Employment Contract with a Foreign National in the Czech Republic

What work authorization a foreigner needs and how it affects the contract

Before you even start drafting an employment contract, you must clarify what authorization your future employee has. Not all foreigners need an employment permit. Citizens of the European Union, the European Economic Area, and Switzerland have free access to the labor market and do not need any employment permit. Their relevant family members are subject to similar rules.

However, the situation is different for foreigners from outside these countries (so-called third-country nationals). First and foremost, you must verify whether the person has an Employee Card, a Blue Card, an Intra-Company Employee Transfer Card, or a classic employment permit issued by a regional branch of the Labour Office of the Czech Republic (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 foreigner starts working, you face a high fine for illegal employment.

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

The second group consists of holders of a Blue Card, intended for highly qualified workers. Here, you must be extra careful, as 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 determined by a communication from the Ministry of Labour and Social Affairs for the given calendar year. This is not a minor detail – it often means several hundred thousand crowns more per year.

The third group consists of foreigners with an older type of employment permit, which is issued for a maximum of two years. If you have such an employee, remember that the permit is always tied to a specific employer and type of work. If they decide to change companies or job positions, they must apply for a new permit. In these situations, it is worthwhile to align immigration steps with the setup of the employment relationship, which typically falls under the area of labour law.

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

An employment contract with a foreigner differs significantly in some respects from a standard contract with a Czech employee, especially concerning the requirements of the Act on Employment and the Act on the Residence of Foreign Nationals. Both the Ministry of the Interior and the Ministry of Labour and Social Affairs issue specific guidelines on how the contract should be structured.

The first critical detail is the duration of the employment relationship (under the Labour Code, e.g., § 34(1)(c)). In practice, you have the option to choose either a fixed term (for example, from May 1 to December 31, 2026) or an indefinite term. For highly qualified positions, it is also wise to monitor the specific parameters of the employment relationship described in the article Blue Card for Highly Qualified Foreigners in the Czech Republic: Conditions and Application Procedure.

Mistakes are often found here – some companies think they can get away with vague wording like "from an unknown date" or "upon issuance of the card." This is a mistake. A court could declare such a contract invalid. If you are hesitant about the exact date, you can use the wording "from the day following the issuance of the certificate of fulfillment of the conditions for the issuance of an Employee Card," which is legally sound and allows for a flexible start date after administrative approval.

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

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

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

Many employers are unaware of this and try to employ foreigners for 12 hours or less – this is illegal and can lead to problems with the validity of the Employee Card. If you are interested in a part-time position of less than 15 hours per week, you must seek other forms of employment for the foreigner, as an Employee Card would not be issued for such a schedule.

The fourth is the vacation entitlement. The contract must show how many days or hours of vacation the employee will take per 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 vacation in the text of the contract, you create a potential dispute as to whether the worker is entitled to vacation at all, and moreover, the contract is incomplete.

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

The employer is also obliged to prove that they have verified the foreigner's professional competence for the given field in advance. If it is a regulated profession (e.g., doctor, site manager, lawyer), they must submit documents proving fulfillment of the conditions under the relevant laws (for example, certificates, educational documents with recognition in the Czech Republic). This means that if you hire a site manager from Poland, you must verify that their education is recognized in the Czech Republic, and not just guess that their experience is sufficient.

Minimum wage and working hours – the most common mistakes

One of the most common misunderstandings is that employers think the minimum wage does not apply to foreigners with short-term or part-time employment, or that it is applied proportionally. This is a mistake. The Act on Employment is very clear: for the purpose of issuing an Employee Card (or Blue Card), a foreigner's monthly income must not be lower than the basic rate of the monthly minimum wage (e.g., § 42(1)(b)), regardless of the scope of the agreed weekly working hours (as long as it is agreed for at least 15 hours per week).

Let's illustrate this with a practical example. Imagine that the basic rate of the monthly minimum wage in 2026 is the currently set amount (the number is illustrative). If you employ a foreigner for 15 hours a week, you cannot pay them less than this amount per month, even though it is a quarter of a regular worker's time. Many companies do not expect this and initially underestimate it.

This rule is a specific condition for a foreigner's residence and employment permit and differs from the general regulation of the minimum wage in the Labour Code for Czech employees or foreigners with free access to the labor market, for whom the minimum wage is calculated proportionally for part-time work.

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 framework. If you want to maintain flexibility, you should have a schedule or plan that is approved by both parties and is in accordance with the Labour Code (e.g., unevenly distributed working hours).

A third mistake is that some companies think that an employee's highly specialized work (for example, a programmer who also works outside standard hours) means that the minimum wage does not apply to them. They are greatly mistaken. The minimum income condition for an Employee Card applies to every foreigner with this permit without exception. If you want an employee to work outside standard hours, you should compensate for this with either a higher wage or some form of rest or supplement according to the Labour Code.

A fourth mistake is that employers sometimes agree on the minimum wage but then de facto reduce it through various deductions. This is not permissible. The law pertains to the gross wage, and it is not possible to illegitimately reduce it below the set minimum level through various deductions (e.g., for accommodation that is not agreed upon in full compliance with legal regulations).

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

The latest reform has brought a major change. From April 1, 2026, all reporting of the commencement, changes, and termination of employment of foreigners is mandatory exclusively in digital form. Old paper forms, emails, and other methods are no longer accepted. If you fulfill your obligations through the wrong channel, your report will not be considered completed, and you risk a fine for failing to meet the notification duty.

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

The information obligation applies to the commencement of employment, its termination, a change of employer, a change of job position, and intra-company transfers. You must report the information to the relevant regional branch of the Labour Office according to the place of work no later than the employee's start date.

If a significant change occurs – for example, the employee terminates their employment prematurely – you must report it no later than 10 calendar days from the change (e.g., from the termination of employment, under the Act on Employment, e.g., § 87(2)). A delay will result in a fine. Additionally, for 3 years after the end of the employment relationship, you must keep copies of documents proving the legality of the foreigner's residence and employment (under the Act on Employment, e.g., § 102(2)).

Many employers do not realize that this digital system has significantly simplified their work – paper administration is a thing of the past. At the same time, however, it means that errors are more easily identifiable and sanctionable. If your HR system is not configured for this integration, you should resolve it without undue delay. The lawyers at ARROWS law firm can help you analyze your processes and ensure they comply with the new rules – write to consultation@arws.cz.

Other rights of a foreigner in the employment contract – vacation, social security, and health insurance

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

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

The international element – affiliation to an insurance system – is sometimes handled differently for a foreigner. If they work for an employer from another state that is not registered in the Czech Republic, a special situation may arise. In such cases, international social security is involved, which is 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 with the lawyers at ARROWS law firm, who work with complex international elements through the ARROWS International network – contact consultation@arws.cz.

Final summary

An employment contract with a foreigner 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 the strict requirements of the Act on Employment, the Act on the Residence of Foreign Nationals, and the Labour Code. Errors in the contract's content can deprive you of the ability to obtain an Employee Card, expose you to fines in the millions of crowns, lead to the 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 data: the exact wage, clearly defined working hours (a minimum of 15 hours per week for permit purposes), vacation entitlement, and the duration of the relationship. The minimum income condition for an Employee Card applies unconditionally to all foreigners, regardless of the scope of work, as long as it is agreed for at least 15 hours per week. From April 1, 2026, you must handle all communication with the Labour Office exclusively digitally.

If you are unsure whether your current procedures and forms comply with the legal status, it is safer to entrust the preparation and revision of contracts to experts. The lawyers at ARROWS law firm have experience in preparing employment contracts for foreigners, are familiar with all current requirements, and can guide you through more complex situations – from verifying professional competence to integrating your processes with registration obligations. Contact them at consultation@arws.cz and ensure your legal certainty.