Notification obligation when employing foreigners also applies to foreign companies
One of the administrative tasks connected with employing foreigners is the employer's notification obligation towards the Czech Labour Office. Even Czech employers are often not aware of this obligation, or do not know how to deal with the information requirements and deadlines set by the law. However, the notification obligation arising from Czech legislation also applies to employers established abroad, and the situation is rather more challenging for them. For the failure to comply with the obligation or for late notification, they face a fine of up to CZK 100,000.
An employer’s obligation to notify authorities of the commencement and termination of the employment of foreigners and of any changes in the data of foreign employees is stipulated by the Employment Act. Employers shall meet this requirement by reporting a relatively wide range of required information to the relevant regional branch of the Czech Labour Office. The law also lays down deadlines which are rather strict, especially as regards the commencement of employment — this must be reported no later than on the day of commencement; for other events, the deadline is ten days.
Apart from the employment of foreigners with a company in the Czech Republic, the Employment Act also regulates the posting of workers from abroad. If a foreigner is posted to the Czech Republic, their employer must also comply with the notification obligations in the Czech Republic.
The posting company shall notify authorities of the foreigner’s posting no later than on the day of its commencement
Although for most postings there is a receiving Czech company, it is important to emphasise that the notification obligation lies with the foreigner’s employer abroad — the posting company. This change was brought about by a legal amendment in 2020. The posting company must notify the relevant regional branch of the Czech Labour Office no later than on the day of the commencement of the posting and remember to report any changes to or the early termination of the posting on time. The notification obligation also applies to cases where there is no Czech company to which the foreign worker is posted, e.g., where the foreigner is posted to the Czech Republic to carry out market research.
A company established outside the territory of the Czech Republic is in a rather more difficult position, as the notification forms are only available in Czech. However, legislation allows to use an authorised representative for notification.
Finally, please note that the notification obligation applies to all foreigners working in or posted to the territory of the Czech Republic, regardless of which foreign country they come from. In this respect, the Employment Act does not distinguish between foreigners from EU member states and from third countries.