Our Expertise
Managing a global workforce in Czechia
Czechia offers a distinct business environment, but navigating the complexities of local employment laws and regulations is crucial for success. TopSource Worldwide offers expert services in this area, ensuring compliance with Czech labour laws, social security regulations, and tax obligations. With our deep understanding of the local landscape, TopSource can efficiently manage payroll and HR requirements, allowing businesses to focus on their core activities and growth in the Czech market.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Czechia
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Czechia. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Czechia-based employees.
End-to-end Czechia payroll services
Looking to expand into Czechia? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Czechia expansion initiatives.
Global entity management
Venturing into the Czech market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Czechia
Entering the Czech market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Czechia.
Czechia Insights
Key insights into Czechia's landscape
VAT rates: Czechia has a standard VAT rate of 21%, with reduced rates of 15% and 10% for specific goods and services.
Ease of Doing Business rank: Czechia ranks 40th in the World Bank's Ease of Doing Business Index, indicating a moderately favourable business environment.
Consumer Confidence Index: As of 2022, Czechia's Consumer Confidence Index was 99.5, reflecting stable economic sentiment.
Employee maternity/paternity leave: Maternity leave is up to 28 weeks, and paternity leave is 1 to 2 weeks, supporting work-life balance for new parents.
Employee termination period: Standard notice for termination is typically 2 to 3 months, depending on employment contract terms and duration.
Employee salary pay date: Wages are generally paid monthly, with specific pay dates stipulated in employment contracts and subject to labour laws.
Bank holidays: Czechia observes national holidays, including New Year's Day, Independence Day, and Christmas, with a total of 13 public holidays in a year.
An overview of the main statutory benefits
Maternity leave: Women can take up to eight weeks before the delivery date but must not commence their maternity leave any later than six weeks before delivery. Women must take at least 14 weeks of maternity leave.
While on maternity leave, women are usually paid 70% of their usual wages but this can change slightly depending on how much they’ve contributed to their social security.
Paternity leave: Men are entitled to seven days of paternity leave, paid at a rate of 70% of their usual salary.
Employees pay 6.5% of their gross salary each month towards the public pension system. The employer is required to pay 21.5% of the employee’s gross salary towards pension contributions.
In order to receive the state pension, an employee must have been insured for a minimum period of 35 years (if employed after 2018).
There are voluntary private pension schemes if employees wish to make additional contributions.
All employees are entitled to up to 14 days of sick leave at 60% of their usual pay, as long as they can provide evidence of illness.
Contractual provisions
Czech Republic law has recognised an electronic signature as legally binding since the year 2000.
A full-time job is considered eight hours a day/40 hours a week.
A probationary period in the Czech Republic cannot be longer than three months for regular employees and no longer than six months for chief officers. The probationary period cannot be longer than 50% of the employment contract.
- Employees are entitled to a 30-minute lunch break and a rest break when they have worked for six consecutive hours.
- A daily rest of at least 11 hours between one shift to the next is required by law.
- A weekly rest of at least 35 consecutive hours is required by law.
Employees aren’t allowed to work more than eight overtime hours per week, and they cannot work eight overtime hours per week for longer than 26 weeks in a row. The maximum overtime hours permitted to be worked per year are 150.
Overtime pay is 125% of the usual wage rate of the employee. Employers may give the employee extra time off instead of money in exchange for the overtime work.
If the overtime falls on a holiday, then the employee is due time off as well as wages. When overtime is required to be worked on the weekend, the employee should be paid at a rate of 110% of their usual wages.
Personal leave
The government set out a list of events in which an employee can take time off for personal reasons. These situations include the birth of a child, funerals, medical examinations and performance of work in public office.
Our author
Mark Robbins
Global Sales Director
Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013.
Published 2023-11-14 00:00:00
Updated 2023-11-15 00:00:00
Reviewed by:
Adrian Cooney
Fact checked by:
Adrian Cooney
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