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Ministry of Labour and Social Affairs plans further changes to employment of foreigners

The Ministry of Labour and Social Affairs is planning stricter penalties for illegal work and disguised employment mediation. The absence of a prior (final and conclusive) penalty for these offences will now be a precondition for employing foreigners in the Czech Republic. A recognised employer register is to be established so that companies can prove their clean record. The draft amendment to the Employment Act also includes extending the register of offences and making it accessible to the public.

The key novelty to be brought by the bill is the ‘recognised employer’ concept. Only entities included in the register of recognised employers will then be authorised to employ foreigners in the Czech Republic. Registration will not be automatic, and it will be necessary to apply for it.

The bill also contains several conditions that an employer wanting to be registered must meet as at the date of the application. First, the employer must have been doing business in the Czech Republic for at least 24 months, be a tax resident here, and have had at least one employee participating in the social insurance system for six consecutive months. If the applicant is registered in the commercial register, all financial statements must have been properly filed.

The applicant must also not have a record of arrears exceeding CZK 10,000 with the customs or financial administrations or with social security and health insurance institutions. 

Two years without a fine

Another condition for the inclusion in the register will be the absence of fines for offences of illegal work and disguised employment mediation in the 24 months preceding the application. The above also applies to other breaches of labour law obligations for which the company was repeatedly fined more than CZK 50,000

Employers will be required to comply with these requirements throughout their registration, with compliance being verified once per calendar quarter. The ministry hopes that this will reduce illegal work, labour exploitation, and disguised employment agency activities, which are still widespread.
Under the bill, offenders in the area of illegal work and disguised employment mediation should be registered in a public register of offences. The ministry relies on the preventive effect of this measure, as contractors often refuse to cooperate with offending entities. Apart from the basic identification of the offender, the amount and date of the penalty, the offender's residence, and the type of offence should also be included in the register of offences.

Points system

Finally, a points system is to be introduced. Under the bill, a foreigner must achieve a certain score according to preferential criteria to obtain a work permit, an employment card, and a blue card. Preferential criteria include employment characteristics, language skills, education, age, and work in strategic sectors. The scoring system is to be determined by a government decree.

The amendment to the Employment Act will bring many new obligations for employers who employ people from abroad. Except for the points system, all the changes are to take effect from 2026.