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.

Quick summary

• Labour inspections (SÚIP and OIP – the Czech Labour Inspection Authority and its regional inspectorates) carry out inspections and focus on employment relationships under Czech law, occupational health and safety (BOZP), and illegal employment – mistakes in these areas can lead to fines in the millions of CZK, and for illegal employment up to CZK 10 million.
• Employee training on legal regulations and occupational health and safety (BOZP) is mandatory without exception; missing training or a purely formal approach is among the most frequently identified deficiencies in the Czech Republic.
• Proper preparation for an inspection, including up-to-date documentation, working time records, reporting of agreements (DPP), and mindful communication, can significantly reduce the risk of penalties under Czech legislation.
• ARROWS attorneys at our Prague-based law firm regularly represent clients during inspections and in subsequent administrative offence proceedings, helping minimise both the risk of errors and the level of imposed sanctions in the Czech Republic.

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.

Related questions on inspection areas

1. Is an “Excel attendance sheet” sufficient as working time records?
A spreadsheet in Excel can serve as a form of record-keeping, but it must be kept credibly, up to date, and must include the statutory requirements under Czech law: the start and end of the shift, overtime, night work, and on-call time. If inspectors find that the Excel data does not match reality (e.g., employee testimony, access card logs), the records will be deemed unreliable.

2. Must OSH training be in writing and include a certificate?
Yes, there must be verifiable records of the training. Section 103 of the Czech Labour Code requires the employer to keep documentation of the training carried out. Typically, this includes the training syllabus and an attendance sheet with the signatures of employees and the trainer. For specific professions (e.g., company drivers, electricians), additional specific documents or examinations are also required.

3. What are the risks with “old” agreements to perform work (DPP)?
Even for long-term contractors under a DPP, you must comply with current obligations, in particular reporting income and employees to the Czech Social Security Administration (ČSSZ) register (effective from mid-2024). If the agreement shows the characteristics of continuous dependent work and exceeds the DPP limits (300 hours per year), it may be reclassified, or it may be considered an attempt to circumvent Czech law.

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)

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.

Related questions to the most common legal queries

1. Is OSH (occupational safety and health) training mandatory even for “agreement workers” (DPP/DPČ)?
Yes. The Czech Labour Code does not distinguish between employees on standard employment contracts and those working under DPP/DPČ agreements in the area of safety. The employer is obliged to ensure occupational safety and health protection for all employees in the Czech Republic. Even a temporary worker must be demonstrably trained.

2. What if I do not have a written contract, but the employee works normally and receives wages?
This constitutes an administrative offence in the area of employment relationships (failure to comply with the written form), for which a fine of up to CZK 10 million may be imposed, because in practice it is treated as enabling illegal work (performance of dependent work without a written employment-law relationship being agreed). Remedy this immediately.

3. Can the Labour Inspectorate also inspect work performed on “home office”?
Yes, the employer remains responsible for OSH even when work is performed from home in the Czech Republic. Although a physical inspection of an employee’s apartment is complicated (inviolability of the home), the Labour Inspectorate can check whether the employer has assessed risks, trained the employee, and keeps records of working time for home office as well.

4. What about fines – are they paid immediately on the spot?
No. Labour inspectors do not impose multi-million fines “on the spot” as a summary penalty. A fine is imposed only by a decision in administrative proceedings, which follow after the inspection is completed. This decision can be appealed.

Notice: The information contained in this article is of a general informational nature only and is intended for basic guidance on the topic. Although we strive for maximum accuracy, legal regulations under Czech law and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages or complications arising from the independent use of the information in this article without our prior individual legal consultation and professional assessment. Each case requires a tailored solution, so please do not hesitate to contact us.

Read also:

• Czech Labour Inspections 2026: Compliant Pay, Bonuses and Transparency
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• 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