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Labour law

Law Firm

Minimize risks and protect your interests with ARROWS Law Firm – whether you are an employer or an employee, we provide legal certainty and effective solutions. Employment law is constantly evolving, and any mistake can have serious consequences – from fines imposed by labor inspections to costly legal disputes that can significantly impact both employers and employees. Properly structured employment relationships are essential for smooth business operations and the protection of individual rights.Whether you are an employer seeking legal security when drafting contracts, setting up employee benefits, or terminating employment relationships, or an employee facing wrongful termination, unpaid wages, or workplace discrimination, ARROWSlawyers are here to help. With us, you can be confident that all employment law matters will be handled quickly, efficiently, and in full compliance with the law.

For employers – clear rules, minimal risks

Today’s employers face not only complex bureaucracy but also increasing scrutiny from labor inspections and legal disputes with employees. The key to smooth business operations is a well-structured employment law framework. We ensure that your company’s documentation and internal processes comply with legal requirements and protect you from unnecessary complications.

We provide the following legal services for employers:

  • Employment contracts and internal regulations – Proper contract structuring, protection of sensitive information, occupational health and safety (OHS), remote work policies, and other key documents.

  • Safe termination of employment – Assistance with agreements, dismissals, immediate termination of employment, and mass layoffs.

  • Defense during labor inspections – We represent you and help negotiate favorable terms in any employment law dispute.

  • Collective bargaining and trade unions – Conflict resolution, setting cooperation rules, and legal representation in negotiations.

  • Agency employment and disguised employment (Švarc system) – Legal setup of agency work relationships and risk elimination regarding penalties.

Disguised employment (Švarc system) and cooperation with freelancers

The line between legitimate cooperation with a self-employed contractor and disguised employment cannot be read from the title of the contract. What matters is how the work is done in practice – who gives the instructions, who bears the costs and the risk, and whether the person has to perform the work personally. That is exactly what the labour inspectorate looks at. And it is exactly what we will go through with you before it does.

  • Audit of cooperation with freelancers – We go through your contractors and invoicing freelancers and tell you which relationships genuinely risk being reclassified as employment – and which do not.

  • A setup that holds up in practice – Not just the text of the service or cooperation agreement, but also recommendations on what to change in day-to-day operations: assigning work, invoicing, equipment, time records.

  • Representation in illegal work inspections – Inspections targeting the Švarc system are among the toughest. We take over communication with the inspector and defend you in the administrative proceedings and on appeal.

  • Defence against sanctions that are not only financial – Illegal work can bring, besides a fine, a ban on activity and publication of the decision on the official board of the labour inspectorate. We defend against both.

  • Tax and social security consequences – Together with ARROWS tax advisers we calculate what reclassification would mean in additional social security contributions and taxes, and how to limit the impact.

Agency employment and labour leasing

Lending people between companies looks simple – until someone asks on what basis it is done. Without a permit it amounts to disguised employment placement, penalised as severely as the Švarc system. We will set up a model that stands up to an inspection.

  • For employment agencies – Obtaining and maintaining the employment agency permit, template documentation, agreements on temporary assignment and written assignment instructions.

  • For users of agency workers – We check that your agency holds a valid permit and draft the contract so that its failures do not fall on you.

  • Comparable working and pay conditions – An agency worker must not be worse off than your comparable permanent employee. We help you set this up and document it.

  • Twelve-month assignment limit – We watch the limit for which an agency may assign the same person to the same user, and the statutory exceptions to it.

  • Sharing people within a group and outsourcing – We assess when moving staff between related companies is still legal and when it already amounts to labour leasing without a permit.

For employees – protect your rights

Wrongful termination, unpaid wages, or workplace discrimination – all of these can have serious consequences for your career and financial stability. If you are involved in an employment law dispute, we will help you assert your rights and achieve a fair resolution. We specialize in the following areas:

  • Wrongful termination – We review its validity and ensure you receive compensation or reinstatement.

  • Unpaid wages or overtime – We will recover your claims and ensure appropriate compensation.

  • Workplace discrimination and bullying – Legal representation and protection of your rights.

  • Workplace injuries and occupational diseases – We make sure your employer covers all compensation you are entitled to.

  • Defense against unjustified employer sanctions – Including wage deductions, penalties, or unfair performance evaluations.

Are you dealing with collective bargaining, trade union disputes, or employment relationship management in a large company? At ARROWS, we have extensive experience in managing employment law matters for organizations with thousands of employees.

We assist with collective bargaining, whether it involves drafting collective agreements, resolving disputes with trade unions, or developing employer negotiation strategies.

We rely on top-tier expertise. Our employment law specialist, Mgr. Jakub Oliva, was appointed by the Minister of Labor and Social Affairs as a mediator for resolving collective disputes, making us a reliable partner for negotiations.

With our experience and professional guidance, we ensure that your employment relationships remain stable, fair, and fully compliant with the law.

Employment law can be complex – but we help you tackle every challenge. Whether you are dealing with collective bargaining, internal HR processes, legal disputes, or employment contract optimization, our specialized team provides comprehensive legal support.

We have extensive experience in managing employment law matters for large companies. Thanks to our legal experts’ knowledge and specialization in labor law, we offer strategic and effective solutions for businesses of all sizes.

Frequently asked questions (FAQ)

1. When is cooperation with a freelancer fine, and when is it already the Švarc system?

What decides is the actual substance of the relationship, not the title of the contract. If a person works for you personally, on your instructions, at times you set, with your equipment and at your cost and risk, that is dependent work – and it belongs in an employment relationship or an agreement on work outside employment. It also does not matter how long it has been done this way: even a single day can be penalised.

2. What do we risk if the inspectorate confirms the Švarc system?

The company can be fined up to CZK 10 million, and the law also sets a minimum of CZK 50,000 – so a symbolic fine is not possible. A ban on activity of up to two years and publication of the decision on the official board of the State Labour Inspection Office for a full year can come on top. The freelancer personally faces a fine of up to CZK 100,000. And all of this comes before additional social security and tax assessments.

3. Can we borrow an employee from another company in our group?

Only under certain conditions. Leasing out labour without an employment agency permit is so-called disguised employment placement and is penalised at the same rate as allowing illegal work – up to CZK 10 million, at least CZK 50,000. Legal ways to share people within a group exist; we will choose the one that suits your situation.

4. How long can an agency worker work for us?

As a rule, an agency may not assign the same employee to you for longer than 12 consecutive calendar months. The law has exceptions – typically cover for maternity, paternity or parental leave, or where the employee personally asks for a longer assignment.

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Contact us to ensure your company has employment law matters under control – risk-free and in full compliance with legislation.

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Law Firm of the Year

Thanks to our clients

since 2015 we have been recognised in the Law Firm of the Year, Law Offices of the Year and Legal500 categories.

Mgr. Jakub Oliva, LL.M., MSc.
Mgr. Alexandra Johnová
Mgr. Jan Pavlík
+40 lawyers
150 joint-stock companies
750 limited liability companies
51 municipalities and city districts
30 associations

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