How to hire in Czechia through an EOR

Employment contracts in Czechia must be in writing. Verbal agreements aren't legally valid, and skipping the paperwork creates real problems down the line.

Contract types

Most companies default to indefinite full-time contracts. They offer stability and sidestep the fixed-term renewal limits that can cause complications.

For core roles, stick with indefinite contracts. Fixed-term arrangements that get renewed repeatedly are often reclassified as permanent, which gives the worker additional rights.

What has to be in the contract

Czech law requires specific details in every employment contract. Leave something out and the contract may not hold up.

You'll need to include the full name and address of both the employee and employer. Specify the job title, place of work, and a clear description of the type of work (not vague language). Add weekly hours and schedule, salary details and pay date, annual leave entitlement, notice periods, and any applicable collective agreements.

The contract must be in Czech, or bilingual with Czech included. Give the employee a signed copy and keep one for yourself.

Probation periods are optional but common. The maximum is 4 months for regular roles and 8 months for managers. For fixed-term contracts, probation can't exceed half the contract length. You pay full salary during probation, and either side can end the arrangement immediately during this period.

Contractor vs. employee

Misclassification is taken seriously in Czechia. Courts look at how much control you have, how integrated the person is in your business, and the nature of the work itself.

If you're setting hours, providing tools, and closely supervising someone, a court will likely treat that as employment. That means you could owe back social and health contributions (around 34% employer share), unpaid wages, overtime, vacation pay, and may owe severance.

Fines for repeated violations can reach CZK 5 million. The worker can also sue for reclassification, which can trigger years of retroactive payments. DPP and DPČ agreements work for genuine flexible arrangements, but they come with hour caps and don't count as full employment.

Non-competes are enforceable but limited. The maximum is 1 year post-termination, you must pay at least 50% of the employee's average salary during the restraint period, and the clause needs to be tied to specific roles or areas. Broad or vague non-competes tend to get struck down.

IP assignment needs to be spelled out in the contract. By default, employees own their inventions unless the contract states otherwise, though fair compensation is required for service inventions. Be specific to avoid disputes later.

Czech employees get four weeks of paid leave per year by law. But one thing that surprises a lot of companies: it's actually the employer who schedules the leave, not the employee. You can decide when they take it, as long as you give 14 days' notice and take their reasonable interests into account. In practice, most employers offer five weeks to stay competitive, and candidates often expect at least that.

Leave accrues at 1/52 of the annual entitlement for each week worked. For a full-time employee on a standard 40-hour week, that works out to 160 hours (or 20 days) per year. If someone joins mid-year, they get a proportional amount based on actual hours worked. At least two consecutive weeks must be taken as a block unless you both agree otherwise. Unused leave can carry over if the employee requests it in writing, but it has to be used by June 30 or they can schedule it themselves.

Beyond annual leave, Czech law sets out several other leave types. Here's what you're required to provide:

On mandatory benefits, Czech law requires you to contribute to social security (health insurance, pension, and unemployment) for every employee. Your total employer contribution is roughly 34% of gross salary, split across these programs. Employees contribute about 11% from their gross pay. Health insurance is mandatory and covers basic medical care; employees can choose their own provider. Pension contributions go into the state system automatically.

Meal vouchers aren't legally required, but they're extremely common and employees expect them. Many employers provide vouchers worth 100-150 CZK per working day, which employees use at restaurants and shops. It's become a standard part of the package, not an optional extra. Some employers also offer transport allowances or subsidized public transit passes, particularly in Prague.

Where the gap between legal minimum and market reality matters most is private health insurance. Czech employees, especially in tech and professional services, expect supplemental coverage on top of the mandatory state system. That means better access to specialists, shorter waiting times, and dental or vision coverage. If you're hiring in competitive markets, budget for it.

Remote work stipends are increasingly expected too, especially post-2024. Employees working from home expect either a monthly allowance (500-1,000 CZK) or equipment reimbursement. Gym memberships, language courses, or professional development budgets can also help you stand out.

The statutory minimums will keep you compliant. But if you want to hire and retain good people in Czechia, you'll likely need to go further. Five weeks of leave instead of four, private health insurance, meal vouchers, and some form of remote work support are now baseline expectations in most competitive hiring markets. Companies that stick to the legal minimum tend to struggle when recruiting experienced candidates.

Czechia is relatively employer-friendly on termination, but there are real constraints worth knowing. The biggest shift just happened: as of January 1, 2026, the rules changed in ways that affect both how you can end employment and what comes after.

Firing someone

You can terminate an employee for three main reasons: they no longer meet the job requirements, they've breached their employment duties (seriously or repeatedly), or there are grounds for immediate termination (gross misconduct, or a lawful prison sentence of at least one year, or six months if the crime relates to their role).

The catch: you must give written notice, and the reason has to be specific enough that it can't be confused with another reason. You can't change the reason after notice is given. If you get it wrong, the employee can file a court claim within two months and potentially get reinstated.

Some employees have extra protection. You can't immediately dismiss anyone who is pregnant, on maternity leave, paternity leave, or parental leave. For these employees, termination with notice is the only option.

If you're laying off five or more people, you must notify the works council or trade union (or affected employees directly if neither exists) at least 30 days before issuing termination notices. You're also required to negotiate in good faith to reduce the number of affected employees or find alternatives.

Unfair dismissal is a real risk. If a court finds your termination invalid, the employee stays employed. That's why getting the specifics right in your termination letter matters.

Notice periods

This changed in 2026. Notice periods now start on the day notice is delivered, not the first day of the following calendar month. For disciplinary or poor performance terminations, the employer's notice period dropped from two months to one month.

Employees can resign for any reason or no reason at all. They don't need to justify it.

Severance

Severance in Czechia isn't automatic. You're only required to pay it in specific situations: when you terminate for redundancy (the job no longer exists), when the company closes or relocates, or when the employee can't work due to long-term incapacity. You're not required to pay severance for disciplinary terminations or when the employee resigns.

When severance is due, the standard formula is one month's average salary for each year of employment. There's no statutory cap. Take the employee's average monthly earnings and multiply by years of service.

If you terminate by mutual agreement, severance is negotiable. Many employers offer it as part of the settlement to reduce litigation risk, but it's not legally required unless the termination falls into one of the categories above.

Work permits and visas

You can hire a foreign national through an EOR in Czechia, but the visa situation matters. Non-EU citizens need a work permit, which is employer-sponsored. The process typically takes 30-60 days and requires the employer to apply through the Czech Labour Office. You'll also need to show that no suitable Czech or EU citizen was available for the role.

Main visa categories for employment:

• Work permit (long-term residence for employment): Requires employer sponsorship. Valid for up to two years and renewable. The employer must apply; the employee can't.
• EU/EEA citizens: No work permit needed. They have freedom of movement and can start work immediately.
• Digital nomad visa: Czechia doesn't currently have a dedicated digital nomad visa, though this may change. Remote workers from outside the EU typically need a standard work permit if they're employed by a Czech entity.

An EOR can sponsor work permits on your behalf. This is one of the main reasons companies use an EOR for hiring in Czechia: the EOR becomes the legal employer and handles the permit application. Processing times are typically 4-8 weeks from application to approval.

The job must be registered with the Czech Labour Office, and you'll need to show the role can't be filled by an EU citizen. Salaries must also meet minimum thresholds, which are higher for skilled roles.

Other things worth knowing

Probation periods got longer. As of January 1, 2026, the maximum probation period extended from three to four months for standard employees, and from six to eight months for managing employees. That gives you more time to assess fit before committing long-term.

Unemployment benefits changed in 2026. The penalty for voluntary resignation was abolished. Employees who quit or leave by mutual agreement now receive the same unemployment benefits as those terminated by the employer, with the only exception being serious misconduct. Don't count on unemployment consequences to keep people in place.

Trade unions and collective bargaining. If your employee is unionized, you must notify the union before terminating. Collective bargaining agreements may add notice periods or severance requirements beyond the statutory minimums. It's worth checking whether your industry has a sector-wide agreement.

New reporting requirements. Starting April 1, 2026, employers must submit a unified monthly report (JMHZ) to the Czech Social Security Administration, replacing around 25 separate submissions. It consolidates payroll, employment, and social security data. If you're using an EOR, they handle this. If you're employing directly, you'll need to update your payroll systems before April.

Data protection. GDPR applies. Employee data, including termination records, needs to be handled carefully. Keep documentation secure and limit access to those who actually need it.