Employer of Record in Czechia & PEO | Hire Without Entity

Employer of Record in Czechia & PEO

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is an international provider of PEO (Professional Employer Organization) and EOR (Employer of Record) services for companies that want to expand overseas while avoiding the red tape and complications this typically entails.

A PEO is a quick and efficient way to transfer or hire employees overseas without the need for a legal or physical presence in your target country.

For companies looking to expand their services safely, quickly, and cost-effectively, a PEO (Professional Employer Organization), like a global EOR, is the perfect way to access global mobility expertise. An INS Global PEO in Czechia lets companies recruit and assure HR services for employees in-country in as few as two days.

An EOR (Employer of Record) acts as an employer for purposes of outsourcing complex employer responsibilities. This is particularly useful for companies looking to expand their services globally in a safe and cost-effective way. INS Global’s EOR in Czechia allows companies to follow their global expansion plans in less than 48h.

Want to have a Team in Czechia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Czechia TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Employer of Record in Czechia & PEO - Summary

Employer of Record in Czechia & PEO

The Advantages of a Global PEO Partner

Total Legal Compliance

A PEO provides expert legal and regulatory support to ensure you don’t make mistakes when dealing with unfamiliar local legal systems.

Faster Setup Time

A PEO can get you up and running in a new country in a matter of days

Fewer Administration Requirements

Your PEO services provider in Czechia will take care of every aspect of HR, allowing you to focus on company growth

Cost-Efficiency

You only need to pay a single monthly service fee per employee, saving you potentially thousands of dollars per year

Organizational Streamlining

With a single point of contact you can meet all of your HR operations requirements

How is a PEO More Advantageous than Company Incorporation?

Overseas company incorporation can be a long and complex process, involving many fees or potential penalties due to simple errors. By expanding with a global PEO or Employer Of Record services provider as a partner, you can benefit from their widespread networks and experience to accelerate setup in your market of choice.

A PEO:
  • Gets you started quickly
  • Requires less management input
  • Lowers costs
  • Involves less legal or regulatory risk

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 - 9%
ROI
27%
Closed During Pandemic
-58%
Employer of record Czechia

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How a PEO works in Czechia

  1. We meet to discuss your requirements and formulate a service plan that works best for you
  2. We provide the legal entity through which you can bring your employees into Czechia
  3. We organize all the hiring and HR management of your employees
  4. You and your staff continue operations as usual, focusing on what matters to your growth and success while we handle all of the HR and payroll operations.

How Do PEOs and EORs Differ?

While the two services are often discussed together, it’s helpful to understand their differences and how they might relate to your company.

  • A PEO is a third-party company that provides HR services to employees of other companies
  • An EOR provides the same range of services as a PEO while also legally hiring, and becoming fully responsible for, the employees of other companies
  • In a PEO agreement, the contract is made between the PEO provider and the client company
  • In an EOR agreement, the contract is directed by the client company but officially made between the provider and the employee

INS Global offers both PEO and global EOR services in Czechia. You are free to choose whichever service best suits your requirements.

Labor Law in Czechia - 2024 updated

Employment Contracts in Czechia

Contracts made in Czechia must comply with the Labor Code, State Labor Inspectorate, respective Collective Bargaining Agreement, and Employment Act in order to be considered legitimate. Employment contracts in Czechia must be written form. Fixed-Term contracts cannot exceed 3 years or be repeated more than twice.

Work Hours and Overtime in Czechia

An average workweek consists of around 40 hours over 5 days. 12 hours per shift is the maximum allowed at one time.

Work hours over the average number set out in the contract should be paid at a premium of 125%.

Holidays and Annual Leave

After 1 year of service with a company, employees are eligible for a minimum of 4 weeks paid annual leave.

There are 13 days of annual public holidays in Czechia, and employers are expected to arrange for time off or compensation if an employee must work during these times.

Sick Leave in Czechia

Employees in Czechia are eligible for up to 380 days of paid sick leave. Sick leave is reimbursed through a sickness benefit up to a maximum amount. For the first 14 days, the employer pays the benefit, and afterward, it is paid by the government.

Maternity and Paternity Leave in Czechia

Female employees are eligible for up to 28 weeks of maternity leave, at least 6 weeks of which must be taken before the expected due date. Maternity leave benefit is 70% average gross salary.

Paid paternity leave in Czechia is 2 weeks as of 2022.

Tax Law and Social Security Contributions in Czechia

Corporate tax in Czechia is 19%. As of 2021, residents in Czechia are taxed at a flat rate of 15%. Those who earn above an upper threshold are taxed at 23%.

Social security contributions are used to fund pension, unemployment, and sickness benefits.

Employers in Czechia should expect to contribute 24.8% of an employee’s salary towards their social security contributions and 9% toward health insurance. Employee rates are 6.5% and 4.5%, respectively.

Employer of Record in Czechia & PEO

CONTACT US TODAY

Discover More Solutions in Czechia

FAQs

In Czechia, the price of expert EOR services is calculated as a percentage of a coworker’s monthly wage. This price includes all HR tasks required to ensure compliance with all local employment rules.  

Without needing a specific organizational structure, managing employer responsibilities in Czechia through an EOR is secure, acceptable, and practicable. EOR services do this by retaining top-notch HR assistance and retaining local legal authorities. 

With an EOR service agreement, your team members will be completely protected by the law, get correct and timely monthly payments, and have access to all employee benefits in Czechia.  

While having total control over their work, independent contractors engaged in Czech EOR may be eligible for some or all of the same benefits as regular workers in a similar way to those working through an umbrella company  

Our team of recruiting consultants can find the top local talent in Czechia for your requirements by utilizing their broad professional networks, in-depth knowledge of regional business resources and standards, and steadfast commitment to ethical hiring methods.  

As a result, integrating these new hires into our Czech EOR system will be simpler and more effective compared to when they were hired using more conventional hiring procedures. 

You obtain thorough compliance-assured employment outsourcing assistance from a genuinely global EOR services provider through INS Globals recruitment agency in Czechia. This complies with all relevant regional, national, and local legislation.  

There may be strict hiring requirements or a limit on the number of employees you may hire at once at some PEO or EOR service providers in Czechia. However, INS Global is aware that periodically you may need to scale up or down quickly based on your worldwide business strategy. Working with us provides you the freedom to employ however few or many people you need to accomplish your goals. 

The cost of hiring in Czechia is influenced by payroll costs, hiring fees, signing bonuses, and other direct and indirect expenditures like incentive programs, managing the taxes of international employees, and social insurance. 

You can avoid complicated incorporation regulations by using Czech PEO services because you won’t require a local site.  

However, it is still a good idea to give your staff the option to work in a shared workspace or the freedom to do so whenever and wherever it makes sense. Because of this, many PEO providers can also offer guidance on local workspace rental.  

Absolutely. If Czech nationals or foreigners are subject to various local employment regulations, tax legislation, or employee benefits, we can handle the necessary visa and work permit procedures.

The best EOR and PEO solutions are available for organizations of all sizes, from SMEs to multinational corporations, to ensure the efficient and secure employment of foreign or local staff. Our services are easy to scale up if more people are required, and they can even replace more complex internal HR requirements.  

The legal expertise provided by PEO and EOR services would be beneficial to businesses in various industries that either don’t have their own structures in a target country (or seek to avoid cost-scaling difficulties while focusing on expansion).  

Staffing firms and umbrella companies are two additional recruiting methods that can be utilized to directly or indirectly hire independent contractors in Czechia.  

In Czechia, the vast majority of independent contractors are self-employed or run their own small businesses. In accordance with Czech law, hiring contractors requires the use of a labor agreement rather than an employment contract. 

An independent contractor in Czechia can be asked to submit a CV, portfolio, verified references, and possibly a signed NDA before work even starts.  

Employers in Czechia typically organize payroll on a monthly payroll, withholding and managing payments for an employees tax and social security contributions at source. In addition, most employers also have to manage annual tax reconciliations for their employees.  

In 2023, the minimum wage in Czechia was increased to CZK 17,300 (around USD 765) per month or CZK 103.80/hour (around USD 4.5/hour). 

Non-EU/EEA citizens who wish to live or work in Czechia will require a work permit. The most common of these come in the following forms: 

  • The EU Blue Card – An EU-wide work permit available to highly qualified professionals and available for up to 4 years at a time.  
  • An Employee Card – The most common work visa/permit in Czechia, available for up to 2 years with the option for renewal.  
  • An Intra-Company Transfer Card – Similar to an Employee Card, this is for management-level workers who have been transferred to a location within Czechia via internal transfer.  
  • A Special Work Visa – Available for up to 1 year at a time with limitations on the kind of work it’s possible to perform in specific industries.  

Czech social security contributions are a necessary part of payroll costs for employers in Czechia. These cover an employees pension, unemployment insurance, and sick pay. Employer contributions to this fund is the equivalent of 25% of the employees gross wage in total.  

mployees in Czechia are entitled to the above benefits as part of their social security contributions. Benefits outside of this and paid annual and parental leave are not mandatory but typically include an employer paying for meal vouchers or a travel allowance as incentives. 

All changes to employment contracts in Czechia must be made in writing with the written consent of both parties.  

ith almost universal healthcare in Czechia, the system is largely funded through company taxes and social contributions. Health insurance is divided among several large semi-public providers, with the majority of user-end services, including specialists, being provided for free.  

Outside of an employee’s probationary period, employers typically have to provide 2 months’ notice unless the employee has committed a serious breach of their contract.  

Employees are eligible for redundancy pay in Czechia when losing their job for economic reasons. In this case, companies must provide 1, 2, or 3 months’ standard pay for employees who have worked for less than a year, between 1-2 years, or more than 2 years, respectively.  

Czech labor relations are regulated according to the provisions of various Labor Codes and national constitutional documents. In the event of a dispute, labor courts will make judgments according to these written documents.  

Employees in Czechia get 7 days of annual national public holidays as paid non-working days.  

DOWNLOAD THE EXPANSION INSIGHTS JUNE 2024

DOWNLOAD THE PDF