Employment Contracts for Foreign Nationals in the Czech Republic

What work authorization a foreign national needs and how it affects the contract

Before you even start drafting an employment contract, you need to clarify what authorization your future employee holds. Not all foreign nationals need an employment permit. Citizens of the European Union, the European Economic Area and Switzerland have free access to the labour market and do not need an employment permit.

Their family members to whom this applies are subject to similar rules.

However, for foreign nationals from outside these countries (so-called third-country nationals), the situation is different. Above all, you must verify whether the person holds an Employee Card, a Blue Card, an Intra-Company Transferee Employee Card, or a standard employment permit issued by the regional branch of the Czech Labour Office (under Act No. 435/2004 Coll., on Employment).

Without one of these documents, you cannot sign the contract at all, and if you do sign it and the foreign national starts work, you risk a high fine for illegal employment.

In practice, you most often encounter three situations. The first is an Employee Card holder, which the Ministry of the Interior of the Czech Republic issues for the duration of the employment relationship, but for no longer than two years, with the possibility of repeated extensions (under Act No. 326/1999 Coll., on the Residence of Foreign Nationals in the Czech Republic). This card has been the most common regime in recent years because it simplifies older procedures where a foreign national needed a separate employment permit and a separate visa.

The second group are Blue Card holders, intended for highly qualified workers. Here you must be especially careful, because the employment contract must be concluded for a period of at least six months and the employer is obliged to ensure a gross annual salary of at least 1.5 times the average gross annual salary in the Czech Republic as set out in a notice of the Ministry of Labour and Social Affairs for the given calendar year.

This is not a minor detail – it often means several hundred thousand Czech crowns more per year.

The third group are foreign nationals with an older employment permit, which is issued for a period of no more than two years. If you have such an employee, remember that the permit always relates to a specific employer and type of work. If they decide to change company or job position, they must apply for a new permit.

Key provisions in an employment contract – what must not be missing

An employment contract with a foreign national differs significantly from a standard contract with a Czech employee in certain respects, especially in view of the requirements of the Employment Act and the Act on the Residence of Foreign Nationals. The Ministry of the Interior and the Ministry of Labour and Social Affairs issue specific guidance on what the contract should look like.

The first critical item is the term of the employment relationship (under the Czech Labour Code, e.g. Section 34(1)(c)). In practice, you can choose either a fixed term (for example, from 1 May to 31 December 2026) or an indefinite term.

This is where mistakes are often found – some companies think they can afford to use vague wording such as “from an unknown date” or “depending on the issuance of the card”. That is a mistake. A court could declare such a contract invalid. If you are unsure about the exact date, you can use the wording “from the day following the issuance of the confirmation of meeting the conditions for the issuance of an Employee Card”, which is legally workable and allows a flexible start after administrative approval.

The second element is the amount of the monthly wage, salary or remuneration (under the Czech Labour Code, e.g. Section 34(1)(a)). There is no room for compromise here. You must state a specific amount in Czech crowns, not a range (for example, “CZK 15,000 to CZK 18,000”). It is not permissible for the wage to be determined only by a wage assessment or an internal regulation – the employment contract must clearly state at least the basic (tariff) wage.

In addition, remember that for Employee Card purposes this wage must not be lower than the basic rate of the monthly minimum wage set by the government (under the Employment Act, e.g. Section 42(1)(b)), regardless of whether the employee works 15 hours per week or has a part-time contract. If they work only 15 hours per week (which is the legal minimum for the purposes of issuing an Employee Card), they must receive monthly income corresponding to the minimum monthly wage for full-time employment.

The third essential element is weekly working hours. These  must be at least 15 hours per week  for the purposes of issuing an Employee Card under the Employment Act (e.g. Section 42(1)(b)). This is a strict statutory minimum scope of work that cannot be reduced for permit purposes.

Many employers are not aware of this and try to employ foreigners for 12 hours or less – this is unlawful and may lead to issues with the validity of the Employee Card. If you are interested in a part-time arrangement below 15 hours per week, you must look for other forms of employment for the foreign national, as an Employee Card would not be issued for such working hours.

The fourth element is annual leave entitlement. The contract must state how many days or hours of leave the employee will take in a calendar year. The basic entitlement is at least four weeks per calendar year (under Act No. 262/2006 Coll., the Labour Code). If you forget to include leave in the contract text, a potential dispute may arise as to whether the employee is entitled to any leave at all, and the contract is also incomplete.

The fifth element concerns the duration of employment if you wish to agree on a fixed-term employment relationship. The term must be clearly determinable – not “sometime in summer”, but specific dates.

In addition, the employer is obliged to prove that they have verified in advance the foreign national’s professional qualifications for the relevant field. If it is a regulated profession (e.g., doctor, construction manager, attorney), the employer must submit documents proving that the conditions under the relevant laws are met (for example, certificates, education documents with recognition in the Czech Republic). This means that if you hire a construction manager from Poland, you must verify whether they have recognised education in the Czech Republic, rather than simply guessing that their experience is sufficient.

Minimum wage and working hours – the most common mistakes

One of the most common misunderstandings is that employers believe the minimum wage does not apply to foreign nationals with short-term or part-time employment, or that it is applied proportionally. That is incorrect. The Employment Act is very clear: for the purposes of issuing an Employee Card (or a Blue Card), the foreign national’s monthly income must not be lower than the basic rate of the monthly minimum wage (e.g., Section 42(1)(b)), regardless of the agreed weekly working hours (provided that at least 15 hours per week are agreed).

In practice, let’s illustrate this with an example. Let us assume that the basic rate of the monthly minimum wage in 2026 is the currently set amount (the figure is illustrative). If you employ a foreign national for 15 hours per week, you must not pay them less than this amount per month, even though it is a quarter of the time of a standard full-time employee. Many companies do not expect this and initially underestimate it.

This rule is a specific condition for the residence and work permit of a foreign national and differs from the general regulation of the minimum wage under the Labour Code for Czech employees or foreign nationals with free access to the labour market, where the minimum wage for part-time work is calculated proportionally.

The second issue is that working hours must be clearly documented. You cannot write “flexible working hours” or “as needed”. You must agree on a specific work schedule, or at least its general definition. If you want to maintain flexibility, you should have a schedule or scheme that is approved by both parties and compliant with the Labour Code (e.g., uneven distribution of working hours).

The third mistake is that some companies believe that highly specialised work by an employee (for example, a programmer who also works outside standard hours) means that the minimum wage does not apply to them. They are gravely mistaken. The minimum income requirement for the purposes of the Employee Card applies to every foreign national holding this permit without exception. If you want the employee to work outside standard hours, you should compensate this either with higher pay or some form of rest time or a supplement under the Labour Code.

The fourth mistake is that employers sometimes agree on the minimum wage, but then effectively reduce it through various deductions. This is not permissible. The law concerns gross wages, and it is not possible to illegitimately reduce them below the required minimum level through various deductions (e.g., for accommodation that is not agreed fully in compliance with legal regulations).

Registration and notification obligations – the new digital reality from 1 April 2026

The latest reform has brought a major change. From 1 April 2026, all reporting of commencements, changes, and terminations of employment of foreign nationals is mandatory exclusively in digital form. The old paper forms, emails, and other methods are no longer accepted. If you fulfil your obligations via an incorrect channel, your report will not be considered duly submitted and you may face a fine for failure to comply with the notification obligation.

You have three approved options: complete the web form on the portal of the Ministry of Labour and Social Affairs (MPSV), send an XML data file via the data box of the Labour Office of the Czech Republic (ID: 2akmgv5), or integrate your HR system directly with the MPSV application programming interface (API). Nothing else is permitted.

The notification obligation applies to commencement of employment, termination, change of employer, change of job position, and internal transfer within the company. No later than on the employee’s start date, you must notify the relevant regional branch of the Labour Office according to the place of work.

If a material change occurs – for example, the employee terminates early – you must report it no later than within 10 calendar days of the change (e.g., from termination of employment, under the Employment Act, e.g., Section 87(2)). Delay results in a fine. In addition, you must keep copies of documents proving the legality of the foreign national’s stay and their employment for 3 years after the end of the employment relationship (under the Employment Act, e.g., Section 102(2)).

Many employers do not realize that this digital system has significantly made their work easier—paper administration is a thing of the past. At the same time, however, it means that errors are easier to identify and sanction. If your HR system is not configured for this integration, you should address it without undue delay. Attorneys from ARROWS, a Prague-based law firm, can help you analyze your processes and ensure they comply with the new rules—email consultation@arws.cz.

Other rights of a foreign national in an employment contract – vacation, social security and health insurance

Do not forget that a foreign national has the same basic rights as a Czech employee when it comes to vacation, health insurance, and social security. You cannot deny them. The minimum vacation entitlement is at least four weeks per calendar year (under the Labour Code, Section 212(1)). The employer is obliged to register the foreign national for social security contributions with the Czech Social Security Administration (Česká správa sociálního zabezpečení) and for health insurance contributions with the selected health insurance company. You calculate and pay the contributions, just as you do for Czech employees.

One of the fundamental rights is also the right to wage compensation during vacation in the amount of 100% of average earnings (under the Labour Code, Section 222(1)). If, for example, an employee has a 15-hour weekly part-time schedule and takes vacation, it is measured in hours—for each day of vacation, the number of hours corresponding to the length of their shift on that day is deducted.

The international element—insurance coverage—may sometimes be handled differently for a foreign national. If they work for an employer from another country that is not registered in the Czech Republic, a special situation may arise. In such cases, this concerns international social security, governed by bilateral treaties or European regulations (in particular Regulation (EC) No 883/2004 on the coordination of social security systems).

If your recruitment has an international dimension, you should consult the attorneys from ARROWS, a Prague-based law firm, who work with complex international elements through the ARROWS International network—contact consultation@arws.cz.

Table of the most common risks and their solutions

Final summary

An employment contract with a foreign national in the Czech Republic is not a mere formality—it is a legally binding document that defines the rights and obligations of both parties and must meet strict requirements under the Employment Act, the Act on the Residence of Foreign Nationals, and the Labour Code. Errors in the contract content may prevent you from obtaining an Employee Card, expose you to fines in the millions of Czech crowns, may lead to invalidity of the employment relationship, and cause conflicts with the employee.

For your legal certainty, it is essential that the employment contract contains specific, easily measurable details: the exact salary, clearly defined working hours (at least 15 hours per week for permit purposes), vacation entitlement, and the duration of the relationship. The minimum income condition for Employee Card purposes applies unconditionally to all foreign nationals, regardless of the scope of work, provided it is agreed at at least 15 hours per week. From 1 April 2026, you must handle all communication with the Labour Office exclusively digitally.

If you are not sure whether your current procedures and forms comply with the legal requirements, it is safer to entrust the preparation and review of contracts to professionals. Attorneys from ARROWS, a Prague-based law firm, have experience preparing employment contracts for foreign nationals, know all current requirements, and can guide you through more complex situations—from verifying professional qualifications to integrating your processes with registration obligations. Contact them at consultation@arws.cz and secure legal certainty.

Read also:

• Hiring and Employment in the Czech Republic: A Practical HR Overview for Foreign Companies (Employees, Contractors, Payroll & Compliance):
• Employing non-EU specialists in Czechia: Blue card rules and risks:
• Working Hours and Overtime: Key Rules, Common Mistakes and Fines:
• Agreements for the performance of work in 2026: New Contribution Thresholds, Reporting and Fines:
• How to Legally Monitor Employees Without Violating Czech Law: