Argentine vs. Czech Employment Contracts: What Argentine Companies Should Watch Out for When Hiring in the Czech Republic

Mgr. Vojtěch Sucharda
Mgr. Vojtěch Sucharda
12.4.2026 | ARROWS law firm

When Argentine companies decide to expand into the Czech Republic, they often underestimate how differently employment law operates compared to their home country. The differences between Argentine labour regulations and Czech employment contracts are significant and can expose businesses to substantial fines, compliance issues, and legal disputes if not handled properly. This article provides the specific knowledge Argentine businesses need to navigate Czech employment law successfully.

The photo shows the team at a law firm specializing in employment law compliance.

Quick summary

  • Mandatory written employment contracts: Unlike Argentina, the Czech Republic requires all employment contracts to be in writing with specific statutory information included, or employers face fines up to CZK 10,000,000.
  • Strict termination rules: The Czech Republic does not recognize at-will employment; employers must provide valid reasons for dismissal and statutory notice periods, unlike Argentina's more flexible approach.
  • Higher compliance complexity: Czech employment law includes detailed regulations on probationary periods, fixed-term contracts, working hours, and mandatory benefits that differ substantially from Argentine requirements.
  • International compliance required: Argentine companies hiring in the Czech Republic must comply with both Czech Labour Code requirements and EU regulations, requiring professional legal support to avoid costly errors.

Employment contracts in the Czech Republic: More than just a formality

Many Argentine entrepreneurs believe that employment contracts are relatively straightforward documents that can be adapted from their home jurisdiction. However, Czech employment law takes a fundamentally different approach. The Czech Labour Code, specifically Act No. 262/2006 Coll., requires that every employment contract be concluded in writing—without exception.

The contract must include three essential statutory elements: the type of work (job title) the employee will perform, the place or places of work, and the date of commencement of employment.

Without these three elements, the employment contract is legally invalid, even if both parties have agreed to the employment and the employee has begun working. While the factual employment relationship may continue to exist, this legal uncertainty effectively strips the employer of specific protections and can be penalized by the State Labour Inspection Office.

Beyond these minimal statutory requirements, Czech law mandates that employers provide employees with written information about additional matters. These include a detailed specification of the work (job description), vacation entitlements, notice period for termination, weekly working hours and work schedule, salary amount and payment dates, and any applicable collective bargaining agreements.

Argentine companies accustomed to more flexible contractual arrangements often find these requirements burdensome, but ignoring them can result in fines imposed by the Czech Labour Inspection Authority.

This information can be included directly in the employment contract or provided separately through internal policies or written notices within statutory deadlines (typically 7 days from the start of employment). The contract must be drafted in a language that the employee understands. While this might seem straightforward, it creates practical challenges for Argentine companies hiring foreign workers.

Many employers attempt to use bilingual contracts or contracts in English, but Czech courts and labour authorities generally rely on the Czech-language version or require certified translations when disputes arise. ARROWS Law Firm regularly advises foreign employers on proper contract drafting and can help Argentine companies ensure their employment contracts meet all Czech statutory requirements.

What Argentine companies often get wrong about Czech contracts

Argentine employment law is characterized by comprehensive labour protections that are embedded in national legislation, meaning written contracts are not always mandatory for permanent, full-time employment relationships. Argentine employers have grown accustomed to relying on labour law itself to define most terms and conditions of employment.

Employers cannot rely on general legal knowledge to fill gaps in the contract; the contract must be explicit and comprehensive. This creates a fundamental misunderstanding when Argentine companies begin hiring in the Czech Republic. They may assume that Czech law operates similarly, but it does not. In the Czech Republic, while labour law does establish certain mandatory minimums, the employment contract itself is the primary document that defines the specific parameters of the employment relationship.

Additionally, Czech law is more protective of employees during the employment relationship and imposes stricter requirements on employers regarding termination, working hours, and benefits. Another critical difference involves fixed-term contracts. In Argentina, if there is doubt about whether a contract is permanent or fixed-term, it is deemed to be permanent.

In the Czech Republic, fixed-term contracts are permitted but are subject to strict limitations that do not exist in Argentina. A fixed-term contract in the Czech Republic can last no more than three years and can be renewed or extended only twice, meaning the total maximum duration between the same employer and employee is nine years (the "3x3 rule").

If a Czech employer incorrectly structures fixed-term contracts or exceeds these limits, the contract may automatically convert to an indefinite contract, creating unexpected long-term obligations.

1. Can an Argentine company use the same employment contract template in the Czech Republic that it uses in Argentina?
No. Czech employment law has specific mandatory requirements that differ from Argentine law. Using an Argentine contract template without modification will likely result in an invalid or incomplete contract and expose the company to fines and legal challenges. ARROWS Law Firm specializes in adapting employment contracts to meet Czech legal requirements and can prepare compliant contracts specifically for your situation.

2. What happens if an employment contract is not in writing in the Czech Republic?
While the employment relationship exists factually if the employee starts working, the failure to conclude a written contract is an administrative offense punishable by fines up to CZK 10,000,000. Additionally, without a written contract, disputes about terms, conditions, and obligations become difficult to resolve fairly, and the employer loses important legal protections regarding trial periods and non-compete clauses.

3. Can the employment contract be in English if the employee understands English?
Yes, but it is risky. Czech authorities generally operate in Czech. If there are translation discrepancies, the Czech version or interpretation consistent with Czech law will typically prevail. For Argentine companies hiring foreign workers in the Czech Republic, ARROWS Law Firm recommends preparing bilingual contracts with both Czech and English (or Spanish) versions to ensure clarity and enforceability, with a clause specifying which language prevails.

Probationary periods: Czech rules are strict and must be written

Argentine companies hiring in the Czech Republic must understand significant differences in how probationary periods operate. In Argentina, probationary periods are often automatic or flexible, with a maximum duration of three months. During this period, either party can terminate employment with just 15 days' notice and without severance obligations.

Under the Czech Labour Code, the maximum probationary period is three months for regular employees and six months for managerial employees. The Czech Republic's probationary period rules are more rigid. However—and this is critical—Czech probationary periods are strictly regulated. In the Czech Republic, a probationary period must be agreed in writing by the employee's first day of work at the latest. Without a written agreement concluded before or on the commencement date, no probationary period exists, regardless of what the parties intended verbally.

It is automatically extended only by law in specific cases of impediments to work, such as the employee's illness or vacation taken during the probationary period.

Additionally, the probationary period generally cannot be extended by mutual agreement once it has started. During a probationary period, either the employer or the employee can terminate employment without providing any reason. The termination notice must be in writing, but no statutory notice period applies in the traditional sense—the relationship ends on the day of delivery or a later specified day.

The employee must receive their salary for time worked and is entitled to social security and health insurance contributions from the first day of employment.

The hidden complexity: Probationary period mechanics in practice

What seems straightforward in theory becomes complicated in practice. Calculating the probationary period extension for absences requires careful attention to which days count as impediments to work. For instance, if an employee takes five days of sick leave during the probationary period, the probationary period is automatically extended by five working days.

ARROWS Law Firm regularly advises Argentine and other foreign companies on proper probationary period management and can help ensure that documentation is signed on time.

Additionally, Argentine companies must understand that if they fail to sign the employment contract (containing the probationary clause) by the start of the first working shift, the opportunity to establish a probationary period is lost forever for that employment relationship. This is a common error for foreign employers.

1. If we hire an employee in the Czech Republic and don't mention a probationary period, do Czech law's default rules apply?
No. A probationary period exists only if it is agreed in writing by the employee's first day of work. If no written agreement is made, there is no probationary period, and full termination rules (with just cause and notice periods) apply from day one. This is very different from Argentina.

2. Can we extend a probationary period after it has already begun?
Generally, no. The probationary period cannot be extended by agreement once validly established. It is only extended automatically by statutory impediments to work (e.g., illness, vacation). You cannot simply agree to "add another month" because you are unsure about the candidate.

3. What happens if we terminate an employee during probation but didn't have a written probationary agreement?
The termination under the probationary regime is invalid. The employee is treated as a permanent employee. This means you must provide statutory notice (typically two months) and have a valid statutory reason for dismissal, or you may face a lawsuit for invalid termination. This is a serious compliance error that ARROWS Law Firm can help you avoid. Contact us at office@arws.cz if you need guidance on probationary period documentation.

Termination of employment: Czech law requires just cause and strict procedures

Perhaps the most significant shock for Argentine companies entering the Czech labour market is the termination regime. The Czech Republic does not recognize at-will employment, which means employers cannot simply terminate employees without cause or at their discretion. This is fundamentally different from Argentina, where terminations without cause are permitted provided severance pay is made.

In the Czech Republic, an employer seeking to terminate an employee must provide a valid statutory reason for the termination and must follow mandatory procedures, including providing proper written notice.

The statutory reasons for termination are narrowly defined in § 52 of the Czech Labour Code and include situations such as: the employer or part of the employer's business is being dissolved or relocated; the employee becomes redundant (organizational change); the employee fails to meet job prerequisites or performance standards (requires prior written warning); or the employee breaches work duties.

The notice period for termination is a statutory minimum of two months. Crucially, the notice period does not begin immediately upon delivery. Under Czech law, the notice period begins on the first day of the calendar month following the delivery of the notice . For example, if notice is delivered on May 15th, the two-month notice period begins on June 1st and ends on July 31st.

If the reason is not specified with sufficient clarity or factual accuracy, the termination may be declared invalid by a labour court.

Termination must be in writing and must clearly specify the reason for dismissal by reference to the specific statutory provision. Additionally, in cases of "mass redundancy" (typically involving 10 or more employees depending on company size), special procedures must be followed, including consultation with trade unions or works councils and notification to the Labour Office at least 30 days before termination.

Immediate termination: Only for extraordinary circumstances

Czech law also permits immediate termination without notice, but only in exceptional circumstances. An employee can be immediately terminated if they commit a "gross breach" of duty or if they have been lawfully convicted of an intentional crime resulting in imprisonment for at least one year (or six months if the crime is related to work).

For poor performance, the employer must generally have sent a formal written "reproach letter" (vytýkací dopis) within the last 12 months before a valid notice can be issued. Importantly, employers cannot immediately terminate employees who are pregnant, on maternity leave, or on parental leave. The requirement to provide just cause and follow strict procedures means that Argentine companies cannot simply dismiss underperforming employees quickly.

Risks and Sanctions

How ARROWS helps (office@arws.cz)

Invalid termination for lack of just cause: Employer terminates employee without a valid statutory reason; employee challenges termination in labour court and receives reinstatement order, back pay, and damages.

Legal review of termination grounds: ARROWS Law Firm reviews the proposed termination to ensure a valid statutory basis exists and advises on documentation and procedural compliance.

Inadequate notice period calculation: Employer miscalculates the notice period start date (e.g., counting from delivery day instead of the 1st of the next month); termination is declared void or employment is extended.

Termination notice preparation and delivery: ARROWS Law Firm prepares compliant termination notices specifying valid grounds, ensures proper delivery methods, and calculates statutory notice periods correctly.

Mass redundancy without consultation: Employer terminates a significant number of employees without consulting trade unions or the Labour Office; employer faces penalties and invalidity of notices.

Mass redundancy consultation management: ARROWS Law Firm handles consultation with works councils and trade unions, ensures compliance with notification requirements, and manages the full redundancy process.

Improper termination of protected employees: Employer terminates pregnant employee, employee on parental leave, or union delegate; termination is invalid and damages can be substantial.

Protected employee termination guidance: ARROWS Law Firm identifies when employees have special legal protections and advises on limited circumstances where termination is permitted.

Inadequate severance pay calculation: Employer calculates severance incorrectly (e.g., omitting average earnings rules); employee claims additional compensation.

Severance pay calculation and payment: ARROWS Law Firm calculates statutory severance based on reason for termination (typically 1-3 months' average earnings for redundancy), ensuring full compliance.

Working hours, overtime, and mandatory breaks: Stricter than Argentina

Argentine companies often assume that Czech working hours are similar to Argentina's standard of 48 hours per week, but the details and enforceability differ significantly. In the Czech Republic, the maximum standard working week is 40 hours. While specific shift patterns exists, the 40-hour limit is the standard baseline.

Argentine companies accustomed to this baseline often attempt to maintain similar working hour schedules in the Czech Republic without realizing they are violating Czech law. This is an important constraint that many Argentine employers overlook. In Argentina, the standard is 48 hours per week. Overtime in the Czech Republic is strictly regulated. Employees can be ordered to work overtime only for serious operational reasons. The maximum permissible ordered overtime is 150 hours per year.

The employer must pay the employee's standard wage plus a premium of at least 25% of average earnings for overtime work, or provide compensatory time off.

Total overtime (ordered plus agreed) cannot exceed an average of 8 hours per week calculated over a balancing period (typically 26 weeks), equating to approximately 416 hours per year maximum. However, for managerial employees (and strictly defined others), it is possible to agree in the contract that the salary already includes compensation for overtime (up to 150 hours/year for regular staff, or up to 416 hours for managers).

Additionally, Czech law requires that employees receive adequate rest periods. Employees must generally receive at least 11 continuous hours of rest between shifts (can be reduced to 8 in specific cases with subsequent compensation) and a continuous rest period of at least 35 hours per week.

Mandatory employee benefits: Far more extensive than Argentina's requirements

Argentine companies are often surprised to learn that Czech employment law mandates extensive employee benefits. Employers who fail to provide these benefits face not only fines but potentially criminal liability for non-payment of mandatory levies. The mandatory benefits in the Czech Republic include pension insurance, health insurance, paid vacation, and statutory sick leave.

The total social security and health insurance burden on the employer is 33.8% of the employee's gross salary. The contribution rates are substantial. This consists of 24.8% for social security (pension, sickness, and employment policy contributions) and 9% for health insurance. These contributions are significantly higher than the social security contribution rates in Argentina and represent a major cost factor.

Regarding paid vacation, Czech law requires a minimum of four weeks (20 working days) of paid leave per calendar year for regular employees. In the public sector and for pedagogical staff, this increases to five or eight weeks respectively. This is substantially more generous than Argentina's minimums for new employees.

For the first 14 calendar days of illness, the employer pays wage compensation (typically 60% of the reduced average earnings) for working days. From the 15th day onwards, the state social security administration pays sickness benefits. This structure creates direct financial liability for employers during the initial period of every illness.

Why these differences matter in practice

The difference between mandatory benefits in the Czech Republic and Argentina is not merely a matter of accounting. The higher contribution rates mean that hiring employees in the Czech Republic is significantly more expensive than hiring equivalent employees in Argentina.

ARROWS Law Firm, which specializes in cross-border employment matters, can help Argentine companies structure their payroll systems correctly to ensure compliance.

An Argentine company accustomed to calculating labour costs based on Argentine requirements must budget approximately 34% more on top of gross salary for Czech employees to cover mandatory contributions alone. Additionally, employers cannot reduce or eliminate benefits through employment contracts. Employers who fail to register employees for social security and health insurance, or who fail to remit contributions, face severe penalties.

1. We employ an Argentine employee in the Czech Republic under an employment contract that specifies 48 hours per week (consistent with Argentina). Is this valid?
No. Czech law imposes a statutory maximum of 40 hours per week as the standard working week. While longer hours may be worked as overtime (subject to limits and premiums), a standard contract for 48 hours would likely be viewed as violating the statutory maximum or requiring guaranteed overtime pay. The employment contract must be amended to comply with Czech law.

2. Can we include overtime compensation in the employee's regular salary instead of paying it separately?
Yes, but only if explicitly agreed in the employment contract and within limits. You can agree that the wage includes overtime work up to 150 hours per calendar year for regular employees, or up to the total legal limit (approx. 416 hours) for managerial employees. If this clause is missing, all overtime must be paid separately with a premium.

3. Our Argentine company provides health insurance as an employee benefit. Do we still need to make the mandatory 9% health insurance contributions in the Czech Republic?
Yes. The mandatory public health insurance contributions are required by law and cannot be replaced by private coverage. While you can offer private health insurance as an extra benefit, you must still make the statutory contributions to the Czech public health insurance system.

Fixed-term contracts and employment flexibility: Tighter restrictions than Argentina

Fixed-term employment contracts are common in both Argentina and the Czech Republic, but the rules governing them differ. In the Czech Republic, the rules are designed to prevent "chaining" of fixed-term contracts to avoid permanent employment protections. In the Czech Republic, a fixed-term contract can last no longer than three years .

Furthermore, a fixed-term contract between the same employer and employee can be repeated or extended only twice. This is known as the "3x3 rule," meaning the maximum possible duration of a fixed-term relationship is nine years (3 contracts x 3 years). If an employer attempts to continue the employment relationship beyond these limits by entering into additional fixed-term contracts, those contracts will legally be considered indefinite (permanent) employment contracts.

There are exceptions for specific cases (e.g., seasonal work or replacement for parental leave), but these must be justified and often agreed upon with trade unions or internal regulations. Argentine companies often miscalculate the consequences of these rules.

This is a common compliance error that ARROWS Law Firm regularly identifies and helps clients correct. An Argentine company that enters into multiple short-term contracts with the same employee without tracking the total count may inadvertently create a permanent employment relationship with full severance obligations.

Working with foreign employees and posting workers: Additional compliance layers

When Argentine companies hire foreign workers (non-EU nationals) in the Czech Republic, they must navigate additional regulatory requirements. These requirements apply to Argentine citizens and other non-EU nationals and include work permits, residence permits, and specific employment authorization.

The application process is complex and often requires a "labour market test," where the position must first be reported to the Labour Office. Non-EU foreign workers generally require an Employee Card (a dual work and residence permit) or a Blue Card (for highly skilled workers) to work in the Czech Republic. The employment contract for foreign workers must include specific terms required for the immigration process. Additionally, the employer must provide proof of accommodation for the foreigner.

Failure to provide proper notification can result in fines up to CZK 100,000 per unreported employee, and in severe cases, much higher penalties for illegal employment facilitation.

Employers hiring foreign workers must also fulfill strict reporting duties. They must notify the relevant regional branch of the Labour Office on the day the foreigner starts work (and upon termination). For "posted workers" (employees sent temporarily to the Czech Republic from another country), strict notification requirements apply prior to the commencement of work. The Czech Labour Inspection Office strictly monitors compliance in this area.

The firm's lawyers can guide Argentine companies through the Employee Card process and ensure all reporting obligations are met.

ARROWS Law Firm, as a leading Czech law firm with extensive experience in cross-border employment matters, regularly handles these requirements for foreign employers.

Risks and Sanctions

How ARROWS helps (office@arws.cz)

Failure to obtain work permit/Employee Card: Employer hires non-EU worker without valid authorization; this constitutes illegal employment. Fines up to CZK 10,000,000 (min. CZK 50,000) and potential expulsion of the employee.

Visa and permit management: ARROWS Law Firm prepares and submits Employee Card or Blue Card applications; manages labour market test requirements; and advises on the fastest routes for Argentine nationals.

Failure to notify Labour Office: Employer hires or terminates foreign worker without notifying the Labour Office; employer faces administrative fines.

Labour Office notifications: ARROWS Law Firm submits timely notifications of foreign employee commencement, changes, and termination to the appropriate Labour Office regional office.

Inadequate accommodation proof: Employer fails to provide verified accommodation proof; visa application is denied and hiring is delayed.

Foreign worker documentation: ARROWS Law Firm prepares and verifies all required documentation including accommodation proofs and contracts compliant with Ministry of Interior standards.

Illegal "Disguised Agency" Employment: Employer "rents" workers from another entity without a proper employment agency license; severe fines imposed.

Contract structure review: ARROWS Law Firm reviews service agreements to ensuring they are not classified as illegal disguised employment (švarcsystém) or unlicensed agency work.

Intellectual property and confidentiality: Who owns what employees create?

Another area where Argentine and Czech law diverge is intellectual property created by employees. In the Czech Republic, the Copyright Act (§ 58) stipulates that if a work is created by an employee in the course of their employment duties, the employer automatically exercises the economic rights to the work, unless agreed otherwise. However, the employee remains the author.

The employer has the right to claim the invention if created as part of employment tasks, but must do so within a specific timeframe (generally 3 months from notification). For inventions (patents), the situation requires careful management. The employee may be entitled to "reasonable additional compensation" if the value of the invention becomes disproportionate to their salary. For trade secrets and confidential information, Czech law permits employers to require employees to sign non-disclosure agreements (NDAs).

A non-compete clause cannot last longer than one year after employment ends, and the employer must pay the employee financial compensation equal to at least one-half of their average monthly earnings.

Post-employment non-compete agreements are also permitted but are subject to strict requirements under § 310 of the Labour Code. A non-compete without this financial compensation is invalid (or non-binding for the employee). Argentine companies should understand that simply importing confidentiality and non-compete provisions from their Argentine employment contracts will likely be unenforceable in the Czech Republic. ARROWS Law Firm can help Argentine companies draft valid non-compete clauses.

Anti-discrimination protections: Broader than Argentina's

Both Argentina and the Czech Republic have anti-discrimination laws, but the Czech approach is rigorous and aligned with EU directives. The Czech Anti-Discrimination Act prohibits discrimination based on race, ethnic origin, nationality, sex, sexual orientation, age, disability, religion, belief, or worldview. If an employee presents facts suggesting discrimination, it is up to the employer to prove that no discrimination occurred.

One key difference is the procedural burden in court. In specific discrimination cases in the Czech Republic, the burden of proof shifts to the employer. This creates significant liability. Additionally, under GDPR and the Labour Code, employers in the Czech Republic are strictly limited in what personal data they can process and what questions they can ask during recruitment.

ARROWS Law Firm advises employers on structuring hiring and personnel decisions to ensure compliance with Czech anti-discrimination law and GDPR. Questions about pregnancy, family plans, criminal record (unless relevant to the job), or financial integrity are generally prohibited.

1. Our Argentine company created an invention together with a Czech employee. Who owns the patent?
If the invention was created as part of the employee's work duties, the employer generally has the right to claim it. However, you must formally exercise this right within a statutory period. Furthermore, the employee may be entitled to additional compensation if the invention is highly valuable. ARROWS Law Firm recommends including detailed IP assignment language in all Czech employment contracts to clarify these rights.

2. We want to restrict our employees from working for competitors after they leave. Is a non-compete agreement enforceable?
Yes, but only if you pay for it. A post-termination non-compete is valid only if the employer agrees to pay at least 50% of the employee's average monthly earnings for every month the restriction applies (max 1 year). A "free" non-compete is not binding on the employee.

3. Can we ask job applicants about their family plans or background?
No. The Labour Code strictly prohibits seeking information not directly related to work performance. Questions about pregnancy, family status, or number of children are illegal during the hiring process and can lead to discrimination claims.

Tax and social security obligations for Argentine employers

Argentine companies hiring in the Czech Republic must register with multiple Czech authorities. Employers must register with the Czech Social Security Administration (ČSSZ), health insurance funds, and the tax authority generally within 8 days of the first employee starting work. The employer must withhold personal income tax from employee salaries and remit it to the tax office.

Additionally, the employer must pay the mandatory 33.8% social and health insurance contributions on top of the gross salary.

For foreign employers with no Czech legal entity (branch or subsidiary), "payroll only" registration is possible, but complex. A "deemed employer" concept may apply for tax purposes. ARROWS Law Firm assists Argentine companies with Czech tax registration and ensures full compliance with regulatory requirements.

Executive summary for management

Key Issues:
Czech employment law is fundamentally more protective of employees and more administratively complex than Argentine labour law. Argentine companies face significant compliance risks if they attempt to apply Argentine employment practices in the Czech Republic without proper legal adaptation.

Primary Differences:

  • Mandatory written contracts with specific statutory content are required.
  • No at-will employment —terminations require just cause, 2-month notice periods (starting the 1st of the next month), and strict documentation.
  • Fixed-term contract limits (3 years x 3 times) prevent indefinite temporary staffing.
  • Higher mandatory costs: Social/Health contributions add ~33.8% to gross salary costs.
  • Foreign worker requirements : Strict work permit (Employee Card) and reporting rules apply to non-EU citizens.
  • Paid Non-Competes: Post-employment restrictions require 50% salary compensation.

Risk Mitigation:
Argentine companies should engage Czech employment law specialists to review and adapt their employment practices before hiring in the Czech Republic. ARROWS Law Firm's lawyers combine deep knowledge of Czech legal requirements with experience advising international companies and can help Argentine employers structure compliant employment relationships from the outset.

Conclusion of the article

Argentine companies expanding into the Czech Republic often underestimate how substantially Czech employment law differs from the labour law they are accustomed to at home. The differences reflect fundamentally different approaches to employment relationships, with the Czech Republic offering significantly more protective regulations for employees and imposing stricter compliance obligations on employers.

Employers who fail to provide properly drafted employment contracts face fines up to CZK 10,000,000. The requirement for comprehensive written employment contracts, the prohibition on at-will employment, the strict limitations on fixed-term contracts, and the extensive mandatory benefits create a complex regulatory landscape. Terminations conducted without valid reasons expose employers to reinstatement orders and back pay. Failure to register employees for social security can result in criminal liability.

ARROWS Law Firm's lawyers combine deep expertise in Czech labour law with extensive experience advising foreign companies.

These are precisely the issues that the lawyers at ARROWS Law Firm address daily for international employers. The firm can provide tailored advice on employment contract drafting, termination procedures, foreign worker hiring, tax compliance, and dispute resolution. If your Argentine company is planning to hire in the Czech Republic or is already facing compliance questions, do not hesitate to contact the lawyers at ARROWS Law Firm.

Write to office@arws.cz and allow the specialists to guide you through the Czech employment law landscape with confidence.

1. Our Argentine company hired three employees in the Czech Republic without providing written employment contracts because we assumed Czech law operated like Argentine law. Are we in violation?
Yes. Czech law requires all employment contracts to be in writing. Failure to do so is an administrative offense subject to fines. You should immediately work with ARROWS Law Firm to prepare written contracts for all employees to comply with Czech law and clarify the terms of your employment relationships. Contact us at office@arws.cz.

2. We terminated an employee in the Czech Republic without providing notice because the employee's performance was poor. Is this termination valid?
Likely not. Immediate termination is reserved for criminal acts or gross breaches of duty. For poor performance, you generally must have issued a written warning (reproach letter) in the last 12 months, and then provide standard notice (2 months). If the employee challenges the termination, a labour court could declare it invalid. ARROWS Law Firm can advise you on whether your termination was valid and how to fix it.

3. Can we use a Czech employee's salary to offset accommodation costs the employer provided?
Only with a specific written agreement on deductions from wages, and strictly within limits set by law (leaving the employee with a non-seizable minimum amount). You cannot unilaterally deduct costs from the net salary. This can be considered wage theft. Consult with ARROWS Law Firm at office@arws.cz about the proper way to handle benefits in kind.

4. We agreed verbally with a Czech employee on a three-month probationary period, but did not document it in writing. Is the probationary period valid?
No. A probationary period is valid only if agreed in writing before the commencement of work. A verbal agreement is void. The employee is therefore a permanent employee from day one without a probation period.

5. Do we need to pay for health insurance in the Czech Republic if we offer private health insurance as a company benefit?
Yes. The mandatory statutory health insurance contribution (9% employer, 4.5% employee) is required by law and cannot be opted out of. Private insurance is only a supplement. Failure to pay statutory contributions is a serious offense.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (office@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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