Hiring Non-EU Workers in the Czech Republic: Legal Steps and Compliance Risks

Employing workers from non-EU countries may seem straightforward, but the reality is far more complex. Companies in the Czech Republic face substantial fines if they underestimate the preparation process. To ensure the secure recruitment of employees from countries such as Vietnam or India, you must adhere to a series of legal steps under Czech legislation. In this article, our Prague-based law firm clarifies key obligations, specific risks, and how to establish a process that protects your business.

Quick Summary

• New rules from July 2024: You must report foreign nationals to the Labor Office before their first working day, not on the day of commencement – failure to comply is sanctioned under the Czech Employment Act and, in extreme cases, can lead to suspicions of illegal employment.
• Choosing the right work authorization is critical: A third-country national cannot simply work in the Czech Republic. They require one of several authorizations (work permit, employee card, blue card, or intra-company transferee card) under the Czech Act on the Residence of Foreign Nationals, each requiring different documents and deadlines.
• Complex administration: Tasks such as pre-registration for health insurance, reporting job vacancies, digital reporting of employee commencement, or maintaining records of foreign nationals are not mere formalities – they are legally mandated processes in the Czech Republic, and non-compliance can result in significant fines.
• Our attorneys in Prague handle these matters daily: They are familiar with all current rules, exceptions, and practical details that laypeople often overlook. Creating your own process without professional legal assistance is a risk that does not pay off.

Who is a third-country national and their right to work in the Czech Republic

If you want to employ a foreign national, the first crucial question is: do they have free access to the labor market or not? For citizens of countries outside the European Union, Iceland, Liechtenstein, Norway, and Switzerland – so-called third countries – the general rule applies: they cannot work legally without a specific work authorization. Exceptions apply only to very specific categories defined in Section 98 of the Czech Employment Act, such as individuals who obtained secondary or university education in the Czech Republic, or those who have been granted asylum or permanent residence.

This basic principle seems simple, but in practice, companies – especially small and medium-sized enterprises – often fail to realize its implications. You may only discover the issue when a labor inspector finds that your foreign technician or site manager is working without a proper permit. Sanctions for so-called illegal work for legal entities can reach up to 10 million CZK. Therefore, it is the right time to clearly identify which work authorizations are available under Czech law.

Four types of work permits for third-country nationals

When deciding to bring a third-country national to the Czech Republic, there are essentially four paths. Each has its own rules, qualification requirements, durations, and approval processes. It is not just about choosing "any" option, but about understanding which variant fits your situation and your company.

Work Permit

A work permit is a specific authorization used only in cases stipulated by law (e.g., seasonal work, short-term internships, posting by a foreign employer). It requires a relatively straightforward process: the employer reports a vacancy to the Labor Office, the foreign national submits an application for a permit, and if basic conditions are met, the Labor Office issues a decision.

This permit is issued for a maximum of 2 years (shorter in some cases) and can be extended. It is suitable for one-off projects or situations where you want to "test" a worker first and avoid longer commitments associated with dual cards. However, beware – special conditions apply. For seasonal employment, the permit is issued for a maximum of 9 months.

Most importantly, even if a work permit is issued relatively quickly, the foreign national cannot use it automatically. they also need the corresponding residence permit – typically a Schengen visa for employment purposes (up to 90 days) or a long-term visa or residence permit under Section 30 et seq. of the Act on the Residence of Foreign Nationals. This is handled at an embassy in the citizen's home country, where waiting times commonly reach several weeks or months.

microFAQ
1. How much does it cost to apply for a work permit?
The administrative fee is 500 CZK according to the Czech Act on Administrative Fees. It is not much, but do not forget other associated costs – legal consultations, document preparation, employer travel, or communication with Czech authorities.

2. Can the foreign national apply for the permit themselves, or must the employer do it?
The foreign national submits the application themselves at the relevant regional branch of the Labor Office, but they are usually represented by the employer or a Czech attorney based on a power of attorney.

3. What happens if the employee changes employers while the permit is valid?
A work permit is issued for a specific position with a specific employer. A change of employer requires a new procedure and a new permit under Czech legislation.

Employee Card

An employee card is a long-term residence permit that also serves as a work authorization (a so-called dual card) regulated in Section 42g of the Act on the Residence of Foreign Nationals. It is suitable if you want to hire a foreign national for an indefinite period or at least for several years. The holder of an employee card can work in the designated position without needing to apply for a separate permit from the Labor Office.

The foreign national must have an employment contract with a minimum monthly wage corresponding to at least the current Czech minimum wage and work at least 15 hours per week. The job position must be listed in the Central Register of Vacancies – the employer must report it to the Labor Office. Only after the position is registered and the labor market test period has passed can the foreign national apply at an embassy.

This is where things get complicated: employee cards are issued within government quotas – not all embassies accept an unlimited number of applications. The approval period by the Czech Ministry of the Interior is usually 60 days, but up to 90 days in complex cases. The foreign national must then arrange travel health insurance and personally pick up the card after arriving in the Czech Republic.

Please note that the first change of employer is possible no sooner than 6 months after receiving the card (except for specific exceptions, such as termination by the employer). When a foreign national changes their employer or place of work, they must notify the Ministry of the Interior of this change at least 30 days in advance and meet the legal conditions under Section 42g(7) of the Act on the Residence of Foreign Nationals in the Czech Republic.

microFAQ
1. What is the minimum age to apply for an Employee Card?
A foreign national must be of legal age (18 years) to enter into an employment relationship and bear legal responsibility under Czech law.

2. Can a foreign national apply from within the Czech Republic if they are already staying here on another visa?
Yes, but only in limited cases specified in Section 42g(5) of the Act on the Residence of Foreign Nationals. Most first-time applicants submit their application at a Czech embassy abroad.

3. Is the recognition (nostrification) of education required?
For regulated professions, yes. For non-regulated professions, the Ministry of the Interior may require nostrification if there are doubts about the level of education; in practice, this is common for Employee Card applications in the Czech Republic.

Blue Card

The Blue Card is intended for foreign nationals with a university degree or higher professional education (lasting at least 3 years) according to Section 42i of the Act on the Residence of Foreign Nationals. It is a more prestigious instrument through which the Czech Republic seeks to attract experts in IT, medicine, engineering, and other fields.

The agreed gross monthly salary must be at least 1.5 times the average gross annual salary announced by the Czech Ministry of Labour and Social Affairs. The Blue Card is issued for the duration of the employment contract plus 3 months, but for a maximum of 3 years. 

The main advantage is faster processing (a 90-day limit, often faster in practice) and easier mobility within the EU. After a certain period (usually 12 months), a Blue Card holder can change employers simply by notifying the Ministry of the Interior, without complex approval procedures.

microFAQ
1. Can one apply for a Blue Card if the employee is already working in another EU country on a Blue Card?
Yes, and even under more favorable conditions according to Section 42i(6) of the Act on the Residence of Foreign Nationals. If the foreign national has resided in another EU state as a Blue Card holder for at least 12 months, they can submit the application directly within the Czech Republic.

2. What happens if the employer changes?
A Blue Card holder is entitled to change employers as long as the conditions for its issuance (especially high qualifications) continue to be met. They are obliged to notify the Ministry of the Interior of this change within 3 working days of the date it occurred.

3. How long does it take to issue a Blue Card?
The statutory period is 90 days. If the applicant is a highly qualified worker in a priority sector, the Czech authorities strive to proceed more quickly.

Intra-Corporate Transferee Card

The final type of permit is designed for specific situations: when an international company moves its employee (manager, specialist, or trainee) from a branch outside the EU to a branch in the Czech Republic. This is the Intra-Corporate Transferee Card regulated by Section 42k of the Act on the Residence of Foreign Nationals.

The essence is that the foreign national must have been employed by their home company (outside the EU) for at least 6 months before they can be temporarily transferred to the Czech Republic. There is no need to report a vacancy or undergo a labor market test. The card is issued for the duration of the transfer, up to a maximum of 3 years for managers and specialists, and 1 year for trainees.

Health Insurance – A Mandatory Part of the Package

When hiring a foreign national from a third country, they must be insured. If they enter into an employment relationship with you (employment contract, agreement on work activity - DPČ), they automatically become a participant in the Czech public health insurance system – just like any Czech citizen. Contributions are paid standardly from the salary.

For the purposes of visas over 90 days and residence permits, the foreign national must provide proof of comprehensive health insurance according to Section 180j of the Act on the Residence of Foreign Nationals. This is because, in the period from arrival in the Czech Republic until the start of employment, the foreign national is not covered by the public system. The minimum insurance coverage must be EUR 400,000.

Previously, Pojišťovna VZP had a monopoly on this insurance, but this has been abolished. Now, foreign nationals can choose from a range of insurance companies authorized to provide this insurance in the Czech Republic. Without valid insurance, a foreign national cannot legally reside in the Czech Republic, and the Ministry of the Interior or the Foreign Police strictly require proof of insurance.

How to Correctly Report a Job Vacancy

Whether you choose a work permit, an Employee Card, or a Blue Card, all these paths go through the same first step: you must report the job vacancy to the Labor Office of the Czech Republic. This is not just an option – it is a legal obligation.

To obtain a card, however, reporting the vacancy and its inclusion in the central registry is essential. This does not only apply to intra-corporate transfers or specific exceptions for foreign nationals with free access to the labor market, where it is sufficient to report the position upon commencement.

What must you provide? The basic characteristics of the position – type of work, place of performance, prerequisites and requirements, information on working and salary conditions (wage, fixed/indefinite term). The position is entered into the Central Registry of Vacancies.

In order for a foreign national to apply for an Employee or Blue Card, the position must undergo a so-called labor market test to verify whether a Czech candidate is available. Employers often mistakenly believe that if they have already selected a candidate, they do not need to advertise the position, which is an error under Czech commercial and labor law.

microFAQ
1. Can an employer report a vacancy orally?
No. The report must be submitted in writing, most often electronically via the portal of the Labor Office of the Czech Republic or via a data box.

2. How long is it mandatory to keep the position in the registry?
Until the position is filled or until its validity expires. If a foreign national with a card is taking the position, the vacancy must be in the registry at the time their application is submitted.

3. Are there penalties for failing to report?
Yes, failing to report a vacancy or filling it in violation of the law can be sanctioned with a fine of up to CZK 500,000. 

New Rule from July 2024: Reporting Before Commencement

As of July 1, 2024, an amendment to the Employment Act came into force, which fundamentally changed the rules for notifying the commencement of employment for foreign nationals. Previously, an employer could report the start of a foreign national's employment no later than the day the foreign national began working.

Now, the employer must report the commencement to the Labor Office no later than the day of start; however, in practice, the system requires the report to be made before the employee actually begins performing work. This obligation stems from the amended wording of Section 87 of the Czech Employment Act.

This rule applies to all foreign nationals who require a permit, as well as those with free access to the labor market. If the Labor Inspection finds a foreign national at a workplace who has not been properly reported, it may be evaluated as a failure to meet the reporting obligation under Czech law.

Why is this important? The fine for failure to meet the reporting obligation can reach up to CZK 100,000. If the foreign national does not even have a valid work permit, it is considered illegal work with a fine of up to CZK 10 million.

Electronic reporting of commencement of employment must be handled on time. If you have a new worker starting on Monday at 8:00 AM, our Prague-based attorneys recommend sending the report no later than Friday or early Monday morning before their arrival.

Digitalization of reporting – mandatory online from July 2024

With new legislation effective from July 1, 2024, mandatory digitalization has arrived: the reporting of an employee's commencement (information card) is sent exclusively electronically in accordance with the instructions of the Czech Ministry of Labour and Social Affairs (MPSV).

The old paper form sent by mail or delivered in person is no longer accepted. You have a web form on the MPSV portal, an XML file sent to the Czech Labor Office's data box, or direct integration of your payroll software available.

Once the employer successfully submits the report, it is registered in the system. If you do not submit the report electronically in the specified format, it is treated as if it were not submitted, exposing you to the risk of a fine under Czech legislation.

microFAQ
1. Can the report be sent by regular email?
No. Reporting by email (even with an electronic signature) is not permissible. It must go through a data box or the MPSV portal.

2. How do I get confirmation?
When submitting via the portal or data box, you have a delivery receipt available, which serves as proof of fulfillment of the obligation.

Risks and Sanctions	How ARROWS (office@arws.cz) assists
Illegal work – worker without a valid permit: Fines up to CZK 10 million for the company, obligation to cover deportation costs for the foreign national, and entry onto the list of unreliable employers.	Preparation of internal processes and control mechanisms. ARROWS law firm in Prague sets up HR processes so that no foreign national begins working without valid authorization and proper reporting.
Failure to meet reporting obligation – not reporting commencement on time (digitally): Fine up to CZK 100,000 for each unreported employee.	Digital compliance. Our Czech legal team will help you set up a system for automated or timely reporting via the MPSV portal to avoid unnecessary fines.
Wrong choice of work permit type: Loss of time, rejection of the application, unnecessary costs, and project delays.	Strategic analysis. Attorneys from ARROWS will assess the candidate's profile and choose the fastest and safest route (Blue Card vs. Employee Card vs. economic migration programs).
Incorrect documentation in the application: The embassy will return or reject the application, extending the process by months.	Documentation review. We review employment contracts, proof of accommodation, and other attachments to ensure they meet all legal requirements for a smooth procedure in the Czech Republic.
Missing health insurance: The foreign national may not reside in the Czech Republic; risk of fines and payment for medical treatment.	Insurance consultancy. We ensure you know when a foreign national falls under public insurance and when they need commercial insurance with coverage of EUR 400,000.

How to correctly prepare a work permit application

The preparation process varies for individual cards, but the basic framework remains the same. Details determine success.

Collection of documents by the employee

The foreign national will need to provide originals or certified copies according to Section 31 of the Act on the Residence of Foreign Nationals. This includes a valid passport, employment contract, proof of accommodation, photographs, qualification documents, and a criminal record extract. Documents (except the passport) must generally not be older than 180 days.

ARROWS law firm in Prague ensures the review of these documents before submission to prevent rejection for formal reasons.

Preparation of the employment contract

The employment contract must meet legal limits under Czech commercial and labor law. For an Employee Card, the wage must be at least equal to the minimum wage and the workload at least 15 hours per week. For a Blue Card, a wage of 1.5 times the average wage is required, along with a contract for at least 6 months.

Reporting a job vacancy

You must report the position to the Labor Office registry and indicate that it is also intended for foreign nationals. A labor market test period must pass (standardly 30 days, can be shortened to 10 days) before the foreign national can submit an application. The reference number of this vacancy is then included in the card application.

Submission of the application

The foreign national submits the application in person at a Czech embassy abroad. Biometric data is collected during submission. There are exceptions for government programs that allow for larger-scale recruitment.

Seasonal employment – special regime

For sectors dependent on the season, such as agriculture, horticulture, or tourism, there is the institute of seasonal employment according to Section 96 of the Czech Employment Act.

The foreign national applies for a Schengen visa for employment purposes, and the employer arranges a work permit. This applies to short-term stays up to 90 days.

In the case of a stay over 90 days, a long-term visa for seasonal employment is issued for a maximum of 6 months. It can be extended, but for a total maximum of 9 months within a 12-month period. The foreign national must provide an employment contract and proof of accommodation.

Residency based on seasonal employment does not count towards the 5-year residency period required to obtain permanent residency in the Czech Republic.

microFAQ
1. Can a seasonal worker change their purpose of stay to business?
Generally, not directly from a seasonal employment visa while in the Czech Republic. They must leave the country and submit a new application.

2. Which occupations are considered seasonal?
The list is established by MPSV Decree No. 322/2017 Coll. (e.g., crop production, accommodation services, catering). Regular manufacturing work does not fall into this category.

Economic migration programs – accelerating the process

The Czech government offers programs to accelerate the migration of skilled workers, which guarantee the possibility of submitting applications at embassies and speed up the overall process. These include programs for key and scientific personnel, highly qualified employees, and skilled workers for mid-level positions in the Czech Republic.

Participation in these programs requires the employer to meet specific conditions under Czech law, such as being debt-free, having a proven history, or a minimum number of employees, and being enrolled in the program by the relevant guarantor.

ARROWS law firm in Prague will assist you with the administration associated with enrollment in these programs, which can shorten the waiting time for application submission by months.

Controls and inspections – what is at stake when an inspector arrives

The State Labor Inspection Office (SÚIP) and the Foreign Police carry out inspections focused on illegal employment in the Czech Republic. The inspection verifies the validity of residence and work permits, the compliance of the type of work with the permit, and whether the employer keeps copies of documents at the workplace.

Furthermore, they check whether the commencement of employment was properly and timely reported digitally. Findings of illegal work can lead to fines of up to CZK 10 million and exclusion from economic migration programs or a future ban on employing foreign nationals.

How ARROWS law firm in Prague can assist you

The attorneys at ARROWS law firm in Prague deal with the employment of foreign nationals on a daily basis. We provide strategic advice on visa selection, complete administration of contracts and forms, audits of your processes, and representation during labor inspectorate audits in the Czech Republic.

Thanks to insurance coverage of up to CZK 400 million and an extensive team of specialists, you are in safe hands. ARROWS law firm in Prague works with dozens of large corporations as well as smaller businesses.

Conclusion

Employing foreign nationals from third countries is an effective solution to labor shortages, but it requires precise legal preparation under Czech legislation. A single error in a reporting deadline or permit type can result in million-crown fines.

If you do not want to take risks and want your process set up correctly and efficiently, contact ARROWS law firm in Prague. Write to us at office@arws.cz and we will provide you with a tailored legal solution.

FAQ – Frequently asked legal questions regarding the employment of non-EU nationals in the Czech Republic

1. Do I really have to report the commencement of a foreign national's employment only electronically?
Yes. Since July 1, 2024, full digitalization of information cards is mandatory under Czech law. Paper submissions are not accepted and carry a risk of fines for failure to meet reporting obligations.

2. What is the difference between a work permit and an employee card?
An employee card is "dual" (residence + work in one) and is intended for long-term work in the Czech Republic. A work permit is issued by the Labor Office for specific purposes (seasonal work, posting) and the foreign national also needs a separate residence visa.

3. Can a foreign national work while waiting for a card renewal?
Yes, if they submitted the application for the renewal of the employee card within the legal deadline (before expiration), their residence and work authorization are considered valid until a decision is made (the so-called fiction of residence under Section 47 of the Act on the Residence of Foreign Nationals).

4. How much does insurance for foreign nationals cost?
Comprehensive health insurance for long-term residence (required for a visa) costs tens of thousands of Czech crowns per year depending on age and the insurance company. Coverage must be at least EUR 400,000.

5. Is recognition of education (nostrification) required?
For employee cards, the Czech Ministry of the Interior often requires this (unless it concerns prestigious universities). For Blue Cards, proof of high qualification is a mandatory condition.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we ensure maximum accuracy of the content, legal regulations and their interpretation evolve over time. To verify the current wording of regulations and their application to your specific situation, it is essential to contact ARROWS law firm in Prague directly (office@arws.cz). We bear no responsibility for any damages or complications arising from the independent use of information from this article without our prior individual legal consultation and professional assessment. Every case requires a tailored solution; therefore, do not hesitate to contact us.

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