How non-EU employers can adapt to Czech employment standards: What to check before signing contracts

Non-EU employers entering the Czech market face employment regulations differing significantly from home jurisdictions. Understanding these requirements before hiring is essential—mistakes cause fines, disputes, and reputational damage. This article explains key standards to verify, helping you avoid compliance errors.

Understanding the Czech Labour Code framework

The Czech Labour Code (Act No. 262/2006 Coll.) is the foundation of all employment relationships in the country, and as a non-EU employer, you cannot bypass or modify its core requirements simply because your company is foreign-based.

Unlike some jurisdictions where employment terms are freely negotiable between parties, Czech law establishes mandatory minimum standards that apply to every worker, regardless of their status or the nature of their role. This means you cannot offer employees less favorable conditions than those stipulated by law, even if they agree to accept lower standards.

The Labour Code covers an extensive range of matters: employment relationships, working conditions, rights and obligations of both employers and employees, procedures for termination, leave entitlements, and workplace safety.

For non-EU employers unfamiliar with continental European legal systems, the breadth of these statutory requirements often comes as a surprise. Unlike common law jurisdictions where contracts heavily shape the employment relationship, Czech law operates on the principle that certain protections are non-negotiable.

One of the first things foreign employers must grasp is that the Labour Code distinguishes between different types of work relationships. The primary relationship is an employment contract, but the Code also recognizes agreements to complete a job (DPP) and agreements to perform work (DPČ).

Misclassifying a worker—for example, treating a full-time employee as an independent contractor—exposes you to significant liability and fines. The lawyers at ARROWS Law Firm regularly advise non-EU employers on correctly structuring work relationships according to Czech law and can review your employment arrangements to ensure compliance before problems arise.

The legal landscape continues to evolve, with recent amendments introducing stricter requirements for hiring foreign workers and enhanced protections for vulnerable groups. In 2025, employers must navigate updated minimum wage levels and strict digital reporting obligations for foreign employees.

microFAQ 

1. Can I negotiate my own employment terms that differ from the Labour Code?
No. Czech labour law sets minimum standards that cannot be waived by agreement. Any contract clause attempting to provide less favorable conditions than the Law requires is void. However, you can negotiate terms more favorable than the statutory minimum.

2. What is the difference between an employment contract and other work arrangements?
An employment contract creates a full employment relationship with all statutory protections (leave, notice periods, severance). DPP and DPČ agreements are for temporary or part-time work and offer fewer protections, though recent amendments have brought them closer to standard employment (e.g., leave entitlement). Misclassifying workers can result in fines up to CZK 10,000,000.

3. Do the Labour Code rules apply to my foreign employees?
Yes, completely. Once a worker performs labor on Czech territory under your control, Czech employment law applies regardless of their nationality or where you sign the contract. The only exceptions are for posted workers from other EU countries under specific cross-border service rules.

Employment contract requirements and minimum terms

Every employment relationship in the Czech Republic must be documented in a written employment contract, without exception. This is not a suggestion or a best practice—it is a legal requirement.

The contract must be signed by both you and the employee and must be in a language the employee understands. Many foreign employers attempt to use a brief letter or a simple agreement they use in their home country, but this approach will not satisfy Czech legal requirements.

The Labour Code specifies three essential elements that must appear in every contract. First, the contract must identify the type of work that the employee will perform; second, it must state the place or places of work; and third, it must specify the day of commencement of employment.

Without these three elements, the contract is invalid, and the employment relationship, while it may continue in practice, exists in a legally uncertain state. Beyond these mandatory essentials, Czech law requires that the employer provide the employee with written information about several additional matters.

These include the specification of the type of work (essentially, a job description), vacation entitlements, notice period, weekly working hours and schedule, salary, and any applicable collective bargaining agreements.

The language of the contract deserves careful attention. While there is no statutory requirement to draft the contract in Czech, and employers can choose any language the employee understands, we strongly recommend preparing a bilingual version.

If a labor inspector or court later needs to interpret the contract, a Czech version carries more legal weight, and misunderstandings arising from translation differences can be costly to resolve.

For non-EU employers hiring third-country nationals, the employment contract takes on additional importance because it becomes part of the work permit application process. The Labour Authority will review the contract to verify that the employment terms comply with Czech standards.

A poorly drafted contract can delay the entire hiring process or result in rejection of the work permit application. The solicitors at ARROWS Law Firm have extensive experience preparing employment contracts for foreign workers that satisfy both Czech Labour Code requirements and immigration authority standards.

microFAQ

1. Can I use my home country employment contract as a template?
No, you cannot simply translate or adapt a contract from your home jurisdiction. Czech law requires specific mandatory terms, and home-country contracts typically miss these requirements or include provisions that contradict Czech law. An improperly drafted contract exposes you to fines and creates uncertainty for both you and the employee.

2. What happens if my contract is missing one of the three mandatory elements?
The contract is legally invalid. Although the employment may continue in practice, you and the employee are in a legally uncertain position. If a dispute arises, a court may not enforce contract terms, and you may face liability. Additionally, inspectors discovering a missing contract can impose fines.

3. If I employ someone part-time or on a temporary arrangement, do the same contract rules apply?
Yes, all work relationships require a written contract, regardless of whether the position is part-time, temporary, or on an agreement for specific work (DPP/DPČ). The type of agreement may differ, but the requirement for written documentation is universal.

Working hours, rest periods, and overtime rules

Czech labour law strictly regulates working hours and rest periods, and non-EU employers are sometimes surprised at how protective these rules are compared to regulations in their home countries. The standard working week is 40 hours, typically distributed over five days.

Individual shifts may not exceed 12 hours in duration. This is a hard limit—you cannot schedule a single shift longer than 12 hours except in extraordinary circumstances defined by the Labour Code.

Employees are entitled to a work break for food and rest of at least 30 minutes after no more than 6 hours of continuous work, and this break time does not count as working hours. Between shifts, employees must receive continuous rest of at least 11 hours.

This rest may only be reduced to 8 hours in 24 consecutive hours in specific circumstances defined by law, and only if the following rest period is extended to compensate. Additionally, employees are entitled to a minimum of 35 hours of uninterrupted weekly rest.

Overtime work is permitted but is strictly limited. Total overtime within a calendar year cannot exceed 150 hours unless the employee agrees otherwise.

Overtime must be compensated at a premium rate, typically at least 25% of the employee's average earnings on top of their wage, or compensatory time off. Many non-EU employers mistakenly believe they can simply pay higher hourly rates to avoid overtime rules, but Czech law does not permit this.

Employers must keep detailed records of working hours for each employee, including the beginning and end of each shift, overtime work, work at night, standby time, and work during standby.

The lawyers at ARROWS Law Firm assist employers in establishing proper working hour recording systems and policies that protect both workers and the company from disputes and penalties.

microFAQ 

1. Can I schedule a 12-hour shift if the employee agrees?
Yes, a single shift can be 12 hours maximum. However, you must still ensure the employee receives the required 11-hour continuous rest before the next shift, even if this means the employee cannot work the following day. You cannot compress work to save on rest obligations.

2. If I pay overtime at 150% of the regular wage, can I exceed the 150-hour annual limit?
No. The 150-hour annual limit is absolute and cannot be waived by higher compensation. The only exception is if the employee agrees in writing to exceed this limit (up to a legal maximum, typically averaging 8 hours/week over a specific period), but you must document such agreement in detail. However, excessive overtime creates liability for employee health and safety issues.

3. What records must I keep to prove I am complying with working hour rules?
You must record the start and end time of each shift for every employee. These records must be available at the workplace and must be kept for a minimum of 5 years (for payroll auditing purposes). Failure to maintain records is itself a violation that can result in fines, even if your actual working hour practices are compliant.

Hiring foreign employees: Work permits and documentation

For non-EU employers, understanding the work permit system is critical because without proper permits, you cannot legally employ foreign workers, and unlawful employment can result in fines up to CZK 10,000,000.

Citizens of EU and EEA countries, as well as Swiss citizens, have free access to the Czech labour market and do not need work permits, though you must still register them with the Labour Office. However, all other foreign nationals require specific work permits or residence cards to work legally in the Czech Republic.

The Employee Card is the most common work permit for third-country nationals. It combines both a work permit and a long-term residence permit in a single document.

To obtain an Employee Card, the foreign national must have a valid travel document, proof of accommodation, an employment contract, and (in most cases) a document identifying the job vacancy from the Central Database of Job Vacancies.

There are two variants of the Employee Card: dual and non-dual. A dual Employee Card allows the worker both to reside and work in the Czech Republic. A non-dual Employee Card is generally for residence only where the work permit is issued separately by the Labour Office.

The EU Blue Card is designed for highly qualified workers. The applicant must have completed university education or higher professional education lasting at least three years and must have an employment contract for at least six months with a gross monthly salary of at least 1.5 times the average gross monthly salary.

Before applying for a dual Employee Card or Blue Card, the employer must complete a labour market test in specified cases. This means notifying the Labour Office of the vacant position, which is then published on the Labour Office website.

ARROWS Law Firm regularly assists non-EU employers in navigating the labour market test requirement and ensuring all paperwork is correctly filed to avoid delays.

Since July 1, 2024, Czech employers face a significantly tightened reporting obligation regarding the notification of foreign workers. Employers must report the commencement of employment by a foreign national worker (including EU citizens) to the Labour Office no later than on the day the employee starts working.

Failure to meet this deadline is a serious administrative offense that can result in fines. This digital reporting must be done via specific XML data boxes or the Labour Office portal. The requirement has created a new layer of compliance complexity for non-EU employers.

The documentation requirements for hiring foreign workers are extensive and often misunderstood. For third-country nationals obtaining work permits, you must ensure the worker has the proper employment permit or card.

The lawyers at ARROWS Law Firm understand the intricacies of Czech work permit procedures and have extensive experience accelerating the process while ensuring absolute compliance.

Contact our experts: 

microFAQ 

1. Do my EU employees need work permits?
No, EU/EEA citizens and Swiss citizens have free access to the Czech labour market. However, you must register them with the Labour Office by submitting an Information Card no later than the day they start work. Failure to notify is itself a violation and can result in fines.

2. How long does it take to get an Employee Card for a third-country national?
The process typically takes 2-4 months from start to finish. The employer first reports the vacancy (10-30 days), then the worker applies for the Employee Card (government deadline 60-90 days), and finally the biometric data is collected. The worker can begin employment once the Ministry of the Interior conditions are met (often upon "Certificate of Compliance" or biometric data taking).

3. What is the difference between a dual and non-dual Employee Card?
A dual card serves as both residence and work permit. A non-dual card serves as a residence permit only, and requires a separate work permit from the Labour Office (or free access to the labour market). Most standard employment cases use the dual card. Always verify which variant fits your situation.

Tax, social security, and benefits obligations

Czech employment law imposes substantial employer obligations regarding tax withholding, social security contributions, and health insurance, and non-EU employers must register for these systems within eight days of their first employee's first working day.

Income tax in the Czech Republic operates under a progressive system with two primary rates: 15% for income up to a certain threshold and 23% for income above that threshold. As the employer, you are responsible for withholding income tax from employee salaries and remitting it to the Financial Administration of the Czech Republic.

Social security contributions are mandatory. For 2025, the employee contribution rate is 7.1% of gross salary for social security (which includes pension and sickness insurance components) and 4.5% for health insurance. The employer contribution rate is 24.8% for social security and 9% for health insurance.

However, there are important caps and thresholds to understand. Once an employee's cumulative earnings reach this cap, no further social security contributions are required for that employee for the remainder of the year (though health insurance contributions continue without a cap).

Meal allowances and travel allowances have updated rates for 2025. If you require employees to travel for business, you must provide meal allowances according to statutory rates. For domestic trips lasting 5-12 hours, the meal allowance minimum is CZK 152.

The minimum wage in the Czech Republic has been increased to CZK 20,800 per month (or CZK 124.40 per hour) as of January 1, 2025. All employees must be paid at least this rate, and furthermore, "guaranteed wages" apply for certain professions in the public sector.

Record retention for payroll is another critical compliance area that non-EU employers often underestimate. You must maintain an annual wage list recording wage details and tax deductions for each employee, and payroll sheets for pension insurance purposes must be kept for 45 years.

ARROWS Law Firm can advise you on establishing payroll processes and record retention systems compliant with Czech law, and our lawyers regularly handle tax and social security matters on behalf of foreign employers.

Key tax and social security obligations for non-EU employers

Risks and sanctions	How ARROWS helps (office@arws.cz)
Failure to register for payroll tax within 8 days: Results in fines and potential inability to legally process payroll; creates ongoing compliance violations and back-wage liability.	Payroll registration and setup: ARROWS ensures immediate registration with the Financial Administration and proper registration with social security and health insurance funds, eliminating start-up delays and penalties.
Incorrect withholding or late payment of income tax: Underpayment triggers penalties, interest charges, and back-tax liability; overpayment requires complex reimbursement procedures and creates cash flow disruption.	Tax withholding and remittance: ARROWS calculates correct withholding based on current rates, exemptions, and special rules, and ensures timely payment by the 20th of each month, eliminating penalties and interest.
Miscalculation of social security contribution caps: Exceeding or failing to apply annual caps results in overpayment or incorrect record-keeping; employees may contest underpayment and claim additional benefits.	Social security contribution calculation: ARROWS tracks annual assessment bases, applies statutory caps correctly, and reconciles employee and employer portions, ensuring accuracy and compliance.
Incorrect meal and travel allowance rates: Providing higher allowances than required or reducing incorrectly creates unexpected tax liability; employees may claim additional payments as wage increases.	Travel and meal allowance policy: ARROWS establishes compliant allowance policies based on current statutory rates, calculates reductions correctly based on actual meal provision, and documents policies to prevent disputes.
Inadequate payroll record retention: Discarding records before the required retention period expires violates data protection law and prevents defense against labour inspectorate claims; exceeding retention periods creates GDPR violations.	Record retention policy and archive management: ARROWS designs retention schedules compliant with all applicable retention periods and helps establish secure archiving systems that prevent unauthorized access while ensuring availability for inspections.

Termination and severance pay considerations

Terminating an employment relationship in the Czech Republic is significantly more complex and restricted than in many non-EU jurisdictions, and non-EU employers frequently underestimate the procedural and financial requirements.

An employer may terminate an employment contract by notice, but only for specific reasons enumerated in the Labour Code. These reasons include organizational grounds, employee health reasons, employee performance, and serious employee misconduct.

The standard notice period is two months, beginning on the first day of the calendar month following delivery of the notice and ending on the last day of the relevant calendar month. The notice period cannot be shortened unless both parties agree in writing.

Probationary periods provide some relief from these strict rules. If an employment contract includes a probationary period, either party can terminate during this period without providing a reason and without a notice period.

Immediate termination (termination without notice) is permitted only in exceptional circumstances: if the employee commits a gross breach of employment duties or is lawfully sentenced to imprisonment for a crime.

When termination occurs on organizational grounds (the most common ground for legitimate termination), the employee is entitled to severance pay. The amount depends on the length of service: if the employment lasted less than one year, severance is at least one month's average earnings.

Fixed-term employment contracts operate under special rules. A fixed-term contract cannot exceed three years in duration. Additionally, fixed-term contracts can be renewed with the same employee only twice.

For foreign workers, termination involves additional complexity. If employment is terminated when a worker's visa or residence permit expires, the standard notice period rules do not apply—the employment simply terminates on the date the permit ceases to be valid or is revoked.

One of the most serious mistakes non-EU employers make is attempting to circumvent termination protections by structuring employment as temporary or independent contractor relationships when the work is actually dependent employment.

The lawyers at ARROWS Law Firm help employers properly classify workers and structure employment relationships to be defensible in an inspection.

microFAQ 

1. Can I terminate an employee immediately if they are not performing well?
No. Poor performance (failing to meet job requirements) requires a standard two-month notice period, and usually requires a prior written warning calling for improvement. Immediate termination is only available for gross breach of duties (such as theft, violence, or extreme insubordination) or criminal conviction. Performance issues must be addressed through proper notice.

2. How much severance must I pay if I eliminate an employee's position?
If the position is eliminated due to organizational restructuring, severance is: one month's average salary if employment was less than one year; two months if one to two years; three months if two years or more. The "average salary" is calculated based on the preceding calendar quarter. Higher severance may be negotiated or required by collective agreement.

3. Can I extend a probationary period if I have concerns about an employee?
Generally, no, unless you agreed to a shorter period initially and are extending it up to the statutory maximum (3 or 6 months). You cannot extend it beyond the statutory maximum. However, the probationary period is automatically extended by days the employee was unable to work (e.g., illness or vacation) during the probation.

Common compliance pitfalls for foreign employers

Non-EU employers operating in the Czech Republic encounter recurring compliance mistakes that, while sometimes seemingly minor, create disproportionate legal and financial consequences.

Notification failures are among the most common violations. For EU/EEA workers and foreign nationals with free access to the labour market, you must submit an Information Card to the Labour Office no later than the day the employee starts working.

Worker misclassification creates another significant trap. If you classify a worker as an independent contractor (IČO) when the work is actually dependent employment under your control, labour inspectors can reclassify the relationship and assess back taxes.

The lawyers at ARROWS Law Firm regularly audit client workforces to identify misclassification risks before inspectors do, and can help you restructure relationships that are defensible.

Inadequate record-keeping is the third major compliance failure. Failure to have copies of employment contracts, work permits, and other required documents available at the physical workplace is a separate offense that can result in fines up to CZK 500,000.

Wage and overtime violations create substantial liability. Employees must be paid at least the statutory minimum wage, and this obligation cannot be waived even if an employee agrees to lower wages. Additionally, overtime must be compensated appropriately and tracked carefully.

Failure to provide benefits and leave entitlements is another frequent problem. Employees are entitled to a minimum of 4 weeks (20 working days) of paid annual leave per calendar year.

Improper termination is costly and results in invalidation of the termination with the employee reinstated. If you terminate without proper notice or without a documented, legally recognized reason, a court will declare the termination invalid.

Health and safety violations are a distinct area where SÚIP conducts parallel inspections. While not strictly an "employment law" matter in the traditional sense, occupational safety and health (OSH/BOZP) violations carry fines up to CZK 2,000,000.

Digital reporting requirements have added complexity. As of July 1, 2024, communications with the Labour Office regarding foreign employee notifications (Information Cards) must be submitted electronically via designated data channels.

ARROWS Law Firm manages electronic submissions to the Labour Office for our clients, ensuring compliance with all digital format requirements and deadlines.

Common compliance pitfalls and risk mitigation

Risks and sanctions	How ARROWS helps (office@arws.cz)
Late or missing notification of employee start: Classified as an administrative offense with fines up to CZK 100,000 (standard) or part of illegal employment (up to CZK 10M); can jeopardize future work-permit applications.	Notification management and electronic filing: ARROWS submits all Labour Office notifications electronically in the required format, ensuring on-time compliance. We track notification deadlines and manage all communications with authorities, eliminating notification delays.
Worker misclassification as independent contractor: Reclassification by inspectors triggers back-tax and contribution liability, plus fines; exposes employer to criminal liability for systematic use of bogus self-employment.	Worker classification audit: ARROWS reviews your current workforce classifications against Czech law standards, identifies reclassification risks, and advises on restructuring to defensible arrangements.
Missing or inadequate employment records at worksite: Fines up to CZK 500,000 for failure to have on-site documentation; inability to defend against other violations due to missing evidence.	Internal policy and documentation systems: ARROWS designs compliant record-keeping policies and implements systems ensuring all required documents are available at worksites for inspection. Professional training for on-site managers ensures documentation compliance.
Wage, overtime, or benefit violations: Back-wage liability plus inspectorate fines; employee lawsuits claiming unpaid wages, overtime premiums, or leave compensation.	Payroll compliance review and policy development: ARROWS audits wage and overtime calculations, ensures minimum wage and benefit compliance, and establishes policies protecting both workers and the company.
Invalid terminations and unpaid severance: Terminated employee sues for reinstatement or back wages; inspectorate fines for procedural violations; damaged employer reputation.	Termination consultation and documentation: ARROWS advises on lawful termination grounds, ensures proper notice procedures, calculates correct severance amounts, and documents terminations to withstand legal challenge.

Understanding the broader regulatory environment

Beyond the specific employment law rules outlined above, non-EU employers must understand that Czech employment law exists within a broader regulatory and enforcement context that differs significantly from many other jurisdictions.

Labour inspections in the Czech Republic are conducted by the State Labour Inspectorate (SÚIP). Inspections are increasingly data-driven and targeted, meaning if your company operates in a sector or region where violations have been detected, you are at elevated risk of inspection.

Discrimination protections in Czech employment law are comprehensive and apply to a broad range of protected characteristics. Employers cannot discriminate based on gender, sexual orientation, racial or ethnic origin, nationality, age, religion, disability, or numerous other characteristics.

Data protection, governed primarily by the GDPR, imposes strict limits on what personal data you can collect and retain. You must have a lawful basis for processing employee data, and you cannot collect information about protected characteristics unless you have a legitimate reason.

Trade unions and collective bargaining rights are protected under Czech law. While union membership is not mandatory, workers have the right to join unions and participate in collective bargaining, and employers cannot discriminate against union members or prevent union activities.

ARROWS Law Firm assists non-EU employers in understanding and complying with this broader regulatory context and can explain how your home-country employment practices differ from Czech requirements.

Contact our experts: 

Executive summary for management

Hiring third-country nationals requires navigation of multiple government agencies, documentation standards, and reporting deadlines. The process typically takes 2-4 months, and errors in work permit applications cause rejections and delays that impact project timelines.

Management must understand that cutting staff quickly to reduce costs is not feasible—you must plan terminations carefully and budget for severance pay. Attempting to circumvent protections through misclassification creates exposure to fines up to CZK 10 million.

Management should outsource payroll administration to professionals rather than attempting compliance in-house, as errors create significant financial exposure. Employers must withhold income tax, calculate social security contributions, and file multiple monthly reports.

Management must ensure that HR systems and physical worksites maintain full documentation to withstand inspection, as missing records themselves trigger fines regardless of actual compliance. The State Labour Inspectorate conducts targeted inspections of companies employing foreign workers.

ARROWS Law Firm handles these matters daily, reducing time spent by management and eliminating errors that create liability. Given the financial exposure, professional management of compliance is cost-justified and protects the organization's reputation.

Conclusion

Adapting to Czech employment standards as a non-EU employer requires substantially more than translating your home-country policies into Czech and hoping for the best. The Czech Labour Code, social security system, and work permit procedures create a regulatory environment that is fundamentally different.

The key takeaway is that seemingly simple compliance tasks (such as notifying the Labour Office of a hire) contain procedural details that create liability if you misstep. What looks straightforward from the outside often contains hidden pitfalls.

The lawyers at ARROWS Law Firm bring both deep knowledge of Czech employment law and international experience working with foreign companies. Your non-EU employment practices exist in a different legal universe than Czech practices, and understanding those differences is essential.

Whether you are establishing your first Czech subsidiary or troubleshooting compliance issues discovered during an inspection, ARROWS Law Firm's expertise provides the guidance necessary to operate legally and efficiently. Reach out to office@arws.cz to discuss your situation, and let the professionals handle the complex legal work.

FAQ

1. Can I legally start employing foreign nationals before their work permits are fully processed?
No. A foreign worker cannot legally begin performing work until they possess the valid work permit or meet the conditions to start working. Working before this status is confirmed constitutes "illegal employment" and exposes you to fines up to CZK 10 million. The exact timing depends on the permit type. For clarity on your specific situation, contact office@arws.cz.

2. If an employee agrees to accept lower wages or longer hours, can I pay below minimum wage or exceed the overtime limit?
No. Czech law sets minimum standards that cannot be waived by employee agreement. Paying below the statutory minimum wage or requiring an employee to exceed 150 hours of annual overtime (without a specific agreement up to the legal max) is a violation regardless of consent.

3. How should I structure my employment contracts to ensure they satisfy Czech legal requirements?
Employment contracts must include three elements: the type of work, the place of work, and the day of commencement. Beyond these, the contract must address vacation, notice period, weekly working hours, schedule, salary, and any collective agreements.  ARROWS Law Firm can review or draft compliant contracts ensuring you avoid future disputes. Write to office@arws.cz for contract review services.

4. What records must I maintain to defend against labour inspectorate claims?
You must maintain employment contracts, work permits (for foreign workers), written records of working hours (including start/end times and overtime), wage and tax records, leave documentation, and proof of benefit provision (such as payment of sickness benefits). If you are unsure whether your record-keeping is adequate, schedule a documentation audit with office@arws.cz.

5. If I need to reduce staff due to economic conditions, what are my obligations?
Terminating employees on organizational grounds (such as redundancy or business downsizing) requires a two-month notice period and severance pay of at least one to three months' average salary depending on tenure. 

6. What should I know about the tax withholding and social security obligations I face as an employer?
As an employer, you must register for payroll tax within 8 days of your first employee's start date. You then withhold income tax from salaries (paying to the Financial Administration by the 20th of each month), calculate and pay employee and employer social security contributions (totaling approximately 33.8% in addition to gross salary), and register employees with health insurance funds. 

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we strive for maximum accuracy in the content, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS Law Firm directly (office@arws.cz). We accept no responsibility for any damage or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailor-made solution, so please do not hesitate to contact us.