International Employee Secondment: Tax, Social Security and Key Risks

25.5.2026 | ARROWS law firm

International employee secondment is a complex topic where Czech and international law intersect with European coordination regulations and the legislation of the host state. Properly setting up the relevant obligations requires assessing tax residency, permanent establishment, length of stay, and the business model. This article summarises the key obligations and risks and shows how to stand up to the relevant authorities.

The photograph shows a lawyer discussing the topic of international employee secondment.

What international posting of employees actually means
Tax residence and permanent establishment: the basis for correct payroll taxation
How wages are taxed when working abroad
Social security and health insurance when posted: the single-insurance principle and the A1 form
How ARROWS, a Prague-based law firm, can help

Key takeaways:

Posting an employee abroad always affects taxes, social security and health insurance, as well as the employment relationship; travel reimbursements and internal “business travel policies” alone are not sufficient.
Where wages are taxed is determined primarily by the place where the work is performed, the tax residence of the employee and the employer, the length of stay, and any creation of a permanent establishment.
For insurance contributions within the EU, the single-insurance principle applies and typically also the obligation to obtain an A1 form—failure to comply may result in additional insurance payments abroad and sanctions in both states.
Correctly setting up a posting is now a complex cross-border project. Involving experienced tax and employment-law specialists from ARROWS, a Prague-based law firm, usually significantly reduces the risk of additional assessments, fines, and disputes with employees and foreign authorities.

What international posting of employees actually means

The term “posting of employees” is used broadly in practice and often inaccurately. From the perspective of European law, it is a situation where an employer established in one Member State temporarily posts its employee to another Member State to provide services there on the employer’s behalf.

Directive 96/71/EC and its amendment 2018/957 require that posted workers be guaranteed a minimum level of working conditions in the host state, in particular as regards remuneration, working time, rest periods, leave, and occupational safety.

Under Czech law, this regime is transposed primarily in the Labour Code and the Employment Act, while at the same time intersecting with tax legislation and social security rules.

Czech practice shows that employers often mix together several different situations: a standard business trip, a long-term posting to a project, temporary assignment within a group, and international hiring-out of labour. Each of these models has different consequences for taxes and insurance contributions.

For example, a short business trip to a conference abroad is generally not a “posting” within the meaning of the directive and does not trigger notification obligations in the host state. By contrast, several months of work on a construction site for a local customer typically is a posting.

The attorneys at ARROWS, a Prague-based law firm, therefore always insist on thoroughly mapping the actual business model and the flow of instructions, invoicing, and responsibility, because the legal qualification of the situation often does not correspond to what the employer calls it.

An important element is also the temporary nature of the posting. EU coordination regulations assume that a posting under the A1 form regime lasts no more than 24 months, and the employee must not be posted for the purpose of replacing another worker.

At the level of employment law, after 12 or 18 months of a long-term posting, a significantly broader set of the host state’s employment-law rules begins to apply, which can materially affect wage costs and the employee’s entitlements. For a business, it therefore makes a practical and financial difference whether it plans a short-term project posting or a longer presence in the given country that is already moving towards permanent business activity and the establishment of a local branch.

From a tax-law perspective, however, the definition of posting is less important than where the work is actually performed, for how long, and for whom. The Income Taxes Act and double tax treaties work with the concept of “dependent activity performed in the territory of the other state” and with the concepts of tax residence and permanent establishment. To assess the impacts on residence, permanent establishment, and the correct setup of payroll taxation in a cross-border regime, it is appropriate to rely on tax law.

The cost of mislabelling the situation can be high. If an employer treats long-term cross-border activity as ordinary business travel and sets up taxes and contributions accordingly, it may later face additional tax assessments, penalties, and interest in both states, and potentially even criminal-law risks for members of statutory bodies.

Posting vs. business trip vs. hiring-out of labour

For risk management, it is essential to distinguish three basic regimes. The first is a standard business trip, where the employee performs work for a short period outside their regular workplace within the same employment relationship and under the authority of the same employer.

From the perspective of Czech regulations, the employee is provided with travel reimbursements, meal allowances and, where applicable, pocket money, but tax residence and affiliation to social security and health insurance usually do not change. From the perspective of international taxation, these short trips are often covered by the exemption for stays of up to 183 days per year, provided that the conditions relating to the employer’s residence and the non-attribution of the remuneration to a permanent establishment in the host country are also met. If it later turns out that the tax setup or stay records were not correct, the procedure described in the article Additional tax return: How to proceed when you discover an error in the accounts and eliminate the risk of high penalties may help.

The second regime is posting in the context of providing services. The employee usually remains employed by the Czech employer, but performs work in another state, typically for a customer or a branch of the employer. Here, European law on the posting of workers comes into play, along with the obligation to respect the host state’s minimum working conditions and the obligation to obtain an A1 form so that the employee remains in the Czech social security system.

From a tax perspective, it must be assessed whether the wages are taxed in the Czech Republic, in the host state, or in both, with subsequent application of the relevant double tax treaty.

The third regime is international hiring-out of labour, where the Czech employee formally remains employed by the Czech employer, but in practice is subject to the organisational instructions of a foreign “user” who bears the economic risk of the employee’s work.

In many double tax treaties, a special rule is provided for these situations and the wages are considered taxable in the country where the employee actually works, even if the stay does not exceed 183 days. The Czech Financial Administration moreover already accepts that, under the international hiring-out regime, the employer’s obligation to withhold advances on Czech personal income tax can be cancelled, because the wages are taxed abroad.

In practice, however, these situations require a detailed contractual and tax analysis – a layperson setup is a typical source of additional tax assessments.

Most common questions on the basic definition of posting

1. Do our standard “business trips” abroad fall under the posting regime?
Simplified, short business trips without the direct provision of services (for example, attending conferences, trainings or trade fairs) are not considered a posting. However, as soon as your employees abroad continuously and genuinely provide services for a foreign client, the posting regime is typically met.

2. What is the difference between a posting and establishing a permanent branch?
The difference depends primarily on the nature, duration and permanence of your activities abroad. Crossing the line towards a permanent establishment has a fundamental impact on taxes and contributions. The attorneys at ARROWS, a Prague-based law firm (office@arws.cz), typically prepare comprehensive opinions for these situations with specific solution options.

3. Can we “rotate” employees across projects so that we do not exceed the time limits?
Purposefully rotating employees to avoid exceeding the 12- or 24-month limit is highly risky. Strict European rules on repeated postings and a strict ban on chaining come into play here. We always recommend addressing these models through an individual legal and tax consultation.

Tax residence and permanent establishment: the basis for correct taxation of wages

Without correctly determining the tax residence of the employee and the employer, it is not possible to reliably decide where wages from work abroad should be taxed and which regime under the Czech Income Taxes Act applies. Under Czech law, an individual’s tax residence is determined either by domicile or by habitual abode, i.e., presence for at least 183 days in a calendar year.

Domicile means a permanent home available to the taxpayer with the intention to stay there permanently; the taxpayer’s family and economic background is also assessed. If an individual has ties to two states, the “tie-breaker” rules of the double tax treaty apply – for example, the centre of vital interests, habitual abode, nationality and agreement of the competent authorities.

For employees posted abroad, this means that even a longer stay abroad does not automatically mean the loss of Czech tax residence if the centre of their vital interests remains in the Czech Republic.

Conversely, for foreigners working long-term in the Czech Republic, Czech tax residence may arise even if they formally keep permanent residence in another country, but in fact stay in the Czech Republic for more than 183 days a year.

The decision whether an employee is a Czech tax resident fundamentally affects whether they must declare their worldwide income in the Czech Republic, including wages from work abroad, and how methods for eliminating double taxation will be applied.

Tax residence of legal entities is typically determined by the registered office or the place of effective management of the company. For international postings of employees, however, the key concept is a “permanent establishment”.

If a Czech company creates a permanent establishment in the host state, the right to tax the wages of employees working for that permanent establishment shifts to the host state, often from the first day of work. A permanent establishment may arise, for example, due to a fixed place of business, a construction site lasting longer than a certain period, or repeated provision of services in the territory of the other state.

For non-treaty states, the existence of a permanent establishment is assessed purely under the Czech Income Taxes Act; for treaty states, it is assessed under the specific double tax treaty.

If a Czech employer creates a permanent establishment abroad – typically a long-term project, construction activity or an office – the wages of employees working for that permanent establishment are subject to taxation in that state, usually from the first day of their work activity.

In such a situation, the Czech employer may apply to the Czech tax office to cancel the obligation to withhold advance payments of Czech tax from this part of the wage and then, in the Czech Republic, deals only with the elimination of double taxation. At the same time, however, the employer becomes obliged to register for corporate income tax in the host state, keep accounting records there and file local tax returns.

How wages are taxed when working abroad

From the perspective of international taxation, the basic rule is that an employee’s wages are taxed where the work is actually performed. However, double tax treaties contain a standard exception for dependent activities for short-term assignments.

If several conditions are met, wages may be taxed only in the employee’s state of tax residence, even if the work is temporarily performed in another state. Typically, this is the case where the stay in the other state does not exceed 183 days in a calendar year (or within a 12-month period under newer treaties).

Another condition is that the employer is not a tax resident of the host state and the wages are not attributable to a permanent establishment in that state.

The practical impact is significant: if a Czech employee, as a Czech tax resident, goes for example to work for several months in a treaty state where the Czech company has no permanent establishment, and the stay does not exceed 183 days, their wages may be taxed only in the Czech Republic.

In such a case, the Czech employer pays tax advances in the Czech Republic and no obligation may arise in the host state. However, as soon as any of the conditions for the exception is breached – the stay is extended, a permanent establishment arises, or international hiring-out of labour comes into play – the right to tax the wages shifts to the host state, often retroactively from the first day of the stay.

For Czech tax non-residents, the situation is the opposite. If a non-resident works for a Czech employer outside the territory of the Czech Republic, wages for work performed abroad do not have a Czech-source under the Czech Income Taxes Act and are not subject to taxation in the Czech Republic.

In such a case, the Czech employer has no obligation to withhold tax advances from this part of the wages if it can prove that the person is a non-resident performing work abroad. In the Czech Republic, only that part of the income relating to work performed in the territory of the Czech Republic is then taxed.

This part must be supported, for example, by attendance records or a travel calendar.

Long-term posting and taxation in the other state

Once the posting exceeds the 183-day threshold, or a permanent establishment arises, the right to tax wages typically shifts to the host state. This does not mean that the Czech Republic, as the employee’s state of tax residence, ceases to have any claim.

By contrast, a Czech tax resident is required to declare their worldwide income in the Czech Republic, including salary taxed abroad. Double taxation is prevented either by the ordinary tax credit method, where the Czech tax is reduced by the tax paid abroad, or by the exemption method, where the foreign income is not taxed in the Czech Republic and is used only to determine the applicable tax rate.

The choice of the method for eliminating double taxation depends on the specific treaty between the Czech Republic and the relevant state.

For most European states, employment income is subject to the ordinary tax credit method; however, Czech law allows, in certain cases, the exemption method to be used for employment income performed in the treaty state for an employer there, provided that it was taxed in that state.

In practice, this means that without analysing the specific treaty, it is not possible to reliably say how an employee’s income will be reflected in their Czech tax return, and what impact foreign taxation will have on their net salary.

For employers, this has several practical implications. If an employee’s salary is taxed in the host state, the Czech tax withholder may apply to the tax office to cancel the obligation to withhold advances on Czech tax to the extent the work is performed abroad.

This prevents a situation where the employee would have unnecessarily high advances in the Czech Republic during the year and would have to wait for a refund after filing the tax return. At the same time, it is necessary to have precisely documented how many days and to what extent the employee worked abroad.

This record-keeping is often a key piece of evidence in tax audits, enabling the salary to be correctly allocated between the Czech Republic and the host state.

International hiring-out of labour and the economic employer

A separate topic is the international hiring-out of labour. Under this model, the Czech employee remains in an employment relationship with the Czech “legal employer”, but performs work for a foreign “user” who gives instructions and bears the economic risks of the employee’s activities.

Many double taxation treaties treat the salary in such a situation as taxable in the country where the employee actually works, regardless of the 183-day limit, because from the perspective of international tax law the real employer is the economic employer in the host state.

In 2025, the General Financial Directorate issued guidance according to which the Czech legal employer hiring out its employees abroad formally has an obligation to withhold tax advances, but may apply for full or partial cancellation of this obligation precisely in view of taxation in the host state.

Tax administrators are to temporarily accept both approaches—including situations where the employer does not withhold advances if it is clear that the salary will be taxed abroad—however, a future amendment to the law has also been announced, which is intended to regulate this area unequivocally.

For businesses using the hiring-out of labour, this is a significant risk: without carefully prepared documentation, contracts and tax-legal structuring, there is a risk that both the Czech and foreign tax authorities will seek their share of the taxation, leaving the company caught between two systems.

Social security and health insurance when posting employees abroad: the single-insurance principle and the A1 form

Within the European Union, the European Economic Area and Switzerland, the social security coordination regulations apply, in particular Regulations (EC) No 883/2004 and 987/2009. The basic rule states that a person is subject to the social security legislation of only one Member State.

For employees, the so-called lex loci laboris principle applies: contributions are generally paid where the work is performed, regardless of where the employee lives or where the employer is established. This principle applies to both social security and health insurance, so it is not permissible for an employee to be socially insured in one state and health-insured in another.

There are several exceptions to this basic rule, the most significant of which is posting.

If an employee normally works in one Member State and is temporarily posted by their employer to another state to perform work there for the employer, they may remain insured in the system of the first (sending) state, provided the posting does not exceed 24 months and no other excluding conditions are met. The same principle also applies to self-employed persons who temporarily carry out an activity in another Member State.

A1 form: when it is mandatory and how to apply

A condition for applying the posting regime is the issuance of the portable document A1, which confirms that the employee remains subject to the social security legislation of the sending state.

In the Czech Republic, A1 is issued by the Czech Social Security Administration (ČSSZ) upon an application by the employer or the employee. The document is issued for a period of up to 24 months; after it expires, it is necessary either to transfer the employee to the host state’s system or to apply for an exception under Article 16 of the Regulation, to which there is no legal entitlement.

Czech regulations impose an obligation to apply for the determination of the applicable legislation (i.e., for A1) not only in the case of a standard posting, but also in the case of concurrent activities in two or more Member States.

An individual who works as an employee or as a self-employed person in two or more Member States is required to notify the competent District Social Security Administration (OSSZ) within 30 days from the start of such activity; failure to do so may result in a fine of up to CZK 20,000.

In practice, this often does not concern only “typical cross-border commuters”, but also managers who regularly work part of the week abroad, and specialists who alternate projects in different countries.

Based on employers’ experience, processing an A1 typically takes several weeks; in practice, an indicative timeframe of around 30 days is often cited, although in many cases it is shorter. It is therefore recommended to submit the application well in advance.

If the document is not available when the employee departs, it is advisable to have at least confirmation that the application has been submitted, for example a copy of the submission via a data box.

During inspections abroad, the absence of an A1 may lead local authorities to require the employee to register in the local system, and/or to impose penalties for non-compliance.

Concurrent activities and cross-border workers

A large proportion of managers and specialists today do not work in just one country, but regularly commute between several countries. For these situations, the coordination regulations lay down special rules for persons who carry out activities in two or more Member States.

Simplified, one state of insurance is usually determined – often the state of residence if a substantial part of the activity is carried out there, or the state where the employer or employers are established.

When determining a “substantial” part of the activity, working time, remuneration, turnover or the number of services provided are taken into account; a share of less than 25% is generally a signal that the activity in that state is not substantial.

A person working in multiple states is obliged to apply to the competent institution in the state of residence for a determination of the applicable legislation and for the issuance of an A1. In the Czech Republic, it often happens that a self-employed person or employee underestimates this step and continues to pay contributions only in the Czech Republic.

The host state may then, after several years, call on them to pay the contributions retroactively, often with penalties. ARROWS, a Prague-based law firm, therefore routinely carries out an audit of the current situation for clients with concurrent activities in several states, verifies the validity of existing A1 certificates and, if necessary, proposes corrective steps, including negotiations with the Czech Social Security Administration (ČSSZ) and foreign institutions.

Health insurance when working outside the EU

When working in countries other than EU/EEA Member States and Switzerland, the coordination regulations do not apply; instead, the national law of the individual states and any bilateral social security and health insurance treaties apply.

As a general rule, long-term gainful activity abroad gives rise to an obligation to participate in the local health insurance system, and at the same time it is necessary to terminate participation in Czech public health insurance.

A Czech insured person is required to notify their health insurance company within 8 days of starting gainful activity abroad and to prove participation in a foreign system; upon returning to the Czech Republic, they must re-register.

If, after returning to the Czech Republic, it is not possible to prove to the health insurance company that the person participated in the foreign system for the entire period of stay, the insurer may additionally assess Czech insurance contributions for the period when the person should have been insured in the Czech Republic.

Special attention should be paid to situations where an employee receives unemployment benefits or other cash benefits from a foreign system – during the period of receiving them, they typically remain insured abroad.

Without properly set documentation and communication with foreign institutions, both the business and the employee may face unpleasant additional payments and penalties, often after several years.

Practical obligations of the employer before posting: information, notification, travel allowances

When posting an employee for more than four consecutive weeks, the employer has an extended duty to inform the employee. Before departure, the employee must be informed in writing about the country where the work will be performed, the duration of the posting, the currency of payment, any benefits in kind, or the conditions for return.

In the case of posting within the framework of transnational provision of services, the information must be supplemented with details on remuneration under the regulations of the host state, travel allowances, and a reference to the official information portal of the relevant country. Failure to comply with this obligation may result in sanctions and disputes. The lawyers at ARROWS, a Prague-based law firm, therefore recommend implementing a standardized process for preparing an “information package”.

It is also essential to comply with notification obligations, which are now required by most EU Member States. Shortly before the posting, a Czech business must notify the host state via its national system of basic information about itself, the employee and the place of work. In the event of a longer presence and the creation of a permanent establishment, an obligation to register for taxes or VAT abroad may also arise, in order to avoid additional tax assessments and sanctions for illegal business activity in the host state.

Travel allowances play a key role. The Labour Code requires the employer to reimburse the employee for travel costs, accommodation, per diems and necessary incidental expenses. These allowances, up to the statutory limit, are not subject to tax or contributions. However, it is essential to consistently distinguish travel allowances from wages. If a company, under the guise of “allowances”, in fact pays part of the remuneration, it risks severe additional assessments during an inspection.

For postings to countries with a higher standard of living, the company must also comply with the local minimum wage, or the rates set out in locally binding collective agreements. This obligation cannot be replaced merely by paying higher travel allowances or Czech per diem limits. The entire remuneration package must comply with the rules of the state where the employee actually works.

Potential issues	How ARROWS helps (office@arws.cz)
Incorrect determination of whether it is a business trip, posting of workers, or temporary agency work: risk of additional tax and social security assessments, fines, and disputes with employees	Assessment of the specific business model and contracts, legal classification of the relationships, preparation of appropriate contractual documentation and internal policies so that the model reflects reality and minimizes risks
Missing or late notification of a posting in the host state: labour inspectorate fines, ban on carrying out the activity	Mapping notification obligations in the relevant countries, preparation of processes and notification templates, and, where applicable, representation in dealings with local authorities and defence against imposed sanctions
Unprocessed or incorrectly set up A1 form: risk of double insurance and retroactive assessment of contributions	Comprehensive audit of existing A1 forms, preparation of applications and communication with the Czech Social Security Administration (ČSSZ), addressing concurrent activities in multiple countries and setting the correct state of insurance in line with the coordination regulations
Creation of a permanent establishment abroad without tax registration: additional corporate income tax assessments, interest, penalties	Analysis of the risk of creating a permanent establishment, proposal of a suitable service delivery structure, ensuring registrations and tax returns in the host state in cooperation with ARROWS International partners
Mismatch between the local minimum wage and the remuneration of posted employees: wage top-ups, sanctions, reputational risk	Advice on minimum wages and working conditions in host states, setting remuneration terms and travel allowances so that they comply with local legislation as well as Czech tax regulations

How ARROWS, a Prague-based law firm, can help

International posting of employees is a typical example of a complex topic where employment law, tax law, social security, health insurance, immigration rules and often sector-specific regulation intersect. Managers and HR specialists can handle the basic day-to-day administration themselves, but as soon as it involves a larger number of employees, longer-term projects or operations in multiple countries, it is safer to have a specialised legal and tax team at your side.

In practice, the attorneys at ARROWS, a Prague-based law firm, encounter both preventive projects aimed at setting up a posting system and crisis situations where a tax or social security audit is already under way and additional assessments and sanctions are at stake.

A typical preventive project is the preparation of a “posting manual” for a company. This includes a map of possible scenarios (short business trips, project postings, intra-group assignments, temporary agency work), including template contracts, travel orders, internal rules for remuneration and travel allowances, and procedures for securing A1 forms and notifications in host states.

This is often accompanied by training for HR and line managers so they know when it is still safe to use a standard template and when the situation needs to be escalated to lawyers.

Given that ARROWS, a Prague-based law firm, is insured for professional liability up to CZK 400,000,000, clients can entrust such projects with the assurance of a high standard of care and responsibility.

Another area is ongoing advice on specific projects – from the initial analysis of the risk of creating a permanent establishment, through setting payroll and tax parameters, to contractual arrangements with clients and foreign partners.

Especially in construction, IT and consulting projects where employees spend long months abroad, it is important to have a clear plan for how income and costs will be allocated between individual countries and what impact the chosen structure will have on the effective tax rate and social security contributions.

Thanks to the ARROWS International network, the attorneys at ARROWS, a Prague-based law firm, can ensure a consistent solution even where a project involves several countries at the same time.

Last but not least, ARROWS, a Prague-based law firm, focuses on defending clients in audits and disputes. This includes representation before the Czech Financial Administration, the Czech Social Security Administration (ČSSZ), health insurance companies and the State Labour Inspection Office, as well as coordination of the defence before the authorities of host states.

In such situations, it is often crucial not only to have strong legal argumentation skills, but also the ability to quickly obtain and interpret data from the company’s internal systems and translate it into a form that will stand up to scrutiny by the authorities. If you need to set up or review your international employee posting system, you can contact the attorneys at ARROWS, a Prague-based law firm, at any time via office@arws.cz.

Final summary

International posting of employees is a strategic topic with a direct impact on taxes, payroll costs and the company’s legal certainty. Proper set-up depends on many variables, from determining tax residence and the creation of a permanent establishment to foreign legislation. Overlooking just one obligation can expose a business to severe additional assessments, fines or litigation.

Practical experience shows that the most expensive mistakes are the ones a company “does not see”. For example, the inadvertent creation of a permanent establishment, concurrent activities in multiple countries without an A1 form, or an incorrect remuneration structure for posted employees combined with minimum wage rules in host states.

For larger companies, losses can reach millions, but even smaller businesses can easily end up in a situation where additional assessments and sanctions exceed the profit from the entire contract. Early involvement of experienced attorneys and tax advisers is therefore not an extra cost, but an investment in legal and financial certainty.

If you do not want to risk mistakes, losses, delays or fines when posting employees internationally, the safest approach is to review everything in advance with experts who understand the issue in its full breadth.

The attorneys at ARROWS, a Prague-based law firm, have long focused on this area, are insured up to CZK 400,000,000 and, thanks to the ARROWS International network, help clients address even complex cross-border situations. Contact us for an initial consultation at office@arws.cz.

FAQ – Most common questions on international posting of employees

1. Is it enough if we arrange the A1 form before the posting and do not deal with anything else?
The A1 form deals exclusively with social security and health insurance. However, it does not address income tax or employment-law issues such as local notification obligations or minimum wage requirements. Each posting must therefore be assessed comprehensively. To ensure the set-up is correct, contact ARROWS (office@arws.cz).

2. When will a permanent establishment arise for us abroad, and what does it mean for taxes and contributions?
A permanent establishment typically arises where there is a fixed place of business, a longer-term construction site, or the continuous provision of services. Once it arises, you must register for tax in that country, keep accounting records and tax the relevant income and wages locally. An incorrect assessment leads to severe tax penalties.

3. How should we allocate the salary of an employee who works part of the month in the Czech Republic and part abroad?
The allocation must precisely correspond to the days actually worked in each country, which must be evidenced by attendance records or travel orders. In the Czech Republic, you tax only the portion attributable to work performed domestically; the remainder may be taxed abroad. However, social security contributions are determined exclusively based on the A1 form.

4. Do we have to top up employees’ pay to the local minimum wage when posting them?
Yes, posted employees in the EU are entitled to the minimum working conditions of the host state. If the local minimum wage is higher, you must adequately top up the Czech remuneration. Travel allowances are not included in this amount. We will be happy to help you address the impacts for your industry (office@arws.cz).

5. What happens if we do not arrange the A1 in time and a foreign inspection takes place?
The host state may require registration in the local insurance system and may retroactively assess all contributions. High fines may be imposed and, in extreme cases, work on the project may be suspended. The situation must be addressed immediately with the authorities in both countries, ideally with strong legal representation.

6. What internal documents should we have in place for safe employee postings?
The essentials are an internal posting policy, an addendum to the employment contract, rules on travel allowances, and a standardised information letter. For larger companies, a process map for approvals and precise records of days spent abroad are also recommended. A complete and watertight documentation package can be prepared for you by the attorneys at ARROWS (office@arws.cz).

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance on the topic based on the legal situation as of 2026. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. We are ARROWS, a Prague-based law firm registered with the Czech Bar Association (our supervisory authority), and for maximum client protection we maintain professional liability insurance 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 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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