How Greek Firms Should Manage Hiring in the Czech Republic: Risks and Rules to Understand

Greek companies expanding into the Czech market face strict employment reporting obligations that differ dramatically from Greek labor practices. As a leading Czech law firm in Prague, European Union, ARROWS helps Greek businesses navigate these complex requirements daily, preventing costly penalties that can reach CZK 3 million for administrative violations.

Why Greek Hiring Methods Create Legal Problems in Czech Republic

Greek business culture emphasizes personal relationships and verbal agreements, but Czech employment law demands written documentation before any work begins. Greek firms frequently encounter labor law penalties because Greek-style verbal management instructions violate Czech requirements for written employment directives and formal disciplinary procedures. 

The Czech Labor Code requires employment contracts in writing, registered work permits, and pre-start notifications to the Labor Office—requirements that surprise many Greek managers accustomed to more flexible Mediterranean business practices.

Greek companies must abandon verbal hiring commitments and implement formal written procedures before recruiting Czech-based employees.

The Czech Republic introduced a new legal concept of "unreported work" effective October 1, 2025, that punishes employers who allow employees to start before completing all registrations. This represents a fundamental shift from Greek practices where employment relationships often begin informally and are formalized later. Czech authorities now treat any gap between start date and registration as a serious administrative offense, even if the delay is only one day.

What Documentation Must Greek Employers Prepare?

Before your Greek company hires anyone in Czech Republic, you must prepare three categories of documents: employment contracts, immigration permits, and registration forms. Czech law requires written employment contracts specifying salary, working hours, leave entitlement, and job description before the employee's first day. Unlike Greece where indefinite contracts can be implied, Czech law mandates explicit written terms.

Greek employers must verify each foreign employee holds either an employee card, blue card, intra-company transfer card, or valid work permit combined with residence permit. The employee card serves as both residence and work permit for most third-country nationals, while EU citizens need only register their residence but still require Labor Office notification. Your Greek HR department must keep copies of these documents for three years after employment ends.

All Greek corporate documents require apostille or superlegalization and official Czech translation by a court-certified translator. This includes board resolutions authorizing Czech hiring, extracts from the Greek Commercial Register, and criminal record certificates for directors. Greek companies often underestimate this requirement, causing 2-3 week delays when documents arrive in Greece without proper authentication.

How Do New "Unreported Work" Rules Affect Greek Firms?

The October 2025 amendment to the Employment Act fundamentally changed when Greek companies must report new hires. Employers must now notify the Labor Office no later than one day before the employee starts work, not on the first day as previously allowed. This means your Greek management can no longer make verbal offers and start employees immediately while paperwork is processed.

Failure to comply constitutes "unreported work," an administrative offense carrying fines up to CZK 3 million. The law applies to all foreign workers, including EU citizens, family members of Czech citizens, and those with free labor market access. Greek firms must update hiring procedures to complete all registrations at least 24 hours before the employee's start date.​

There is a limited grace period: if you report within five days and no inspection occurs during that period, the violation will be considered unreported work but not punished. However, relying on this exception is risky—Czech labor inspectors conduct random workplace audits, and Greek companies with multiple employees face exponential risk.

What Happens If Greek Companies Skip Registration Steps?

Greek businesses sometimes postpone Czech registrations to save time, but this triggers cascading legal consequences. If your employee starts work without proper registration, both you and the employee face penalties. The State Labour Inspection Office can impose fines up to CZK 100,000 for individuals and CZK 250,000 to CZK 10,000,000 for companies. Additionally, authorities can ban your company from hiring foreigners and block you from posting vacancies through the Labor Office.​

Czech authorities share employment data with social security and health insurance systems automatically. If your registration is delayed, your employee's insurance coverage may be interrupted, creating personal liability for medical costs. Greek companies have faced lawsuits from employees injured during periods of improper registration, with courts holding employers fully liable for damages.

Even one forgotten document can trigger a cascade of problems that should not be underestimated.

Employment Registration Violations

Risks and penalties	How ARROWS helps (office@arws.cz)
Undeclared work fines up to CZK 3 million for starting employment before Labor Office notification.​	Contract drafting and review – we prepare compliant employment contracts and ensure all registrations are completed 24 hours before start date.
Employee misclassification penalties up to CZK 10 million for treating employees as contractors.​	Legal consultations to prevent inspections – we review your workforce structure and draft proper employment agreements.
Criminal liability for directors when illegal employment is deemed intentional, punishable by up to 2 years imprisonment.	Representation before registers and regulators – our lawyers handle all Labor Office communications and defend against administrative proceedings.
Business ban preventing you from hiring any foreigners for up to 2 years.	Preparation of internal company policies – we create hiring compliance manuals tailored to Greek management styles.

How Long Does Compliant Hiring Really Take?

Greek companies accustomed to rapid hiring in Greece's flexible labor market must adjust expectations for Czech procedures. The realistic timeline from job offer to legal start date is 3-4 weeks minimum. Employee card processing takes 60-90 days, though EU citizens can register faster. Blue cards for highly qualified workers require salary guarantees and university degree verification, adding 2-3 weeks.

Document authentication in Greece takes 2-3 weeks if not planned in advance. Trade license issuance requires 5-7 days for free trades but 30-60 days for professional trades needing nostrification of Greek educational credentials. Greek companies should begin the hiring process six weeks before the desired start date to ensure compliance.

ARROWS law firm based in Prague, European Union, handles Greek hiring projects weekly and can compress this timeline through established relationships with Czech authorities. Our international law firm operating from Prague, European Union, coordinates document authentication in both countries simultaneously, saving 10-15 days.

FAQ – Legal Tips About Czech Employment Registration

1. Can Greek citizens work in Czech Republic without permits?

A: Greek citizens, as EU nationals, have free labor market access but must still register their residence with the Alien Police within 30 days and notify the Labor Office before starting work. The registration requirement applies even though no work permit is needed. ​

2. What if our Greek company needs to hire urgently within one week?

A: Czech law does not accommodate urgent hiring. Starting employment without proper registration constitutes undeclared work with fines up to CZK 3 million. The only legal solution is using agency workers while completing registrations. Our lawyers can arrange compliant temporary staffing within 48 hours. 

3. Do Greek employment contracts transfer to Czech Republic?

A: No. Greek contracts lack mandatory Czech clauses and violate local formalities. Czech law requires specific provisions about working hours, leave, and termination grounds that Greek contracts rarely include. We draft Czech-compliant contracts that protect your Greek parent company. ​

What Greek-Specific Compliance Challenges Should You Expect?

Greek management practices create unique compliance risks in Czech Republic. Greek companies often delegate HR tasks to local managers without written authorization, but Czech law requires explicit powers of attorney for anyone submitting documents to authorities. Greek-style flexible working arrangements violate Czech rules on maximum working hours and mandatory rest periods.

The Greek practice of paying 13th and 14th salaries as discretionary bonuses conflicts with Czech law, which treats these as regular salary components once paid consistently. Greek firms have faced back-payment claims for social security contributions on these bonuses when they failed to include them in official salary declarations.

Czech employees expect written policies on remote work, data protection, and disciplinary procedures—documents Greek companies rarely maintain. The Czech Republic has strict data privacy regulations that employers need to take into account, along with the European General Data Protection Regulation (GDPR). Greek verbal policies on data handling have resulted in GDPR fines of up to CZK 10 million.

Greek-Czech Cultural Compliance Gaps

Risks and penalties	How ARROWS helps (office@arws.cz)
Verbal management instructions violate Czech written documentation requirements, causing labor law penalties.​	Preparation of internal company policies – we create written directives that satisfy Czech inspectors while respecting Greek management culture.
Flexible Greek working hours exceed Czech legal limits (40-hour week, 8-hour day) triggering overtime penalties.	Legal consultations to prevent inspections – we design compliant shift patterns that maintain Greek operational flexibility.
Discretionary bonus payments become enforceable salary components under Czech precedent, creating social security debt.	Drafting documentation to prevent fines – we structure bonus schemes that remain discretionary under Czech law.
Missing GDPR documentation results in fines up to CZK 10 million or 2% of global turnover.	Professional training for employees – we certify your management in Czech data protection requirements.

How Does ARROWS Simplify Czech Hiring for Greek Companies?

ARROWS law firm based in Prague, European Union, handles Greek hiring compliance daily. Our international law firm operating from Prague, European Union, bridges the gap between Greek business culture and Czech legal formalities, preventing the missteps that cause most Greek companies to face penalties.

We operate in 90 countries globally and understand both Greek relationship-based business practices and Czech documentation requirements. Our team includes Greek-speaking lawyers who explain complex Czech regulations in terms Greek management understands. We support over 150 joint-stock companies and 250 limited liability companies, many with Greek ownership.

Our comprehensive service includes:

• Pre-hiring compliance audits of your planned workforce structure
• Drafting Czech employment contracts that protect Greek parent companies
• Coordinating document authentication in Greece and Czech Republic simultaneously
• Managing all Labor Office notifications 24 hours before start dates
• Creating internal policies on remote work, GDPR, and disciplinary procedures
• Representing you during labor inspections and administrative proceedings
• Connecting Greek clients with Czech business partners when interests align

ARROWS is insured for damages up to CZK 500,000,000, providing Greek companies with security that internal HR departments cannot match. We are also regular partners of corporate lawyers for handling special matters.

Final Recommendation for Greek Companies

Greek firms expanding into Czech Republic must recognize that employment law compliance is more complex in practice than it appears at first glance. Individual steps that seem simple—like registering a new hire—contain hidden exceptions, procedural details, links to other regulations, and risks that laypeople often do not see in the real world. 

The interaction between Greek management style and Czech legal formalities creates unique vulnerabilities that standard Greek legal counsel cannot address.

ARROWS handles this agenda on a daily basis, which can significantly reduce your time and minimize the risk of errors. Our team understands both Greek business culture and Czech legal requirements, bridging the gap that causes most Greek companies to stumble. We welcome innovative business ideas and investment opportunities from Greek entrepreneurs, and we regularly connect Greek clients with Czech business partners when interests align.

If you do not want to risk errors, damages, or fines, you can safely leave the whole matter to ARROWS – just contact the office at office@arws.cz. Our lawyers are ready to assist you with every aspect of Czech employment law compliance.

FAQ – Most Common Legal Questions About Greek Firms Hiring in Czech Republic

1. Can we transfer Greek employees to Czech Republic temporarily without Czech contracts?

No. Posted workers from Greece must have Czech-compliant documentation at the Czech workplace, including translated employment contracts and written confirmation of the employment relationship. The State Labour Inspection Office can fine you up to CZK 500,000 for non-compliance. For immediate assistance with posted worker documentation, write to us at office@arws.cz.​

2. Does Greek EU membership exempt us from Czech registration requirements?

No. While EU membership eliminates visa requirements, it does not reduce registration obligations. Greek companies face identical documentation and procedural requirements as other foreign investors. Our Prague-based team expedites the process through daily interaction with Czech authorities. ​

3. What salary levels satisfy Czech requirements for highly qualified Greek managers?

Blue card applicants need gross monthly salary of at least 1.5 times the Czech average wage (approximately CZK 60,000), while employee cards require at least minimum wage but holders must work minimum 15 hours weekly. Greek salary levels often need adjustment to meet Czech thresholds. ​

4. Can Greek directors of Czech companies sign employment contracts without Czech work permits?

Greek citizens serving as Czech company directors can sign employment contracts for other employees without personal work permits, but the company must still complete all foreign employee registrations. However, directors cannot work as employees without proper permits themselves. Our lawyers are ready to assist you – email us at office@arws.cz.

5. How quickly can ARROWS register our first Czech employee?

With complete documentation, we register employees within 24 hours. However, Greek document authentication typically takes 2-3 weeks. We recommend starting the process six weeks before your desired start date.

6. What happens if Czech authorities reject our Greek educational credentials?

Professional trades require nostrification (recognition) of Greek university degrees, a process taking 30-60 days. We coordinate with Czech universities and the Ministry of Education to expedite recognition. Do not hesitate to contact our firm – office@arws.cz – for credential assessment before you hire.