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Hiring employees in Czechia can be a rewarding experience, but you should know some essential things before you begin the process. The Czechia is a member of the European Union, meaning it has implemented EU labour laws, including regulations on working hours, minimum wage, and paid leave.
In addition, Employment contracts must be in writing and include information about the position, salary, working hours, and duration of the contract. It is also essential to know that there are different types of employment contracts, such as fixed-term or indefinite contracts, and that the duration and termination of each type of contract are regulated by law.
Finally, it is crucial to consider the benefits and social security obligations when hiring in the Czechia. Employers are required to provide benefits such as sick leave, paid vacation, and parental leave.
The Czechia has an excellent remote workforce because of its highly educated and skilled workforce, with many universities and technical schools producing graduates in different fields.
Secondly, Czechia is well-connected to the rest of Europe, with high-speed internet and modern telecommunications infrastructure. This makes it easy for remote employees to work from anywhere in the country and stay connected with their colleagues and clients across the globe.
Finally, Czechia’s strong work culture emphasises professionalism, reliability, and a strong work ethic. This means that remote employees from the Czechia are likely to be highly motivated and committed to delivering high-quality work.
Native Teams can provide assistance with recruitment, compensation and benefits administration, and regulatory compliance in accordance with Czech law. Using our Employer of Record services, we can make your benefits and pay structure more competitive and appealing to new hires.
Hire your first Czech employee with Native Teams.
When hiring new employees in Czechia, it’s important to follow the labour laws in the section below to ensure a compliant hiring process.
Employment in the Czech Republic is primarily governed by the Labour Code (Act No. 262/2006 Coll.), which regulates key aspects of the employment relationship, including working hours, wages, holidays and rest periods, overtime, occupational health and safety, and termination.
Employment relationships generally require an employment contract between the employer and employee. Employers are responsible for assigning work, paying employees, setting working conditions, and complying with applicable laws, employment agreements, and internal policies. Employees are responsible for performing their agreed duties within the established working hours.
Collective agreements may also regulate employment conditions, including wages and other rights and obligations. They are negotiated by trade union organisations and, once concluded, are legally binding on the relevant employers, employees, and trade unions.
Employers must ensure equal treatment and non-discrimination in employment. Different treatment may be permitted where it is based on legitimate occupational requirements and is proportionate.
Recent reforms have also simplified employer reporting requirements by introducing a single electronic monthly employer report, consolidating several payroll and employment reporting obligations into one electronic framework.
In Czechia, there are two types of employment contracts: indefinite and fixed-term. A fixed-term employment relationship between the same parties cannot exceed 3 years from the start date of the initial fixed-term contract and may be renewed a maximum of 2 times. Each extension of a fixed-term employment relationship is considered a renewal. If 3 years have passed since the termination of the previous fixed-term relationship, this period is not factored into the duration of subsequent fixed-term contracts.
In addition to distinguishing between indefinite and fixed-term employment contracts, Czech labour law recognises various types of contracts based on the nature and duration of the work performed.
These include full-time and part-time contracts, as well as Dohoda o provedení práce (DPP) (Job Performance Agreement) and Dohoda o provedení činnosti (DPČ) (Activity Performance Agreement). Each contract type has specific conditions and regulations tailored to meet different employment needs.
Before concluding an employment contract, the employer must inform the individual about the rights and obligations arising from the contract, as well as the working conditions and remuneration. The employer must also clarify any obligations stemming from other legal provisions related to the employment contract’s subject matter.
The labour contract must include the type of work the employee will perform for the employer, commonly referred to as the job title, the location or locations where the employee will carry out their duties, and the date the employee is expected to commence work.
Withdrawal from the employment contract is permitted only after the employee has started working. The employer may withdraw from the contract if the employee fails to begin work on the agreed date without a valid reason or if the employee does not communicate the reason for their absence to the employer within 1 week.
Download a free employment contract for Czechia through Native Teams.
Employers are required to inform employees in writing and to sign a written employment contract before employment begins. Any changes or withdrawals to the contract must also be documented in writing, just like the original employment contract. Both parties have the right to receive a copy of the signed contract.
According to a ruling by the Czech Supreme Court, the written form of legal proceedings mandates that the document must be in writing and signed by the relevant parties.
A standard working week consists of 40 hours, typically spread over 5 days with 8 hours per day. However, specific employee groups have different maximum weekly working hour limits based on the nature of their work.
For example, workers involved in underground operations related to the extraction of coal, ore, and other non-metallic raw materials, as well as those engaged in mine construction and geological exploration, work a maximum of 37.5 hours. This also applies to employees working in a 3-shift or continuous shift pattern. For those in a 2-shift pattern, the maximum increases slightly to 38.75 hours per week.
Moreover, workers under 18 years of age are limited to a maximum of 40 hours per week, stipulating that daily working hours must not exceed 8 hours.
Night work refers to work conducted during the night, specifically between the hours of 10 PM and 6 AM.
A night worker’s shift cannot exceed 8 hours within any 24-hour period. If operational constraints make this impossible, the employer must arrange the standard weekly working hours so that the average shift length does not surpass eight hours over a maximum of 26 consecutive weeks. The average shift length for a night worker is calculated based on a 5-day working week.
According to legal regulations, minimum rest periods, including lunch and break times, are not classified as part of working hours and are therefore unpaid. Employees are entitled to a rest period of at least 30 minutes after 6 hours of uninterrupted work.
The distribution of working hours must guarantee that employees have at least 11 hours of rest between the end of one shift and the beginning of the next within a 24-hour period. Moreover, working hours should be arranged to ensure that workers receive at least 35 hours of uninterrupted rest each week.
Full-time employees in the private sector are entitled to a minimum of 4 weeks of paid annual vacation, which equals 20 working days per calendar year. In contrast, public sector employees have a slightly greater entitlement, with at least 5 weeks of vacation.
The Czech Republic observes 15 public holidays each year. With the exception of Good Friday and Easter Monday, the dates for these holidays are fixed annually.
The public holidays include New Year’s Day, Restoration of the Czech Independence Day, Good Friday, Easter Monday, Easter Sunday, Labour Day, Liberation Day, Saints Cyril and Methodius Day, Jan Hus Day, St. Wenceslas Day (Statehood Day), Independence Day, Struggle for Freedom and Democracy Day, Christmas Eve, Christmas Day, and the Second Day of Christmas.
In the Czech Republic, employees are entitled to equal pay for equal work, regardless of gender or other potentially discriminatory factors.
As of 1 January 2026, the statutory minimum wage is CZK 22,400 per month, or CZK 134.40 per hour for a standard 40-hour working week. Future increases are determined through an automatic mechanism linked to the predicted average wage in the national economy.
The guaranteed wage system previously used to set different minimum pay levels according to job complexity and responsibility has been abolished for private-sector employers. Employers must still ensure that all employees receive at least the statutory minimum wage.
Wages may be set through employment contracts, collective agreements, internal regulations, or separate wage assessments. Employees working at night are generally entitled to their agreed wage plus a premium of at least 10% of their average earnings, unless a different arrangement has been validly agreed.
If an employer fails to pay wages or related compensation within 15 days after the payment due date, the employee may immediately terminate their employment relationship.
To calculate the salary and taxes in Czechia, click here.
An employee is entitled to compensation from their employer in case of a temporary disability that makes them unfit for work, such as due to illness. This covers first 14 calendar days of that disability. During this period, the employee receives compensation equal to 60% of their average daily earnings, which is paid entirely from the employer’s funds.
If the disability lasts beyond 14 days, the state compulsory insurance system takes over responsibility for providing sick pay for the remainder of the disability period. The compensation rates are structured as follows: 60% of the reduced average daily earnings per day is provided until the 30th day of disability, 66% from the 31st to the 60th day, and 72% from the 61st day onward.
A female or male employee may request parental leave from their employer, in accordance with legal requirements, for as long as they wish, up to a maximum age of 3 years for the child.
In the Czech Republic, the right to maternity and parental leave is not limited to biological parents. This entitlement also extends to male and female employees who take on responsibility for a child under certain circumstances. Such circumstances include when an employee cares for a child as a substitute for parental care or when they take custody of a child whose mother has passed away.
Female employees in the Czech Republic are entitled to 28 weeks of maternity leave, or 37 weeks in the case of multiple births. Maternity leave generally begins between six and eight weeks before the expected date of delivery. If a child is stillborn, the employee is entitled to 14 weeks of maternity leave.
During maternity leave, eligible employees may receive maternity benefits equal to 70% of their daily assessment base for each calendar day.
Male employees are entitled to two weeks of paternity leave, which can be taken within the first year following the birth or adoption of a child. The leave may be split into two separate one-week periods. Eligible employees may receive paternity benefits at 70% of their daily assessment base per calendar day.
Employees benefit from additional protection during pregnancy and maternity, parental, and paternity leave. Employers are generally prohibited from giving notice of termination during these protected periods, subject to limited statutory exceptions.
Employees returning from parental leave before their child reaches two years of age are entitled to return to their original job position and workplace.
Employment relationships can be terminated in several ways, including by mutual agreement, notice of termination, immediate termination, or termination during the trial period. For fixed-term employment relationships, termination occurs automatically at the end of the agreed period.
For foreign citizens or stateless persons, the employment relationship terminates under specific circumstances unless it has already ended by other means. These circumstances include the date when the foreign citizen’s or stateless person’s stay or residence permit is revoked based on a final ruling, the date when a judgment imposing expulsion from the Czech Republic becomes legally effective, and the expiration of the individual’s work permit or long-term residence permit issued for employment purposes, including those requiring high qualifications.
Notice of termination for an employment relationship must be provided in writing. Employers can only give notice to an employee for a specific reason outlined in the Labour code while employees may terminate their employment for any reason or without providing a reason.
When an employer issues a notice of termination, the reason must be clearly specified to prevent any confusion with other potential reasons, and this stated reason cannot be changed afterwards. Withdrawal of a notice of termination is only permitted with the other party’s consent, and both the withdrawal and the consent must be documented in writing.
Once the notice of termination is given, the employment relationship will end upon the expiry of the notice period, which must be the same for both the employer and the employee. The notice period can only be extended through a written agreement between the two parties.
The notice period begins on the first day of the calendar month following the delivery of the notice and concludes on the last day of that calendar month.
In the Czech Republic, the statutory minimum notice period for terminating an employment relationship is two months. The notice period starts on the date the termination notice is delivered to the other party. Employers and employees may agree to a longer notice period, provided the same period applies to both parties.
Different rules apply during a probationary period, which can last up to four months, or up to eight months for executive employees. During probation, the statutory notice period does not apply and, unless otherwise provided by law, either party may terminate the employment relationship with immediate effect upon delivery of the termination notice. No notice period applies to immediate termination either.
Employees who believe their termination is unlawful must actively challenge it. They should inform their employer without undue delay that they wish to continue their employment. If the employer maintains that the termination is valid, the employee can challenge it before the competent court. A claim must be brought within two months from the date the employment relationship ended.
If the employee does not take action, they will generally be considered to have accepted the termination, and the employment relationship will end accordingly.
Unemployment benefits in the Czech Republic are available to eligible individuals who are registered as jobseekers with the Czech Labour Office. To qualify, individuals must generally have completed at least 12 months of pension insurance participation through employment or other gainful activity during the relevant reference period. People receiving an old-age pension are generally not eligible.
Registered jobseekers must actively cooperate with the Labour Office by attending scheduled appointments, providing requested information, and participating in employment placement measures. Refusing suitable employment without a serious reason may result in deregistration and loss of benefits.
The duration of unemployment support depends on age:
As of 2026, unemployment benefits during the initial phase of unemployment amount to 80% of the individual's previous average net monthly earnings, after which the percentage gradually decreases according to the statutory schedule. Benefits are also subject to a maximum statutory limit linked to the national average wage.
Severance pay is calculated based on the duration of the employment relationship with the employer. If the employment has lasted less than 1 year, the severance pay is equivalent to 1 month’s average earnings. The severance pay amounts to twice the average earnings for employment lasting at least 1 year but less than 2 years. If the employment duration is 2 years or more, the severance pay equals 3 times the average earnings.
In addition, the period of employment includes any previous employment relationships with the same employer, as long as the interval between the end of the previous relationship and the beginning of the subsequent one does not exceed 6 months.
A non-compete agreement is a type of contract between an employee and an employer. This agreement stipulates that the employee must refrain from engaging in any gainful activity that is identical to or competitive with the employer’s field for a specified period of time, which cannot exceed 1 year after the termination of the employment contract.
Not all employees can be bound by a non-compete agreement. Such an agreement may only be established with an employee if the employer can reasonably demand it, considering the nature of the knowledge, know-how, and working or technological procedures acquired during the employee’s time with the employer. Plus, any withdrawal from the non-competition agreement must be documented in writing and made before the employment contract is terminated.
In the Czech Republic, when an employee invents something during their employment, the right to the patent automatically transfers to the employer unless otherwise specified in the contract. The employer must exercise this right within a designated period—typically within 3 months from the date the inventor notifies them of the invention.
In contrast, the situation is different for work created by contractors. Contractors grant a license to the client for the work they produce. Unless otherwise agreed, contractors retain the right to license the work to others as long as this does not conflict with the client’s legitimate interests. This arrangement allows contractors to continue benefiting from their work while also protecting the rights and interests of the client.
In employment relations, there is an essential exchange of information stemming from both national labour laws and the specific needs of employers based on their activities. Personal confidentiality during employment is not absolute, and the processing of personal data may not always require explicit consent from employees.
Labour legislation offers limited guidance on the boundaries of employer control over personal data. For employers, best practices include implementing a transparent privacy security policy that is accessible to all employees.
This policy should outline the types of employee personal data collected and processed, the purposes of the processing, authorised personnel with access, the voluntary or mandatory nature of data provision, the consequences of refusing to provide data, data retention periods, methods of data deletion after these periods, employee rights regarding data protection, possible data transfers abroad and their necessity, as well as contact details for a data protection officer if one is appointed.
The transition to remote work necessitates a written agreement with the employee, which can either be incorporated into the employment contract or formalised in a separate document. While the Labour Code does not impose strict requirements for such agreements, they can be relatively straightforward. Employers have the flexibility to unilaterally define the specific conditions for remote work through internal company policies.
Importantly, the Labour Code includes a provision that allows remote workers to plan their working hours independently, in agreement with the employer. As a result, the general regulations governing the determination of working hours do not apply to these employees. This means that employers are not required to specify the start and end times of shifts or to schedule working hours.
There are no laws that impose additional responsibilities on employers for employees who work from home beyond those outlined in the regular Labour Code. The obligations applicable to all employees working on the employer’s premises also apply to those working from home. For instance, employees must adhere to established work time regulations that remain in effect. To fulfil some of these obligations, employers may require input from their remote employees, particularly regarding matters like timesheets.
Employers are responsible for ensuring occupational health and safety and may be held accountable if an employee suffers an injury while working from home.
The specific health and safety measures employers must implement depend on the unique circumstances of each case. Employers should take into account the distinctive aspects of remote work and modify their practices accordingly. For example, employees working from home should be provided with guidance on how to properly set up their workstations and should receive health and safety training tailored to remote work conditions.
Compared to Western European countries like Germany, France, or the UK, labour costs in Czechia are significantly lower. This allows businesses to benefit from high-quality talent without the higher salary expectations found in more developed markets.
As part of the EU, hiring employees from Czechia means businesses avoid many of the legal and administrative hurdles associated with hiring from non-EU countries. Czech workers can move freely across borders, simplifying mobility.
On top of that, Czechia shares many cultural similarities with Western European countries, making it easier for businesses to integrate Czech employees into global teams.
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