Engage In Czech Republic

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About Czech Republic

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As of March 2024, the estimated population of the Czech Republic is 10.4 million.


The currency in the Czech Republic is the Czech Koruna (CZK). The currency symbol is Kč.

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The Czech Republic, also known as Czechia, is a landlocked country located in central Europe. It borders Germany to the west, Austria to the south, Slovakia to the east, and Poland to the northeast. The country comprises two historical provinces, Bohemia and Moravia, along with a small part of Silesia. With a population estimated at around 10.5 million people, the Czech Republic is known for its rich history, stunning architecture, and vibrant cultural heritage. The capital city, Prague, is a major tourist destination and is renowned for its picturesque bridges, spires, and historic landmarks. Czechia boasts a diverse landscape, featuring rolling hills, mountains, and charming countryside. The country is often associated with famous figures such as writer Franz Kafka and scientist Gregor Mendel. Additionally, the Czech Republic is recognized for its love of beer, with a long-standing brewing tradition and the birthplace of the renowned Pilsner beer. Overall, the Czech Republic offers a delightful blend of history, natural beauty, and vibrant cultural experiences, making it a fascinating destination to explore.

Employment Relationship

Permanent Employment

Permanent employment is defined to last for an indefinite period (open-end employment relationship). An employment relationship lasts for an indefinite period unless a fixed term of its duration has been expressly agreed upon.

Fixed-Term or Specific-Purpose Contracts

Employment relationship lasts for an indefinite period unless a fixed term of duration has been expressly agreed upon. The labor law limits the length of fixed-term contracts between the same contracting parties to 3 years. An employment relationship can be recurrently agreed to no more than twice from the date of the first fixed-term employment relationship.

Temporary Employment Contratcs

Temporary employment refers to employees of an employment agency, temporarily assigned to an employer who hired the agency. Such employees must have a Green Card, Blue Card, or a work permit, and may not be disabled. A temporary employment agreement must be concluded in writing. The temporary assignment must terminate on expiry of the period agreed in the agreement. The employment agency must not temporarily assign the same employee for performance of work to the same user for a period longer than 12 consecutive calendar months unless it is requested by the agency employee. 

Probationary Period

The maximum probationary period cannot be longer than 3 months for regular employees and 6 months for managers. Probationary periods cannot be subsequently extended unless employees take a full day's leave of absence during the probationary period. In this case, probationary period can be extended for employees to make up the missed time.  Employers are not required to include the probationary period in employment agreements, however, it must be agreed to in writing, at the latest, on the day the work commences. 

Working Hours

The standard workweek is 40 hours. The length of a shift may not exceed 12 hours. After continuous work for 6 hours at the utmost, employees are entitled to a work break for a meal and rest lasting at least 30 minutes; an adolescent employee must be given a such break after a maximum of 4.5 hours of continuous work. Employers are required to draw up a written weekly work schedule and inform employees of the schedule or its alteration at the latest 2 weeks before the beginning of the period over which the working hours are distributed.

Holidays / PTO

Statutory Holidays

  • Restoration of the Czech Independence Day/New Year - January 1
  • Good Friday (date subject to change, Friday before Easter Sunday) - March/April
  • Easter Monday (date subject to change, Monday after Easter Sunday) - March/April
  • Labor Day - May 1
  • Victory in Europe Day - May 8
  • Cyril and Methodius Day of Slavic Witnesses - July 5
  • Jan Hus Day - July 6
  • St. Wenceslas Day (Czech Statehood Day) - September 28
  • Independent Czechoslovak State Day - October 28
  • Struggle for Freedom and Democracy Day - November 17
  • Christmas Eve - December 24
  • Christmas Day - December 25
  • 2nd Christmas (St. Stephen's Day) - December 26

Paid Annual Leave

An employee who has performed work for the same employer for at least 60 days in one calendar year is entitled to leave for that calendar year, or a proportional amount of leave if employment did not last continuously for the entire calendar year. The standard length of annual leave is 4 weeks. For government employees, annual leave is 5 weeks. Persons employed in education and academic employees of universities are entitled to 8 weeks of annual leave. The leave accumulates gradually during the year and any unused annual leave might roll over from year to year and in accordance with the organization's policies and procedures. 

Sick Leave

Sick employees are entitled to paid sick leave under the sickness insurance, with graduated support depending on the length of time away. During the first 3 days of illness, employees are not entitled to any compensation. From the 4th to the 14th day, the employer is required to provide wage compensation, which is 60% of the average wage of a worker. After the 14th day, employees are entitled to sickness benefits paid from the social security system. The amount of sick pay depends on the employee's salary and the number of days of temporary incapacity to work.

Maternity Leave

In the Czech Republic, a female employee's maternity leave begins at the sixth week before the expected childbirth (the earliest it can start is at 8 weeks before the expected delivery). An employee is entitled to 28 weeks of maternity leave. If she gave birth to 2 or more children at the same time, she is eligible for 37 weeks of maternity leave. The Czech Health Insurance Fund funds maternity benefits. An employee must participate in insurance for at least 270 calendar days over the last 2 years before they take maternity leave to receive financial assistance from the fund. 

Paternity Leave

Per the amendments to the Sickness Insurance Act in the Czech Republic, paternity leave is a sickness insurance benefit. Insured fathers are entitled to 7 days of paid leave in connection with the care of a newborn child. The benefit is paid by the Czech Sickness Insurance Fund. An employer must also grant unpaid parental leave upon a request from an employee. The entitlement to parental leave applies to the mother of a child upon the termination of her maternity leave and the father of a child from the delivery date until the child turns 3 years old.

Termination of Employment

Notice Period

Czech Labor Code states that the minimum notice for dismissal must be at least 2 months. It is same for both employers and employees and can be extended only by written agreement. Notice period takes effect on the first day of the calendar month following service of the notice and ends on the last day of the relevant calendar month. Notice of termination with respect to an employment relationship must be in writing and state the reason for termination. For fixed-term employment, the contract expires at the end of the agreed period. However, the employer is required to provide notice of the termination at least 3 days before the event. If the employee continues working after the agreed period, and the employer is aware of the performance of the work, the employment relationship becomes indefinite.

Severance Benefits

The Labor Code requires an employer to make redundancy severance payments if the employer either dismisses or terminates employees by agreement due to the following reasons: If the employee becomes redundant due to the decision of the employer to change activities, increase efficiency, or restructure. If the employer's undertaking relocates or closes down. Depending on the duration of the employment relationship, the amount of severance pay can be up to 3 times the employee's average monthly earnings. Employees are entitled to receive severance pay in the amount of at least 12 times their average earnings: If they are terminated because they are not allowed to perform their current work due to an industrial injury, an occupational disease, or due to the threat of an occupational disease. If their workplace has been subjected to a maximum permissible level of some harmful exposure.

Social Security


If a person reaches their retirement age after 2018, they must have had insurance for at least 35 years. People who reached their retirement age before 2018 need fewer years of coverage. A person's retirement age depends on the year of birth, their sex, and the number of children raised (for a woman).  The amount of the pension includes 2 parts: a basic assessment and a percentage assessment. The basic assessment is 10% of the relevant average wage and is CZK 4,400 (Czech korunas) per month as of 2024. For each full year of pension insurance, until the person's right to retirement arises, 1.5% of the calculation basis is due. The calculation basis is determined by reducing the personal assessment basis, which is the monthly average of the retiree's annual assessment bases for the relevant period.

Dependents/Survivors Benefit

In the Czech Republic, there are provisions for pensions for survivors (spouses and children) of a deceased individual's family. The amount the surviving spouse receives has 2 parts: the basic assessment and the percentage assessment. A dependent child is entitled to a survivors pension if their deceased parent received retirement or a disability pension or died because of a work accident. In case of an employee's death caused by an industrial injury or an occupational disease, the labor law requires the employer to:  Pay for the employee's medical treatment Pay for the employee's funeral Pay for the costs of the survivors' maintenance Provide lump-sum indemnification to the survivors Provide compensation for material damage The labor law provides clarification and minimum/maximum amounts for these factors. Employers must pay at least CZK 240,000 as indemnification to a deceased employee's spouse or child each. If the deceased employee's parents lived in the deceased's household, an employer must pay them at least CZK 240,000 together.  

Invalidity Benefit

A disability or invalidity is defined as when a person's ability to work decreases at least 35% because of a long-term unfavorable state of health. There are three stages of disability based on the amount by which a person's ability to work decreases: Stage 1 Invalidity: Between 35% and 49% Stage 2 Invalidity: Between 50% and 69% Stage 3 Invalidity: At least 70% The disability pension is made up of two components: a basic assessment and a percentage assessment. The basic assessment is the same for everyone and is set out in the Pension Insurance Act. As of 2024, the basic portion is CZK 4,400 (Czech korunas) per month. The percentage assessment depends on the length of the insurance period, the person's income earned before the disability, and the degree of disability. It is calculated as a percentage of each full year of the insurance period, depending on the degree of invalidity. Employers are obliged to compensate employees for injuries caused by an accident at work, if the injury occurs during the performance of work tasks or in direct connection with it. Compensation is also due for work-related accidents that did not require the employee to be temporarily unable to work, or only to be unable to work for three calendar days. 

Taxation of Compensation and Benefits

Personal Income Tax

The tax assessment year in the Czech Republic is the same as the calendar year. Per the tax laws, taxpayers who have their registered office, management place or permanent residence in the country, have to pay a tax that covers income generated from sources both in the territory of the Czech Republic and abroad. Persons staying in the country for more than 183 days in a year are considered residents. Taxpayers who do not have their registered office in the territory of the Czech Republic are only liable to pay tax for the income generated in the country. Tax rates for non-residents are the same as for tax residents. The income tax rates are progressive, 15% or 23% depending on the income.


Types of Visas

According to the Ministry of Foreign Affairs of the Czech Republic, 2 types of visas are available for persons who wish to visit and stay in the country: short-term and long-term visas. Short-term visas are issued for stays with a duration of up to 90 days and categorized as transit (A) or short-stay (C) visas. Short-stay visas of the category C (letter “C” visa) are granted for tourism, health, business, culture, sport, visit (invitation), official (political), study, internship, scientific research, employment, or training. Long-term visas are granted for stays over 90 days but under 180 days. They are issued as letter “D” visas and used for collecting a permanent residence permit, collecting a long-term residence permit for employment (employee card and blue card), as well as health, culture, sport, visit (invitation), family, study, internship, scientific research, and entrepreneurship.

Work Permit

An employee card is a permit for long-time residence in the territory of the Czech Republic, issued where the purpose of the foreign national’s stay (longer than three months) is employment. A foreign national who has an employee card is entitled: To reside in the territory of the Czech Republic and, at the same time, To work in the job for which the employee card was granted, or To work in the job for which the Department for Asylum and Migration Policy of the Ministry of the Interior granted consent (in connection with changing employer, changing job, taking up employment with an additional employer or in an additional job). An employee card can be issued to a foreign national for the duration of the employer-employee relationship according to the submitted documents (for example, a contract of employment) for up to two years, with an option of repeated extension of its validity. The foreign national must request the Ministry of the Interior of the Czech Republic to grant consent with a change of a job position if they are assigned by a job agency to perform work for a different employer (user) and perform different work or to work at the different establishment than the one the existing employee card was issued for.

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