In 2024, the conditions for obtaining an employment agency permit will be further tightened.
This mainly involves a doubling of the security deposit to CZK 1 million in the case of agencies temporarily assigning their employees to users (existing agencies had to pay the security deposit by the end of March 2024), the tightening of the conditions for proving the responsible representative's professional competence (creditable professional experience of 20 hours per week in the last 10 years is now required) or the condition of being debt free.
The employment agency must demonstrate that it has no arrears of taxes or levies to the financial administration, customs administration, social security authorities and health insurance companies at the time of application and every six months after obtaining the permit. There is also a certain enhancement in the protection of temporarily assigned employees, as users can no longer terminate temporary assignment by notifying the agency at any time (if the agreement with the agency allowed it to do so). Now it is also necessary to deliver such unilateral termination to the employee at least 14 days in advance (does not apply to temporary assignments created before the end of 2023).
Among other noteworthy changes is the expansion of the content of the annual mandatory reports to also include data on users and the number of temporarily assigned employees, new requirements for marking and identifying the agency's registered office (before submitting an application and throughout the entire period of activity) and, finally, moving the entire agenda related to employment mediation from the Employment Office to the Ministry of Labour and Social Affairs.
By Radek Matous, Partner, Eversheds Sutherland
