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Czech Republic
POPULATION
CURRENCY
Czech koruna (CZK)
GDP
$ 343.00 billion
MINIMUM MONTHLY WAGE:
22 600 CZK
TIME ZONE
UTC +1
The Czech labour market remains strong, under influence of the world events. The unemployment rate is low, and the employment rate and job security are high. However, severe labour and skills shortages are a major obstacle to growth. More equitable provision of education and skills, effective lifelong learning and attracting and retaining skilled foreign labour would ease skills shortages and spur growth.
The Czech economy remains highly energy intensive. More ambitious environmental policies and an improved investment climate could help make growth more sustainable.
- Employment contract
There are following employment contract options:
- Employment contract for an indefinite period
- Employment contract for a definite period
Generally, it can be concluded for a maximum of 3 years, and it is possible to conclude only 3 such contracts in a row (3×3 years).
- Work outside employment relationship on the ground of two agreements:
- Agreement to complete a job – the scope of work for which an agreement is concluded may not exceed 300 hours in one calendar year.
- Agreement to perform work – the scope of work shall not exceed a maximum of one half of determined weekly working hours (20 hours).
The probationary period may be agreed in writing no later than on the day of commencement of work and may not be extended subsequently. The maximum length is three months, but it can be up to six months for managing employees. However, the probationary period may not be longer than half the agreed duration of the employment relationship
A normal five-day working week is 40 hours.
Employees shall be granted the following types of leave:
- Annual paid leave
The basic statutory period of leave is 4 weeks (20 days).
- Additional annual paid leave for some categories of employees
The length of additional leave in the Czech Republic is 1 week and it is provided for specific group of employees engaged in particularly hard work when an employee performs such work for the entire calendar year.
- Maternity leave
Female employees are entitled to 28 weeks’ maternity leave (37 weeks for multiple births).
- Other leave
Employees are entitled to leave for reasons related to being personal obstacles at work which can be paid or unpaid depending upon the purpose for which the leave is being taken to the extent as may be specified by the government authority.
Sick Leave
- employer pays first 14 days;
- social insurance afterward.
1 January – New Year’s Day / Restoration Day of the Independent Czech State
3 April – Good Friday
5 April – Easter Sunday
6 April – Easter Monday
1 May – Labour Day
8 May – Victory Day
5 July – Saints Cyril and Methodius Day
6 July – Jan Hus Day
28 September – St. Wenceslas Day (Czech Statehood Day)
28 October – Independent Czechoslovak State Day
17 November – Struggle for Freedom and Democracy Day
24 December – Christmas Eve
25 December – Christmas Day
26 December – St. Stephen’s Day
Total: 13 public holidays
The most common benefits for employees are:
▪ bonuses in terms of financial rewards
▪ additional days off
▪ discounts on company products
▪ meal vouchers
▪ сar/phone allowance
▪ additional pension plan
▪ insurance
Foreigners from EU, Switzerland and EEA and their family members do not need the Employment permit neither the Residence permit. The only obligation of an EU foreigner is to register at the Alien Police Department (Odbor cizinecké policie) within 30 days of arrival.
Foreigners from third countries (except some special categories of employees) need:
Visa
All non-EU nationals require a long-term visa for the duration of intended stay in the Czech Republic for different reasons such as tourism, business, education, employment or residence.
- Procedure for obtaining approval.
The application form has to submitted at the Czech Embassy outside of the Czech Republic.
- Time frame.
The time required to issue a visa may vary according to the type of visa required and nationality of the applicant.
- Procedure for obtaining approval.
- Search for employee candidacies on the domestic labor market
The Czech entity must obtain permission to employ a foreign national from the labour office.
- Permit application
Employer needs to initiate the process, by filing a job description at the local Labor Office. Then the position is posted for 30 days, and if no suitable Czech person is found, the Ministry of Labor will do a ‘nostrification’ process. This process can take several weeks / months.
- Employee Card, visa application
Once the permit has been issued, the employee card application for the principal applicant and long stay (Type D) visas for dependents can be applied for at the Czech consular post with jurisdiction over the applicant’s place of residence.
- Entry to Czech Republic
The applicant (and any accompanying family) may now enter the Czech Republic. The passport with the endorsed visa should be stamped at the port of entry.
- Registration with Ministry of Interior
Within three days of entry, the principal applicant must register with the Ministry of Interior, submit fingerprints and have a biometric photograph taken. Following this an approval letter will be issued by the Ministry confirming the requirements for an employee card have been met and the applicant can begin working.
- Registration with labour office
All applicants must be registered with the labour office. The notification must state the start date of the work in the Czech Republic and should be done prior to or on the first day of work. Proof of registration should be kept by the host entity.
- Employee card collection
Two to three weeks after the submission of the biometric data, the employee card for the principal applicant can be collected. Personal appearance is necessary. The final employee card must be collected within 60 days of the registration of the biometric details with the Ministry of Interior. If this date is not met, the card will be destroyed, and a new application will need to be filed.
- Time frame. Around 6 months.
An EU Blue Card is a new residential status designed for a long-term stay involving the performance of a highly skilled job (§ 42i of the Act on the Residence of Foreign Nationals). An EU Blue Card entitles a foreign national to stay and perform a job, i.e. the foreign national does not need a separate work permit.
Duly completed university education or higher vocational education, the duration of which was at least 3 years, is deemed to be a high level of skills.
- The procedure for obtaining a blue card is the same as for applying for an employee card.
- Search for employee candidacies on the domestic labor market
The position is announced at the relevant labour office and published in the central register of job vacancies available for Blue Card applicants for 30 days to ensure that the position cannot be filled with a suitable Czech or EU candidate.
- Blue card application
The Blue Card application may be filed with the Czech diplomatic post with jurisdiction over the country of origin or long term residence. If you have resided in the Czech Republic on the basis of a long-term visa or a long-term residence permit, or if you hold a Blue Card from another EU Member State, you can apply for the Blue Card in Czech Republic.
- Visa Type D application
Once the Blue Card is approved, an application should be filed for a Type D visa with the purpose of travelling to the Czech Republic and collecting the Blue Card.
- Entry to Czech Republic
Upon receiving the endorsed passport, the applicant (and any accompanying family) may now enter the Czech Republic.
- Residence card application
Within three days of arrival in the Czech Republic, the applicant is obliged to report to the relevant office of the Ministry of Interior in person and provide biometric data for the residence card (Blue Card) application.
- Confirmation of acceptance
Before issuing the Blue Card, the Ministry of Interior will provide a confirmation of having met the conditions for a Blue Card. This confirmation serves to allow the applicant to legally reside and commence work in the Czech Republic before the Blue Card with biometric data is issued.
- Registration with labour office
All applicants must be registered with the labour office. The notification must state the start date of the work in the Czech Republic and should be done prior to or on the first day of work. Proof of registration should be kept by the host entity.
- Residence card collection
Once the residence card is ready for collection the applicant must collect the card in person at the relevant office of the Ministry of Interior.
Time frame. Around 6 months.
- A work permit is only issued for one particular job. If you want to change job you must apply for a new work permit.
- Work permits are issued by the labour offices relevant to the place of the job performance.
- An employment permit is issued for a fixed period of time, however not exceeding one year. A foreigner may apply for an employment permit repeatedly.
- An employment permit is not transferable and contains information expressly stated in the decision concerning
- the employer,
- the place of employment,
- type of performed work,
- term of employment.
- The Employment Act lists groups of persons who need not apply for a work permit. A work permit is not required especially from persons with permanent residence, asylum or additional protection, and some other foreigners, including for example:
- Secondary school students, students of conservatory, school of higher education or language school with the right to state language examination, and full-time students of universities and colleges,
- Foreigners who acquired secondary or university education in the Czech Republic,
- Foreigners staying in the Czech Republic based on a long-term residence permit for the purpose of family reunification with a person holding a permanent residence permit or asylum,
- Foreigners whose work in the Czech Republic does not exceed 7 consecutive calendar days or in total 30 days in a calendar year it they are performing artists, teachers, academic workers, scientists or research workers taking part in ascientificcongress,pupilsorstudentsunder26,athletes,orpersonswhoprovided supplies of goods and services or distribute or assemble such goods under a business contract, or perform warranty and repair works in the Czech Republic,
- Foreigners staying in the Czech Republic on the basis of a long-term residence permit for another eU member State resident for the purpose of employment if more than 12 months have elapsed from issue of the permit.
The grounds for termination of the employment contract are:
- Cancellation during trial period
Employers use probationary periods to coach and evaluate new employees. If the employee’s job performance is not satisfactory or if the employee doesn’t find himself/herself comfortable in a new role, they both can propose an immediate termination of the employment. The notice should be given in a written form.
Neither party is obliged to state the reasons for contract termination. However, employers must be very careful not to violate the prohibition of discrimination, and the decision to terminate employment must not be linked to any of the discriminatory grounds
- Immediate employment contract termination.
This is an exceptional method of unilateral termination of employment, which the worker or employer may accede to only for reasons defined by the Labour Code in Sections 55 and 56 (e.g. the worker violated their employment obligations in a particularly serious manner, the employer did not pay the wage/salary or part thereof within 15 days of the due date). However, the employer may not terminate the employment immediately in the case of a pregnant worker, a worker on maternity leave, or a worker on parental leave. The employment relationship ends on the day of delivery of the termination.
- Fixed-term contract expires.
Fixed-term contracts last till the date agreed in the employment contract. They turn into the permanent contracts when a worker continues performing and the employer agrees.
- Termination by an employee.
An employee has to give at least 2 months’ notice period after terminating his/her employment contract. The employee may give a notice to the employer on any possible ground or without stating any grounds. However, the reason of the employment termination affects employee’s future unemployment benefits. If an employee gives a notice by his/her own decision without stating any serious grounds according to Czech Labor Code, such as illness, the employee will receive lower unemployment benefits.
- Termination by an employer.
If an employer decides to terminate the employment contract, the cancellation takes 2 months. An employer mustn’t give a notice to an employee. Pay in lieu of serving the notice period is not allowed, but garden leave is a common alternative.
An employer much give to the employee:
- An original written agreement on terminating the employment or an original of the notice, mentioning the reasons for dismissal (this is important for severance pay and unemployment benefits).
- Confirmation of employment.
- The Personal Records for Pension Insurance form.
- Mutual Agreement.
A mutual agreement on cancelling the employment contract is a fast and elegant solution of leaving a workplace where one’s unhappy.
- Special cases: termination of residency of a foreign worker, expatriation of a foreign worker; disappearance or decease of an employee.
Dismissed employee is entitled to receive a severance pay in the following cases:
- If he or she was given a notice based on the organizational reasons (redundancy).
- If he or she is immediately quitting the job, since an employer did not pay him/her a salary 15 days after the due date.
The employer is obliged to pay an employee severance on the next pay date after employment contract was terminated. If an employee is entitled to the unemployment benefits, the Labor Office will not start paying the benefits until the end of the period when severance has to be paid
Amount of severance pay:
- One month of employee ‘s average monthly salary in case if he/she has been employed for up to 1 year.
- Two average monthly salaries in case if an employee has been employed for between 1 and 2 years.
- Three average monthly salaries in case if an employee has been employed for more than 2 years.
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