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Changes to Agency Employment in 2024

Changes to Agency Employment in 2024

Czech Republic
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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

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

PRK Partners has been repeatedly voted among the most socially responsible firms in the category of small and mid-sized firms and was awarded the bronze certificate at the annual TOP Responsible Firm of the Year Awards.

Our work is not only “business”: we have participated on a longstanding basis in a wide variety of pro bono projects and supported our partners from the non-profit sector (Kaplicky Centre Endowment Fund, Tereza Maxová Foundation, Czech Donors Forum, etc.).

Firm's website: www.prkpartners.com

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