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How to hire remote employees in
No matter where you’re based out of, we can tell you one thing: the Czech Republic has different labor laws than your home country (well, unless your home country is the Czech Republic, of course). If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard.
If you want to successfully hire in
Czech Republic
, you have two options:
Laws about hiring contractors are significantly more simple in
Czech Republic
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Czech Republic
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Czech Republic
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Czech Republic
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Czech Republic
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in the Czech Republic than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in the Czech Republic.
Employees are entitled to 4 weeks of paid leave.
There are 13 public holidays.
During the first 14 days of illness, the employee is entitled to receive 60% of their regular wages, so long as the employee has fulfilled the conditions to be eligible for this entitlement.
In the Czech Republic, a woman is entitled to 28 weeks of maternity leave or 37 weeks for multiple births. The leave can start at least 8 weeks before the expected due date, but no later than 6 weeks. Maternity leave is compensated at 70% of the regular salary, however, this amount depends on how much the employee has contributed to social security. In addition, at least 14 weeks of maternity leave must be taken.
New fathers are able to take leave in lieu of the mother after the first 7 weeks from birth.
The mother is entitled to parental leave starting at the end of the maternity leave and the father is entitled to the leave starting from the child’s birth until the child reaches the age of 3. This leave can only be taken when the child is being cared for from home.
Parents are entitled to a maximum allowance of 220,000 CZK until the child reaches the age of 4 or 330,000 CZK for multiple births.
None.
None.
None.
An employee can be terminated:
The notice period for the employee or employer must be at least 2 months. It is possible to extend this period if both parties agree on a longer notice period and must be agreed upon in writing. The notice period commences the first day of the month following the delivery of the notice.
Depending on how long the employee has been employed, the amount of severance pay to be paid out will vary:
The probation period is a maximum of 3 consecutive months for regular employees and up to 6 consecutive months for chief officers. The probationary period must be agreed upon in writing and cannot be longer than half of the agreed period of the employment relationship.
A full-time workweek is 40 hours or 8 hours per day. The length of a shift cannot exceed 12 hours.
Overtime work can only be performed as an exception and cannot exceed 150 hours within a calendar year.
If there is an agreement between the employee and employer in regards to work beyond regular hours, overtime cannot exceed 8 hours a week for more than 26 consecutive weeks. If there is a collective agreement, overtime may be increased.
For managerial positions- the maximum amount of overtime that can be negotiated is 150 hours per year.
Overtime pay is as follows:
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