Czech Republic PEO & Employer of Record
WeHG provides an International PEO and global Employer of Record service in the Czech Republic to companies willing to enter the Czech market or hire local/expat employees in this country.
Traditional approach requires establishing a subsidiary in the Czech Republic. In spite of this, our solution allows you to start the operations in the Czech Republic within days hence save time and money. WeHG would hire employees on your behalf when you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.
Czech Republic fast facts
Population, million: 10
Land area: 78,866 km²
Local currency: Czech koruna (CZK)
GDP per capita:$ 40,585
GDP in currency:$ 432,346 billions
Based in Central Europe, the Czech Republic is bordered by Poland, Germany, Austria, and Slovakia. Similar to other Eastern-European countries, the climate in the Czech Republic is temperate continental. One of the largest cities and capital of the country is Prague city with a population of 1,3 million. The Czech Republic is a member of the European Union (EU), NATO, the OECD, the United Nations, the OSCE, and the Council of Europe.
Hiring, Negotiating and Doing Business in Czech Republic
Necessity of written employment contract
Employment agreements are necessary for employment relations in the Czech Republic and usually, they’re signed in writing. The employment contract should include information about the place of work, the time of the beginning (the date), and the position’s description. It’s possible for the employer to cancel the contract before the worker starts to perform duties.
Different forms of engagement: employment, contracting, work with private entrepreneur
Czech Republic Employment Contract
Types of employment agreements
Czech Republic working hours
The maximum duration of the working shift in the Czech Republic is 12 hours, that’s why the working week shouldn’t consist of more than 40 working hours.
Overtime limits include not more than 8 hours per week and not more than 150 hours per year. Other duration can be included in overtime only with the employee’s approval.
Vacation leave in Czech Republic
The obliged minimum duration of the vacation is 4 weeks entitled for every worker. Also, there are 4 and 5 vacation weeks for public sector employees.
Czech Republic Maternity Leave
Maternity leave duration usually consists of 28 weeks for one child’s birth and 37 weeks for multiple births. Social Security Administration takes responsibility for maternity benefits and calculations. It’s important for female employees to have a minimum of 270 days of sickness insurance before receiving maternity bonuses.
Czech Severance Laws
The notice period defines the termination of employment and it has to be the same for both employment parties. The duration of the notice period consists of not less than 60 days and can be extended by the employment contract (signed by both parties). The notice period begins on the first day of the next month after the employee receives notice.
Czech Republic Tax
Health Insurance Benefits in Czech Republic
There are two conditions that allow employees to receive a sickness benefit in the Czech Republic:
- they’re officially employed or self-employed (voluntary)
- they contribute monthly to social and health insurance
The necessity of participation in sickness insurance defines by the amount of the salary that is received by employees:
- it’s compulsory for those who earn monthly not less than CZK 3,000
- if the employment is based on a working contract, the employee is entitled to take part in health insurance if his/her salary is bigger than CZK 10,000
Additional Benefits in Czech Republic
Employment in the Czech Republic includes such package of additional bonuses for employees:
- additional bonuses for employees:
- different forms of financial rewards
- team-building and available courses for personal/professional growth
- remote working
- flexible shifts
- phone/car/ free meals allowances
- insurance contributions
- temporary accommodation
- free usage of public transport
General market practice benefits/additional allowances
The Czech workforce market is well-known in the whole world gratefully to its strong technical education: the biggest and the oldest Technical University in Europe is based in Prague. Approximately a quarter of Czech employees are economists, financiers, or IT specialists. Because of the great geographical location of the Czech Republic, Czech has the access to both western-European and eastern-European markets that allow the country to develop an economy amongst different cultures and business approaches. Czech infrastructure is known as one of the best in Eastern Europe: Czech is connected with Germany, Poland, and Slovakia by a direct roadway and has one of the most compacted railway networks in Europe.
Czech Republic Holidays
The Czech people celebrate 12 public holidays during the year, including:
Why Choose WeHireGlobally
WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.
FAQ Czech republic
A working week consists of 40 working hours. A scheduled shift cannot be longer than 12 hours.
- 1 January: New Year’s Day (Restoration Day of the Independent Czech State)
- Easter Monday (floating holiday)
- 1 May: Labour Day
- 8 May: Liberation Day
- 5 July: Day of Slavonic Apostles Cyril and Methodius
- 6 July: Anniversary of the Martyrdom of Jan Hus
- 28 September: Day of Czech Statehood
- 28 October: Day of Founding the Independent Czechoslovak State
- 17 November: Day of the Struggle for Freedom and Democracy
- 24 December: Christmas Eve
- 25 December: 1st Christmas Day
- 26 December: 2nd Christmas Day
Contributions paid by employers for each employee:
- Social security contribution: 25% of gross earnings
- Health insurance: 9% of gross earnings
Contributions paid by employee:
- Social security contribution: 6.5% of gross earnings
- Health insurance: 4.5% of gross earnings