Agency Employment in the Czech Republic: Training and 2026 Legal Risks

JUDr. Barbora Kořenářová
JUDr. Barbora Kořenářová
10.3.2026 | ARROWS law firm

Agency employment is one of the most frequently inspected areas of employment law in the Czech Republic, and unintentional mistakes can have serious consequences for companies. Effective training focused on this area is not merely part of compliance, but an investment in protecting your business. In this article, you will learn what high-quality training must include, which legal pitfalls to watch out for under the 2026 legislation, and how to avoid the most common mistakes.

Quick summary

  • Legislative framework: Training focused on the specifics of agency employment is a key part of preventing breaches of  and . The obligation to ensure occupational health and safety (OHS) and equal treatment in practice requires demonstrable knowledge of these rules by managerial employees.
  • Most common breaches: Breaches of the principle of , shortcomings in written documentation, and disguised job placement are the most common reasons for high fines imposed by .
  • Scope of liability: Current Czech legislation emphasises the end user’s statutory guarantee for wage claims and liability for OHS. Without high-quality training, end users risk having to pay the agency’s debts.
  • Training ROI: The cost of professional training is negligible compared to the risk of a fine for illegal work (up to CZK 10 million) or wage top-ups required to ensure comparable conditions.

Why employment law training is essential

Many business owners still believe that agency employment is a risk-free arrangement where it is enough to sign a contract with an agency and the responsibility shifts to the agency. The reality in 2026 is different. Legislative changes in recent years and stricter decision-making practice by the authorities make end users direct bearers of liability under Czech law.

ARROWS, a Prague-based law firm, deals with these issues on a daily basis. We often see a lack of legal awareness not only among HR professionals, but above all among line management. Whether it is a production supervisor who treats an agency worker as “their” subordinate, or an HR specialist who underestimates the review of comparable conditions, these mistakes lead to sanctions in the Czech Republic.

Czech legislation divides obligations between both parties. The employment agency assigns employees to the end user, but the end user assigns work tasks to the employee and must ensure occupational health and safety at work. A team leader has de facto power over an agency worker’s work, but often does not realise the legal limits.

The absence of demonstrable instruction of managerial employees on these limits is a factor that labour inspectors take into account when assessing fault.

Legal framework for agency employment in the Czech Republic

Agency employment is governed primarily by the Czech Labour Code and the Employment Act. It is a specific tripartite relationship: employment agency – employee – end user. The employee has an employment contract or an agreement to perform work (DPČ) with the agency, but works for you. Key rules and changes you must reflect in 2026:

  1. Mandatory security deposit and licence: The employment agency must have  and a security deposit of CZK 500,000. The end user is obliged to verify that the agency has a valid licence; otherwise, it risks participation in illegal work under Czech legislation.
  2. Limitation of the assignment period: An employment agency may not temporarily assign the same employee to perform work for the same end user for a period longer than 12 consecutive calendar months.
  3. Ban on chaining fixed-term employment: The employment relationship between the agency and the employee is subject to the general rules for fixed-term employment, i.e., the “three times and enough” rule.
  4. Definition of illegal work: Illegal work also includes the performance of dependent work outside an employment-law relationship. Critical is the so-called , where a company “rents out” people to another company without an employment agency licence, which is treated as illegal disguised job placement in the Czech Republic.
Questions related to agency employment law

1. What is the difference between agency employment and temporary assignment?
Agency employment is a profit-making business activity. Temporary assignment between two employers under the Czech Labour Code (without an agency licence) must not be carried out for consideration, except for reimbursement of costs. If you “borrow” employees from another company with a profit margin without a licence, it is illegal disguised job placement under Czech law.

2. Who is liable for damage caused by the employee?
If an agency worker causes damage to the end user while performing work tasks, the employment agency, as their legal employer, is liable. The end user then claims compensation for damages from the agency.

3. How does the wage guarantee work?
The end user guarantees that the agency will pay the employee wages and remuneration at a level comparable to the end user’s core employees. If the agency does not pay, the obligation transfers to the end user.

Most frequently breached legal rules

Findings from inspection activities show that the most common shortcomings are in the following areas.

Failure to comply with comparable wage and working conditions. The employment agency and the end user are obliged to ensure that the working and wage conditions of a temporarily assigned employee are not worse than those of a comparable core employee of the end user. This includes not only base pay, but also supplements, premiums, bonuses, and benefits.

Formal deficiencies in documentation. The agreement on temporary assignment between the agency and the end user must be in writing and contain the requirements under Section 308 of the Czech Labour Code. A common mistake is a vague definition of the duration without the ability to determine the end date.

Discrimination and unequal treatment. An agency worker must not be discriminated against in access to information about vacancies at the end user, catering, or social facilities.

Insufficient OHS arrangements. Although the employer is the agency, the end user is obliged to create favourable working conditions. The end user must demonstrably train the employee on risks at the specific workplace, provide personal protective equipment (PPE), and ensure medical examinations required for the work.

Risk table: Breaches of obligations and sanctions

Risks and penalties

How ARROWS can help (office@arws.cz)

Disguised labour brokering / Illegal work: If you use workers supplied by an entity without a licence or without proper contracts, you face a fine of up to CZK 10,000,000 under Czech law.

Review of agencies and contracts: We will verify your supplier’s licence and structure the contractual relationship so that it does not constitute disguised labour brokering in the Czech Republic.

Breach of comparable conditions: Failure to ensure comparable conditions may result in a fine of up to CZK 1,000,000 for both the agency and the user company under Czech legislation.

Comparable-conditions audit: We will review your wage regulations and benefits and set the assignment parameters so that the conditions are defensible in an inspection in the Czech Republic.

Breach of occupational health and safety (OHS) obligations: If the user company does not ensure safety, risk training, or PPE, it may face a fine of up to CZK 2,000,000.

OHS documentation and training: We will prepare a system for training and communicating workplace risks for agency workers directly at your site.

Missing written assignment agreement: If the written form or mandatory elements of the agreement are missing, a fine of up to CZK 10,000,000 may be imposed, or lower administrative fines.

Review of contractual documentation: We will prepare template temporary assignment agreements containing all statutory requirements under Czech law.

Liability for wages: If the agency fails to pay wages, the user company must pay them.

Agency due diligence: We will help set up control mechanisms so you can be confident the agency is meeting its obligations to employees.

Obligations of employment agencies and user companies

The law clearly divides responsibilities, but in practice they often become blurred.

Employment agency (legal employer):

  • Concludes and terminates the employment relationship with the employee.
  • Pays wages and remits social security and health insurance contributions.
  • Ensures occupational medical services, often in cooperation with the user company.
  • Is liable for damage caused by the employee in the course of work.
  • Monitors compliance with the 12-month assignment limit.

User company (de facto work supervisor):

  • Assigns tasks and manages and supervises the work.
  • Ensures equal treatment and informs the agency about the wage conditions of its core employees.
  • Ensures OHS at its workplace.
  • Keeps records of working time and overtime.
  • Guarantees payment of wages by the agency.

An amendment to the Labour Code introduced in Section 309a the guarantee mechanism. If the agency does not pay wages, the employee may turn to the user company. The user company is obliged to top up the wage up to the level of a comparable wage.

Most common mistakes in practice and their consequences

From our legal practice at ARROWS, we know that companies most often make mistakes in the following areas.

Ordering services instead of a temporary assignment. A company enters into a contract for work with another company to ensure production, but the workers are in fact subject to the instructions of the заказчик’s foremen. This is a textbook example of disguised labour brokering. If discovered, the fine for both parties can be crippling.

Excluding agency employees from benefits. Companies often do not provide agency employees with meal vouchers, extra vacation, or performance bonuses that core employees receive. This is a direct breach of Section 309(5) of the Czech Labour Code. If the labour inspectorate finds this, it will order back payments and impose a fine.

Missing OHS training tailored to the specific workplace. The agency provides general training, but the user company forgets to train the worker on a specific machine or local conditions. In the event of a workplace accident, liability primarily lies with the user company, which failed to ensure a safe environment.

Exceeding the 12-month limit without a request. User companies keep the same employee for years without a written request from the employee for a longer assignment. This results in a breach of Section 309(6) of the Czech Labour Code.

Labour inspectorate inspections

The State Labour Inspection Office (SÚIP) in the Czech Republic continues in 2026 to focus intensively on combating illegal work and monitoring agency employment. Inspections are often targeted based on tips or as part of coordinated actions.

During an inspection, you must be prepared to present:

  1. Temporary assignment agreements for all agency workers.
  2. Evidence of comparable conditions.
  3. Working time records kept by the user company.
  4. Evidence of OHS training and familiarisation with risks.

Inspectors commonly interview employees directly at the workplace. Discrepancies between statements and documentation are the main evidence against the company.

How to ensure effective training

Effective training should be structured and targeted:

  • Target group: Train not only HR, but above all foremen, production managers and team leaders. They manage agency employees on a daily basis and make the most mistakes.
  • Training content: Basics of the legal relationship, managers’ responsibilities, OHS rules, the principle of equal treatment, and procedures during inspections in the Czech Republic.
  • Documentation: A written record must exist for every training session.
  • Regularity: We recommend training upon a manager’s onboarding and then refresher training at least once a year.

ARROWS, a Prague-based law firm, offers tailored expert training that reflects the specifics of your operations.

Practical recommendations

  1. Contract audit: Check the validity of framework agreements with agencies and the specific assignment agreements.
  2. Comparable-conditions check: Compare the payslips of a core employee and an agency employee in the same position for the last month.
  3. Agency verification: Verify in whether your agency still has a valid permit and whether it is insolvent.
  4. Management training: Arrange training for your managers so they understand the legal boundaries under Czech law.
  5. OHS: Make sure you have signed records of OHS training from all agency workers directly at your workplace.

Conclusion

Investing in prevention through training and a legal audit is a fraction of the costs represented by fines from the labour inspectorate or court disputes. The Czech legal team at ARROWS is ready to help you set up agency employment processes so that they comply with the law in force in 2026 in the Czech Republic.

ARROWS advokátní kancelář is insured for professional liability with a limit of CZK 400,000,000. For a solution tailored to your situation, contact us at office@arws.cz.

FAQ – Frequently asked questions

1. Must an agency worker receive the same benefits as a permanent employee?
Yes—if the benefits relate to the performance of work or are provided to employees generally, such as meal vouchers or additional leave beyond the statutory minimum under Czech legislation. If you do not provide them, you breach the principle of comparable working conditions in the Czech Republic.

2. Can we try out an employee via an agency and then hire them directly?
Yes, this is common practice. However, pay close attention to the contractual terms with the agency, as this may be subject to a fee. The Czech Labour Code, however, prohibits agencies from restricting employees from entering into an employment relationship with the user company.

3. Who pays the fine if the agency does not pay wages?
The fine for non-payment of wages is primarily imposed on the agency. However, the user company has a statutory guarantee obligation under Czech law—so if the agency does not pay, the user must pay the wages.

4. How long can an agency worker work for us?
As a standard rule, a maximum of 12 consecutive calendar months. A longer period can be agreed only if the employee asks the temporary work agency to do so, or if it is a replacement for maternity/parental leave in the Czech Republic.

5. Can a production manager dismiss an agency worker?
No. A production manager may instruct that the worker should no longer work and inform the agency. The legal act of terminating the employment relationship or the assignment agreement must be carried out by the temporary work agency.

Notice: The information contained in this article is of a general informational nature only and is intended for basic guidance based on the legal position as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS advokátní kancelář, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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