Flexible Employment in the Czech Republic: Legal Pitfalls and Compliance Risks

Mgr. Jan Pavlík
Mgr. Jan Pavlík
16.3.2026 | ARROWS law firm

In today’s business environment, flexible forms of employment may seem like a logical solution for efficiency and satisfaction. However, the legal reality under Czech law is more complex, and behind an apparently simple agreement lie dozens of statutory conditions and risks. This article explains where a practical solution ends and legal issues begin—issues that, without expert support, can become an existential threat to your company in the Czech Republic.

In the image, we see a lawyer consulting on flexible forms of employment.

Quick summary

  • Flexible work is not arbitrary: Every form of flexibility – from home office to self-scheduling – is legally tied in the Czech Republic to specific conditions, written agreements, and compliance with statutory standards. An error in documentation or a breach of legal requirements can cost you up to millions of Czech crowns in fines from .
  • Hidden risk lies in the details: contains hundreds of provisions that apply to flexible work under Czech legislation. Seemingly simple principles have dozens of exceptions and special regimes. In practice, this means that  our attorneys in Prague deal daily with cases where everything seemed fine, but a subsequent inspection revealed fundamental shortcomings.
  • An international element increases complexity: If you have an employee working across borders or on an agile project with international partners, the legal requirements multiply. Without proper setup, you may face sanctions from multiple countries at the same time, including additional assessments of social security and health insurance contributions.

What does flexible work mean from a legal perspective?

Flexible work is not a single defined legal term. When flexibility is discussed in employment law, it refers to using options to deviate from the standard rules of the Labour Code. Czech regulation has long been evolving from strictly mandatory rules toward a framework that gives greater room to the parties’ contractual autonomy.

The basic principle on which Czech employment regulation now rests can be captured by the wording: “what is not prohibited by law is permitted” (under Article 2(3) of the Charter of Fundamental Rights and Freedoms). This means that an employer and employee may agree in a written agreement on terms that deviate from the law – but only where the Labour Code does not expressly prohibit it or where the nature of the provision does not exclude deviation (see Section 1 of the Labour Code).

Flexibility is therefore not defined as “do whatever you want”, but rather as “you can agree on alternatives within the limits permitted by law in the Czech Republic”. This is a key distinction that many business owners underestimate. Our Czech legal team at ARROWS, a Prague-based law firm, regularly handles cases where entrepreneurs wanted to be “flexible” and let employees work according to their own needs, but forgot that this flexibility must be legally supported and properly documented.

Where does flexibility take place in legal terms?

Flexibility in Czech employment law manifests itself in several key areas. The most important is the ability to contractually determine working hours – an employee does not always have to work on a fixed schedule. You can agree on flexible working hours, a working time account, or remote work with self-scheduling.

The place of work must be stipulated in the employment contract under Section 34(1)(b) of the Labour Code, but it can be agreed more broadly, potentially as the employee’s place of residence. A third area is flexibility in the type of work and the form of cooperation (e.g., agreements to perform work outside an employment relationship – DPP, DPČ under Section 74 et seq. of the Labour Code).

What may seem like a simple “let’s be flexible about it” breaks down in legal practice into dozens of individual arrangements that must be included in a written agreement or employment contract. Without proper legal setup, flexibility can easily turn into chaos – and chaos into legal problems in the Czech Republic.

microFAQ – Basic concepts of flexible work

1. What are “dispositive rules” in employment law?
These are legal provisions from which the parties may deviate by agreement. Flexibility takes place precisely in the space created by these rules. By contrast, mandatory rules cannot be deviated from (e.g., you cannot waive the right to occupational health and safety).

2. Does flexibility mean the employer can do anything they want?
No. Flexibility is defined by law. For example, you must not agree that the employee is not entitled to statutory leave, that they will work for less than the guaranteed wage, or that they will work without breaks.

3. Is an employment contract sufficient, or do I need additional agreements?
An employment contract alone is often not enough. Remote work, self-scheduling of working hours, or temporary assignment require separate arrangements, often in the form of written agreements or amendments. Without them, a Czech court may not recognise your “flexible arrangement”.

Remote work – seemingly simple, legally complex

Working from home, home office, telework – whatever you call it, as of 1 October 2023 this work in the Czech Republic has a stricter and clearly defined legal regime thanks to the amendment to the Labour Code. The law essentially codified what had previously been more or less tolerated and added a number of obligations.

Basic regime: a written agreement is mandatory

The most basic rule is: remote work is possible only on the basis of a written agreement between the employer and the employee under Section 317(1) of the Labour Code. The only exception is where remote work is ordered by a measure of a public authority. Without a written agreement, you expose yourself to the risk of a fine from the Labour Inspectorate.

You have the freedom to tailor the agreement to your needs, but also the responsibility to ensure it contains everything essential. In practice, this leads to situations where the parties “agree” on remote work by email, but key issues of liability and costs are not addressed.

ARROWS advokátní kancelář prepares remote work agreements for its clients that meet all legislative requirements in the Czech Republic and protect the employer. The agreement must clearly specify the place of work, the method of communication, work assignment, scheduling of working hours, and the issue of reimbursement of costs.

Costs of working from home – who pays?

When an employee works from home, they incur costs – energy, internet, wear and tear of equipment. The amendment to the Labour Code introduced three possible regimes in Section 190a of the Labour Code:

  1. Reimbursement of proven costs (administratively demanding).
  2. A lump-sum amount (tax-deductible, under a decree of the Ministry of Labour and Social Affairs).
  3. A written agreement that no reimbursement is due (a key new feature).

If this arrangement is missing from the agreement, the employee is automatically entitled to reimbursement of costs. At ARROWS advokátní kancelář, we deal with this topic very often – correct wording in the agreement can save a company significant funds and administrative burden.

Working hours when working from home

This is where theory and practice often diverge. The Czech Labour Code allows various remote-work arrangements, the first being working hours scheduled by the employer, where the employee must be “available” at fixed times.

The second, increasingly common arrangement is that the employee schedules their own working hours; in this regime, specific rules apply under Czech legislation, meaning the employee is not entitled to wage compensation for certain personal obstacles to work. For example, this applies to a doctor’s appointment if the employee could have planned work for a different time.

This is where a legal pitfall lies. If the employee schedules their own hours, it is necessary to address the so-called fictitious working-time schedule for the purposes of taking annual leave or sick leave. The ARROWS law firm in Prague can advise you on how to set these rules in the agreement so that misunderstandings do not arise.

Employer access to the employee’s apartment

The employee works in a private apartment, which enjoys constitutional protection of the inviolability of the home under Article 12 of the Charter of Fundamental Rights and Freedoms. The employer has no right to enter the employee’s home without their consent, even for the purpose of occupational health and safety (OHS) inspections. This makes supervision more difficult.

Agile projects and their legal pitfalls

Agile development, iterative approaches, sprints – these are modern concepts in software development and project management. Agility means that the project evolves gradually, the client provides feedback, and the team responds to changes. Legally, however, it is a challenge.

A traditional contract vs. agile reality

This is where we encounter a fundamental problem, because businesses often enter into a traditional contract for work (smlouva o dílo) under Czech law, which assumes a fixed scope, price, and deadline. Agile development does not work this way – the scope changes and priorities shift, which, when using a traditional contract, lays the groundwork for a dispute.

The ARROWS law firm in Prague recommends, for agile projects, using framework service agreements or specialised agile development agreements that define the process rather than the final outcome. You can read more on this topic in our section IT law and software.

Scope creep and gradual expansion of scope

One of the most common problems is called “scope creep” – uncontrolled expansion of the scope of work. Without a clearly defined “Change Management” mechanism in the contract, the project becomes more expensive and deadlines are extended disproportionately. The contract must clearly define how new requirements are priced and approved.

Defects, warranties, and acceptance

In agile projects, it is critical to set the moment of acceptance (handover) – whether after each sprint or only at the end. The ARROWS law firm in Prague will ensure that the contract includes a clear definition of “Definition of Done” and rules on liability for defects under Section 2615 et seq. of the Czech Civil Code.

Self-scheduling of working hours – rules and pitfalls

The Czech Labour Code allows an employee, under certain conditions, to schedule their own working hours. This is typical for remote work, but it can also work on-site under a flexible working-hours regime.

Who can you contact?

How does it work legally?

The basis is again a written agreement, where the employee gains flexibility but must comply with statutory limits on working time under Czech legislation. These include the maximum length of a shift (12 hours), mandatory uninterrupted rest between shifts and during the week, and mandatory breaks for meals and rest.

An employer cannot say, “Work whenever you want, just get it done,” if that would lead to breaches of these limits. Responsibility for compliance with working-time limits lies primarily with the employer, which is why it is necessary to keep records of working time even when the employee schedules it themselves.

Fictitious schedule and obstacles to work

As mentioned above, in the event of illness or annual leave, a fictitious (scheduled) weekly working time is used. The employer must determine a shift schedule that applies when the employee is not working (e.g., to calculate wage compensation for annual leave). If this is not determined, complex disputes arise over the amount of compensation.

Overtime and its approval

An important principle is that if the employee schedules their own working hours, work beyond the agreed weekly working time is not automatically overtime. It becomes overtime only if the employer ordered it or gave consent (in accordance with Section 93 of the Czech Labour Code).

Fixed-term employment – limits of flexibility

Fixed-term employment is a common flexibility tool, but Czech law regulates it strictly to prevent the chaining of contracts (so-called precarisation of work).

The “3 times and enough” rule

The Czech Labour Code sets out in Section 39 the “three times and enough” rule, meaning that a fixed-term employment relationship may last a maximum of 3 years and may be renewed no more than twice. The maximum total duration under the fixed-term regime is therefore limited; in practice, the more common issue is the limit on the number of renewals.

If the employer exceeds this limit and the employee continues working, the employment relationship automatically changes to an indefinite term if the employee notifies this (see Section 39(5) of the Czech Labour Code).

There are exceptions (e.g., maternity leave cover, seasonal work), but these must be agreed in accordance with the law or a collective agreement.

Temporary assignment of employees – a legislative maze

Do you need to “lend” employees to another company? Be careful here. There are two regimes: agency employment and temporary assignment between employers (Section 43a of the Czech Labour Code).

When is it a temporary assignment under Section 43a?

If two employers want to help each other out, they can use the institute of temporary assignment under Section 43a of the Czech Labour Code. The conditions are a written agreement, an employment relationship lasting at least 6 months, and the fact that the assignment must not be for profit (this is not “renting out” people, only reimbursement of costs).

If you want to “rent out” employees for profit, you must have a temporary employment agency licence, because illegal agency employment is sanctioned by substantial fines in the Czech Republic, which can reach up to CZK 10 million.

The temporary assignment agreement must include requirements such as the duration, identification of the user undertaking, and working conditions. The employee at the “user” must not have worse pay and working conditions than the user’s core employees.

Cross-border work – when Czech law is not enough

If you have an employee who works for a Czech company from home abroad (e.g., Slovakia, Germany), the legal situation becomes more complex.

Social security and taxes

The basic EU rule is: insurance contributions are paid in the country where the work is actually performed (under Regulation (EC) No 883/2004). If an employee works from a home office in Germany, as a Czech employer you should pay contributions into the German system.

However, there is an exception in the form of the Framework Agreement, which allows an employee to remain insured in the employer’s country of establishment if remote work in the country of residence accounts for less than 50% of the total working time. The Czech Republic has acceded to this agreement together with neighbouring countries; more information is available on the website of the Czech Social Security Administration (ČSSZ).

The condition is submitting an application for an exception (A1 form). Without this document, you risk additional social security assessments abroad and penalties. Tax implications must be assessed individually under the relevant double taxation treaties.

Safety, health and the right to disconnect

Ensuring occupational safety outside the workplace is one of the biggest challenges of flexible working arrangements. Employers often forget that their responsibility does not end at the company gate and that Czech law does not distinguish between an accident in the office and one in a home office.

Occupational health and safety (OHS) and home office

The employer is responsible for OHS even when working from home under Section 101 et seq. of the Labour Code.  Although this is difficult to implement in practice, the employer should train employees on risks, ensure suitable equipment, and set rules for breaks.

The right to disconnect (Right to Disconnect)

Although the Czech Labour Code does not yet explicitly include a “right to disconnect” as a standalone provision, it follows from the rules on rest periods. An employee is not obliged to answer calls or deal with emails during their time off.

Failing to respect the boundary between work and private life leads to burnout and may be assessed as a breach of working time regulations under Czech legislation. We recommend setting clear rules for email culture (e.g., no emails after 6 p.m.).

Table of practical risks and solutions

Risks and penalties

How ARROWS helps (office@arws.cz)

Missing written remote work agreement: Risk of a fine from the Labour Inspectorate of up to CZK 300,000 and uncertainty regarding liability for damages.

Drafting agreements: We will prepare a watertight remote work agreement covering costs, OHS, and working time scheduling. You can find more about our Czech employment law services here.

Incorrectly set cost reimbursements: Risk of retroactive additional payments of reimbursements to employees or, conversely, additional tax assessments if the lump sum is too high without a legal basis under Czech law.

Tax and legal advice: We will set up a lump-sum system or an agreement on not providing reimbursements so that it complies with Czech law and tax rules.

Illegal “švarcsystém” or disguised agency work: Where “flexibility” means de facto employing self-employed contractors (OSVČ) or supplying workers without a licence. Fines up to CZK 10 million.

Cooperation audit: We will assess how the relationships are set up and propose a lawful form of cooperation (e.g., genuine outsourcing vs. employment) under Czech legislation.

Cross-border home office without A1: Risk of penalties from foreign social security authorities and an obligation to pay additional contributions abroad.

International law: We will arrange the A1 form and assess the tax implications of working from abroad.

Poorly managed agile project: A contract for work for agile development leading to disputes over additional work and deadlines.

IT law: We will draft an agile development agreement with mechanisms for change management and acceptance.

Conclusion of the article

Flexible forms of work are not the problem—the problem is handling them incorrectly from a legal perspective. If you have an employee working from home, working on an agile project, self-scheduling their working hours, or working across borders, you are navigating a minefield of regulations in the Czech Republic.

Without proper legal setup, you face fines from the Labour Inspectorate, court disputes with employees over reimbursements and overtime, liability for workplace accidents in a home environment, or additional tax and social security assessments.

The Czech legal team at ARROWS, a Prague-based law firm, has many years of experience in setting up flexibility in compliance with Czech law. Every day we handle cases where something has gone wrong and now needs to be fixed. However, it is much cheaper to prevent problems through high-quality contractual documentation.

If you want your flexible arrangements to be safe and enforceable, contact ARROWS, a Prague-based law firm, at office@arws.cz.

FAQ – Most common legal questions on flexible forms of work

1. Does every remote work arrangement have to be agreed in writing?
Yes, the 2023 amendment to the Labour Code requires a written remote work agreement (unless it is ordered by a measure of a public authority). If you do not have one, you are in breach of Czech law. Contact us at office@arws.cz to review your agreements.

2. Can I avoid paying an employee on home office reimbursements for electricity and internet?
Yes, but only if you agree on this in writing in accordance with Section 190a(1)(b) of the Labour Code. If this arrangement is missing from the agreement, the employee is legally entitled to reimbursement of costs (either proven or lump-sum).

3. What is the limit for self-scheduling working hours?
The employee must comply with the limits on shift length (max. 12 hours) and mandatory rest periods (between shifts and weekly) set out in the Labour Code. The employer must keep records of hours worked, even if the employee schedules them themselves.

4. What if an employee works from abroad without my knowledge?
This is a breach of work discipline, and the employee exposes the company to risks in social security and tax matters in the Czech Republic and abroad. The place of work must be agreed. If you tolerate working from abroad, you must address the applicable social security legislation (A1 form).

5. Can I prohibit an employee from working at night when on home office?
Yes. In the remote work agreement or an internal policy, you can restrict the time when the employee may perform work (e.g., a ban on work between 22:00 and 6:00) to prevent circumvention of night work premiums under Section 116 of the Labour Code and to ensure safety.

Notice: The information contained in this article is of a general informational nature only and is intended to provide basic guidance based on the legal situation as of 2026 in the Czech Republic. Although we strive for maximum 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 our clients’ maximum 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 under Czech law, 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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