Czech Republic PEO Services

Global PEO Services (GPS) helps companies hire employees in the Czech Republic without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in the Czech Republic, establishing a subsidiary or branch office is not always the best route, as it is often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Czech Republic labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in the Czech Republic. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Employment contracts must be in writing and specify:

• The place where an employee will work
• The nature of job an employee will do
• The date on which an employee will commence working.

The contract also contains clauses of termination, provisions about holidays, working hours, wages, and business trips.

A trial period of no more than 3 months can apply to rank-and-file employees and no more than 6 months to managers, can be mentioned in a non-competition clause.

Holidays

In Czech Republic, employees are entitled to the following 12 holidays:

• Jan. 1: New Year/The Day of Restoration of Czech Independence
• Easter Monday
• May 1: Labor Day
• May 8: Liberation Day (End of World War II)
• July 5: Saints Cyril and Methodius (missionaries who brought Christianity to the region)
• July 6: Jan Hus Day (the religious reformer Jan Hus was burned in 1415)
• Sept. 28: St. Wenceslas Day (the patron of the Czech state)
• Oct. 28: Independent Czechoslovak State Day (creation of Czechoslovakia in 1918)
• Nov. 17: Struggle for Freedom and Democracy Day (commemorating the student demonstration against Nazi occupation in 1939 and the demonstration in 1989 that brought about the fall of Communism and the restoration of democracy)
• Dec. 24: Christmas Eve
• Dec. 25: Christmas Day
• Dec. 26: St. Stephen’s Day

Holidays are observed on the day on which they fall, and are not moved to the closest Monday even if they fall on a weekend.

Full-time employees are entitled to four weeks of paid annual leave and are paid the average pay when taking the leave. Eight weeks of annual leave must be given for an academic or pedagogical purpose. Leave not taken in a year should be compensated with the average wage.

Maternity Leave

Social Security Administration pays for the parental leave. Female employees can take 28 weeks of maternity leave in case of one birth or 37 weeks for multiple births. Maternity leave can be taken 6 weeks prior to the expected date of birth. Mothers who give birth to stillborn children can take 14 weeks of maternity leave. Mothers with adopted children can take 22 weeks of maternity leave which is extensible to 33 weeks for multiple adoptions.

Supplemental Leave

Employees who work underground extracting minerals or building tunnels or who work in difficult conditions must be given 1 week of supplemental leave. Those who perform ‘hard work,’ i.e., work in specific medical fields, or work where the risk to infection or radiation is inherent, or have to contact prisoners regularly, or work in tropical areas also get a week of supplemental leave. It can’t be compensated with wages.

Sick Leave

Employers don’t compensate employees for the initial 3 days of sick leave. Following the first 3 days, employers are required to compensate employees for up to 14 days. Employees can get extra sick leave paid via social security after the first 14 days. These extra days are paid at 60% of wages received last year.

Civic duty Leave

Employers are required to give unpaid leave to all employees to perform civic duties.

Service Leave

Employees can take a paid leave to serve armed forces and are paid by the military authority.

Maternal Leave

Maternity benefits are provided according to the Sickness Insurance Act. Maternity leave should be taken at least 8 weeks before the expected date of birth and can’t be less than 14 weeks in total.