Employ Candidates Compliantly in Czech Republic

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  1. Overview:Czech Republic
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a Company Set Up
  6. Contractor vs. employee: which is better?
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Global Employer of Record (EOR) in the Czech Republic

What Is a Global Employer of Record?

A Global Employment of Record (GEO) is a legal entity that removes employers’ employment burden. Global EORs are a way to manage your international workforce and comply with local labour laws and regulations. They can be used for local and remote employees, but they’re especially helpful if you have employees in multiple countries.

A Global Employer of Record (EOR) is an entity that provides payroll, benefits and tax reporting services for your company so that you can remain the actual employer and have full control of your business processes. You’re still liable for your employees’ employment rights, but the EOR allows you to concentrate on running your business. At the same time, they take care of all legal obligations related to employment law compliance and payroll processing.

The main advantage of using a global EOR is that it removes liability from your business. If something goes wrong with one of your employees, such as someone resigning without notice or being fired for misconduct, it will be up to the global EOR to deal with any claims made by that employee against their employer.

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When Use a Global Employer of Record Services?

1. Avoid  Independent Contractor Non-compliance and Misclassification Risk

Employment and tax laws vary from country to country. You must comply with all local labour laws if you hire a worker directly. The penalties for non-compliance are steep and can include fines, imprisonment and loss of your business license. In some countries, employers must pay payroll taxes for all employees, regardless of whether they work for the company in-house or remotely.

Labour and tax authorities in the Czech Republic can impose penalties for misclassifying employees as independent contractors, including fines and back taxes. You could risk violating employment and tax laws if you plan to grow your business by hiring international contractors. A global EOR can enhance compliance by hiring contractors on your behalf and following all local in-country labour requirements.

2. A Global Employer of Record: Enter New Markets without Foreign Entity Set-Up

Many companies have an eye toward the international market. With the rise of globalization and the increase in demand for products and services, it’s becoming increasingly important for companies to expand their reach. Establishing a new entity in another country can take months.

With an EOR (Employer of Record), businesses can have a workforce operational in the new country within days. At the same time, your organization does the work of setting up the new entity in parallel if needed. The EOR service allows organizations to enter new markets quickly without spending months on set-up, making it a low-cost and secure way for businesses to expand into international markets.

3. Ensure Consistency of HR Operations & Effective Cost Management with a Global EOR

There is no one-size-fits-all when it comes to pricing for outsourced employee services. However, working with a single global EOR solutions provider can offer consistency in pricing so that you can manage your global workforce more efficiently. Acumen International’s Employer of Record solution offers a straightforward pricing model that can be applied to managing all your employees, regardless of location. By consolidating your relationship with one Global Employer of Record, you can avoid dealing with multiple charging structures, which can be confusing and costly.

5 Benefits of Using a Global Employer of Record in the Czech Republic

Our EOR acts as the legal employer and assumes all responsibility and liability for employees while they perform work for you. As a bonus, we can provide an end-to-end payroll solution.

We have over 20 years of experience working with multinational businesses to help them grow their business in emerging markets worldwide. Our team has helped thousands of companies get their feet in international markets through our EOR service.

The benefits of Global Employer of Record are the following:

  1. No need to set up a new entity in every country where you have operations. You are not required to hire local employees or worry about local compliance requirements.
  2. The ability to scale your business quickly by hiring employees in multiple countries without having to set up a new entity in each country.
  3. A single point of contact for all employment-related questions and concerns.
  4. A single point of contact for all tax compliance questions and concerns.
  5. No need to worry about managing multiple payroll systems, tax filing requirements, or employee benefits programs across multiple countries since everything is handled by Acumen Global Employer of Record (EOR).

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17 Burdens a Global Employer of Record Can Relieve for Your In-House HR Department

  1. Global expansion complexity 
  2. Global payroll administration
  3. Employee benefits administration
  4. Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries
  5. Lengthy onboarding 
  6. Complex and risky offboarding
  7. Background checks
  8. Workforce compensation administration
  9. Compliance assistance
  10. Guidance on best practices of voluntary benefits provisioning
  11. Immigration and relocation support for your ex-pat workforce, such as visa sponsorship and securing work permits
  12. Lack of institutional knowledge.
  13. IP right protection
  14. Lack of local and international legal support
  15. Convert local contractors into full-time employees
  16. Business transitions: acquisitions, mergers, close downs
  17. Need to deal with multiple global employment service providers.

Employ your Selected Workforce in the Czech Republic with Acumen’s Employer of Record (EOR) Solution

As an Employer of Record services provider, Acumen International helps businesses legally engage and pay their selected highly skilled professionals in the Czech Republic. Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates.

Acumen International serves end employers and service companies representing international clients as a global employment organisation.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record (EOR) service in the Czech Republic offers an efficient and affordable alternative to direct hire. Our EOR solution allows companies to operate in the Czech Republic and 190 international markets where we serve clients without registering as a local business entity.

Acumen International offers a global PEO and payroll solution to take care of all payroll details while ensuring full compliance with in-country labour and taxation laws.

Legally Onboard and Payroll Employees in the Czech Republic with Acumen’s Global Employment Solution

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and ex-pat workforce in the Czech Republic on your behalf risk-free and cost-effectively.

Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects.

If you are looking to reinforce your internal team with the expertise of local talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in the Czech Republic, our global EOR solution is the ideal choice for you.

In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in the Czech Republic and 190 countries worldwide where we serve our international clients.

You can trust Acumen to handle your workforce management’s global employment and HR issues in the Czech Republic to ensure full compliance with in-country employment laws. Reduce risks while expanding your business without establishing your legal entity in the Czech Republic. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

It’s super-easy to get started—no need to optimize your structure or open up a new legal entity. Contact our team today to discuss your needs!

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Spotlight on the Czech Republic

The Czech Republic is also known for its short-form name Czechia. The Czech Republic’s strategic location, well-developed infrastructure, and skilled labour force have allowed it to elevate itself as an important regional and international manufacturing hub and consumer market for Central and Eastern Europe.

  • Location: Czechia is a landlocked country in Central Europe bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast, making it one of only two European Union members, the other being Luxembourg to be surrounded by the EU.
  • Capital: Prague.
  • Official language: Czech.
  • Population: 10,702,596.
  • Labour force: 5.222 million.
  • Most developing industries: motor vehicles, metallurgy, machinery and equipment, glass, and armaments.
  • Main trading partners: Czechia’s top trading partners are Germany, China, and Poland. Import commodities include machinery and transport equipment, cars and vehicle parts, computers and electronic equipment, and packaged medicines. The main export commodities are automobiles, machinery, and information and communications technology.
  • Local currency: Czech koruna.
  • Minimum statutory salary: from 1 January 2022, the minimum wage in the Czech Republic is CZK 16,200 per month. This applies to employees with a weekly standard working time of 40 hours. The minimum hourly wage is CZK 96.40.
  • Thirteenth salary and other additional remunerations: There is no legal requirement to pay a 13th-month salary in the Czech Republic. However, many employers pay a 13th-month salary bonus which is typically performance-based.

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