Employment Law Training for Foreign Nationals: Compliance and Risk Prevention

Mgr. Jakub Oliva, LL.M., MSc.
Mgr. Jakub Oliva, LL.M., MSc.
1.6.2026 | ARROWS law firm

Effective employment law training for foreign nationals is now essential to meet regulatory requirements without fines. It responds to stricter inspections of illegal work, new notification obligations (including ICAS), and changes in wages and insurance. The attorneys at ARROWS, a Prague-based law firm, clarify obligations and risks to protect management, HR, and foreign nationals from issues.

The photograph shows lawyers from ARROWS, a Prague-based international law firm, specialising in employment law training for foreign nationals.

Key takeaways

  • Training employees responsible for employing foreign nationals is no longer just a benefit, but an important prevention tool. Lack of knowledge of the rules can lead to significant sanctions and even allegations of illegal employment.
  • Employers must comply with a range of statutory obligations, in particular verifying foreign nationals’ work authorisation, fulfilling notification duties towards authorities, and keeping the required records, including retaining the necessary documents.
  • The rules differ depending on the type of foreign national. Correctly identifying the specific category and the related obligations is essential for lawful compliance and risk minimisation.
  • Recent legislative changes have significantly expanded employers’ obligations. Training must reflect current requirements for notifying the commencement of employment of foreign nationals, changes to the minimum wage, and mandatory electronic communication with health insurance companies.
  • High-quality training should not end with an explanation of legislation. The key is setting up internal processes, control mechanisms, and procedures for inspections so that the rules are actually applied in day-to-day practice.

Why employment law training for employing foreign nationals is a strategic necessity

Companies that employ foreign nationals operate under several legal regimes at once. In addition to the Employment Act under Czech law, they must address rules on the residence of foreign nationals, health and social insurance, and related international aspects. A mistake in one area often triggers consequences in others.

Any misstep can mean a fine, additional payments of contributions, complications in the employee’s residence proceedings, or disputes with authorities. Training therefore should not be a formal presentation, but a practical guide on how to prevent breaches of obligations in day-to-day operations.

The importance of training is also growing due to more intensive inspections. Authorities do not focus only on cases of obviously illegal work, but also on late notifications, inaccurate records, or inconsistencies between the employment contract and the foreign national’s work authorisation. In practice, it therefore makes sense to have support not only in internal procedures, but also through ongoing consultation on employment law.

In addition to legal impacts, there is also a commercial and reputational dimension. Information about sanctions or disputes may affect relationships with partners, investors, and job applicants. This is why training is part of broader risk management, not merely an internal HR obligation.

Basic legal framework

Any training should begin by distinguishing the main categories of foreign nationals. Different rules apply to citizens of EU, EEA and Swiss states, and different rules apply to third-country nationals. Different regimes also apply to family members, permanent residents, students, graduates, persons granted asylum, subsidiary protection, or temporary protection.

Correctly classifying the individual concerned is the foundation of lawful compliance. If an employer incorrectly assesses whether a foreign national has free access to the labour market or needs a specific authorisation, the risk of errors arises already during recruitment and contract execution.

Training should clearly explain to participants which document entitles a foreign national to reside and which entitles them to work, or when both authorisations are combined in a single document. For quick orientation in short-term regimes, the related overview of when a work permit for a foreign national for work up to 90 days in the Czech Republic is sufficient can also be helpful. This is precisely where confusion most often arises in practice.

It helps if the legal explanation is supplemented with model situations. The difference between a student, a graduate, a holder of an employee card, or a person with temporary protection can be crucial for everyday HR practice, even though they may appear similar at first glance.

Residence and employment permits

In the next part of the training, it is necessary to explain the basic types of work and residence authorisations. Typically, these include the employee card, the Blue Card, a work permit, or authorisations linked to an intra-company transfer. When setting up the process, it is also useful to have a procedure prepared for situations where it is necessary to change the employer of a foreign national holding an employee card or Blue Card. Each of these regimes has different conditions, deadlines, and practical implications.

The employer must know which steps it can handle itself and which must be taken directly by the foreign national. The mistaken belief that HR will “take care of all formalities” often leads to delays, frustration, and subsequent disputes with the candidate or with authorities.

For some professions, additional requirements also come into play. These may include proving professional qualifications, certified translations, an apostille, superlegalisation, or recognition (nostrification) of foreign education. These formalities directly affect recruitment timelines, costs, and the realistic ability to fill a position by the planned date.

Well-structured training therefore should not stop at an overview of card and permit types. It must also show the practical links to the recruitment process, communication with the candidate, and preparation of documents for authorities.

Obligations towards authorities

One of the most important areas is notification duties towards the Labour Office of the Czech Republic. In many cases, it is necessary first to notify a vacant position and then to report the foreign national’s commencement of employment in due time. Deficiencies in these steps may be sanctioned independently. For notifications of commencements, changes, and related documentation, it is often worthwhile to contractually define responsibilities and control points within contracts and negotiations.

Following changes effective from October 2025, special attention must be paid to the fact that a foreign national’s commencement must be notified in advance, no later than eight days before work begins. This obligation has significant implications for recruitment and onboarding processes and rules out improvised “next-day” starts.

Training should clearly determine who in the company is responsible for notifying the vacant position, who for reporting the commencement, and who for informing about non-commencement or early termination of employment. Without precisely allocated roles, the most common process errors arise in practice.

This is not only about the company’s relationship with the authorities. Failure to comply with information obligations can also negatively affect the foreign national themselves, for example in subsequent residence proceedings. That is precisely why this agenda must be part of systematic training, not merely a one-off warning.

Records and documentation

An often underestimated area is keeping records of foreign nationals and retaining the related documentation. The employer must record identification details, work-related information, the type of employment relationship, work authorisation and residence status. At the same time, the employer must continuously monitor whether this information is up to date.

It is not enough to keep a single copy of a document upon onboarding. During employment, it is necessary to monitor changes in the validity of residence permits and, after termination of employment, retain the documentation for the statutory period. Negligence in this area is very easy to spot during inspections.

Training should also include a practical procedure for how to verify the authenticity and validity of submitted documents and how to integrate this check into onboarding. While the employer is not a forensic expert, it must be able to demonstrate that it made reasonable efforts to verify the documents.

The topic of record-keeping is also related to personal data protection. Storing copies of documents, access rights and the internal circulation of sensitive information must be aligned with internal rules for handling personal data.

Pay and equal treatment

Employing foreign nationals is not only a matter of residence and administrative regime. The employer must also ensure working and pay conditions that comply with Czech law and must not disadvantage foreign nationals merely because they come from another country.

This applies to base pay, working hours, holiday entitlement, bonuses, occupational health and safety and other employment-law standards. For certain types of permits—especially employee cards and Blue Cards—specific limits regarding working hours and minimum remuneration are also monitored.

Training must highlight that a discrepancy between the wage actually paid and the information submitted to the authorities may be assessed as a very serious breach of regulations. Unclear deductions for accommodation or transport are also risky if they do not have a clear legal basis.

It is also important to remind employees of the relationship to collective agreements. If a collective agreement applies at the employer, it also applies to foreign nationals, and it is not possible to create a “cheaper” or otherwise worsened parallel regime for them.

Health and social insurance

Another critical point is health and social insurance. Responsibility here is often dispersed between HR, payroll and the employee themselves, which is a common source of errors. Yet incorrect insurance setup can lead to arrears in insurance contributions, penalties and further complications.

The situation differs depending on the type of residence, employment and nationality. Some foreign nationals enter the public system automatically, others require commercial health insurance, and for EU citizens or persons linked to another state, coordination rules and international treaties apply.

Training should teach participants to recognise cases where routine payroll processing is not sufficient and it is necessary to verify international aspects, forms or affiliation with another insurance system. This is precisely where errors arise that only become apparent after a significant delay.

Ongoing legislative changes also play a significant role. Changes in the minimum wage, assessment bases for contributions or electronic communication with health insurance companies must be reflected in internal processes and payroll systems in a timely manner.

Illegal and undeclared work

Without a thorough explanation of the concepts of illegal work and undeclared work, the training is incomplete. Illegal work may consist of work performed outside an employment-law relationship, work without the required authorisation, work contrary to an issued permit, or work during an invalid residence status of the foreign national.

Undeclared work represents a separate risk. It may arise even where the foreign national otherwise has the necessary authorisations, but the employer fails to meet the notification obligation towards the Labour Office in time. Especially after the tightening of the rules, this issue is even more significant in practice.

Training participants must understand that even an apparently minor deviation—such as a different position, a different place of work, or a late notification—can have very serious legal consequences. It is therefore not enough to check only whether the foreign national “has some permit”.

Sanctions may affect both the employer and the worker themselves. In addition to fines, it is necessary to consider reputational consequences, restricted access to certain support schemes, and an increased risk of disputes over unpaid wages or the invalidity of termination of employment.

What high-quality training should look like

The training content should mirror the entire employment cycle of a foreign national in the company—from the first contact and recruitment through concluding the contract, onboarding, the course of employment, changes in job assignment, to termination of employment and the related notification obligations.

At the same time, it is advisable to tailor the training to individual groups within the company. HR needs detailed orientation in documents and deadlines, managers must understand the impact of changes in work on the foreign national’s permit, and payroll needs certainty in the area of contributions and insurance.

The greatest benefit comes from training that works with specific model situations, internal checklists and a clear allocation of responsibilities among individual roles. It is precisely the connection between the explanation and real operations that determines whether the company truly internalises the rules.

The system should also include records of completed training. Such documentation is important not only for internal overview, but also as evidence during an inspection or in administrative proceedings.

Most common training questions

1. How often should the company repeat the training?
It depends on the intensity of employing foreign nationals and on how quickly the relevant legislation changes. In practice, a combination of regular comprehensive training and shorter update sessions when significant changes occur works well.

2. Is it enough to train only the HR department?
No. The process usually also involves line managers, payroll, company management and sometimes in-house lawyers or compliance staff.

3. Does it make sense to train the foreign nationals themselves?
Yes, especially on documentation, residence obligations, communication with authorities and practical steps when personal circumstances change. A short briefing for employees can prevent unnecessary complications.

Future changes and digitalisation

The legal framework for employing foreign nationals continues to evolve, and training must respond accordingly. Digitalisation of residence-related processes, electronic communication with authorities and the future involvement of employers in new information systems are becoming increasingly important.

In practice, this means that companies will not only address the legal correctness of documents, but also procedural and technical readiness. Training should therefore involve, in addition to HR and the legal department, finance, payroll and sometimes also IT.

Outdated internal presentations and one-off training sessions without ongoing updates are no longer sufficient in this area. Anyone who employs foreign nationals regularly must have a living system that responds to changes in legislation, administrative practice and internal operations.

The outcome should not be merely “trained staff”, but a functional set of rules, templates, responsibilities and controls that can genuinely be used in day-to-day practice.

Potential risks and the role of ARROWS advokátní kanceláře

Potential issues

How ARROWS helps (office@arws.cz) 

Illegal employment of foreign nationals: risk of high fines, disputes, and other consequences

Legal audit of employment-law and immigration/residency processes. Corrective measures can then be implemented and the risk of sanctions reduced.

Late notification of commencement: risk of undeclared work and procedural errors

Setting internal procedures for HR and management. Including deadlines, responsibilities, and control steps.

Inspection by the Labour Inspectorate or authorities: unprepared documents and inconsistencies in documentation

Preparation for inspections and representation in proceedings. This may also include a review of documentation and a defence strategy.

Disputes with foreign nationals over wages or termination of employment: risk of court and reputational impact

Preparing procedural strategy and out-of-court resolution. Rapid work with evidence and internal documentation is key.

Weak internal training: repeated errors by HR, managers, or payroll

Comprehensive tailored training and preparation of internal manuals. The aim is to translate legal requirements into practical rules.

Final summary

Employment law training for employing foreign nationals should today be understood as part of a company’s strategic risk management, not as a formal internal activity. Czech legislation imposes a wide range of obligations on employers.

For entrepreneurs, managers, and investors, it is important to understand that the legal reality is often more complex than it appears at first glance. Seemingly minor mistakes—late notification of commencement, incorrectly set salary for an employee card, an outdated copy of a residence document, or moving a foreign national to another position without checking their permit—can trigger a chain of consequences.

If you do not want to risk errors, damages, delays, or fines, it is safer not to rely on improvised internal training and outdated presentations. ARROWS advokátní kancelář has long specialised in employing foreign nationals and monitors legislative changes as well as case law.

We help clients not only with the training itself, but also with setting internal policies, control mechanisms, preparing contracts, and representation during inspections and in disputes. If you are considering systematic employment law training for employing foreign nationals or need to review existing processes, you can contact ARROWS advokátní kancelář at any time via the contact email office@arws.cz.

FAQ - Employment law training for employing foreign nationals

1. At what company size should training already be addressed systematically?
The decisive factor is not only the size of the company, but in particular the number of foreign nationals employed, the level of turnover, and the complexity of their job assignments. A systematic approach makes sense as soon as a company employs foreign nationals repeatedly or plans to increase their number.

2. Is internal training based on self-study of legislation sufficient?
Internal training can be useful as a foundation, but on its own it is often not enough. The topic is complex, changes quickly, and includes many exceptions and procedural details that are difficult to infer from the text of the regulations alone.

3. How long should the training be?
The basic scope usually ranges from a few hours to a one-day workshop. More advanced modules for specialised roles should be divided into separate blocks by topic and responsibilities.

4. Can the training focus only on certain groups of foreign nationals?
Yes. In many companies, it is effective to focus the detailed part of the training on the most common or highest-risk groups of employees, for example holders of employee cards or workers with a cross-border element.

5. What if the company already has some training but is not sure it is up to date?
In such a situation, a review of existing materials, internal policies, and related processes is appropriate. It is often not necessary to create everything again, but it is necessary to incorporate changes in the legal framework and eliminate operational weaknesses.

6. What is the significance of training when defending against a fine or in a dispute?
Properly documented training can serve as evidence that the employer did not neglect prevention and implemented internal rules. It will not excuse an error on its own, but it may matter when assessing liability and when defending against sanctions.

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance on the topic based on the legal status as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of information from this article without prior individual legal consultation.

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