ARROWS Partner Jakub Oliva for Hospodářské noviny
Errors in Human Resources: The greatest risks arise in connection with key personnel and internal processes.
Source: Hospodářské noviny
In Czech labor law today, it's not just about having the right administration in place. The biggest risks for employers arise when a company is dealing with the departure of key people, sensitive terminations of employment, or processes that are no longer fit for the reality of 2026. Those who fail to adapt to the digital revolution and the rules for 2026 risk more than just money – they risk the very existence of their entire company.
You can also read about where Czech companies most often make mistakes in HR and why universal templates and a formalistic approach are no longer sufficient in the article for Hospodářské noviny.
Where the most expensive HR mistakes are made today
According to ARROWS' experience, the most serious labour law problems do not arise only in routine personnel administration, but especially in situations where a company is dealing with:
- the departure of key employees and managers,
- sensitive terminations of employment,
- collective bargaining and relations with trade unions,
- setting up cooperation with self-employed persons (OSVČ) and the related risks of the "švarcsystém",
- the implementation of digital and AI tools into HR processes.
Why universal templates and a formal approach are no longer enough
It is in these areas that ARROWS' experience shows that previously used universal templates and a formal approach are no longer sufficient. Companies that do not have properly set up contractual documentation, internal rules, and continuity of individual HR processes expose themselves to disputes over the validity of employment termination, leaks of sensitive know-how, or other claims that can have a very significant impact on the company's operations.
What is most sensitive when key people leave
Responsible for labour law and the HR agenda at ARROWS is Mgr. Jakub Oliva, LL.M., MSc., partner and head of the labour law team. In his practice, he has long been involved in labour law disputes, training for managers, and cooperation with HR communities.
"The biggest problems usually do not arise in routine situations, but at the moment when a key person leaves the company who had access to important information, business relationships, or fundamental responsibility for the company's operations. If at such a moment the management contract, know-how protection, or subsequent internal processes are not set up correctly, the impact on the employer can be very significant."
What companies should watch out for in 2026
In its labour law practice, ARROWS focuses mainly on situations with a high degree of risk for employers. In addition to disputes over termination of employment, these include, for example, mass layoffs, tense collective bargaining, setting up motivational and retention programmes, or eliminating the risks associated with the "švarcsystém".
According to ARROWS, this particular area will require increased attention in 2026, as state inspections will be more rigorous and companies will have to justify the real substance of their relationships with external contractors much more carefully.
Need to review your HR documentation and processes?
If you are dealing with a sensitive manager departure, a termination dispute, setting up cooperation with external contractors, or a review of internal HR documentation, contact us. We will help set up contracts, internal rules, and procedural continuity so that the company does not have to deal with the consequences later. Contact us at konzultace@arws.cz.
About ARROWS
ARROWS is a law firm providing legal services to entrepreneurs and companies in the Czech Republic and abroad. It has a long-term focus on business and real estate consulting and systematically develops technologies and internal processes that support the speed, consistency, and quality of the legal services provided. Within the ARROWS International network, it also provides support for cross-border projects. In 2024, it won the Law Firm of the Year and Legal Firm of the Year awards for its work in the field of artificial intelligence.
Media contact:
Veronika Sečková
M: +420 778 965 190
E: seckova@arws.cz
About the author
Disclaimer:
The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.