Unreported work: new Employment Act concept
From 1 October 2025, an amendment to the Employment Act enters into effect introducing a new legal concept – unreported work. It significantly changes the obligation of employers to report the commencement of the employment of foreigners to the Labour Office.
Until now, employers could fulfil their reporting obligation no later than on the day the foreigner started the work. Under the new rules, it will be necessary to report this before the moment of work performance, which in practice means at the latest one day before the official commencement of employment. If the employer fails to comply with this obligation, this will constitute unreported work, a concept newly defined by the amendment.
Failure to comply with this obligation will be qualified as an offence for which the employer may be fined up to CZK 3 million.
Practical implications and recommendations
The amendment responds to the practice within the EU where the concept of unreported work has already been commonly applied. The aim is to increase the transparency and efficiency of controls over the employment of foreigners. The change only concerns the reporting of the commencement of employment; the reporting obligations regarding changes to and the termination of employment remain unchanged.
Employers should pay increased attention to reviewing their internal procedures for the commencement of the employment of foreigners. The key is to set up technical and procedural mechanisms to ensure that the new reporting obligation can be fulfilled in a timely manner, i.e. before the start of work. At the same time, it is important to inform all persons concerned about this legislative change and to warn them of the possible risks associated with non-compliance.