Postcard Series: Hiring a worker in Czech Republic
Throughout our popular postcard series, our sales team members have discussed the key employment regulations for hiring workers internationally. In this post, we focus on what international employers need to know when hiring staff in Czech Republic.
In the series so far, we have discussed employment regulations in Chile, Denmark, Brazil and Switzerland. In each post, we answer the three most common questions asked by clients surrounding international employment.
Below, our sales member Lucy, based in our head office in Switzerland, answers the three most common questions clients ask about employment and hiring staff in the Czech Republic.
Can I have a worker on a fixed-term contract to begin with, as I am not sure whether it will work out long term?
Lucy: In Czech Republic, you can have an unlimited number of fixed-term contracts, however they can only be a maximum of 24 months. Furthermore, you need to have a valid reason for requesting a fixed term.
2. Terminations Rules and Costs
What do I need to know about termination and severance pay in Czech Republic?
When it comes to termination costs in Czech Republic, the amount of severance pay depends on length of the employment contract up to a maximum 3 month’s average salary.
3. Statutory Employee Benefits
What are the statutory employee benefits in Czech Republic?
Lucy: This is a common question I get asked by both workers and client. See below for information on the three most common employee benefits – paid holiday leave, parental leave and probation periods.
Paid holiday leave
Employees must have worked for an employer for at least 60 days in one calendar year in order to be entitled to paid leave. Statutory holiday leave entitlement for workers in Czech Republic is 20 days.
Maternity, Paternity and Parental leave
Mothers receive 28 weeks paid maternity leave for a single birth, or 37 weeks paid maternity leave in the case of multiple births. During maternity leave, workers receive an allowance equal to 70% of their usual salary.
Fathers receive 7 days paid paternity leave. This leave is to be taken within 6 weeks of the birth of a child or placement of an adopted child under the age of seven. Fathers receive an allowance equal to 70% of their usual salary.
Currently, parental leave applies to either the mother or father of a child up until the age of three. However, parents can draw on a state-funded and state-paid parental allowance until the child is aged four.
There is a maximum probation period of three months for general employees and 6 months for managers.
How Capital’s Employer of Record Solution can help you hire workers in Czech Republic
If you are a business that is looking to expand internationally and hire staff in Czech Republic, Capital GES can help.
Capital GES is an outsourced employment specialist that has been operating globally for over 25 years and have helped thousands of clients achieve their goal of employing their workers legally and compliantly overseas. Our team consists of dedicated international in-country specialists who are on-hand to provide round-the-clock support whenever our clients need them.
Capital GES provides an Employer of Record (EOR)/ International PEO Solution. We become the legal employer and take responsibility of the entire employment relationship. This includes managing the worker’s on boarding, HR, payroll, taxes, statutory benefits, expenses and termination. The end client company continues to manage the day to day responsibilities of the worker. We employ your worker directly on a local payroll and reports all relevant details to you as well as providing a monthly invoice.
If you are looking to hire your worker in Czech Republic, you can contact us at email@example.com or phone +41 32 732 9700 or +1 833 972 6346, and a member of our team will be in touch.