Preparing for Labour Inspections in the Czech Republic
Training and Fines
A labour inspection is not just a matter of luck or coincidence – it is the result of insufficient preparation and systematic mistakes that companies fail to recognise over the long term. In this article, you will learn how to properly prepare for an inspection in the Czech Republic, which trainings are essential under Czech legislation, and most importantly: how to avoid fines of up to CZK 10 million that may be imposed for serious breaches of the law, especially in the area of illegal employment.

Key takeaways
Why are training and preparation for a labour inspection critical?
Many business owners believe that a labour inspection is merely a bureaucratic formality that can be handled superficially. The reality is very different. The Czech Labour Inspection Authority (SÚIP) and its regional labour inspectorates (OIP) carry out inspections under Act No. 251/2005 Coll., on Labour Inspection, and Act No. 255/2012 Coll., on Inspections (the Inspection Code).
They focus on workplace safety, compliance with employment regulations under Czech law, and also on detecting illegal employment under the Employment Act (No. 435/2004 Coll.). Inspections are not random – they are based on complaints, risk analysis, or reported workplace accidents. If inspectors find deficiencies, they may impose fines which, depending on the seriousness of the breach, range from tens of thousands up to CZK 10 million.
This training must cover all employees without exception – from the receptionist to the CEO. Managers, HR professionals and business owners often do not realise that their responsibility begins long before inspectors arrive at the workplace. The obligation to ensure employee training on legal and other regulations to ensure occupational safety and health is set out in Section 103 of the Labour Code and is not open to debate under Czech legislation.
ARROWS attorneys deal with these issues on a daily basis and have seen dozens of cases where companies thought everything was in order. The problem is often not just individual mistakes, but systemic failures – and those signal to inspectors that the company does not take compliance seriously.
What do inspectors check and what do they focus on?
Labour inspections in the Czech Republic proceed systematically. Inspectors are usually specialised and their inspection focuses on specific areas. Their primary objective is to verify compliance with obligations arising from employment regulations and occupational health and safety (BOZP) rules under Czech law. Most commonly, you will encounter the following areas:
Employment relationships and documentation
Inspectors verify the establishment, changes and termination of employment. They check whether all employees have a written employment contract, an agreement to perform work (DPP) or an agreement on work activity (DPČ). The Czech Labour Code requires employment contracts and agreements to be concluded in writing, no later than on the employee’s first day of work.
The absence of a written form may be classified as enabling illegal work, where a fine of up to CZK 10 million may be imposed.
Timely registration of employees with the Czech Social Security Administration (ČSSZ) and health insurance companies is also important. For DPP agreements, for 2026 it is crucial to comply with the reporting obligation for all such agreements to the ČSSZ register, an area that inspections are newly focusing on more intensively in the Czech Republic.
Remuneration and working time records
Inspectors check whether employees are paid at least the minimum wage and whether all bonuses are properly paid (for overtime, weekend work, night work, and work on public holidays). Note that in the business sector (private sector), the so-called guaranteed wage was abolished in full from 2025; however, the obligation to comply with the minimum wage and agreed wage conditions remains strict under Czech law.
A frequent stumbling block is working time records. Employers must keep records indicating the start and end of each worked shift (Section 96 of the Labour Code). Mere attendance tracking (“arrived/left”) is not sufficient; it must be clear when work was performed, when breaks were taken, etc. Deficiencies in records or falsification can lead to fines of up to CZK 400,000, and in the case of related remuneration issues up to CZK 2 million.
Occupational health and safety (BOZP)
Inspectors focus on whether the company has prepared documentation on identifying and assessing risks, whether employees have been properly and demonstrably trained, whether they have been assigned personal protective equipment (OOPP), and whether the workplace is in a safe technical condition. BOZP inspections are detailed – inspectors require training syllabi, attendance sheets with employees’ signatures, documents evidencing knowledge verification, and valid inspections/revisions of technical equipment.
BOZP training is mandatory upon onboarding, upon a change of role, upon the introduction of new technology, and regularly according to deadlines set by the employer (typically once every 2 years, more often for high-risk work) under Czech legislation.
Illegal employment and disguised labour intermediation
This is a priority for SÚIP. Illegal work includes performing dependent work outside an employment relationship (without a contract), employing foreigners without a valid permit/right of residence, or work contrary to an issued permit. The definition of dependent work (Section 2 of the Labour Code) includes work performed in a relationship of superiority and subordination, in the employer’s name, according to the employer’s instructions, and personally by the employee.
A risk is also so-called disguised employment intermediation (the “švarcsystém” or illegal agency employment), where a company in fact uses the work of individuals who formally act as self-employed persons (OSVČ) or are employees of another company without a permit for temporary agency work. For enabling illegal work, a fine of up to CZK 10 million may be imposed; the minimum fine for illegal employment is set by law at CZK 50,000 in the Czech Republic.
How to prepare for a labour inspection in the Czech Republic
Whether you know an inspection is coming (for announced inspections) or it arrives unexpectedly, preparedness is key.
Preparing documentation
The first step is to conduct an internal audit of your documentation. You must have available employment contracts and agreements (DPP, DPČ) for all current workers, including wage statements, and records of working time (actual hours worked, not just a “shift plan”). You will also need payroll records, proof of wage payments, and complete OSH documentation, such as job categorisation, PPE policies, training records, and equipment inspection reports.
In practice, it often happens that documents are held by an external accountant or are not at the workplace. Under the Czech Inspection Act, the inspected entity is obliged to create conditions for the inspection and provide cooperation. If the documents are not immediately available, it is necessary to agree with the inspectors on a reasonable deadline for submitting them. Attorneys from ARROWS, a Prague-based law firm, often help clients review this documentation preventively, even before the inspection takes place.
Training for employees and managers
OSH training must be specific and linked to the risks at the particular workplace. “Universal” e-learning downloaded from the internet is often not sufficient if it does not reflect the specifics of your operations. Employees should know where to find the fire extinguisher, first-aid kit, and who provides occupational health services.
Internal processes
We recommend setting a clear process for the arrival of an inspector (who will receive them, who will be called, who is authorised to act). Employees should be instructed to answer truthfully, but only what they are asked. Nervousness and confused answers often lead to unnecessary suspicion.
How the inspection proceeds – what to expect
The inspection begins with the inspector presenting their ID (authorisation to carry out the inspection). Inspectors will announce the start of the inspection to the inspected entity (the statutory body) or to an employee present at the workplace. In inspections focused on illegal employment, the labour inspectorate often arrives unannounced to capture the real situation.
Inspectors verify the identity of persons present, request documents and contracts, and may make audio or video recordings. They may question employees without the presence of company management.
The output of the inspection is an inspection report, which contains a description of the findings and identifies any breached regulations. Inspectors set a deadline for objections (usually 15 days). If deficiencies are found, the inspectors will impose corrective measures in a decision and set a deadline for compliance. The fine itself is usually not dealt with directly in the report, but in subsequent administrative offence proceedings.
Your rights and obligations as an employer during an inspection
You have the right to request the inspector’s ID and authorisation to conduct the inspection, as well as the right to be present during the on-site investigation (except for interviews with employees if your presence could affect the purpose). You may also file objections to the inspection findings stated in the report and request a change of inspector in the event of proven bias.
Your obligation is to allow the inspector access to premises and equipment, provide the necessary cooperation (submit documents, provide explanations), and not conceal facts.
A breach of the duty to cooperate or obstruction of the inspection (e.g., refusing entry to the premises) may be sanctioned by a procedural fine of up to CZK 200,000 (individual) or CZK 500,000 (legal entity), including repeatedly.
Our attorneys in Prague at ARROWS can attend the inspection as your representatives, ensuring that the inspectorate does not exceed its powers and that everything proceeds correctly under Czech procedural rules.
Risk table – Most common failures and sanctions (as of 2026)
|
Risk |
Possible sanction |
ARROWS’ role (consultation@arws.cz) |
|
Illegal employment: (work without a written contract, disguised agency work) |
Up to CZK 10,000,000 (min. CZK 50,000) + exclusion from public tenders. |
Legal audit of contracts, setting up relationships with self-employed contractors (OSVČ), defence in administrative proceedings. |
|
Missing working-time records: or falsification of records |
Up to CZK 400,000. |
Implementing a recording system, internal policies, and alignment with actual practice. |
|
Errors in remuneration: (non-payment of bonuses/allowances, failure to comply with the minimum wage) |
Up to CZK 2,000,000. |
Review of wage statements and the allowances system. |
|
OSH breaches: (missing training, documentation, PPE) |
Up to CZK 2,000,000. |
Ensuring comprehensive OSH compliance in cooperation with technical specialists. |
|
Failure to implement corrective measures: (not remedying identified deficiencies) |
Up to CZK 500,000. |
Communication with the labour inspectorate, documenting fulfilment of corrective measures. |
How to minimise fines and sanctions – what to do after the inspection
If the inspection report contains findings of a breach of law, you have the right to file objections. The deadline is usually 15 days from delivery of the report (unless the inspector sets otherwise). Objections must be reasoned.
IMPORTANT: Signing the report does not mean you agree with the findings; it only confirms receipt. Objections are submitted in writing to the head of the inspection team. If the objections are rejected, the report becomes the basis for initiating administrative offence proceedings.
In the administrative proceedings on imposing a fine, there is still room for defence, including arguments such as low social harmfulness, efforts to remedy, mitigating circumstances, or procedural errors by the inspectorate. Lawyers from ARROWS, a Prague-based law firm, have a high success rate in reducing proposed fines precisely thanks to their knowledge of Czech administrative procedure and the case law of Czech administrative courts.
Do not forget to comply with the imposed corrective measures in time and submit a written report to the inspectorate. Failure to do so leads to further fines.
Read also:
- Czech Labour Inspections 2026: Compliant Pay, Bonuses and Transparency
- Essential Employment Law Training for Czech Payroll Specialists
- Avoiding HR Litigation and Common Legal Misconceptions in Czech Employment Law
- Hiring Non-EU Workers in the Czech Republic: Legal Steps and Compliance Risks
- Managing Workplace Discrimination and Sexual Harassment Risks in Czech Law
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.
