Amendment to the Employment Act: Reducing the administrative complexity of employing foreigners and posting workers to the Czech Republic from 1 July 2024
The Employment Act will be amended with effect from 1 July 2024. The changes to the act mainly affect the rules governing the entry of foreigners, who are citizens of third countries, into the Czech labour market, as well as the posting of workers from other EU member states to the Czech Republic in the framework of the cross-border provisions of services. The main objective of the changes is to simplify the administrative requirements imposed on employers. However, some of the changes will also impact the (potential) employees themselves. The amendment also modifies the rules concerning the vacancy register and clarifies the methods of fulfilling information obligations regarding the employment of foreigners towards the Labour Office.
Firstly, the amendment abolishes the labour market test, which previously extended the process of filling vacancies with foreigners – applicants for an employee card. The new rules no longer require a 30-day waiting period from the announcement of a vacancy for its inclusion on the register of vacancies suitable for holders of an employee card. This speeds up the process and unifies the rules for blue- and employee-card holders.
The amendment also fully opens the Czech labour market to foreigners from selected countries specified in the implementing regulation. As of 1 July 2024, citizens of Australia, Japan, Canada, the Republic of Korea, New Zealand, Singapore, Great Britain and Northern Ireland, the United States of America and Israel will no longer need a work permit, an employee card, an intra-company transfer card, or a blue card to work or perform work in the Czech Republic. However, they will still need a residence permit to stay in the Czech Republic.
Another significant development is the clarification and simplification of the regulations governing the posting of workers from another EU member state to the Czech Republic for the purpose of providing services. The posting foreign employer will now be obliged to inform the State Labour Inspection Office, instead of the regional branch of the Labour Office, about the posting via an online form. This eliminates the need to identify the correct regional branch of the Labour Office and makes it easier for the labour inspectorates to verify compliance with the rules concerning posted workers. The obligation of the posting employer to provide the prescribed information on posting and to upload documents proving the existence of the employment relationship of the posted worker to the online system will replace the administratively demanding obligations to keep copies of these documents at the place of work in the Czech Republic, and to keep records of posted workers.
The vacancy register will also undergo minor changes. Employers will now be obliged to specify the type of work through the CZ-ISCO Classification of Occupations when notifying vacancies. The grounds for removing a vacancy from the register have also been expanded. The Labour Office will remove vacancies that remain unfilled for six months after their notification. The amendment also places greater emphasis on the employer’s obligation to cooperate with the Labour Office when filling vacancies, as a lack of such cooperation may also result in the removal of a vacancy from the register.
Finally, the amendment unifies the manner in which employers must fulfil their information obligations regarding the employment of foreigners towards the Labour Office. As of 1 July 2024, employers will be able to fulfil these obligations only via their data mailbox or by filling in an online form with a precisely defined format, content and structure. Alternatively, the employer may fully integrate its information system with the online interface of the Czech Ministry of Labour and Social Affairs. More details can be found at this link. If the submitted information does not meet the specified formal requirements, the Labour Office will disregard it.
If you have any questions regarding the employment of foreigners or the posting of workers to the Czech Republic, do not hesitate to contact our experts Tomáš Matějovský and Jana Turečková.
