Spotlight on the Czech Republic

Beautiful Scenery from Czech Republic

The Czech Republic (the official short name Czechia) is a parliamentary republic that boasts a prosperous market economy with one of the highest GDP growth rates and lowest unemployment levels in the European Union. The principal industries are high-tech engineering, electronics, machine-building, steel production, chemicals, pharmaceuticals, and transportation equipment in automotive, rail and aerospace. The Czech Republic’s university system offers some of the best educational opportunities in Europe, placing an emphasis on quality, diversity, accessibility, and relevance.

Why the Czech Republic?

  • The Czech Republic’s digital ecosystem is world-class, having been ranked among the top in the world when it comes to internet penetration, cybersecurity and eGovernment.
  • The Czech Republic is one of the most metropolitan and diverse countries in the European Union. English is commonly spoken by residents, especially in Prague. Many international companies that operate in the country also use English as their main language.
  • The Czech Republic consistently ranks as one of the top countries for expats to live. As a testament to how welcoming the country is, foreigners represent around 13% of the workforce.
  • The country’s location is another top benefit for international businesses. Positioned right in the center of Europe, the Czech Republic is ideal for travel to almost anywhere in Europe. The Czech Republic also offers affordable and convenient public transport, making it easy to get around domestically.
  • Among newer members to the European Union, the Czech Republic ranks at the top for capacity to attract and retain talent, research, and development (R&D) spending and stability of banks.

Q&A with Andrew Lindquist, Partner, GoGlobal

What should employers expect when hiring in the Czech Republic?

Foreign companies must bear in mind that the Czech Republic’s Labor Code maintains strict laws related to the equal treatment of employees, including protections from direct and indirect discrimination. Employees are protected in the following areas: race, sex, language, religion, political views, trade union membership, ethnic or social origin, health, marital status, familial status, and age. Furthermore, companies are required to demonstrate equal treatment for all employees when it comes to salary, benefits, professional training, and advancement opportunities.

One of the fundamentals of the Czech Republic’s Labor Code is that companies must hire employees using an employment contract written in the Czech language. These contracts are usually open-ended, but employers can also use a fixed-term contract as long as it is no longer than three years. Such fixed-term contracts can be renewed up to two times. All contracts must outline a job description, start date, location, notice period, compensation amount, collective bargaining information and any applicable probationary periods. All salary and compensation amounts must be outlined in Czech koruna.

The standard workweek is 40 hours, which is typically worked as eight-hour shifts for five days. Furthermore, employers must distribute an employee’s working hours, so they have one uninterrupted rest period of 35 hours per week. While overtime is allowed in some circumstances, it is limited to eight hours per week and 150 hours in total for the year.

What makes GoGlobal’s Employer of Record services in the Czech Republic special?

While the talent pool in the Czech Republic is diverse and rewarding for international companies, there are provisions that can make recruitment, onboarding and retention challenging for employers. GoGlobal’s team of local experts helps companies onboard top talent, ensuring a positive hiring experience from start to finish. First, GoGlobal’s team calls the employee to explain the EOR model, which may be unfamiliar to workers in the Czech Republic. Then throughout the EOR lifecycle, this same team remains as the point of contact for the employee and is available to answer any questions about payroll, taxation, or benefits.

Why is business in the Czech Republic growing so fast?

The Czech Republic features unique qualities that attract interest from foreign investors and international companies looking to expand globally. These include a highly skilled workforce, high living standards, stable banking industry, relatively low operating costs, diverse culture, sophisticated infrastructure, and a capacity for innovation – all located in the heart of Europe. The GoGlobal team is passionate about working with our clients so they can harness these qualities without the costs and complexities of establishing a local entity.

About GoGlobal

GoGlobal is the world’s fastest growing, privately owned Global Employer of Record (EOR) service provider, with a globally distributed and remote workforce. GoGlobal’s technology-enabled EOR solution allows businesses of all sizes and geographies to hire staff globally without the need to set up a local entity, opening new doors to rapid expansion and growth. GoGlobal clients can hire top talent anywhere in the world – quickly, cost-effectively, and compliantly.