Employment contracts Czech Republic

What should an employment contract in Czechia include?

Any employment contract should have the following clauses: 

• Names and contact details for both the employer and employee.
• Name of the position and a detailed description of the employee’s responsibilities.
• Wages, hourly rate, and other forms of remuneration for work.
• The employee’s scheduled working hours include both the days of the week and the times during which they are expected to be present at work.
• Terms under which any party may terminate employment.
• Confidentiality and non-disclosure provisions protect the company’s proprietary information.

Before signing an employment contract, all parties should ensure they have thoroughly read, understood, and agreed to all terms and conditions.

What types of employment contracts exist in Czechia?

The most common types of employment contracts in Chechia are:

1. Employee contract

The different types of employment contracts in Czechia are as follows:

• Permanent employment contract: In the Czech Republic, this is the most typical form of contract. It formalises the employer and employee’s commitment to each other for an indefinite period of time. Although the contract specifies the beginning date of the work, it does not specify the completion date. Indefinite-term employment contracts can be terminated with or without cause or by mutual agreement of the parties.
• Fixed-term contracts: A fixed-term contract specifies a definite period for the employment relationship. It has a predetermined end date or terminates upon completing a specific project or task. These contracts are typically used for temporary or seasonal work or when the employer requires an employee for a particular period.

2. Executive services contract

The executive’s role, job title, and duties inside the company would all be laid out in the contract. Decision-making authority, reporting relationships, and managerial responsibilities may also be spelt down—the duration of the contract, whether indefinite or specified, would be outlined in the contract. Termination details, including notice requirements, severance pay, and termination grounds, would also be spelt out in this document.

3. Agreement on work activity

An agreement on work activity is a kind of employment contract used in the Czech Republic to regulate particular kinds of work arrangements. This agreement is frequently used to engage people in various brief, irregular, or particular duties that do not fall under the purview of a traditional employment arrangement. This contract must specify the agreed-upon categories of work, working hours, and the term of the agreement.

How to hire employees in Czech?

Workers in Czechia are entitled to the country’s minimum salary as well as whatever benefits their respective employers may want to offer. Companies also have an obligation to comply with currently applicable employment legislation. 

Obtaining a tax identification number and registering your firm with the appropriate Czechian authorities are prerequisites to conducting business legally in the country. 

In a situation like this, it is advisable to seek the aid of a company that can act as your Employer of Record anywhere in the world. The Employer of Record service offered by Native Teams allows you to place your human resources, payroll, and tax administration in the hands of a trusted business associate.