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Amendment to the Employment Act: Overview of new provisions applicable from July 2024

With effect from 1 July 2024, the amendment to the Employment Act introduces several changes, particularly in the area of employment of foreigners. Below is a summary of the most important changes.

1. Posting foreign employees to the Czech Republic from other EU countries

The amendment aims to reduce the administrative burden on employers in the context of posting employees from other EU countries in the context of the so-called transnational provision of services.

The obligation to report the posting of these foreign employees to the Labour Office will apply with the State Labour Inspection Office.

The reporting will be done exclusively electronically via an information system and will be accompanied by the employment contract. Consequently, the employer will no longer be obliged to keep paper employment contracts at the workplace. The reporting will also include a specification of the form of posting of the employee.

2. Notification obligations of employers when employing foreigners

Information on the start of work of a foreigner in the territory of the Czech Republic, termination of employment or work performance and other information will now be delivered only by a data message to a data box or through the information system of the ministry. Please note that a message sent in the wrong format (e.g. pdf form used until now) will be disregarded.

3. New group of foreigners with free access to the labour market

Citizens of selected countries listed in a government decree will no longer need a work permit, blue card, employee card or intra-corporate transfer card.

Under the current version of the government decree, these countries will include Australia, Japan, Canada, South Korea, New Zealand, UK, USA, Singapore and Israel.

However, free access to the labour market does not provide these foreigners with the right to reside in the Czech Republic. It is will still be necessary to apply for a residence permit according to standard procedures (e.g. Schengen visa for employment purposes for stays of up to 3 months or non-dual employment card).

4. Cancelling of the labour market test also for employment cards

The amendment removes the general obligation to pass the so-called „labour market test“ (i.e. the 30-day period during which EU citizens can apply for a reported vacancy on a priority basis) also for blue cards which will allow foreigners to apply for an employment card immediately after the vacancy is published in the central register.

However, the labour market test can be carried out in case of high unemployment if there are enough suitable candidates.

If you have any questions about the above changes or if you would like to discuss their practical implications in more detail, please contact partner Radek Matouš or senior associate Ondřej Šudoma from Eversheds Sutherland.