Employer of Record & PEO in Czechia - New Road to Expansion
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PEO in Czechia

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.

INS Global’s Czech PEO provides all of the HR outsourcing services you need to get set up and succeed while saving time and money.

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.

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PEO in Czechia - Summary

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
Hiring an Overseas Employee

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

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.

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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