On 1 July 2024, an amendment to the Employment Act comes into force.
It will affect the employment of foreigners and brings, among other things, the following simplifications for employers:
- Free access to the labour market for residents of certain countries
Employees from certain non-EU countries will gain free access to the labour market.
A government regulation (not a law) will determine the countries which citizens will have free access to the Czech labour market. Thus, they will not be required to have a work permit, an employee card, an intra-corporate transfer card or a blue card.
So far, the government determined that these are citizens of Japan, Canada, the US, Australia, South Korea, New Zealand, the UK, Israel and Singapore.
However, keep in mind that nationals of these countries will still need a residence permit.
- Labour market test
Until now, employers could only fill vacancies with employee card holders if they notified the Labour Office of the vacancy and if the vacancy passed the so-called labour market test, i.e. if it was not filled within 30 days of the notification (it could be reduced to 10 days).
From 1 July 2024, this 30-day waiting period may be waived if the labour market situation allows it.
Vacancies must be identified by the job type code according to the Classification of Occupations (CZISCO) groups published by the Czech Statistical Office.
The Labour Office will now remove published vacancies after six months from the date of their notification. Exceptions will be made for positions for which a residence permit procedure, such as an employment card procedure, is pending at the time. The Labour Office will also now be entitled to remove from the register jobs that the employer does not provide the necessary cooperation to fill.
- Informing the Labour Office in relation to foreigners
The employer will remain obliged to inform the Labour Office about the employment or termination of employment of the foreigner.
Each employer will be obliged to communicate this information exclusively electronically through one of three channels: an internet form, by sending an .xml file through a data box or through direct integration of the employer’s system with the interface of the MLSA.
- Reporting the posting of workers from another EU country
Notification of employers from the EU posting their employees to the Czech Republic to provide services will now be submitted centrally directly to the State Labour Inspection Office, rather than to the locally competent labour office, the designation of which has not always been clear in practice.
The employer will be obliged to attach to the notification a copy of documents proving the existence of an employment relationship between the employer and the posted employee, including a translation into Czech.
The posting employer is no longer required to keep records of its employees at their place of work.
