Foreign investors who want to establish a company in Czech Republic
in which personnel will be employed should be familiar with the labor legislation applicable here, as it states the relationships between the employer
and it establishes the main rights and obligations to which parties agree upon by signing a contract.
Our Czech lawyers
can provide you with assistance on the labor legislation
or can represent you if you need to draft an employment contract
Czech employment legislation applicable to foreigners
Employment relationships are established under the Labor Code and it is applicable to both national and foreign entities (companies or individuals). The provisions stipulated by the Labor Code are also available if the parties involved are both foreigners, as long as the employment terms have been agreed upon in Czech Republic.
At the same time, foreign entities are allowed to choose the employment legislation
applicable in their home country; our lawyers in Czech Republic
can provide you with further information on the labor relationships
established between foreigners and local employers
Amendments to the Czech Labor Code
The Czech government has recently introduced new regulations to the Labor Code, created to support both the employer and the employee. The employment legislation was modified on 1st October 2015 with the following provisions:
• the government will offer a 20% subsidy for the salary of the employees if the company is affected by various financial crisis and has to reduce the level of payments allocated to the employees;
• the new Labor Code provides new compensations for work injuries and occupational diseases;
• the Code offers a new termination period for contracts signed between employees who are enrolled in a second job outside their primary full time job;
• the minimum wage, which became effective from 1st of January 2016, was increased from CZK 9,200 to CZK 9,900.
If you need further information on the employment law in Czech Republic
, please contact our team of Czech lawyers
, who can provide you with assistance on this matter.