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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 Global EOR
  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?

By partnering with a Global Employer of Record, international employers can avoid the complexity and expense of establishing their own entities in each country they operate in, while ensuring their compliance with local labor laws and regulations. In essence, a GEO acts as the legal employer of your international workforce, handling all aspects of employment, such as payroll, taxes, benefits, and HR administration.

Using a Global EOR can also help companies scale their operations more efficiently and quickly. Instead of navigating different legal systems, employment regulations, and local customs, companies can easily focus on their core business activities and expand into new markets.

Global Employer of Record services are particularly valuable for businesses with a global workforce consisting of full-time, part-time, and contract employees. They can also benefit businesses looking to test new markets before committing to full-scale expansion and those that need to rapidly expand their workforce in response to changing market conditions.

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, tax, and immigration laws and regulations. They can be used for local and remote employees but are 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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Global Employment Services in the Czech Republic

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting


Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

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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 on the international markets. 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 a Global EOR (Global Employer of Record), businesses can have a workforce operational in the new country within days. At the same time, your organization sets 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.

4. Prevent Permanent Establishment Risk with Global Employer of Record

Global Employers of Record (EORs) can help prevent permanent establishment (PE) risk by providing a legal entity in a foreign country that serves as the employer of record for the company’s international workforce. PE risk arises when a foreign company’s activities in a country exceed a certain threshold, creating a taxable presence in that country.

By using a Global EOR, companies can avoid establishing their own entities in each foreign country, which could trigger a PE risk. Instead, the Global EOR acts as the legal employer of the company’s international workforce and thus assumes responsibility for compliance with local labor laws and regulations.

Additionally, a Global EOR can help ensure that the company’s activities in the foreign country remain within the boundaries of what is considered a “preparatory or auxiliary” nature, thereby reducing the risk of triggering a PE. The Global EOR can also assist in managing local tax obligations, such as withholding taxes and social security contributions, further mitigating the PE risk.

Partnering with a Global EOR can help companies manage their global workforce while minimizing the risk of a permanent establishment in foreign countries. The Global EOR provides a legal entity that assumes responsibility for compliance with local labor laws and regulations, thereby reducing the burden on the company and ensuring compliance with local regulations.

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

Acumen International is the legal employer and assumes all employees’ responsibility and liability while working for you.  We also provide an end-to-end payroll solution managing your payroll according to the Czech Republic laws.

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.

Benefits of Using Global Employer of Record in the Czech Republic

  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 setting 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: 10,762,433
  • 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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