Whitepaper Cut the middlemen: Advantages of an EOR platform with local entities

Czech Republic
Workforce Solutions and EOR Services

Hire and Manage your Workforce in the Czech Republic

Czech Republic economy performed better

at the end of 2020

According to a 2021 OECD’s Economic Forecast, after contracting sharply in 2020, GDP in the Czech Republic is projected to recover by 3.3% and 4.9% in 2021 and 2022, respectively. The country has experienced one of the highest infection and death rates in the OECD area, but the recovery is projected to gather pace in the second half of 2021, once the population is more extensively vaccinated, triggering a rebound in services and boosting private consumption and investment. Inflation has picked up due to rising food and fuel prices. It is expected to remain between 2 and 3% in the second half of 2021. In 2022, unemployment will start to decline ang the government will advance reforms to boost the recovery. The Czech Republic was ranking #41 in the World Bank’s 2019 Ease of Doing Business index (Sources: ING, World Bank, and OECD).

XML employs workers for you in the Czech Republic
Quick, Simple, Compliant.

A trusted professional employment organization with in-depth knowledge of the Czech Republic’s market, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Prague or any other city in the Czech Republic, regardless of the size of your organisation or your industry.

Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local authorities

Czech Republic Country Information

1.1 The information we provide on this site is for general information only. We make no warranty or representation that any information provided on our Site, or information provided by 3rd parties via links will be accurate, compatible with all systems, or secure.


1.2 Whilst every reasonable endeavour has been made to ensure that all information provided on Our Site is accurate and up to date, We make no warranty or representation that this is the case.  We make no guarantee of any specific results from the use of Our site.


1.3 No part of Our Site is intended to constitute advice and the content of Our Site should not be relied upon when making any decisions or taking any action of any kind.

1.4 Commercial use of the information on Our Site is permitted, however We make no representation or warranty that this content is suitable for use in commercial situations or that it constitutes accurate data and / or advice on which business decisions can be based.


1.5 If you are a consumer, you may have certain legal rights with respect to Our provision of digital content.  If We fail to comply with Our legal obligations, consumers may be entitled to certain legal remedies including repair or replacement or price reductions.


1.6  Whilst We exercise all reasonable skill and care to ensure that Our Site is secure and free of errors, viruses and other malware, you are strongly advised to take responsibility for your own internet security, that of your personal details and your computers.


1.7  If, as a result of Our failure to exercise reasonable care and skill, any digital content from Our Site damages your device or other digital content belonging to you, if you are a consumer, you may be entitled to certain legal remedies.



Local Currency

Czech Koruna CZK

Official Languages


Czech Republic Minimum wage

Minimum wage in the Czech Republic is 15,200 CZK

Czech Republic Normal working hours

The standard working week in the Czech Republic is 40 hours.

Czech Republic Annual leave

The regular holiday entitlement of employees working under an employment contract is 4 weeks per year.

Czech Republic Sick leave

Employees who are sick are entitled to financial support from the first day of their sickness. Payments are made from sickness insurance beginning on the 15th day. 

  • 1st to 14th day > The employer will provide compensation for wage
  • from the 15th day > Employees are entitled to sickness benefit paid from sickness insurance.

The sickness benefit (per calendar day) amounts to 60% of the reduced daily assessment base for the first 30 days of temporary incapacity for work or ordered quarantine, 66% of the reduced daily assessment base from the 31st day to the 60th day of temporary incapacity for work or ordered quarantine and 72% of the reduced daily assessment base from the 61st day of temporary incapacity for work or ordered quarantine

Czech Republic Maternity leave

The maternity leave entitlement is 28 weeks; in the case of multiple births, the entitlement is 37 weeks. If the mother has worked at least 270 days in the last 2 years, she is entitled to a maternity benefit, which is paid at least 6 weeks before the birth (not earlier than 8 weeks before the birth) within 6 months of the child’s birth.

Czech Republic Paternity leave

Paternity leave corresponds to 7 days in relation to the care of a new-born child. The paternity allowance can only be granted on the condition that paternity leave is taken within 6 weeks from the date of birth of the child or from the date on which the child was taken into care. The date on which the father starts his paternity leave can be determined by each individual.

Czech Republic Notice Period

The duration of a notice period does not vary based on the position or seniority of the employer, but it has to be at least two months. A longer notice period may be agreed in the employment contract.

Czech Republic Probation period

The employer and the employee can agree on a probation period. The agreement on a probation period must be in writing and the probation period may not exceed three months from the commencement of the employment relationship for non-managerial employees, or six months for managerial employees . In case of a fixed-term contract, the probation period cannot be longer than half of the agreed term of the employment relationship.

Czech Republic VAT

The standard VAT rate is 21%.

(Sources: Deloitte, Europa.Eu)

Unlock your business potential in the Czech Republic with XML International.

If you want to benefit from XML employment expertise in the Czech Republic, we invite you to fill the form below and we’ll get back to you shortly.

XML employs workers for you in the Czech Republic

Quick, Simple, Compliant

XML International, one of the best workforce solutions and employer of record services providers for the Czech Republic, supports the set-up and the management of your international workforce for all your activities in the Czech Republic Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in the Czech Republic. We give you all the keys to handle you staff in Prague or any city in the Czech Republic XML’s knowledge of Czech labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in the Czech Republic, navigate all the local complexities and avoid pitfalls.

The Best Employment Outsourcing Solutions for the Czech Republic

Smart Management of your Employees in the Czech Republic

Among our top priorities, compliance with Czech employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in the Czech Republic is aligned with Czech tax and social security rules and the latest immigration processes, including visas and work permits.

Here is the list of our core services supporting your activities in the Czech Republic.

• GEO Services for the Czech Republic (PEO and EOR)

• Contingent Workforce Services for Czech Republic

• Managed Solutions Programs for Czech Republic

• RPO & Staff Mobilization for Czech Republic

Do Business in the Czech Republic, with or without creating your local legal entity

Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion into the Czech Republic or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Czech market.

They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in the Czech Republic without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in the Czech Republic.

XML provides you with everything you need to start doing business in the Czech Republic or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in the Czech Republic in a cost-effective way. 

Get started now and make the most of business in the Czech Republic today!

Local. Globally.

XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.