPUBLIC
Employ talent in the Czech Republic without opening a local entity
Access local or international talent in the Czech Republic without setting up your own company first. Acumen acts as your Employer of Record, so you can put important hires in place, build the team around demand and make incorporation a later business decision.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
How an Employer of Record works in the Czech Republic
A Czech company of your own means registering an s.r.o., appointing a managing director, arranging a registered office, and setting up accounting, payroll and insurance registrations before anyone is hired. An Employer of Record puts the hiring first. Acumen International becomes the legal employer in the Czech Republic, and your new colleague works on your projects, in your team and under your direction from day one.
Employment contract, trade licence or work agreement
| Arrangement | How it works | Where it falls short |
|---|---|---|
| Employment contract (pracovní smlouva) | Full employment under the Labour Code, with social and health insurance paid through payroll | Needs a Czech employer, which Acumen International provides |
| Self-employed contractor on a trade licence | The person invoices as a business and pays their own insurance | Dependent work done this way is illegal work, known locally as švarcsystém, with fines of up to CZK 10 million for the company |
| Agreement to complete a job (DPP) | Short engagements of up to 300 hours a year with one employer | Too limited for a permanent role, and insurance applies once monthly pay reaches CZK 12,000 |
| Agreement to perform work (DPČ) | Part-time work averaging no more than half of full-time hours | Unsuitable for a full-time specialist |
What the model is worth to your business
- A Czech team before a Czech company. You can prove a market, a product line or a new function with real employees, and set up an s.r.o. only when the results justify it.
- No exposure to illegal-work findings. Your Czech staff are employees with insurance paid every month, instead of contractors whose status can be challenged by labour inspectors.
- An offer that Czech candidates take seriously. Employment brings paid leave, sick pay and protection against dismissal, which matter to experienced people choosing between offers.
- Non-EU hires through a single sponsor. Acumen International handles the employee card process as the employer, so the best candidate is not ruled out by nationality.
- A planned route to your own entity. When you register a Czech company, your team can move across with their terms already in place.
Agency employment: the legal basis
The Czech Labour Code allows an employer to assign its employees to work for a client, provided the employer holds an agency employment permit from the Ministry of Labour and Social Affairs. Assigned employees must receive pay and working conditions at least as favourable as a comparable employee of the client. An assignment to the same client normally lasts no longer than 12 consecutive months, unless the employee asks for longer or the role covers maternity or parental leave, so long-term roles are planned with that limit in mind.
Czech salary rules for 2026
The minimum wage is CZK 22,400 a month, or CZK 134.40 an hour for a 40-hour week. The tiered guaranteed wage no longer applies to private employers, so specialist pay is set by the market and agreed as a gross monthly salary in the contract.
- Currency. Salary is normally paid in Czech crowns. Since June 2025, pay in euros or another currency can be agreed for certain groups, such as foreign nationals or employees whose family lives abroad.
- Open discussion of pay. Contracts may no longer forbid employees from talking about their salary, and a confidentiality clause of that kind can lead to a fine of up to CZK 400,000.
- Equal treatment. Employees doing the same work, or work of equal value, must receive the same pay, which also matters when an assigned employee is compared with your own staff.
Probation, fixed terms and working hours under the Czech Labour Code
| Topic | The rule |
|---|---|
| Probation | Up to 4 months, or 8 months for managers, agreed in writing before work starts and no longer than half of a fixed term |
| Fixed-term contracts | Up to 3 years, which may be repeated twice, with an exception for roles covering maternity or parental leave |
| Written terms | The contract states the type of work, place of work and start date, and the employee receives information on other conditions within 7 days |
| Working week | 40 hours, or 37.5 hours for certain shift patterns |
| Overtime | Up to 8 hours a week and 150 hours a year when ordered by the employer, paid with a premium of at least 25% or compensated with time off |
| Remote work | Agreed in writing, with costs reimbursed at the actual amount or a flat CZK 4.70 per hour worked from home in 2026 |
| Non-compete | Valid for up to one year after employment, with compensation of at least half of average monthly earnings for each month |
Ending employment in the Czech Republic: notice, grounds and severance
A Czech employer can give notice only for a reason the Labour Code lists, which is why many employments end by mutual agreement instead. The statutory grounds include:
- the role becoming redundant through organisational change, relocation or closure;
- a medical finding that the employee can no longer do the work;
- unsatisfactory performance, where the employee was warned in writing during the previous 12 months and did not improve;
- a serious or repeated breach of duties.
Notice and severance
Notice lasts at least two months. Since 1 June 2025, it starts on the day the notice is delivered rather than on the first day of the following month, and it is shortened to one month for serious breaches. When the role ends for organisational reasons, the employee receives severance of one month’s average earnings after less than a year of service, two months after one to two years, and three months after two years or more.
Probation, immediate dismissal and court challenges
During probation, either side can end employment for any reason, but the employer cannot do so in the first 14 days of the employee’s sick leave. Immediate dismissal is reserved for a particularly serious breach or a serious criminal conviction, and must happen within two months of the employer learning of the breach. An employee has two months to challenge a dismissal in court.
Czech employment risks and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | Dependent work done on a trade licence is illegal work (švarcsystém), with fines of up to CZK 10 million and insurance claimed for up to three years back | Your Czech team is employed by Acumen International on Labour Code contracts |
| IP ownership | The employer exercises the economic rights in work created in the job, while the author keeps moral rights and can claim extra pay where salary is disproportionate to the work’s value | Contracts define the work, transfer the rights to your business and address additional remuneration |
| Supplier authorisation | Only employers holding an agency employment permit from the Ministry of Labour may assign staff to a client | Assignment runs under the required permit, documented for your procurement and audit files |
| Equal pay for assigned staff | Assigned employees must receive pay and conditions at least as favourable as your comparable employees | Pay is set against your own Czech pay structure before the offer |
| Permanent establishment | An employee who negotiates and concludes contracts for your company can create a taxable presence in the Czech Republic | Contract approval stays with your company and is reflected in the role description |
| Exit cost | Notice of at least two months, dismissal only on statutory grounds and severance of up to three months’ earnings | Exit routes and costs are set out at proposal stage |
| Sponsor obligations | An employee card is issued for a named employer, job and salary, and changes must be reported | Acumen International holds the employer’s duties under the card and files changes on time |
| Pay transparency | Pay confidentiality clauses have been banned since June 2025, with fines of up to CZK 400,000, and the EU Pay Transparency Directive adds further duties | Contracts carry no pay secrecy terms, and pay structures are prepared for the EU rules |
Czech employee cards and Blue Cards through Acumen International
The Czech Republic grants work authorisation for a specific job with a specific employer. The vacancy has to be reported to the Labour Office, the contract has to exist before the application is decided, and the employer stays responsible for the foreign employee’s terms for as long as the permit runs. A company with no Czech presence cannot take on that role, which is what usually stops it from hiring the strongest candidate when that person is not an EU citizen.
Acumen International takes on that role as the Czech employer. It reports the vacancy, signs the employment contract, supports the application and remains the employer named in your hire’s permit, while the person works for your business.
Why this matters commercially
- Your shortlist is no longer limited by passport. Engineers, developers and managers from outside the EU can be hired into Czech roles without your company first opening an s.r.o.
- Eligibility is checked before you make an offer. Foreign nationals can be assigned through an agency only to the types of work a government regulation allows, so Acumen confirms the role qualifies before the candidate resigns from their current job.
- The permit and the payroll stay aligned. Salary, job title and place of work are tied to the permit, and the same employer runs both, so changes are reported before they create a problem.
- Renewals and family moves are planned in advance. Expiry dates are tracked, and family members can apply to join the employee once the main permit is in place.
Permit routes
| Permit | Suits | Key condition |
|---|---|---|
| Employee card | Most skilled roles, for stays longer than three months | The vacancy is first offered on the Labour Office register for local candidates, unless an exception applies |
| EU Blue Card | Highly qualified professionals | A university degree, or equivalent experience in IT roles, a contract of at least six months and a salary at or above the statutory threshold |
| Intra-company transfer card | Managers and specialists moved from your own group abroad | Applies when the person is posted by your company rather than hired locally |
If you later register a Czech company, the employee can move to it, but the permit must be updated for the new employer before the switch takes effect.
Employment costs and payroll tax in the Czech Republic
On top of gross salary, a Czech employer pays 33.8% in social and health insurance. The employee contributes a further 11.6% from their pay, and income tax is withheld at source.
| Contribution | Employer | Employee |
|---|---|---|
| Pension insurance | 21.5% | 6.5% |
| Sickness insurance | 2.1% | 0.6% |
| Unemployment insurance | 1.2% | None |
| Health insurance | 9% | 4.5% |
| Total | 33.8% | 11.6% |
Social insurance stops for the rest of the year once earnings reach CZK 2,350,416 in 2026. Health insurance has no ceiling.
A CZK 80,000 monthly salary, worked through
| Amount | |
|---|---|
| Gross salary | CZK 80,000 |
| Employer social insurance (24.8%) | CZK 19,840 |
| Employer health insurance (9%) | CZK 7,200 |
| Total monthly cost to the employer | CZK 107,040 |
| Employee insurance (11.6%) | CZK 9,280 |
| Income tax at 15%, less the CZK 2,570 monthly taxpayer credit | CZK 9,430 |
| Net pay to the employee | CZK 61,290 |
Income tax is 15% on employment income, rising to 23% on the part of monthly pay above CZK 146,901 in 2026. Benefits such as meal allowances are added on top.
The Global Payroll Calculator gives the same breakdown for any Czech salary you are weighing, from employer insurance to the employee’s net pay.
Sectors that hire through an Employer of Record in the Czech Republic
Employer of Record hiring in the Czech Republic suits companies that need specialists close to an existing customer base, supplier network or research centre.
- Automotive and engineering. Car makers and their suppliers run large plants and development centres, and suppliers abroad hire quality, purchasing and application engineers to work alongside them.
- Software and cybersecurity. Prague and Brno have strong developer communities, and product companies often place a few engineers there before deciding on a development centre.
- Game development. Studios hire programmers, artists and designers, many of them from outside the Czech Republic.
- Semiconductors and electronics. Chip and electronics manufacturers need process engineers and technicians who understand local production sites.
- Business services. International groups run finance, IT and customer operations teams in Czech cities and start new functions with a handful of hires.
- Life sciences. Pharmaceutical and medical device companies employ regulatory, clinical and sales specialists to cover Czech hospitals and authorities.
Whatever the sector, the first Czech hires are rarely enough to justify an s.r.o., which is where an Employer of Record fits.
Czech hiring cases and how they are handled
| Case | What Czech rules add | How it is handled |
|---|---|---|
| A contractor on a trade licence becomes an employee | Employment brings 11.6% employee insurance and progressive withholding, so net pay can fall compared with the lump-sum tax regime many contractors use | The gross salary is set with the net figure in view, and the earlier contract is reviewed with your adviser |
| A senior hire from abroad wants part of their pay in euros | Since June 2025, a foreign currency can be agreed only for employees in qualifying groups | The currency is written into the contract where the employee qualifies, and payroll converts insurance and tax at the official rate |
| A student supports the team for a few hours a week | An agreement to complete a job is capped at 300 hours a year, carries leave rights, and becomes insurable once monthly pay reaches CZK 12,000 | The right agreement is chosen for the hours, and pay is monitored against the insurance threshold |
| A parent comes back early from parental leave | A parent returning before the child turns two is entitled to their original job and workplace | The role is kept open with you and the return date agreed in writing |
| A sales manager receives a company car | Private use adds a monthly taxable amount based on the car’s price, which affects tax and insurance | The benefit is valued and added to payroll from the month the car is handed over |
Employee benefits and the Czech payroll calendar
Czech employees compare offers on a familiar set of extras, and several of them are tax-efficient up to set limits:
- Meal support. Meal vouchers or a flat-rate meal allowance are close to standard, and the employer’s contribution is tax-deductible up to CZK 129.50 per shift in 2026.
- A fifth week of holiday. Many employers add a week to the four-week statutory minimum.
- Cafeteria budgets. Points for leisure, culture or health are tax-exempt for the employee up to CZK 24,483.50 a year for leisure and CZK 48,967 for health in 2026.
- Pension savings and life insurance. Employer contributions are tax-exempt up to CZK 50,000 a year in total.
Payroll deadlines
| Deadline | What happens |
|---|---|
| By the end of the following month | Salary is paid, usually earlier by agreement |
| By the 20th of the following month | Social and health insurance and income tax advances are paid |
| By the end of March | Annual tax reconciliation for employees who requested it by 15 February |
Payslips can be delivered electronically without the employee’s prior consent since June 2025, provided receipt is confirmed.
Holiday, sick pay and family leave in the Czech Republic
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave | At least 4 weeks a year, calculated in hours | Employer, at average earnings |
| Public holidays | 13 a year | Employer, when the holiday falls on a working day |
| Sick leave | Wage compensation of 60% of reduced average earnings for the first 14 days, then sickness benefit | Employer for days 1 to 14, then the Czech Social Security Administration |
| Maternity leave | 28 weeks, or 37 weeks for multiple births | Social security, at 70% of the reduced daily base |
| Paternity leave | 2 weeks, taken within 6 weeks of the birth | Social security, at 70% of the reduced daily base |
| Parental leave | Until the child turns three, for either parent | Unpaid by the employer; parents receive a state parental allowance |
| Care for a sick child | Up to 9 days, or 16 days for single parents | Social security, at 60% of the reduced daily base |
| Long-term care of a family member | Up to 90 days | Social security |
Sources
- Changes to wage rates, limits and decisive amounts from 2026
- Labour Code more flexible from June
- Agency employment of foreigners
- Czech Republic: other taxes on individuals
- Avoiding the švarc system: lawful use of self-employed contractors
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we move an existing contractor or employee onto an Employer of Record in the Czech Republic?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in the Czech Republic, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
Can someone work remotely from the Czech Republic for our overseas business through an Employer of Record?
Yes, where the role can be employed in the Czech Republic and the working arrangement is suitable. Acumen provides the local employment relationship, allowing the employee to work as part of your overseas team without your company becoming their direct local employer.
Can an Employer of Record bridge employment during an acquisition or restructuring in the Czech Republic?
Yes, where the proposed employee transition is locally feasible. An Employer of Record can provide employment continuity in the Czech Republic while a buyer establishes its own entity, a workforce separates from a seller, or a post-deal operating structure is being put in place.