DEAR SIR, DEAR MADAM, · DEAR SIR, DEAR MADAM, This is an information material mainly intended for foreigners from third countries (non-members of the EU) with a permit for long-term

DEAR SIR, DEAR MADAM,

This isan informationmaterialmainly intendedfor foreigners fromthirdcountries(non-membersoftheEU)withapermitfor long-termstay intheCzechRepublic.However, thisdocumentalso includesinformationconcerningpersonswithothertypesofresidence,especiallyintheemployeeposition,inmanyofitschapters.

Thefirstpartofthedocumentprovidesinformationabouttheindivi-dual typesof residence,purposesof long-termstaysand instructionsabouthowtoproceedinparticularlifesituationsrelatedtolegalconditionsforstayintheterritoryoftheCzechRepublic.

Thesecondpartprovidesanoverviewoflabourlawprovisionsasprovi-dedinActNo.262/2006Coll.,theLabourCode.Hereyouwillfindinfor-mationaboutestablishmentand terminationofemployment,wages,workinghours, etc. Youwill alsofindprocedures in caseof violation ofyourrightsbyyouremployer.

Thethirdpartbrieflysummarisesmajorliabilitiesoftradesmenandthe fourthand lastpart lists importantcontact informationofgovern-mentalandnon-governmentalagenciesandlinkstousefulwebsites.

Thematerialshouldprovideyouwithbasicorientationintheissue.Whendealingwithaparticularproblemyoucanaddresseitherthego-vernmentalauthoritiesorthenon-governmentalagencieslistedattheendofthispublication,whichmayhelpyouwithsocialandlegalconsul-tancy,andisprovidedfreeofcharge.

This information material is also available to download at http://www.cizinci.cz.

Introductory word

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A. Introductory Overview of Types of Residence Permits and Their Purposes

•Overviewoftypesofresidencepermits 4-6 •Selectedpurposesoflong-termresidence 7-11

B. Issues Related to Stay

•Long-termresidencepermitforthepurposeofemployment 12 anditsextension •Long-termresidencepermitforthepurposeofemployment13-14 inspecialcases –greencard •Long-termresidencepermitforthepurposeofbusiness 14-15 enterpriseanditsextension •Aworkpermitanditsextension 15-16

QuestionsandAnswers

•Optionofperformanceofotheractivityinthecontextofthe 17 originalpurposeofstay–morepurposesforstay •Changeofpurposeofstay 18-19 •Reportingofchangesofplaceofresidenceandobligationsoflandlord 20 •Consequencesofillegalstay 21 •Healthinsuranceissues 22-23 •StayofachildborntoforeignersintheCzechRepublic 24

C. Labour Law Issues

QuestionsandAnswers

•Typesofemploymentrelationships 25 •Workbasedonquasiemploymentagreements 26 •Risksofillegalwork 27 •Whenaworkpermitisnotrequired 28

TABLe Of COnTenTS

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•Elementsofanemploymentcontract 29-31 •Wageanditspayment 31 •Minimumandguaranteedwage 32 •Insurancepremiumandincometaxleviespaidby 33 anemployerforitsemployees •Takingpaidholiday 34 •Overtimework 35 •Employmenttermination–noticeoftermination 36-37 •Employmenttermination–noticewithimmediateeffect 38 •Employmenttermination–severancepayment 39 •Lossofjobandcancellationofalong-termstaypermit 40-41 •Agency-mediatedemployment–basicprinciples 42-43 •Lowwagepaidbyalabouragency 44•Controlauthorities–LabourInspectorate 45•Controlauthorities–LabourOffice;optionofinclusion 46 inthelistofjobapplicants •LegalAction 47 D. Trades

QuestionsandAnswers

•Obligationsofaself-employedperson 48-49

e. final Information •AddresslistofAlienPoliceInspectorates 50 •Addresslistofregionalcentresforsupportofintegration 51 offoreigners •Addresslistofnon-governmentalorganisationsproviding 52-53 advisoryservicestoforeigners •Addresslistofregionallabourinspectorates;labouroffices 54-56

TABLe Of COnTenTS

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The issueofentryandsubsequentstayof foreigners intheterritoryoftheCzechRepublicisregulatedbyActNo.326/1999Coll.,onStayofForeignersintheTerritoryoftheCzechRepublicandonAmendmentstoSomeOtherActs(hereinafterabbreviatedto“ActonStayofForeigners”).Thisactdistinguishesbetween twobasic typesof stay – temporary stay andpermanent residence. Whilepermanentresidenceisjustone,thereareseveraltypesoftemporarystays.

A. A foreigner may stay in the Czech Republic temporarily:

a) Without a visa – the list of third countries (non-members of the European Union), whose nationals do not need a visa for a short- term tourist stay in the territory of the European Union is included in Council Regulation (EC) No 539/2001; the list includes about30countries;

b) With a short-term visa – the abovementioned Regulation also includesthelistofthirdcountrieswhosenationalsneedavisaeven forshort-termstay;theActonStayofForeignersdefinestwotypes ofshort-termvisas: 1. Airport visa–appliedforbyaforeignerwhoneedstostay inthe transitareaofaninternationalairportforthereasonofchangeto anotherplane;noteveryforeignerneedingavisaisliabletoapply for theairportvisa forstay in thetransitareaof theairport.This liabilityonlyappliestonationalsofabout40countries(seeDecree No446/2005Coll.); 2. 90-day visa (type C visa) –thisvisaauthorisesstayintheterritoryofthe Czech Republic for amaximum of 3months. The actual time ofstaydependsontherequirementoftheforeignerandthedecision oftheconsularoffice(thevisaeffectivenessperiodandthetimeof permittedstayare twodifferentthings–thevisamaybevalid for uptotwoyears,whileeverysinglestaymustnotexceed3months; bothdatesarespecifiedinthevisa);theforeignerappliesforthevisa at theconsularofficeandmustdocumentthepurposeofthestay (such as tourism, invitation to visit, short-term employment, sport, cultureetc.);thestaybasedonthe90-dayvisacannotbeextended foraperiod longerthan3months;beforeexpirationof theperiodof permitted stay the foreigner must leave the country – i.e. it is impossibletoenterthecountryonthebasisoftheshort-termvisa and subsequently ask for the long-term visa or for a permit for long-term stay in the country, such applications must again befiledwiththeconsulateoftheCzechRepublicabroad;thecon- sulateusuallygrants thisvisaas theunifiedSchengenvisa,which meansthattheforeigner isentitledtotravelacrosstheSchengen territory as a tourist during the period of permitted stay, not being confinedtotheterritoryoftheCzechRepublic(thevisainthiscasesays “VALIDFORSCHENGENCOUNTRIES”);

OveRvIeW Of TyPeS Of ReSIDenCe PeRmITS

c) Long-term visa (visa for stays longer than 90 days – type D visa)–this visa isappliedforattheconsulateiftheforeignerplanstostayin the territoryofthecountryformorethan3months;eventhoughthe applicationisfiledwiththeconsulate,thedecisionismadebythe AlienPoliceInspectoratehavingpowersintheplaceoftheintended stay.Theforeignermustdocumentthepurposeofthestay;

d) Long-term stay permit – this permit is applied for by a foreigner alreadystayingintheterritoryonthebasisofthelong-termvisa(above 90days)andplanningtocontinuetostayinthecountryformorethan ayearwiththesamepurposeofstay(forexampleitisnotpossibleto holda visa foremploymentpurposesandaskfor long-termstayforthe purposeofbusinessenterprising);theapplicationforlong-termstayis filedwiththeAlienPoliceInspectorateintheplaceoftheforeigner’s residenceinthecountry.Theapplicationmustbefilednotearlierthan 120 days and no later than 14 days before the long-term visa expiration; insomecasestheforeignermayapplyforalong-termstaypermit withoutholdingavisaforstayintheCzechRepublic.Inthiscasethe applicationisfiledwiththeconsulate(thisisforexamplethecaseof applicationforlong-termstayforafamilymember,forthepurposeof study,scientificresearchetc.);

e) exit order – granted by the police in the situationwhen the police refusestograntalong-termstaypermitoritsextension;fortheforeig- nernottostayillegallyinthecountrythepolicegrantstheexitorder forstaywhichmustnotexceed60days(theAlienPolicemayalsodecide foramuchshorterexitorder),thisperiodisgrantedfortheforeigner toarrangeforthenecessarymattersandleavethecountry.


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The above classification of temporary stay permits does not apply to eU citizens and their family members(includingfamilymembersofcitizensoftheCzechRepublic);theActonStayofForeignersstipulatesadifferentmodeforthesecitizens.EUcitizensaskforcertificateoftemporarystay(butmayalsostayintheterritorywithoutthiscertificate)andtheirfamilymem-bersforatemporarystaypermit.

B. Permanent residence permit

A foreignermay ask for a permanent residence permit after stayingin the country temporarily formore than5 years on thebasis of a long-termvisaandlong-termstaypermit.PermanentstayisthemostconvenientmodeofstayinthecountryandguaranteestoitsholdermostrightswithinthesamescopeasiftheforeignerwasaCzechcitizen.Aforeignerholdingapermitforpermanentstayis insuredunderthepublichealthinsurance,may be employedwithout awork permit,may receive social allowancesetc.,butcannotbeamemberofthesecuritycorpsorArmyoftheCzechRepublic,doesnothaveanyvotingrightsandcannotdrawbenefitsarisingfromCRmembershipintheEuropeanUnionwhichisonlyapplicabletoEUcitizensandtheirfamilymembers.


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AforeignerstayingintheCzechRepubliconthebasisofalong-termvisa(above90days)andlong-termstaypermitmustdocumentthepurposeofstay.Therearemorepurposesforstay,however,wewillonlydealwiththoseonthebasisofwhichtheforeignermaybeinvolvedinaprofit-makingactivi-tyinthecountry.

Therearethreetypesofprofit-makingactivitiesofaforeigner:

a)basedonemploymentrelationship, b)basedontradelicencefornaturalperson–self-employedperson,or c)basedonmembershipinabusinesscompanyorcooperative.

A. Purpose of employment

Employment means a legal employment relationship between anemployee and an employer with the subject of a dependent job perfor-mance.Ajobisworkperformedforasuperior/employerbyasubordinate /employee–onthebasisoftheemployer’sinstructions,initsnameandatitsresponsibility.Theemployeereceivesawage,salaryorremunerationforthe job performance. The most frequent type of employer/employeerelationship is basedon employment contract. Another common type isagreementon activity performanceoutside the employment relationship(formoreinformationseepage26).

Thebasiclegislativeactstipulatingtheemployer-employeerelationshipsistheLabourCode(ActNo.262/2006Coll.),foremploymentofforeignersthereisalsotheEmploymentAct(ActNo.435/2004Coll.),stipulatingtheconditionsunderwhichaforeignermaybecomeanemployeeintheCzechRepublic.

TherearetwopreconditionsforaforeignertobeallowedtoworkintheCzechRepublic:

1.avalidworkpermit, 2.avalidpermitforstay.Thegreencardreplacesbothpermits.

SeLeCTeD PURPOSeS Of LOng-TeRm ReSIDenCe

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Fordetailsof theprocedures forobtaining/extensionofaworkpermitand obtaining/extensionofalong-termstaypermitforthispurposeseepages12and15.

ThespecificsofemploymentofforeignersfromthepointofviewoftheEmploymentActwiththepurposeofregulationofentryofforeignerstothejobmarketincludethefactthatemployment also includes situations when the foreigner becomes a member of a legal entity (a business company or a cooperative) and performs tasks arising from the subject of business of the legal entity entered in the Commercial Register.Theselegislativeprovisionsapplybothto“ordinary”partnersandmembersofcooperativesandtoper-sonshavingthecapacityofstatutorybodies,ormembersofstatutorybodiesorotherbodiesofthelegalentity(suchasinthepositionofexecutivedirector,memberoftheboardofdirectors,etc.)–seealso“PurposeofMembershipinLegalEntity”below).

B. Purpose of Business enterprise on the Basis of Trade Licence

Businessenterprise(trade)isasystematicactivityperformedindependentlyof anyemployer, in the trader’sownname, at its own responsibility andfor the purpose of profit making. Unlike an employee, an entrepreneuractsinitsownnameandatitsownresponsibilitywithoutsubordinationtoanyotherentity.Trademaybeperformedbothbyanaturalpersonandbyalegalentity.However,wewillonlydealherewithbusinessenterpriseofnaturalpersons,becauseonlyanaturalpersonmayapplyforavisaorfora long-termstaypermit.Anentrepreneur isdefinedby some legislativedocumentsasaself-employedperson(anothertypeofself-employedpersonisforexampleafarmer,anauthorofacopyrightwork,etc.).

ThebasiclegislativedocumentstipulatingbusinessenterpriseisActNo.455/1991Coll.,onTrades.ApersonnotholdingapermanentresidencepermitintheCzechRepublicisaforeignnaturalpersonfromthepointofviewofthisactwithcertainexceptionsapplyingtoit.

Theabovementionedactclassifiestradestonotifiabletradesandpermit-tedtrades.Thedifferencebetweenthemisthatinthecaseofthenotifiabletrade it isenoughto justnotifyof thetradetotheTradeLicensingOffice(in Czech “živnostenský úřad”) aftermeeting certain conditions, while inthecaseofthepermittedtrade,theentrepreneurmustapplyforgrantofa concession (permitted trades include forexampleproductionof spirits,manufactureofarmsandammunition,etc.;theyaretoospecifictobepartofthesubjecthereof).Thenotifiabletradesarefurtherdividedintovocationaltrade,professionaltradeandunqualifiedtrade,dependingontheexpertiserequiredfortheirperformance.ThelistsofalltypesoftradesareincludedintheAnnexestotheTradesAct.


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Trade performance is subject to the following conditions: a)Ageof18orabove, b)Legalcapacity, c)Integrity, d)Professional or other qualifications (required for vocational trade, professionaltrade,notforunqualifiedtrades).

Whennotifyingofatradeaforeignnaturalpersonmustsubmittogetherwiththefilledoutformthefollowing: a)Criminalrecordclearanceissuedbythecountryofwhichtheforeigner isacitizen, b)Documentprovingprofessionalqualificationsifrequiredbytheact, c)Long-termstaypermit, d)Document of legal reason for use of premises where the place of business is to be located (such as a non-residential premises lease contract,orawrittenconsentoftheowneroftheproperty,apartment ornon-residentialpremises), e)Administrativefeepaymentreceipt(CZK1,000).

Withinfivedaysfromthenotification,theTradeLicensingOfficeissuesanexcerptfromthetradesregister.Theforeigner,unlikeaCzechcitizen,mustalsoberegisteredintheCommercialRegister,thereforeafterreceivingtheexcerpt fromthetradesregistertheforeignermustfileanapplicationforregistrationintheCommercialRegisterwiththecompetentRegisterCourt(thecourtfeeforfilingthisapplicationamountstoCZK5,000).OnlywhentheentrepreneurisregisteredintheCommercialRegisterisitauthorisedtostartitsbusinessunderthetradelicence.Iftheforeignerdoesnotyetholdapermitforstayintheterritoryofthecountryandappliesforalong-termvisa(above90days)forthepurposeofbusinessenterprisethenafterthenotificationofthetrade,theforeignerreceivesaconfirmationthathe/shemeetstheconditionsnecessarytorunatrade,insteadoftheexcerptfromthetradesregister.Thisconfirmationisthenattachedtotheapplicationforthevisa.AfterissueofavisaandarrivalintheCzechRepublicthevisamustbesubmittedtotheTradeLicensingOfficewhichwillissuetheexcerptfromthetradesregistertotheforeigner.OnlyafterthatmaytheforeignerfileanapplicationforentryofthetradeintheCommercialRegister.ThetradelicenceisdocumentedbytheforeignersbyexcerptfromtheTradeLicensingOffice.


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An entrepreneur enters into relationshipswith other entrepreneurs onthebasisofcontractsundertheCommercialCode(ActNo.513/1991Coll.),or into relationshipswithothernaturalpersonson thebasisof contractsundertheCivilCode(forexampleinthecaseofsalesofgoodsorprovisionofservices).Theentrepreneur/foreignerisliableforitsobligationsfromsuchbusinesscontractswithallofitsassets.

C. Purpose of membership in Legal entity

Anotheroptionofprofit-makingactivity isdoingbusinessasamemberofabusinesscompanyorcooperative.Thelegislativeprovisionsconcerninglegalentitiesareincludedinthe Commercial Code(ActNo.513/1991Coll.).TheCodedistinguishesfourtypesofbusinesscompanies–anunlimitedliabilitycompany,alimitedpartnershipcompany,alimitedliabilitycompanyandajoint-stockcompany.Abusinesscompanymaybedefinedasaformofassociationofpersonsforbusinesspurposes.

Everycompanyhasitsmembers–personsparticipatinginthecompanyactivityeitherbytheircapitalsharesorbytheirpersonalactivity(suchasmembersofalimitedliabilitycompany,shareholdersofajoint-stockcompany)–anditsstatutorybodieswith special authorisationswithin the company, such asbusinessmanagementofthecompanyandauthorisationtorepresentthecompanyinrelationtothirdparties–suchasexecutionofcontracts.Statutorybodiesareusuallyappointedfromamongthecompanymembersbutmayalsobeothernaturalpersons.

Foraforeignertoobtainalong-termstaypermitforthepurposeofmem-bership ina legalentity,theforeignercannotbe justamemberbutmustbethestatutory body of the company(suchastheexecutivedirectorofalimitedliabilitycompanyormemberoftheboardofdirectorsofajoint- stockcompany). IfaforeignerisonlyamemberofacompanywantingtotakepartinthebusinessactivityasenteredforsuchcompanyintheCommercialRegister,theforeignermustobtainaworkpermitforthatpurposefromtheLabourOffice(seepage7–A.PurposeofEmployment).Thismemberthenappliesforapermittostayforthepurposeofemployment,notforthepurposeofmembership ina legalentity. If forexamplea limited liabilitycompanyhastranslationsandinterpretingasthesubjectofitsbusinessactivityanditsmemberworksforthiscompanyasatranslator,thenaworkpermit isneededforthispurposetogetherwithalong-termvisa(forabove90days)forthepurposeofemployment.Ifaforeignerisanexecutivedirectorofthecompanyonlyanddoesnotperformtasksarisingfromthesubjectofbusinessactivityofthecompany,thenaworkpermitisnotneededandtheforeignerappliesforastaypermitforthepurposeofmembershipinalegalentity.


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Theabovementionedappliesaccordingly to cooperatives.Cooperativeshaveindividualmembersandthestatutorybodyisthecooperativemanagementboard.Membership inacooperative isnotasufficientreasonforastaypermit for thepurposeofmembership in a legal entity; for this purposeastaypermitmaybegrantedtomembersofthemanagementboardofthecooperativeonly.Ifthesubjectofbusinessactivityofacooperativeincludesforexampleconstructioncompletionworksandamemberofthecooperativeworksforthecooperativeasaconstruction labourerdirectlyonsitethensuch a person needs awork permit for that purpose. Suchmember ofacooperativeappliesforastaypermitforthepurposeofemploymentandnot for thepurposeofmembership in a legal entity. TheemploymentrelationshipsbetweenthecooperativesandtheirmembersaregovernedbytheLabourCode.Thereisaspecificsituationthough,whentheArticlesofAssociationofthecooperativeconditionmembershipinthecooperativebyanemploymentrelationshipofthemembertothecooperative.Insuchcase theArticlesmay stipulate the rulesof this employment relationshipdifferentlyfromtherulesofemploymentrelationshipasstipulatedbytheLabourCode.TherulesdefinedbytheArticles,however,mustnotbelessfavourable for thecooperativemember than therulesstipulatedby theLabourCode.


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Ifyouholdavisaforastayexceeding90daysforthepurposeofemploymentandwanttoapplyforalong-termstaypermityouhavetofileafilledoutapplicationtogetherwiththedocuments stipulatedbySection46(6)oftheActonStayofForeigners.Thesedocumentsinclude: -Decisiononaworkpermitordecisiononextensionofworkpermit, -Passport, -Documentonarrangedaccommodationfortheperiodofstaywithin theterritory, -2photographs. Insomecasesaworkpermitisnotrequiredforworkperformance(seepage28). Inthissituationtheforeignersubmitsanemploymentcontract,agreement toperformwork,or agreement to complete a job, insteadofaworkpermitorextendedworkpermitdecision.

Theapplicationforalong-termstaypermitmustbefiledwiththeAlienPoliceInspectorateno sooner than 120 and no later than 14 days beforeexpirationofalong-termvisa(forastayover90days).

Along-termstaypermitforthepurposeofemploymentisissuedforthevalidityperiodcorrespondingtotheperiodspecifiedinaworkpermit.Bothpermitsarethereforeissuedwiththesamevalidityperiod.

Thevalidityperiodofalong-termstaypermitmaybeextendedrepeatedly.Togetherwiththefilledoutapplicationtheapplicantmustsubmitthesamedocumentsasinthecaseofthefirstapplicationforalong-termstaypermit.Thedeadlineforsubmissionisalsothesame(nosoonerthan120andnolaterthan14daysbeforeexpirationofthelong-termstaypermit).

Thedeadlineforprocessingofanapplicationforalong-termstaypermitis60daysfromthedayoffiling.IfyourapplicationhasbeenfiledwithinthestatutorydeadlineandtheAlienPoliceInspectoratehasnotdecidedaboutyour application before expiration of your visa/permit for stay then yourvisa/permitforlong-termstaywillbedeemedvaliduntillegalforceofthedecisionaboutyourapplication.

TheAlienPoliceInspectoratechargesanadministrativefeeforalong-termstaypermitoritsextensionintheamountofCZK1,000.

LOng-TeRm ReSIDenCe PeRmIT fOR The PURPOSe Of emPLOymenT AnD ITS exTenSIOn


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Thegreencardisaspecificpermitforlong-termstayallowingforeignersfromselectedcountriestoobtainapermitforstayinaneasierway;i.e.insteadoftwopermits(workpermitandvisaforover90days/ long-termstaypermit)theforeigneronlyappliesforasinglepermit−thegreencard.Thelistofcoun-trieswhosecitizensmayobtainthegreencardisdeterminedbyDecree of the ministry of the Interior of the Czech Republic no. 461/2008 Coll.(thelistincludestwelvecountries,includingforexampleUkraine).Aforeignerholdingagreencardmayapplyonlyfor a job registered in the central register of jobs available for green card holders.Thisregister,keptbytheMinistryofLabourandSocialAffairs,includeseveryvacancynotoccupiedwithin30daysfromitsreportingbytheemployer.Inclusioninthisregister,however,issubjecttotheconsentoftheemployer, i.e. itswillingnesstoalsoemployaforeignerinthepositioninquestion.

There are three types of green card: a) Green card for qualified workers with university education and key personnel–type“A”, b)Green card for workers in jobs with a minimum educational requirement–type“B”, c) Greencardforotherworkers–type“C”.

Theapplicationforalong-termstaypermitinthegreencardmodeisfiledwiththerelevantCzechconsulateabroadwhoforwardstheapplicationtotheCzechMinistryoftheInteriorfordecision.Insomecasestheapplicationforthegreencardmaybefileddirectly with the ministry of the Interior(i.e.notviatheconsulate).Thefollowingconditionsapplyinthiscase: a)TheforeignerisalreadystayingintheCzechRepublicinthegreencard mode and its employment was terminated by notice for one of the reasonsstipulatedunderSection52a)−e)oftheLabourCode,orby agreement for the same reasons, or by immediate cancellation pursuanttoSection56oftheLabourCode(fortheindividualreasonsfor employmentterminationseepages36,38,39).

LOng-TeRm ReSIDenCe PeRmIT fOR The PURPOSe Of emPLOymenT In SPeCIAL CASeS – gReen CARD


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b)The foreigner has stayed in the country for at least a year and wantstoapplyforanothergreencardforanotherjob. c) The foreigner has stayed in the Czech Republic for at least two yearsonthebasisofalong-termvisa(above90days)orlong-term staypermitforanotherpurpose.

The application must be submitted with: -Passport, -2photographs, -Proof of the required education and professional qualifications for theselectedjob, -Onrequestamedicalreportconfirmingthattheapplicantdoesnot sufferfromanyseriousdisease.

Thetype“A”cardisissuedforamaximum3yearvalidityperiod,while“B”and“C”cardsareissuedforamaximumof2years.

Ifyoustayinthecountryonthebasisofalong-termvisaforover90daysfor thepurposeofbusinessenterpriseandwanttoapply fora long-termstaypermit,youmustsubmitthefilledoutapplicationplusthedocumentsrequiredbySection46(8)oftheActonStayofForeigners.Thesedocumentsinclude: -Excerpt from the trades register (formerly the trades certificate), -Confirmationof the tax officeon the status of your tax in arrears, -Confirmation of the social security administration of non-existence of premium in arrears for the purpose of social security and state employmentpolicycontribution, -Passport,

-Proofofsufficientfundsforstayinthecountry–theamountofthese funds is stipulated as 50 times the amount of the subsistence minimum (CZK 2,020; may be subject to change in the future). The documented amountmust therefore be at least CZK 101,000. You can prove existence of the amount either by presenting the cash, abank account statementor a valid internationally accepted creditca rd, -Documentofarrangedaccommodationfortheperiodofstayinthe country, -2photographs, -Documentoftravelinsurance.


LOng-TeRm ReSIDenCe PeRmIT fOR The PURPOSe Of BUSIneSS enTeRPRISe AnD ITS exTenSIOn

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Ifyoustayinthecountryonthebasisofalong-termvisaforover90daysforthepurposeofbusiness enterprise in the form of membership in a legal entity,thenyoumustfiletheapplicationtogetherwithanexcerptfromtheCommercialRegisterprovingthatyouareinthepositionofastatutorybodyofthelegalentity(partnertoanunlimitedcompany,generalpartnertoalimitedpartnership,executivedirectorofalimitedliabilitycompany,memberoftheboardofdirectorsofajoint-stockcompany,memberofmanagerialboardof acooperative),yourpassport,your funds intheamountsufficient foryourstayinthecountry,adocumentofarrangedaccommodationfortheperiodofstayinthecountry,2photographsandacertificateoftravellersinsurance.

Along-termstaypermitforthepurposeofbusinessenterpriseisissuedwithavalidityperiodoftwoyears.

Thevalidityperiodofalong-termstaypermitmaybeextendedrepeatedly.Togetherwiththefilledoutapplicationtheapplicantmustsubmitthesamedocumentsasinthecaseofthefirstapplicationforalong-termstaypermit.

Thedeadline for theapplicationfiling, thedeadline for theapplicationprocessingandtheadministrativefeearethesameasinthecaseofalong-termstaypermitforthepurposeofemployment.

WORk PeRmIT AnD ITS exTenSIOn

AworkpermitisoneoftheconditionsforlegitimateworkingintheCzechRepublic.Workpermits are issuedby the labouroffices relevant to theplace of the job performance(forexampleifyouwanttoworkinthecityofKladno,yourapplicationwillbeprocessedbytheLabourOfficeinKladno,evenifyouhavereportedresidenceinPragueoryouremployer’sregisteredseatisinOstrava).

Aworkpermitisonlyissuedforoneparticularjob.Ifyouwanttochangejobyoumustapplyforanewworkpermit.Togetherwiththeapplicationforaworkpermittheforeignermustsubmit: -Astatementofwillingnessoftheemployertoemploytheforeigner (theformisavailableattheLabourOfficeoryoucandownloaditfrom the Internet – the Integrated Portal of the Ministry of Labour and SocialAffairson: http://portal.mpsv.cz/sz/zahr_zam/tiskopisy;thisformmustbesigned byyouremployer), -Documentsofprofessionalqualifications(thisdoesnotapplytojobs forwhichnospecificprofessionalqualificationsarerequired), -Otherdocumentsifitarisesfromthenatureofthejob.


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TheLabourOfficemayissueaworkpermitforareportedjobvacancy(i.e.avacancyreportedbytheemployer)thatcannotbefilledbyaCzechcitizen(orcitizenofanotherEU/EEAmemberstateorSwitzerland)forthereasonoflackofapplicantswiththerequiredqualificationsorasmallnumberofvacancies.ThedecisionoftheLabourOfficeisthereforebasedontheconsiderationofthelabourmarketsituation.ExceptionsfromthisprocedurearestipulatedintheEmploymentAct(Section97).

Whenapplyingforanextension ofaworkpermit,theforeignermustsubmittheemployer’sstatementthatitiswillingtocontinuetoemploytheforeignerintheposition.Theforeignermayapplyforanextensionofaworkpermitnosoonerthan3monthsandnolaterthan30daysbeforeexpirationofanexistingworkpermit.

PursuanttotheEmploymentActaworkpermitmaybeissuedforuptotwoyears. In thisperiodofglobaleconomiccrisis labourofficescurrently issueworkpermitsforamaximumofoneyear.

TheadministrativefeeforfilinganapplicationforaworkpermitamountstoCZK500.TheadministrativefeeforfilinganapplicationforaworkpermitextensionamountstoCZK250.

Cases inwhichaworkpermit for jobperformancebya foreigner isnotrequiredarestipulatedbytheEmploymentAct(Section98–seepage28).

Labourofficesareboundby the relevant legislation toprovideadvisory,informationandotherservicesintheemploymentarea.Thereforeyoushouldobtainallneededinformationthere.Inthecaseofneedyoucanalsocontactthenon-governmentalorganisationsprovidingfreeadvisoryservices.


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you work in the Czech Republic as an employee (with a long-term stay permit for the purpose of employment). you would like to start a business in addition to your job but you are not sure of the procedure. you heard that you need to apply for another long-term stay permit.

no, you do not need to apply for a new long-term stay permit in this situation.

Ifyouarestayinginthecountrywithastaypermitforacertainpurpose,youareobligatedtofulfilsuchpurpose(ifthepurposeofyourstayisemploymentyoumustbeemployed,orifthepurposeofyourstayisstudiesyoumuststudy).Ifyoufailtofulfilthepermittedpurposeofstayyouriskcancellationofyourstaypermit.TheActonStayofForeigners,however,doesnotpreventyoufromdoingotherthingsinadditiontoyourmainpurposeofstay(forexampleyoucanrunabusinessorstudyinadditiontoworkingasanemployee).Onlyin cases when you do not intend to fulfil the original purpose for which you obtained your stay permit, you must apply with the Alien Police Inspecto-rate before expiration of your existing long-term stay permit for a new stay permit for another purpose.

Formoreinformationaboutasituationwhereyoudonotwanttofulfiltheexistingpurposeofyourstayinthecountryandwanttochangeitseethefollowingchapter.

SOLUTIOn:

Asmentionedabove,youarenotpreventedfromperformingotheractivitieswhilefulfillingyourpresentpurposeofstay,ifyoumeettherequirementsfortheseactivitiesstipulatedbyspeciallegislation.Ifthereforeyouarepermittedalongtermstayinthecountryforthepurposeofbusinessenterpriseandwanttoworkasanemployeeatthesametimeyoumustapplyforaworkpermitandviceversa.

QuestionsandAnswers–ResidenceIssuesOPTIOn Of PeRfORmAnCe Of OTheR ACTIvITy In The COnTexT Of The ORIgInAL PURPOSe Of STAy – mORe

PURPOSeS fOR STAy

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you are staying in the country on the basis of a long-term stay permit for the purpose of employment. In the course of that time your husband has met the condition of five years of uninterrupted stay and has been granted a permanent residence permit. Can you then apply to

the Alien Police Inspectorate for a new long-term stay permit for the purpose of family reunification?

yeS, this procedure is possible.

Aforeignerplanningtostayinthecountryforareasonotherthanthatforwhichitspermitforlong-termstaywasgrantedisobligedtoapplytotheAlienPoliceInspectorateforanewpermitforlong-termstay.Theforeignerisinthiscaseobligedtosubmittheapplicationwithalldocumentsrequiredasastandardforthispurpose. If forexampletheforeignerrunsabusinessandwantstostartworkasanemployeeinsteadthenthedocumentslistedonpage12mustbesubmitted.

Certain limitations apply to the change of purpose of stay in the case of family reunification,whenaforeignerstayinginthecountryasanotherforeigner’sfamilymembermayonlyapplyforanotherpurposeofstayafterelapseofthespecifiedperiodoftime. Aforeignerwithpermittedlong-termstayforthepurposeoffamilyreunificati-onmayapplyforapermitforthelong-termstayforanotherpurposeafter 3yearsofstayinthecountryorwhenreachingtheageof18.Ifaforeignerstaysinthecountryforthepurposeoffamilyreunificationandthememberofthefamilywithwhomheorshestaysinthecountrydiesthenthesurvivingforeignermayapplyforalong-termstaypermitforanotherpurposeifheorshehasstayedinthecountryforatleast2yearsastothedateofthefamilymember’sdeathorinthecaseofdeathasaconsequenceofanoccupationalinjuryordisease. Ifaforeignerstaysinthecountryforalong-termforthepurposeoffamilyreunificationthenheorshemayapplyforalong-termpermitstayforanotherpurposealsointhecaseofdivorcewiththeholderoffamilyreunificationentitlement,provided thatheor shehasstayed in thecountry forat least 2yearsandthemarriagelastedatleast5years.

QuestionsandAnswers–ResidenceIssuesChAnge Of PURPOSe Of STAy

19

QuestionsandAnswers–ResidenceIssues

ChAnge Of PURPOSe Of STAy

For theabovespecificcasesof family reunification, the foreignermustsubmitwithitsapplicationthefollowing:

-Passport,adocumentconfirmingfulfilmentoftheaboveconditions, -Documentofarrangementofaccommodationinthecountry, -Document of sufficiency of funds for stay in the country or a work permit, -Certificate of travel insurance for the period of stay in the country, and -2photographs.

SOLUTIOn:

Withinthevalidityperiodofanexistingpermitforlong-termstayapplyforanewpermitwithanotherpurposeandsubmitthedocumentsstipulatedbylawforthispurpose.Thepoliceshouldnotcancelyourpreviouspermitunlessyouapplyforityourselforunlessanadministrativeproceedingprovesthatyounolongerfulfilthepermittedpurposeofstay.

20

QuestionsandAnswers–ResidenceIssuesRePORTIng Of ChAngeS Of PLACe Of ReSIDenCe AnD

OBLIgATIOnS Of LAnDLORD

you have rented an apartment and want to stay there during your stay in the country but your landlord has prohibited you to report this place of residence to the Alien Police Inspectorate. Is he entitled to do so?

no, he is not.

Oneoftheobligationsofaforeigneristoreporteverychangeofhisorherplaceofresi-dencetotheAlienPoliceInspectorate.Ifaforeignerchangestheaddressofhisorherplaceofresidenceheorshemust report the change to the Alien Police Inspectorate within 30 days from the change if the assumed change ofplaceofresidenceistolastformorethan30days. ThechangeisreportedtotheAlienPoliceInspectoraterelevanttothenewresidenceoftheforeignerbyfillingouttheformforregistrationofplaceofresidence.OnrequestoftheAlienPoliceInspectoratetheforeignermustsubmitdocumentsprovingcorrectnessofthereporteddata–i.e.theleasecontractoraconfirmationofaccommodationsignedbytheowneroftheapartmentinwhichtheforeignerisgoingtostay. Itmayhappenthatthelandlordrefusestosigntheconfirmationofaccommodation,ortheleasecontractincludesaprovisionthattheforeigner/tenantmaynotreporttheleasedapartmentastheplaceofhisorherresidencetothepolice.TheActonStayofForeigners,however,stipulatesthatthe accommodation provider isobligedtoissueaconfirmationofaccommodationonrequestbyatenantfromaforeigncountrywithspecificationoftheperiodforwhichtheaccommodationisprovided(Section107(2)oftheActonStayofForei-gners).IftheaccommodationproviderrefusestoissuetheconfirmationofaccommodationonrequestbytheforeigntenantthenitcommitsanoffenceforwhichitmaybefineduptotheamountofCZK50,000(Section157a(2e)oftheActonStayofForeigners).Anac-commodationprovider,however,isonlyapersonprovidingaccommodationonthebasisofanaccommodationcontract,aleasecontract,asubleasecontractorasimilartypeofagreement.

SOLUTIOn:

Pointouttheabovementionedobligationtoyour landlordand inform itaboutthepossibilityofafinebytheAlienPoliceInspectorateinthecaseofitsfailuretomeetthisobligation.However,ifyoustayinanapartmentforwhichyouhavenotsignedanyleaseorsimilarcontract,thelandlordisnotconsideredanaccommodationproviderintermsoftheActonStayofForeignersandisnotobligedtoissuetheconfirmationofaccommodati-on.Itisthereforeinyourinteresttoexecuteawrittenleaseorsimilarcontractinanycase.Reportingachangeofplaceofresidencedoesnotrequireanexcerptfromthelandregister.Thepolicewillverifyownershipoftheapartmentinthelandregisterbyitself. It isvery importanttoactuallyreportanychangeofyourplaceofresidencetotheAlienPoliceInspectoratetoavoidpotentialfuturecomplications.Ifyoufailtomeetthisobligation,theAlienPoliceInspectoratewillnotbeabletodelivernotificationstoyouractualaddress(notknowingit)andyoumayforexamplemisstheinformationthataproceedingwascommencedconcerningyourstayandthereforemissthepossibilitytoexpressyourstandpointtothematterandtoapplyyourstatutoryrights.

21

QuestionsandAnswers–ResidenceIssuesCOnSeqUenCeS Of ILLegAL STAy

you have not managed to extend your work permit (you only signed an employment contract for a definite period with your current employer and you could not find another job) and therefore your long-term stay permit has not been extended either and now you stay illegally in the

country. Is it possible to legalise the illegal stay additionally and later on to ob-tain another permit for stay?

nO, as a rule this is not possible.

IfyoustayintheCzechRepublicafterexpirationofyourpermitforstay,yourfurtherstayinthecountrybecomesillegal.IftheillegalstayisdiscoveredbytheAlienPolice,thenthepolicecommenceproceedingsconcerningissueofadecisiononadministrativeexpulsionfromthecountry.Theissueofthedecisiononadministrativeexpulsionmeansthatyourstayinthecountryisterminated,youmustleavethecountryandyouaregivenaperiodforwhichyoucannotreturntotheCzechRepublic.Inthecaseofillegalstaythisbanmaybestipulatedforuptothreeyears(thisisthemaximumlengthandthepoliceshouldobservetheprinci-pleofadequacy:forexampleforacoupleofdaysofillegalstaythebanshouldnotbegrantedforthemaximumperiodofthreeyears;butifyouatthesametimeworkwithoutaworkpermitthenthebanmaybeextendedtouptofiveyears). Ifarecipientofadecisiononadministrativeexpulsiondoesnotrespectthedecisionandcontinuesitsstayinthecountrythenthepolicemayissueanotherdecisiononexpulsion(withthebanofreturntothecountryforuptotenyears).Inextremesituationsthemattermaybedecidedbyacourtincriminalproceedingsandtheforeignermaybeconvictedofthecrimeofthwartinganofficialdecisionandreceiveasentenceofbanishment. AstheCzechRepublichasbecomeamemberoftheSchengenagreement,thisdecisionmayhaveanothernegativeconsequenceforthedeportedforeigner–iftheforeignerisenteredintheSchengeninformationsystem,thenheorshewillnotgetavisaforanyotherSchengencountry.WhenevertheAlienPoliceInspec-toratediscoversanillegalstayitalwaysdecidesaboutexpulsionwiththeexcepti-onofasituationwhenthedecisiononadministrativeexpulsionwouldrepresentinadequateinterferencewithprivateandfamilylife(forexampletheforeignerhasestablishedstrongfamilyties inthecountry, i.e.hisspouseandchild(ren)alsohavepermanentresidenceinthecountry)–seeSection119a(2)oftheActonStayofForeigners.

SOLUTIOn:

ThesooneryoucometotheAlienPoliceInspectorate,thesmallertheriskof expulsionforthewholethreeyears.

22

you were an employee of a Czech company and on that basis you were insured in the context of the public health insurance system. you have decided to apply for a new permit for long-term stay for the purpose of business enterprise and you have terminated your employment after you were issued the permit. The validity of the health insurance card

will expire in six months as shown on the card. Is this card really still valid until that date?

no, termination of your employment has terminated your health insurance too and you are obliged to return the health insurance card to the health insurance company.

Oneoftheobligationsofaforeignerstayinginthecountryistobeabletoproveassuranceofpaymentofhisorherhealthcare inthecontextofaresidentialinspection.Thisisusuallyprovedbyacertificateofhealthinsurance.Onlyforeignersholdingapermanentresidencepermitandforeignemployeesholdingalong-termstaypermitareinsured in the context of the public health insurance scheme (liketheCzechcitizens),otherforeignerswithalong-termstaypermitmusttakeoutprivate(socalled“commercial”)healthinsurance.

Ifyouareanemployeeholdinga long-termstaypermit inthecountry,your employment is reported to the health insurance company by youremployerwhoalsopaysyourmonthlyhealthinsurancepremiumsforyou.Youreceiveagreenhealthinsurancecardfromthehealthinsurancecompanytoproduceateveryvisit toadoctororhospitalisationandtoreceivethesamecareunderthesameconditionsasanyCzechcitizen.Uponterminationofyouremploymentyouremployernotifiesthehealthinsurancecompanyandyouareobligedtotakeoutcommercialhealthinsurance.Thismayoccurforexamplewhenyouchangeyourpurposeofstayintheterritoryandbecomeanentrepreneurinsteadofanemployee.

The private health insurance schemecoversa smaller scopeofhealthcarecostsincomparisontopublichealthinsurance.Anotherdisadvantageof private health insurance is that the premiummust always be paid foracertainperiodinadvance(asaruleforatleastsixmonthsinadvance).

QuestionsandAnswers–ResidenceIssuesheALTh InSURAnCe ISSUeS

23

QuestionsandAnswers–ResidenceIssues

heALTh InSURAnCe ISSUeS

Privatehealth insurancemust alsobe arranged for personswith a long-termstaypermitforthepurposeoffamilyreunificationlivingwithapersonwithpermanentresidenceorapersonwithalong-termstaypermitwhoisanemployee.Thehealthinsuranceofthispersoninthecontextofpublichealthinsurancehasnoeffectonthehealthinsuranceoftheperson’sfamilymem-bers.Ifforexampleanemployeewithalong-termstaypermitgivesbirthtoachildthenthechildwillnotautomaticallybeinsuredbythepublichealthinsurancepolicyandthemothermusttakeoutcommercialhealthinsuranceforthechild.

Since1January2010,commercialhealthinsurancemustbetakenoutwithan insurance company authorised to provide commercial health insuranceservicesintheCzechRepublicpursuanttotheInsuranceAct.TheinsurancecompaniesactiveintheCzechRepublicandlegallyofferinghealthinsuranceforforeignersincludebutarenotlimitedtothefollowing:

-Maximainsurancecompany -InsurancecompanyVZP -Slaviainsurancecompany -UNIQAinsurancecompany -VICTORIAVOLKSBANKENinsurancecompany

SOLUTIOn:

Your public health insurance is terminated when you terminate youremploymentandyouareobligedtoreturnyourhealthinsurancecardtotheinsurancecompanywithineightdaysfromthetermination.Fromthenonyouareobligedtotakeoutcommercialhealthinsurance.

24

QuestionsandAnswers–ResidenceIssues STAy Of A ChILD BORn TO fOReIgneRS In The CzeCh

RePUBLIC

If I give birth to a child in the Czech Republic, does the child automa-tically obtain any type of permit for stay?

The child may obtain the same permit for stay as you, however not automatically. you must apply for a permit of stay for your child within 60 days from its birth. Aparentholdingalong-termstaypermitinthecountryisobligedasthelegalrepresen-tativeofitschildtoapplyforalong-termstaypermitforthechildwithin60daysfromitsbirth.Forthatperiodthestayofthechildinthecountryisdeemedtemporary.Iftheparentfailstofiletheapplicationforapermitofstayforitschild,thestayofachildolderthan60daysinthecountrybecomesillegal.Iftheparentispreventedfromfilingtheapplicationbycircumstanceswhichheorshecannotcontrol(suchaslong-termhospitalisation)thentheparentisobligedtoinformthepoliceaboutthesecircumstanceswithoutunduedelay.Inthatcasetheparentmayfiletheapplicationforapermitofstayforthechildwhenthereasonforthedelayceasestoexist(forexampleafterreleasefromhospital),evenafterexpirationofthe60daydeadline. Aparentnotmeetingitsobligationtofiletheapplicationforapermitofstayforitschildriskscancellation of its long-term stay bytheAlienPolice. Inthecaseofholdingapermanentresidencepermit,theparentmayaskforapermanentresidencepermitforitschildtoo.

SOLUTIOn: Thebirthregistryinwhosedistrictthechildwasbornissuesthebirthcertificateofthechild.Afterthatyoumustreporttotheembassyofthecountryofthechild’scitizen-shiptoreceivethechild’spassportorhavethechildenteredintheparent’spassport.Iftheparentdoesnotapplyforpermanentresidenceforitschild(himselforherselfonlyholdingalong-termstaypermit)thenitisliabletotakeoutcommercialhealthinsuranceforthechild.Thefactofhealthinsuranceofthemotherdoesnotautomaticallymeanhealthinsuranceofherchild.Aseparatehealthinsurancemustalwaysbetakenoutforthechild.AfterthattheparentvisitstheAlienPoliceInspectoraterelevanttotheplaceoftheparent’sresidence(orthelocallypertinentofficeoftheMinistryoftheInteriorinthecaseofapplicationforpermanentresidence)whereanapplicationformforapermitofstayforthechildmustbefilledout.

Theapplicationmustbefiledbytheparenttogetherwith: -Thechild’sbirthcertificate, -The child’s passport (or the parent’s passport in which the child is entered), -Adocumentoftravelhealthinsuranceofthechildforthewholeperiodofstay in the countryor anaffidavit that theparent is prepared to cover all costsof health care provided to the child (not required in the case of application for permanentresidence.Iftheparentappliesforapermanentresidencepermitfor thechildthenthestayofthechildinthecountryfromitsbirthtothelegalforce ofthedecisionontheapplicationforpermanentresidenceisdeemedperma- nentandthechildisinsuredbythepublichealthinsurancesystemforthatperiod).

25

QuestionsandAnswers–LabourLawIssuesTyPeS Of emPLOymenT ReLATIOnShIPS

your potential employer has offered you a short term job (in Czech “brigáda”) for which, according to your employer, you do not need a work permit or an employment contract. Is it true?

nO, it is not.

The Labour Code stipulates that the so called dependentwork (for the definitionofdependentworkseepage6)mayonlybeperformedunderthetermsof anemployment relationship. Thebasicemployment relationshipsareemploymentandlegalrelationsbasedonquasiemploymentagreements.

Employment is a contractual relationship between an employee andits employer established by an employment contract. There are also twoothertypesofcontractsinrelationtoworkexecutedoutsidetheemployer-employeerelationship.Oneisanagreementtoperformworkandtheotherisanagreementtocompleteajob.If an employee performs any dependent job for an employer, he or she must enter into one of the three types of contracts mentioned above.

TheCzechlabourlawdoesnotusetheterm“brigáda”.Incommonlanguagethiswordmeansanyshort-termjob(forexamplestudentsworkingduringtheirsum-merholidays)orasecondaryjobperformedinadditiontoprincipalemploymenttoearnextramoney.Thesecasesarecoveredbyanemploymentcontractexecu-tedforadefiniteperiodorbyoneofthetwoagreementsmentionedabove. Anagreementtocompletea jobmaybeoralbuteveninsuchcaseawork permitforforeignersisrequired.

SOLUTIOn:

Unlessyouholdapermanentresidencepermitoranyoftheexceptionsnotrequiringaworkpermitappliestoyou(seepage28),youneedaworkpermitforanyjobyouwanttoperform.Youriskconsiderablepenaltiesifyouworkillegally(seepage27).

SometimesyouremployermaytellyouthatyoucanstartworkandhewillarrangeforalltheformalitiesattheLabourOffice.Howeverthismightnotalwaysbetrue.Ifyouauthoriseyouremployertoobtainyourworkpermitforyou,asktheemployertosubmittheworkpermittoyoubeforeyoustartworkandinsistonit.

26

QuestionsandAnswers–LabourLawIssuesWORk BASeD On qUASI emPLOymenT AgReemenTS

your employer concludes an agreement to complete a job with you for 150 hours of work but orally agrees with you that you will be employed for three months and work as if under an employment contract (which in fact means that you will work more than 150 hours). Is such a procedure in compliance with the law?

no, it is not, such a procedure contra-venes several legislative regulations. Quasi employment agreements are usually concluded when the employerneeds a small-scope of work to be performed. On the basis of an agreement to perform work you can perform work not exceeding half the regular workinghours per week. Therefore agreements to perform work may only be concluded for a maximum twenty working hours per week.Theagreementmustbeexecutedinwritingtobevalid.Onecopyoftheagreementmustbegivenbytheemployertotheemployee.Theagreementmustdefinethetypeofwork,workinghours(forexample20hoursperweek)andtheperiodforwhichtheagreementisconcluded.Unlessother-wisestipulatedtherein,theagreementmaybecancelledwithoutgivingareasonforthecancellationwitha15-daynoticeperiod.Theremunerationforworkperformedun-dersuchagreementissubjecttothesame health and social insurance levies as in the case of regular wages. The same applies for taxation. An agreement to complete a job maynotexceed150hourspercalendaryearwiththesameemployer.Thestrictlimitationisgivenbythefactthatthistypeofagreementdoesnotconstituteparticipationinhealthandsocialinsurance;thewageisonlysubjecttoincometaxintheamountof15%.Thelimitationonlyappliestooneemployer.Theemployeemayenterintomoreagreementstocompleteajobwithmoreemployersandworkforthewhole150hoursperyearwitheachofthem.TheLabourCodedoesnotrequireawrittenformforthistypeofagreementbutitisalwaysbettertoexecutetheagreementinwriting.

SOLUTIOn:

Donotaccept theemployerproposedprocedure.Employers sometimes relyonthefactthatitisdifficulttoprovethenumberofhoursactuallyworkedbyyoufortheemployerandthatitexceedsthepermitted150hoursayear.Furthermore,yourworkforthisemployerinexcessofthepermitted150hoursayearmightbeconsideredillegalwork.Theemployerevadesthelawbythisproceduretosaveyourhealthandsocialins-urancelevies.Hemayalsoleaveyourworkinexcessofthecontracted150hoursayearunpaid,andyoumightfinditdifficultinthatcasetoenforcepaymentofthewageasitwouldbedifficulttoprovethatyouhaveactuallyperformedtheworkyouclaim.

27

QuestionsandAnswers–LabourLawIssuesRISkS Of ILLegAL WORk

you are looking for a job and an owner of a company offers you one but without an employment contract. This, the employer tells you, will be very convenient for you – you will receive extra money that the employer would otherwise have to pay for you as your levies for your tax and insurance liabilities. What risks are entailed?

The abovementioned procedure contra-venes several legislative regulations and if discovered you are at risk of considerable penalties.

TheEmploymentActdistinguishesbetween two typesof illegal (“black”)work. Eithertheemployeeworkswithoutanyemploymentrelationshiporanothercontract(suchasacontractforworkoramandatecontract)–thismayalsoapplytoCzechciti-zens–orworkswithoutavalidworkpermitorincontradictiontoit,whichonlyappliesto foreigners.A foreignerworkingwithoutanycontractedemploymentrelationshipusuallydoesnothaveaworkpermiteither,thuscommittingbothtypesofoffencesdefinedasillegalwork.

IfaLabourOfficeorcustomsofficeinspectionfindsoutthataforeignerperformsil-legalwork,theLabourOfficemaychargeapenaltyuptotheamountofCZK10,000.Aconsiderablyhigherpenalty(uptoCZK5million)maybechargedonemployersper-mittingillegalwork.TheamountofthepenaltyisdecidedbytheLabourOfficeanddependsforexampleonthescopewithinwhichtheillegalemploymentsareimple-mented.

HigherpenaltiesmaybechargedonforeignersworkingillegallybytheAlienPolice,forpursuanttotheActonStayofForeignersaforeignermaybedeportedfromthecountryforuptofiveyearsforperformanceofillegalwork.

SOLUTIOn:

Neveracceptanofferforajobwithoutanemploymentcontractandtherequiredworkpermit.Ifyoualreadyworkillegally,trytofindalegaljobassoonaspossible. Forcontrolactivityofthelabourofficesseepage46. As for penalties charged on employersforemployingworkersillegallypleasenotealsoSection342of thenewCriminalCode,pursuant towhichanemployer largelyprovidingorprocuringjobstoforeignersstayingillegallyintheCzechRepublic,ornotholdingappropriateworkpermits, istobesentencedtoimprisonmentforuptosixmonths,forfeitureofathingoranotherasset,orprohibitionofprofessionalactivity.Iftheemployerconsiderablyenrichesitselfbythisillegalactivitythepunishmentmayamounttoimprisonmentforsixmonthstothreeyears.

28

QuestionsandAnswers–LabourLawIssuesWhen A WORk PeRmIT IS nOT ReqUIReD

you stay in the country for the purpose of family reunification with a person holding a permanent residence permit. you have found a potential employer but the employer insists on your having a work permit from the Labour Office as a person without permanent residence in the country.

nO, a work permit need not be applied for in this and another couple of cases. TheEmploymentActlistsgroupsofpersonswhoneednotapplyforaworkpermit(Section98).Aworkpermitisnotrequiredespeciallyfrompersons with permanent residence, asylum or additional protection, and some other foreigners, including for example: 1.Secondary school students,studentsofconservatory,schoolofhighereducation or languageschoolwiththerighttostate languageexamination,andfull-time studentsofuniversitiesandcolleges, 2.Foreignerswhoacquired secondary or university educationintheCzechRepublic, 3.ForeignersstayingintheCzechRepublicbasedonalong-termresidencepermit for the purpose of family reunification with a person holding a permanent residence permit or asylum, 4.Foreigners whose work in the Czech Republic does not exceed 7 consecutive calendar days or in total 30 days in a calendar year it they are performing artists,teachers,academicworkers,scientistsorresearchworkerstakingpartin ascientificcongress,pupilsorstudentsunder26,athletes,orpersonswhoprovided supplies of goods and services or distribute or assemble such goods underabusinesscontract,orperformwarrantyandrepairworks intheCzech Republic, 5.ForeignersstayingintheCzechRepublicon the basis of a long-term residence permit for another eU member State resident for the purpose of employment if more than 12 monthshaveelapsedfromissueofthepermit.

Ifyouareasecondaryschoolstudentorafull-timestudentatauniversityorcollegeandwanttoearnextramoneyinthecourseofyourstudiesyoucanworkwithoutaworkpermit.ThesameappliesifyoucompleteyourstudiesintheCzechRepublicandthenwanttostayinthecountryandworkintheprofessionyouhavestudied(however,youmustchangeyourpurposeofstayfromstudytoemployment).

SOLUTIOn:

IfyouremployerinsistsonemployingyouonlyifyouhaveaworkpermitthentellhimabouttheabovementionedprovisionoftheEmploymentAct.This informationmaybeverifiedbytheemployeratthelocalLabourOfficeoronthewebsiteoftheMinistryofLabourandSocialAffairsoftheCzechRepublicon:http://portal.mpsv.cz/sz/zahr_zam/zz_zamest_cizincu/zz_zvlastni. TheonlyobligationoftheemployertowardstheLabourOfficeinthatcaseistoin-formtheLabourOfficeaboutemployingaforeigner,withouttheneedofanyotherformalities.

29

your employer has concluded an employment contract with you but did not enable you to read the contract before its execution and did not give you any copy of the executed contract saying that you may lose the contract and that it will be safe with him. Is such a procedure in compliance with the Labour Code?

nO, this procedure is not Ok.

Anemploymentcontractisthemostcommonwayofestablishmentofanemploymentrelationshipbetweenanemployeeanditsemployer(anemploy-ment relationshipmayalsobeestablishedbyappointmentbutonly in thecaseofcertaintypesofmanagerialpositions).Theemploymentcontractmust be executedinwritingandmustincludeat least the following data: -Jobdescription(suchas“shopassistant”,“driver”,), -Placeofwork(suchas“Prague,Letenskénáměstí5”), -Dayofcommencementofwork(thefirstdaytheemployeecomesto work). Theemploymentcontractusuallyincludesmoredatabuttheabovearetheminimumdatarequiredforanemploymentcontracttobedulyexecuted.Employmentcontractsusuallyalsoincludethefollowingdata: -Whether the employment contract is executed for a definite or indefinite period Ifthisdurationperiodisnotspecifiedinthecontractthenthecontractisdeemedtohavebeenexecutedforan indefiniteperiod.Therearecer-tainlimitationsapplicabletoemploymentforadefiniteperiod–seebelow. -Whethera trial periodhasbeenagreed The employer may agree with the employee in writing that a certain period at the beginning of the employment will be a trial period. This agreement is usually included in the employment contractThe trial period must be agreed before the employment starts (it cannot be agreed later after the employee has already started work). The trial period may not exceed three months. The main purpose of the trial period is that while the trial period is in progress both the employer and the employee may withdraw from the executed employment contract for any reason or without giving a reason for the withdrawal. With-drawal from the employment relationship must be notified of to the other partyinwritingatleast3daysbeforetheemploymenttermination. -Whethertheemployeewillbesentonbusiness trips Theemployeecannotbesentforabusinesstripoutsidetheplaceofworkwithoutagreementwiththeemployeetothateffect. -The length of paid holidaytowhichtheemployeewillbeentitled

QuestionsandAnswers–LabourLawIssueseLemenTS Of An emPLOymenT COnTRACT

30

QuestionsandAnswers–LabourLawIssueseLemenTS Of An emPLOymenT COnTRACT

-Whether the Ban of Competition Clause will be included in the contract The employee may agree to refrain from an identical work performance for another employer for a certain period after the employment termination (not longer than one year). The employer mayinturn agree to compensate the employee financially until the end of that period in the amount of at least the average monthly earnings of theemployeewiththeformeremployer. -Theemploymentcontractusuallyalsostipulatesthewage.

employment Contract for Definite Period Thelengthofemploymentforadefiniteperiodmustnotexceed2yearsfromthedateoftheemploymentcontractexecution.Itisthereforeimpossi-bletoexecuteanemploymentcontractforadefiniteperiodof3years.Theemploymentforadefiniteperiodcannotbeextendedtoaperiodexceedingtwoyears;after twoyears theemploymentcontract foradefiniteperiodmayonlybeextendedtoanindefiniteperiod. If theaboverulesarenotcompliedwith theemployeemay notify the employer in writingbeforeexpirationofthecontractedemploymentperiodthat he or she insists on being employed further. example: An employer executed an employment contract with anemployeeforadefiniteperiodofoneyear.Theemploymentwasextendedforanotheryearbyawrittenamendmenttothecontract.Beforeexpirationoftheextendedperiodtheemployerandtheemployeeagreedtoextendthecon-tractforanotheryear,i.e.thirdyearofemployment.Iftheemployeetheninformstheemployerinwritingbeforeexpirationofthesecondexten-sionthatheorsheinsistsonfurtheremployment,theemploymentcontractchangestoacontractforanindefiniteperiodandtheemployerisobligedtoemploytheemployeeevenbeyondtheoriginallycontractedperiodofthreeyears. An employment contract is executed in two counterparts, one for theemployerandtheotherfortheemployee.

Ifyouremployerpresentstoyouadraftemploymentcontractyouhavethe right to thoroughly study it before its execution and, if need be, to requestamendmentsorchangestothedraft.

SOLUTIOn:

Whenexecutinganemploymentcontractinsistontheaboveprocedure.IfyouarealreadyemployedbuthavenotreceivedacopyofyouremploymentcontractthenyouremployerhascommittedanadministrativetransgressionandtheLabourInspectionofficemayimposeapenaltyontheemployer.YoucanthenfileanappealagainsttheregionalLabourInspectorate(seepage45).

31

QuestionsandAnswers–LabourLawIssuesWAge AnD ITS PAymenT

your employer owes you for two months of work – by this procedure your search for another employer is prevented for you would lose two monthly wages if you did. What can you do against this?

you have several options: you can file an appeal with the Regional Labour Inspectorate, a petition with a court, or a withdrawal notice with your employer with immediate effect. Paymentofwage(orsalaryiftheemployeristhestate,regionormunicipality)forworkperformedisoneofthebasicobligationsofeveryemployer.Thewageispayableafterexecutionofthecontractedworkandmustbepaidoutno later than in the month following after the month in which the work was performed(forexamplethewageforSeptembermustbepaidoutnolaterthanbytheendofOctober).

Iftheemployerfailstopaythewagewithin15daysfromtherespectivepaymentmaturity(forexampleifthewageforSeptemberisnotpaidby15thNovemberofthesameyear)thenthismayconstituteareasonfortheemployeetowithdrawfromtheemployment contractbynoticewith immediateeffect.Thisnoticewith immediate effect is a unilateral legal act (executed regardless the agreement or disagreementoftheotherparty–inthiscasetheemployer),whichmustbemadeinwritinganddeliveredtotheemployer.Theemploymentisterminatedatthemomentwhenthewithdrawalnoticeisdeliveredtotheemployer.Inthiscasetheemployeeisentitledtoseverancepaymentintheamountofatleastthreetimesitsaveragemonthlywage.

SOLUTIOn:

Ifyoudecidetowithdrawfromyouremploymentcontractforthereasonofnon-paymentofyourearnedwagekeepinmindthatyouonlyhave60daystogetanewworkpermit.Ifyoufailtogetanewworkpermitwithinthisdeadlinethepolicewillcancelyourpermitforlong-termstay.Whetheryoudecideforimmediateterminationofyouremploymentornot,thenon-paymentofyourwagebyyouremployer is anadministrative transgression (or administrativewrong) againsttherulesofremunerationforworkpursuanttotheLabour InspectionActandtherefore youmayfile an appealwith theRegional Labour Inspectorate. ThepenaltyfortheemployerforthisadministrativetransgressionmayamountuptoCZK2million.

Ifyouhaveareasontobelievethatyourduewageisnotgoingtobepaidouttoyouatall(forexamplewhenyouremployerhasdirectlyinformedyoutothateffect)thenyouwillhavetoenforceyourearnedwagebyfilingalegalaction(seepage47).

32

QuestionsandAnswers–LabourLawIssuesmInImUm AnD gUARAnTeeD WAge

you are employed and just get the minimum wage in the amount of Czk 8,000/month. Is it possible to get the minimum wage for any job or are there any limitations?

yeS, in addition to the minimum wage the Labour Code stipulates the “guaranteed wage”. The minimum wage may only be applied to the least qualified work. In the other cases the employee is entitled to the guaranteed wage which is higher than the minimum wage. Thelabourlegislationstipulatestheamountoftheminimumwage,whichisthelowestpermissibleremunerationfromanemploymentrelationship.Thewage,salaryorremune-rationfromquasiemploymentagreementsmaynotbelowerthantheminimumwage.ThebasicminimumwagerateisstipulatedbyGovernmentRegulationNo.567/2006Coll.,andinthecaseof40workinghoursperweekamountstoCZK48.10/hourorCZK8,000/month.

InadditiontotheminimumwagetheLabourCodealsostipulatestheguaranteed wage withtherateagainstipulatedbytheabovementionedGovernmentRegulation.TheRegu-lationclassifiesjobsintoeightclassesonthebasisoftheircomplexity,responsibilitytakenandlabourintensity.The more demanding the job is from these points of view the higher the job class and the higher the guaranteed wage for the job. Theguaranteedwageforthefirstjobclassequalstotheminimumwage(i.e.CZK48.10/hourorCZK8,000/month).Theguaranteedwagesfortheotherclassesamountto:class2–CZK53.10/hr,orCZK8,900/month,class3–CZK58.60/hr,orCZK9,800/month,class4–CZK64.70/hr,orCZK10,800/month;class5–CZK71.50/hr,orCZK12,000/month,class6–CZK78.90/hr,orCZK13,200/month,class7–CZK87.10/hr,orCZK14,600/month,andclass8–CZK96.20/hrorCZK16,100/month.

The government Regulation gives examples for the individual classes of jobs. Ifanemployeeworksforexampleintheclothingindustrythenclass1includesminorsewingworks,pocketstitching,liningetc.,class2trousersewing,andclass3individualclothingorderimplementations.Inthecateringareaclass1includesauxiliaryworksinmealprepa-ration(suchasdishwashing),butcookingofsimplehotmealsalreadybelongstoclass2,class3includescookinganddeliveryofcommonhotmeals.Inthefieldofcleaningservicesclass1includesstandardcleaning,butinthecaseofdifficultcleaningafterpaintersorlargeareacleaningwiththehelpofcleaningmachinesclass2applies.Ifyouforexampleworkinthekitchenandyourresponsibilityispreparationofstandardhotmealsthenyourworkwillbeclassifiedasaclass3jobandyourguaranteedmonthlywagewillamounttoatleastCZK9,800grosswage.

SOLUTIOn:

Ifyourwagedoesnotreachtheminimumortheguaranteedwageyouareentitledtorequestcompensationfortheunderpayment.IfyouremployerfailstocompensateyouforthewageunderpaymentyoucanfileanappealwiththeLabourInspectorateandaskforaninspectionoruselegalactionforenforcementofyourlegitimatewage.

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QuestionsandAnswers–LabourLawIssuesInSURAnCe PRemIUm AnD InCOme TAx LevIeS PAID By

An emPLOyeR fOR ITS emPLOyeeS

you have entered into a suspicion that your employer has not duly paid your health and social insurance contributions. Is there a way to verify this?

yeS, the employee is able to check whether its statutory contributions are duly paid by the employer. Theemployer’s liabilitiesarising fromtheemployment relationshipalso includefinancialliabilitiestowardsthepublichealthinsurancecompany,thesocialsecurityadministrationandthetaxoffice.Theemployerisresponsibleforpremiumandtaxleviesforitsemployees.Aftercommencementofyouremploymentyouremployerisobligedtoinformtheabovementionedinstitutionsandpayyourtaxandinsurancecontributionsonyourbehalf.Ifyouareemployedthenyouremployerisliableforpay-mentofallyourinsurancecontributionsandtaxes.Apartofthepaymentisdeductedfromyourwageandtherestispaidbyyouremployer.Itisforexampleimpossibletobetoldbytheemployerthatyouareliabletopayyourhealthinsurancefromyourownmeans.

Thecontributionsofhealthandsocialsecurityinsuranceareformallydividedtothepartpayablebytheemployeeandthepartpaidbytheemployer.Thepartpayablebytheemployeeisdeductedfromthegrosswage.Inadditiontotheterm“grosswage”there isalso“super-grosswage”,which inaddition includesthecontributionspaidbytheemployerdirectlyforitsemployeesandequalstothetotalwagecostsoftheemployer.

Iftheemployerfailstopaytheinsurancecontributionsforitsemployeesorpaysthepremiumsinamountslowerthantherequiredamounts,andthehealthinsuran-cecompanyorsocialadministrationrevealssuchfact,thentheemployerisobligedtopaytheoutstandingcontributionsandpaythechargedpenalty.Itistheinterestoftheemployeethattheinsurancecontributionsaredulypaid.Inthecaseofdoubttheemployeemayaddresstherelevantinstitutionandaskwhetheritsemployerdulypaysthecontributions.In the field of public health insurance the employee is obliged to inform the health insurance company about commencement of an employment without undue delay if finding out that its employer has failed to do so.

SOLUTIOn:

Ifyouremployerhasfailedtocomplywithitsreportingliabilityandhasnotpaidyourinsurancecontributionsorincometax,insistonanimmediateremedy.Thenegligenceofyouremployermaybeevendeemedacrimeifthenegligenceis large-scale.PursuanttoSection240oftheCriminalCodetheemployermaybesentencedtoimprisonmentforuptothreeyearsorprohibitionoffurtherbusinessactivity.

34

QuestionsandAnswers–LabourLawIssuesTAkIng PAID hOLIDAy

you plan to visit your family who are in the country of your origin and want to take a week of your paid holiday. your employer, however, has informed you that you have worked with him for six months only and your right to paid holiday will only arise after a full year of employ-ment. Is this true?

nO, even after six months your right to paid holiday has arisen, but the date of the leave is to be decided by your employer. The Labour Code distinguishes between several different types of holiday. Ifyouhaveworkedwithyouremployerforatleast60daysinacalendaryearyouare entitledtopaidholidayforthecalendaryearoritsproportionatepart(ifyouhavenotworkedwiththeemployerforthewholeyear).The minimum paid holiday amounts to 4 weeks per year.Inthecaseofspecificemployers(thestate,region,municipality,someschoolsandstate-ownedorganisations)theminimumpaidholidayamountsto5weeks.Aweekforthepurposeofpaidholidaymeansacalendarweekincludingthe weekend,i.e.aweekofpaidholidaydoesnotmean7workdaysbutonly5workdays(i.e.4weeksofpaidholiday=20workdaysofpaidholiday).Ifyouhaveworkedwiththeemployerforexamplefor7monthsyouareentitledtotheproportionatepartof youryearlypaidholiday,i.e.7/12ofyourpaidholidayforthegivencalendaryear.

Your employer has the right to determine the time of your paid holiday. Theemployershouldspecifythescheduleofholidaysinadvanceonthebasisofitsope-rationalneedsandvestedinterestsofitsemployees.Ifanemployeeisprovidedtheirpaidholidayinpartsthenatleastonepartmustbeatleasttwosuccessiveweekslong.Thespecifiedholidaytimemustbecommunicatedbytheemployertoitsemployeesatleast2weeksinadvance.

Ifurgentoperationalreasonspreventtheemployerforgrantingitsemployeestheirstatutorypaidholidayintherespectivecalendaryearthentheemployerisliabletograntthepaidholidaytoitsemployeesnolaterthanbeforetheendofthefollowingcalendaryear.

SOLUTIOn:

Theemployerisobligedtospecifyyourpaidholidayinthelengthstipulatedbythelabourlegislationinthecurrentcalendaryear.Onlyforurgentreasonsthepaidholidaymaybecarriedoverintothefollowingyear.Ifyouremployerdoesnotallowyoutotakeyourpaidholidayinasuccessivelongerperiodoftime,itmayrepresentanadministrativetransgressionintermsoftheLabourInspectionAct.YoucanthenasktheLabourInspectorateforaninspection(Section16,or29oftheLabourInspectionAct).

35

QuestionsandAnswers–LabourLawIssues OveRTIme WORk

your employer orders you to work many overtime hours, sometimes making 60 or more working hours a week. Is this the right of the employer to do so?

no, such a procedure is against the Labour Code. The weekly working hours stipulated by the Labour Code must not ex-ceed 40 hours aweek. In the case of the two-shiftworkmode theworkingweek is shortened to 38.75 hours aweek, and in the case of the three-shiftor continuous work mode even to 37.5 hours a week. The structure of theworking hours of employees is decided by the employer, usually in a regular five-daypattern. In addition to theevendistributionof theworkingtime (anemployeeworks40hourseveryweek)thereisalsoanunevendistributionoptioni.e.thatinsomeweekstheemployeeworksmorethan40hoursperweekandinotherweekstheemployeeworksshorterhours.Theoverallaverage,however,mustnotexceedthe40workinghoursperweek.Theemployeemustbeinformedaboutthisirregularpatternatleasttwoweeksinadvance.

Inadditiontothethusstipulatedworkinghourstheemployermay,forseriousoperationalreasons,orderovertimework.Theperformedovertimeworkmustnotexceed8hoursperweek,or150hoursperyear. Iftheemployeeandtheemployermutuallyagreethentheaveragenumberofovertimehoursperweekmaybe8hoursperweek,i.e.upto416hoursofovertimeworkpercalendaryear.

Overtimeworkisremuneratedwiththeregularwageplusanovertime pay in the minimum amount of 25% of the average wage, or theemployeeandtheemployermayagreethattheemployeewilltaketimeoffinlieuofthe overtimework.

TheovertimepayisnottheonlyextrapaytowhichyouareentitledpursuanttotheLabourCode.Fornightwork(from10pmto6am)youareentitledtoanextrapayintheminimumamountof10%oftheaveragewage,andthesameappliestoweekendwork.Workonbankholidaysiscompensatedwiththestandardwageplustimeoffinlieuoftheworkperformed.Ifyouthusagreewithyouremployerthetimeoffmaybereplacedwithanextrapayintheamountof100%ofyourave-rageearnings(whichmeansthatyougetyourstandardwageplustimeoffinlieuofworkonabankholiday,oryouwillbepaiddoubleyourstandardaverageearnings).

SOLUTIOn:

IfyouremployerordersovertimeworkexceedingthescopestipulatedbylawthenhecommitsanadministrativetransgressionandyoucanappealagainstitwiththeLabourInspectorateandaskforaninspection.Youcanproceedinthesamewayifyouremployerrefusestoprovideyouwithextrapayforovertimework.

36

your employer has informed you that he has no more work for you and therefore your employment is terminated. you will only work till the end of the month and then your employment will be terminated. Is this procedure in compliance with the Labour Code?

no, this procedure is not correct.

The Labour Code stipulates several methods of employment termination. If theemployeeandtheemployermutuallyagreeontheterminationthentheycanexecuteanemployment termination agreement.Inthatcasetheemploymentwillbeterminatedonthedayagreedbetweentheparties(suchastoday,tomorrow,thelastdayofthismonthetc.).

Anothermethodofemploymentterminationisbynotice of termination.Thenoticemustincludethereasonforthenotice.ThelegitimatereasonsforthenoticeofterminationarelistedinSection52oftheLabourCode.Theemployermaynotgivenoticeoftermina-tiontoanemployeeforanyotherreason.The employee may therefore only be given notice of termination in the following cases: a)Iftheemployer’sbusinessoritspartiswoundup, b)Iftheemployer’sbusinessoritspartismovedtoanotherlocation, c)Iftheemployeebecomesredundant(itspositioniscancelledbytheemployer), d)If the employee is unable to perform the current job for the reason of an occupational injuryoroccupationaldiseaseorduetothreatofanoccupational diseaseasspecifiedinamedicalassessmentissuedbyaspecialisedfacility, e)Iftheemployeehaslosthis/hercapabilitytoperformthecurrentjobonalong- termbasis due tohis/her stateof health as specified in amedical assessment issuedbyaspecialisedfacility, f)Iftheemployeedoesnotmeettheprerequisitesspecifiedbytherelevantlegislation for performance of the contracted job or requirements for appropriate perfor- manceofthejob;notmeetingtheserequirementsmayalsoincludeunsatisfactory workresults(inthiscasethenoticeofterminationmaybegiveniftheemployee was notified in writing by the employer and asked for remedy, which did not happenwithinanappropriateperiodoftime), g)If there are reasons on the part of the employee for immediate employment termination by the employer (but the employer decides for amoremoderate solution),orforseriousviolationofobligationsarisingfromtherelevantlegislation related to thework performed by the employee; for the reason of systematic minorviolationsofobligationstheemployeemaybegivennoticeoftermination, if the employer notified the employee inwriting about the possibility of such noticeinthelastsixmonths. Thenoticeofterminationmust be in writing and delivered to the employee.Howe-ver,theemploymentisnotterminatedbydeliveryofthenotice,thereisstillthenoticeperiodforwhichtheemploymentstillcontinuesandtheemployeecontinuestoworkasbefore.Thenoticeperiodistwo monthsandbeginsonthefirstdayofthecalendarmonthfollowingafterthemonthinwhichthenoticewasdeliveredtotheemployee.Theemploy-mentisonlyterminatedafterthenoticeperiodelapses.Insomecasestheemployeeisentitledtoseverancepay(seepage39).

QuestionsandAnswers–LabourLawIssues emPLOymenT TeRmInATIOn – nOTICe Of TeRmInATIOn

37

QuestionsandAnswers–LabourLawIssuesemPLOymenT TeRmInATIOn – nOTICe Of TeRmInATIOn

Thenoticeofterminationmayalsobegivenbytheemployee.Thenoticeof terminationby theemployeemaybegiven forany reason,orwithoutgivingreason,butitmustalsobeinwritinganddeliveredtotheotherparty,theemployer.Thenoticeperiodinthecaseofthenoticeofterminationbyemployee isof thesame lengthandunder thesameconditionsas in thecaseofthenoticeofterminationbytheemployer(ifyoudeliveryournoticetoyouremployerforexampleon15November,youremploymentwillbeterminatedon31January).

SOLUTIOn:

Theinitialsituationisquiteclear.Asthenoticewasnotgiveninwritingitisinvalid.Butinmanyothercasesthesituationmaynotbethatclear,therefo-reitisthecourtthatmustalwaysdecideaboutthevalidityofthenotice.Themostcontroversialsituationsmayoccurinthecaseofanoticeforreasonsdefinedunderf)andg)(theLabourCodeincludesvagueformulationssuchas“unsatisfactoryworkresults”,“seriousviolationofobligations”etc.).Thecourt,afterassessingtheparticularfactsofthecase,maycometoadifferentconclusionthantheemployer,andmaydecidethatthenoticeisinvalid.Intheoppositecasethecourtmayrejectthepetitionmeaningthatthenoticeisvalid.

Iftheemployeedoesnotagreewiththenoticeoftermination(i.e.belie-vesthatnoneofthereasonsfornoticehasbeenmet)thenheorshemustfirst immediatelyinformtheemployerthatheorsheinsistsoncontinuedemployment.Within the two monthsof thenoticeperiod theemployeemustfileapetitionwiththecourtforadecisionontheinvalidityoftheno-tice.Ifthecourtdecidesthatthenoticeisinvalidtheemploymentwillcon-tinueandtheemployerwillbeliabletopaytheemployeecompensationintheamountofitsaveragewageforthewholeperiodfromtheemployee’snotificationthatitinsistsoncontinuedemploymentuntiltheemployeere-sumesthework.

BasicinformationandadvisoryservicesinthesecaseswillbeprovidedbytheLabourInspectorate,butasthecasesmayoftenbecomplexitisrecom-mendedtoaddressalawyer.Freeadviceonthemattermayalsobereceivedfromoneofthenon-governmentalorganisations(seetheaddresslistattheendofthispublication).

38

QuestionsandAnswers–LabourLawIssues emPLOymenT TeRmInATIOn – nOTICe WITh

ImmeDIATe effeCT

you were a little late for work in two cases and your employer informed you in writing that your employment would be terminated for that reason with immediate effect, that you should leave the workplace and never return to work again. Is this procedure correct?

nO, it is not, the employer may terminate employment with immediate effect, but only in the case of gross breach of liabilities stipulated in the relevant labour legislation for the kind of work which was apparently not the case in this story. The gross breachmay for example include a situationwhen the employeeworksundertheinfluenceofalcohol,verballyorphysicallyattackshisemployerorcolleagueswithouthavingareasonforsuch,orisabsentfromworkwithoutexcuseforalongerperiodoftime.Anotherreasonforimmediateterminationofanemployeeisthelegalforceofsentenceforanintentionalcriminalactoftheemployee,ofunconditionalimprisonmentforaperiodlongerthanoneyearorsentenceofunconditionalimprisonmentforaperiodofatleastsixmonthsforanintentionalcrimecommittedwhileonduty. The employee may alsoimmediatelyterminateitsemploymentrelationshiptotheemployer,forexampleinthecaseofunpaidwage(fordetailsseepage31).Immediateterminationonthepartoftheemployer,aswellastheemployee,mustbeinwritingwithspecificationofthereasonfortermination.Atthesametimetheimmediateterminationmustbedeliveredtotheotherpartywithintwomonthsfromthedaytheemployee/employerwasnotifiedofthereasonforimmediatetermination,otherwiseitisnotvalid.

SOLUTIOn:

TheLabourCodedoesnotexactlystipulatewheregrossbreachofemployeeobligationsbegin.Ifyoudonotagreewithimmediateemploymentterminationorbelievethatyoudidnotcommitanygrossbreachofyourobligationsorworkdiscipline,youshouldproceedlikeinthecaseofnoticeinthepreviouschapter.Firstimmediatelyinformtheemployerthatyouinsistoncontinuedemployment.Withintwomonthsfromtheimmediateterminationyoumustfilethepetitionwiththecourtfordecisiononinvalidityofthenoticewithimmediateeffect.Ifthecourtdecidesthatthenoticeisinvalidtheemploymentwillcontinueandyouareentitledtoyouwagecompensationintheamountofyouraveragewageforthewholeperiodfromyournotificationuntilresumingthework. BasicinformationandadvisoryservicesinthesecaseswillbeprovidedbytheLabourInspectorate,butasthecasesmayoftenbecomplexitisrecommendedtoaddressalawyer.

39

QuestionsandAnswers–LabourLawIssues emPLOymenT TeRmInATIOn – SeveRAnCe PAymenT

your employer has given you notice of termination for it does not have work for you any longer and cancels your position. Are you entitled to any severance pay in this case?

yeS, in this and in other similar situations the employee is entitled to severance pay as a certain compensation of losing the job. Severancepayinthecaseofemploymentterminationshouldbepaidoutinthefollowingsituations: a)Theemploymentisterminatedbynotice of termination bytheemployerforreasonsdefinedunderSection52a)–c)oftheLabourCode,i.e.fororganisationalreasons: 1.Theemployer’sbusinessoritspartiswoundup, 2.Theemployer’sbusinessoritspartismovedtoanotherlocation, 3.Theemployeebecomesredundantanditspositioniscancelledbythe employer; b) The employment is terminated by agreement between the employee and theemployer for reasons defined above (employer’s wind up or relocation, employee’s redundancy);thereasonfortheemploymentterminationmustbeexplicitly stated intheagreement(theagreementismoreconvenientfortheemployerthanthenoticebecausetheemployerdoesnothavetoemploytheemployeeforthenoticeperiod); c) The employment is terminated by the employee pursuant to Section 56 of the LabourCode,i.e.inthefollowingcases: 1. Amedical certificate states that the employee cannot continue performing thepresentjobwithoutseriousthreattotheirlifeandtheemployerwillnot allowtheemployeetoperformanyotherwork, 2. The employer has not paid the wage or its part to the employee within 15 days from the wage payment deadline (for details see page 28), d)Theemployerhasgivennoticeofemploymentterminationtotheemployeeforthereasonthattheemployeecannotcontinueperformingitsjobforanoccupationalinjuryordisease,includingemploymentterminationbyagreementforthesamereason. In thecaseof the situationsdefinedundera)– c)above, theemployee isentitled to severancepayintheamountofthree average monthly wages.Inthecaseofthesituationdefinedunderd)above,theemployeeisentitledtoseverancepayintheamountoftwelveaveragemonthlywages. Theseverancepayisprovidedbytheemployeraftertheemploymentterminationonthenearestpayday,unlesspaymentontheterminationdateoranylaterdateisagreedbetweentheemployerandtheemployee.

SOLUTIOn: If youareentitled to severancepaypursuant to the LabourCodeandyouremployerhasnotpaiditouttoyou,fileapetitionwiththecourtandthecourtwilldecideabouttheemployer’sliabilitytopaytheseverancetoyou.

40

you have lost your job and do not know how that will affect your permit for stay? you are not sure about the deadline for finding a new job?

In this case it depends on the circumstances under which your employment was terminated.

If as to theemployment terminationdate the foreignerhas stayed in thecountryforthereasonofemploymentforatleastoneyear(orforashorterperiodifthetotalperiodofstayisat least three years),and the employment has been terminated by notice on the part of the employer for reasons defined under Section 52 a) – e) of the Labour Code, thenaftertheemploymentterminationtheforeignerenjoysaprotective period of 60 days a new work permit issued by a labour office to the Alien Police Inspectorate.

ThesameprotectiveperiodappliestoemploymentterminationbyagreementforthesamereasonpursuanttoSection52a)–e)oftheLabourCode(suchasredundancy),andalsointhecaseofimmediateemploymentterminationbytheemployee(forexampleforthereasonofunpaidwage).Ifbeforetheendoftheprotectiveperiodtheforeignerfailstosubmitanewworkpermit,thentheAlienPoliceInspectoratecommencesanadministrativeproceedingforcancellationofthelong-termstaypermitoftheforeigner.

The notice of termination, the employment termination agreement as well as immediate termination must always be made in writing,which is alsoimportantforthepurposeofbeingabletoprovetothepolicehowyouremploy-mentwasterminated.Fordetailedinformationabouttheindividualmethodsofemployment terminationsee the respectivechaptersof thispublication(pages36,38,39).

If your employment is terminated by any other method (for example byemployee’snotice,notemployer’s,or if intheterminationagreementthereisnoneoftheabovementionedreasonspursuanttotheLabourCode),thentheforeignerhasnodeadlineforfindinganotherjob. InthatcasetheAlienPoliceInspectorateimmediatelycommencesanadministrativeproceedingforcancella-tionofthelong-termstaypermitoftheforeigner.

Theabovementioneddeadlineof60daysforfindinganewjobdoesnotapplytoforeignersstayinginthecountryforashorttime(lessthanoneyear)onthebasisofalong-termvisa(forover90days).

QuestionsandAnswers–LabourLawIssues LOSS Of JOB AnD CAnCeLLATIOn Of A LOng-TeRm

STAy PeRmIT

41

QuestionsandAnswers–LabourLawIssues

LOSS Of JOB AnD CAnCeLLATIOn Of A LOng TeRm STAy PeRmIT

SOLUTIOn:

Ifyoususpectthatyouremploymentmayshortlybeterminatedbegintolookforanewjobwiththechanceforanewworkpermitintime.Evenifyouareentitledtotheabovementioneddeadlineof60daysyoumustremember that the Labour Officewill take a couple ofweeks to decideaboutyourapplication(thedecisionmustbeissuedwithin30days,whichmaybeextendedto60days),thereforeaworkpermitforthenewjobmustbeappliedforassoonasispractical.

Readthereasonsforwhichyouremployermaydischargeyou(seepage36and38). If youdonotagreewith theagreementonyour terminationsubmittedtoyoubyyouremployer,donotsign it. Ifyoudonotsigntheagreementyouremployerwillhavetogiveyounoticeandyouwillworkforatleastanothertwomonths(=theminimumnoticeperiod)andwillbepaidforthatperiod.Inthecourseofthenoticeperiodyoumaybeabletofindanewjobandapplyforaworkpermitforthenewjobintime.

42

A potential employer has offered you a job but informed you that you will not work with the employer but with another company, for it is a case of agency-mediated employment. Is this procedure standard?

yeS, the Czech labour law stipulates agency-mediated employment, but with a lot of limitations.

Agency-mediatedemploymentisaspecificformofemploymentwhentheemployeeoftheemployer–thelabouragency–doesnotperformthejobdirectly for theagencybut foranotheremployer–userof theagencyservices–towhomtheemployee isallocatedbytheagency.Theemploy-mentcontract(oragreementtowork)concludedbetweentheemployeeandtheemployer/labouragency in thiscase includestheprovisionbywhichtheagencyagreestoarrangefortheemployee’sworkwithanotheremployer(user)andtheemployeeagreestoperformthisjobwiththeuser.Followingtheconclusionoftheemploymentcontracttheemployeereceivesawritteninstruction from the agency bywhich it is allocated to the user. Then theemployeecommencesworkfortheuser.Theuserallocatesvarioustaskstotheagencyemployee,controls,organisesandchecksitsworkbuttheactualemployeroftheemployeecontinuestobethelabouragency,whichalsopaysthewagetotheemployee.Theusermustnottakeanylegalactstowardstheemployeeofthelabouragencyinthenameofthelabouragency.Forexample,theusermaynotterminateemploymentoftheemployee,maynottransfertheemployeetoanotherjobetc.–allthismayonlybedonebythelabouragency.Agency-mediatedemploymentisstipulatedbytheLabourCode(Section2(5),Section39(6),Section308,Section309)andtheEmploymentAct(Sections14-17,Sections58-66).

Thelabouragencymaynotbeanyemployer,butonlyalegalentityornatu-ralpersonholdingapermit of the ministry of Labour and Social Affairs of the crforthisactivity.TheEmploymentActdistinguishesbetweenseveraltypesofpermitsforemploymentmediation.IfthelabouragencywantstoallocateaforeigneritmustholdthepermissionformediationofworktoforeignersintheCzechRepublic.Thelistofalllabouragencieswiththespecifiedtypeofpermitheldisavailableonthefollowingwebaddress:http://portal.mpsv.cz/sz/zamest/zpr_prace.

Asfortheworkpermitthelabouragencyisastandardemployer.Theforeignerthereforeneedsaworkpermittobeemployedbyalabouragency,exceptforcaseswhentheEmploymentActdoesnotrequireaworkpermit(seepage28).

QuestionsandAnswers–LabourLawIssues AgenCy-meDIATeD emPLOymenT – BASIC PRInCIPLeS

43

QuestionsandAnswers–LabourLawIssuesAgenCy-meDIATeD emPLOymenT – BASIC PRInCIPLeS

GovernmentRegulationNo.64/2009Coll.hassignificantlyrestrictedthetypesofjobsthatmaybemediatedbyalabouragency.Alabouragencymayonlyallocateitsemployeetoauserforperformanceofajobrequiring at least secondary education with school-leaving examination, or for performan-ce of a job from the list attached as an annexe to the abovementioned Regulation. The listed jobs include for example:bricklayer, cabinetmaker,construction assembler, plumber, electrician,metalworker,machine tooloperator,meat processor, dressmaker, assemblyworker, bus driver, lorrydriver,etc.

SOLUTIOn:

Ifyoudecidetoacceptthe joboffer,youremploymentcontractexecu-tedwiththe labouragencyshould includetheabovementionedprovisionabouttemporaryallocationtoanotheremployerforjobperformance.Youwill subsequently receive from the agency a written instruction whichshouldincludeatleastthefollowingdata:a)nameandregisteredseatoftheuser,b)placeofworkwiththeuser,c)periodoftemporaryallocationforjobperformance,d)specificationofasupervisorauthorisedtoallocatetoandinspecttasksoftheemployee,e)conditionsofunilateralstatementof job terminationbeforeexpirationof the temporary allocation (if agre-edbetweenthelabouragencyandtheuser),f)information about job and wage conditions of a comparable employee of the user.Thelastpoint isimportantforthereasonthatpursuanttotheLabourCodeyouareentitledto the same labourandwage conditionsas thepermanent (comparable)employeesoftheuser.Youshouldlearnfromthewritteninstructionoftheagencywhattheseconditionsarelike.Furtherinformationisincludedinthefollowingchapter.

44

QuestionsandAnswers–LabourLawIssues LOW WAge PAID By A LABOUR AgenCy

you are an employee of a labour agency who has allocated you to a user. There you receive a 30% lower wage than your colleague doing precisely the same job. When you ask about the reason for the diffe-rence in wage you are told that your colleague is directly employed

by the user who gives an advantage to its own (in-house) staff in the form of a higher wage than the wage paid by the labour agency to its employees. Is this situation in compliance with the law?

nO, it is not.

Theuserandtheagencyareliabletoprovidethesamejobandwagecondi-tionstotheagencyemployeesastothein-houseemployeesoftheuser.Ifyouthereforedothesamejobfortheuserasitsin-houseemployeeyou are entitled to the same wage (Section309(5)oftheLabourCode).

SOLUTIOn:

a)Youcanaddressyouremployer–thelabouragency–witharequestfor a wage increase for your wage to correspond to the wages received by in house employees of the user. If your employer refuses to satisfy your requirementyoucanenforcethisbylegalaction;

b)YoucanfileanappealwiththeRegionalLabourInspectorate.Theinspectorateisentitledtoinspecttheemployer’scompliancewiththelabourlegislation.Ifthe inspectoratediscoversaviolationof theLabourCode andthewage (oranyother job-relatedconditions)of anagencyemployee isworse than thewageorconditionsofacomparablein-houseemployeeoftheuserthentheinspectoratemayimposeapenaltytothelabouragencyintheamountofuptoCZK1millionpursuanttoSection20a,or33aoftheLabourInspectionAct. Fordetainedinformationaboutthepowersandresponsibilitiesofthelabourinspectorates, includingaddressesof the individualoffices,seethe followingchapterandpage55.

45

QuestionsandAnswers–LabourLawIssuesCOnTROL AUThORITIeS – LABOUR InSPeCTORATe

your employer violates employee rights, for example, by not meeting the wage payment deadlines, ordering too many hours of overtime work or paying lower wages to foreign employees than to Czech citizens. What authority may be addressed in such cases?

The control authority for employment relati-onships and labour conditions is the Regional Labour Inspectorate.

ThereareeightlabourinspectoratesintheCzechRepublic(twoinPrague–forthecapitalcityandfortheregionofCentralBohemia,andfurtherinČeskéBudě-jovice,Plzeň,ÚstínadLabem,HradecKrálové,BrnoandOstrava–seetheaddresslistattheendofthispublication).Themajorstatutorypowersandresponsibilitiesofthelabourinspectoratesincludechecksofcompliancewithlabourregulations.

Inadditiontocontrolactivity,thelabourinspectoratesprovideemployees(andalsotoemployers),freeofchargebasic information and advice concerning pro-tection of employment relationships and job-related conditions free of charge.

SOLUTIOn:

Ifyouremployerviolatesanyoftheseregulations,youasitsemployeemayfileanappealwiththeRegionalLabourInspectorate.TheappealmaybesentbypostbutitisrecommendedtodeliverittotheRegionalLabourInspectorateinperson.OnthebasisoftheappealtheLabourInspectoratemayperformaninspectionwiththeemployer.TheobligationsoftheinspectorsoftheLabourInspectorateincludetheobligationtokeeptheidentificationoftheemployeefilingtheappealinitiatingtheinspectionconfidential.Theemployeethereforeneednotbeafraidthattheemployerwillsanctiontheemployeeforfilingtheappeal,fortheemployerwillnotlearnthenameoftheemployeecausingtheinspectiontobeperformed.

IftheLabourInspectoratefindsdrawbacksattheemployeritwillordertheirremedyandchargeapenalty,foradministrativetransgression.Thelawstipulatestheupperlimitofthepenaltybutinthecaseofsomeadministrativetransgressi-onstheamountsarequitehigh–forexamplethepenaltyforexcessiveovertimeworkorderedbytheemployermayamounttoCZK2million.Theamountofthepenaltyisobviouslybasedontheintensityandscopeoftheviolation.Iftheemployerhasviolatedthelawinthecaseofoneemployeeonly,theimposedpenaltywillbeconsiderablylowerthaninthecaseofmassviolationaffectingdozensofemployees.

46

Can I address a Labour Office for help if my rights are violated by my employer (for example by non-payment of my wages, violations in the area of working hours etc.)?

nO, the labour inspectorates are endowed with the control authority in these cases. The inspectorates will also provide you basic infor-mation and advice in solution of your problem.

LabourOfficesenjoycontrolauthorityinspecifiedcasesonly.Amongotherthingstheymakesurethatemployersdonotviolatethebanofdiscriminationintermsofexercisingtherighttoemployment,orthattherearenocasesofexecutionofillegalwork(forthetwomethodsofillegalworkanditssanctioningseepage27).

may I, as a foreigner without permanent residence, be included in the list of job applicants kept by the Labour Office?

nO, but you can be entered as a person interested in finding a job.

Thelistofjobapplicantsmayonlyincludeforeignerswithpermanentresi-dence,whilethelistofpersonsinterestedinajobmayincludeanybody.TheLabourOfficemediatesasuitablejobforthepersonsinterestedinajobandmayevenprovidefortheirre-qualification.HoweverpersonsinterestedinajobcannotreceivetheunemploymentbenefitfromtheLabourOffice.

QuestionsandAnswers–LabourLawIssues COnTROL AUThORITIeS – LABOUR OffICe; OPTIOn Of

InCLUSIOn In The LIST Of JOB APPLICAnTS

47

Do you want to make an appeal to a court with your claim and do not know how to proceed?

The following lines include the basic infor-mation about how to proceed. Labour inspectorates hold a number of powers in the area of compliance with theemployment legislation. In the caseof violationof the legislationtheycan imposeapenaltytotheemployerandinvitetheemployertoremedysuchviolation,buttheycannotforcetheemployertoactuallypaythewageduetotheemployee.Notonlyinthissituationbutalsoinmanyothersituations(suchasthedecisiononinvalidityofnoticeoftermination)theemployeemustappealtoacourtwithitsclaim.

Individualemployment-relateddisputesaredecidedbythedistrictcourtsasthefirstin-stancecourts(districtcourtsinPrague,MunicipalCourtinBrno).Theterritorialjurisdictionofacourtisdeterminedinrelationtotheperson against whom the petition has been filed(onthebasisoftheplaceofresidenceofanaturalpersonorregisteredseatofalegalentity).IfforexampleyouareanemployeeofabusinesscompanywithitsregisteredseatinPrague2,youmustfileyourpetitionagainstyouremployerattheDistrictCourtforPrague2.

Whenfilingapetitionyouusuallyneedtopayacourt fee.Inthecaseofadispu-teconcerningamonetaryamount,theamountofthefeeiscalculatedonthebasisoftheamountinquestion(CZK600ifthesubjectofthedisputedoesnotexceedCZK15,000and4%oftheamountdisputedinthecaseofahigheramount).Intheothercasesthefeesareusuallyfixed(usuallyCZK1,000).Incivildisputesyouneednotberepresentedbyalawyerbutinmostcasesthisisrecommended.Thecourtfeeandtheremunerationforthelawyerrepresentthecostsofproceedings,whichareusuallyreimbursedbythelosingpartytothedispute(ifyouthereforehirealawyertorepresentyouintheproceedingsandyouwinthenthefeeforyourlawyerwillbepaidbytherespondent).

Whendecidingaboutfilingapetitionyoumustcarefullyweighyourchancesforsuccess(whetheryouareabletopresentsufficientevidenceofyourstatementsetc.).Ifyoulosetheproceedings,youwillhavetopaynotonlyyourcostsoftheproceedingbutalsothecostsofyouropponent,includingattorneyfees,ifany. Thepetitionshouldinclude:identificationofthecourt,identificationoftheparties(theplaintiffandthedefendant)includingthefirstandthelastname,address(inthecaseoflegalentitiesthebusinessnameandregisteredseatoftheentity),descriptionoftherelevantfacts,thesubmittedevidenceandspecificationoftheclaim.

ATTenTIOn!!! Thereisaveryshortdeadlineforfilingapetitionintermsofemploymentlegislation(forexampleamere2monthsinthecaseofapetitionforinvalidityofaterminationnotice).Inthecaseofclaimsconcerningunpaidwagesorotherfinancialliabilities,thelimitationperiodis3yearsandthepetitionmustbefiledwiththecourtwithinthisperiodatthelatest.

Thebasicadvisoryserviceintermsofemploymentrelationshipsandtherelevantlabourlegislationisusuallyprovidedbynon-governmentalorganisations(for the list see the last section hereof), whose staff may even help you formulate the petition.

QuestionsandAnswers–LabourLawIssues LegAL ACTIOn

48

Do you consider running a business in the Czech Republic as a self-employed person and do not know what obligations are related to that?

Ashasalreadybeenmentioned,aself-employedpersonrunsatradeindependently,initsownnameandatitsownresponsibility.Inthecontextofitsactivityitisliabletodulyfulfilitsobligationstowardscertainauthorities,suchastheTradeLicensingOfficeandtheCzechSocialSecurityAdministration.

Obligations towards the Trade Licensing Office

Theobligationsofaself-employedpersonincludebutarenotlimitedtothefollowing: -Visiblymarkwiththefirstandlastnameandidentificationnumberofthebuilding where ithastheprincipalplaceofbusinessandproveownershipright,tenant rightor rightof useof theproperty to theTrade LicensingOfficeon request, -Archive documents proving theway of acquisition of the goods ormaterials, usedforserviceprovisionintheplaceofbusinessforaccessofthecontrolau- thorities;iftheself-employedpersonhasacquiredsecond-handgoodsoracqui- redgoodswithoutreceiptthenitisliabletoidentifythesellerandkeeprecordof thesefactsincludingthedateoftherespectivecontractexecution, -Arrange for thepresenceofapersonwithsufficientcommandofCzechor Slovak language on the premises reserved for sales of goods or provision ofserviceduringthebusinesshoursofthepremises, -InformtheTradeLicensingOfficeinwritingaboutanyinterruptionofbusiness formorethan6months.

Obligations towards the Tax Office Theobligationsofaself-employedpersonincludebutarenotlimitedtothefollowing: -Register with the local tax office within 30 days from its trade permit effectivenessdate, -Atthebeginningofeveryyear(intheperiodJanuary-March)fileataxreturnfor thepreviouscalendaryearwithspecificationofitsincomeandexpendituresin that year and tax calculation. Thenatural person income tax rate amounts to15%fromtheprofit(profit=incomeminusexpenditures).Theself-employed personmayalsoapplyexpendituresintheamountofthelumpsumof60%ofthe achievedincome,whichismainlyconvenientinsituationswhentheactualexpenditures relatedtothebusinessactivityarelowerthan60%.Everytaxpayermayapplythe discountpertaxpayerintheamountofCZK24,840(thisamountisdeductedfrom the calculated tax and the actual tax paid is then the amount exceeding thediscountpertaxpayer).

QuestionsandAnswers–Trades OBLIGATIONSOFASELF-EMPLOYEDPERSON

49

Obligations towards Czech Social Security Administration The obligations of a self-employed person include but are not limited to the following: -Submitanapplicationforpension insuranceandsubsequentlypaythecontri- butionforthepensioninsuranceandcontributiontothestateemploymentpolicy. Aself-employedpersonmustpayinsurancecontributionseverymonth. Theamountofthecontributioniscalculatedonthebasisoftheincomeachie- ved in the previous calendar year. If the self-employed person only starts its business(i.e.didnotachieveanyincomeinthepreviousyear)thenitisliableto pay theminimum contribution in the amount of CZK 1,731. On filing the tax returnatthebeginningofthefollowingyearitisalreadyclearwhatincomewas achieved in the previous year, and the self-employed person must submit an overviewofincomeandexpendituresbytheendofApril.Theoverviewwillinclude settlement of contributions; if the settlement shows that the paid advances for the insurance contributions were insufficient the self-employed person needs to settletheunderpayment.Theamountoftheinsurancecontributionequalsto29.2% ofthebaseofassessment,which is50%of the taxbase (the taxbase= income– expenditures) -Informaboutterminationofindependentprofit-makingactivity.

TheabovereportingliabilitiesmaybefulfilledallatonceonregistrationofthetradewiththeTradeLicensingOfficewheretheformsfortheTaxOfficeandfortheCzechSocialSecurityAdministrationareavailableforfillingout.

Ifaself-employedpersonfailstodulyfulfilallitsobligations,thereistheriskofsancti-onsimposedbytherelevantauthoritiesintheformoffinesorpenalties.Failuretofulfilcertainobligationsmayevenaffectextensionsofvalidityofalong-termstaypermitforthepurposeofbusinessenterprise,becausetheapplicationfortheextensionisfiledtogetherwiththeconfirmationoftheTaxOfficeandtheCzechSocialSecurityAdminis-trationaboutpotentialunderpaymentsoftheself-employedpersonrelatedtotaxandsocialinsurancecontributions(seepage14).

example:

A self-employedperson launcheda businesson1 June2009andhis incomewas CZK400,000.Afterthelaunchofthebusinesstheself-employedpersonbegantopaymonthlyadvanceinsurancecontributionsintheamountofCZK1,731.Atthebeginningofthefollowingyeartheself-employedpersonfiledataxreturn.Theexpendituresre-latedtothebusinesswerenotveryhigh,soalumpsumofexpendituresintheamountof60%oftheincomewasapplied.Theprofit(incomeminusexpenditures)thereforeamountedtoCZK160,000.Thenaturalpersonincometaxratewas15%, i.e.thetaxamountedtoCZK24,000.However,thebusinessmanappliedthediscountfortaxpa-yers(CZK24,800)andthereforethetaxliabilitywaszeroandhedidnothavetopayanytaxthatyear. Followingthetaxreturntheself-employedpersonsubmittedanoverviewof incomeandexpendituresat theCzechSocialSecurityAdministration.Thesocial insurancecontributionamountedto50%ofthetaxbase,inthiscasethereforeCZK80,000.Thisbasewas used for the contribution calculationwith the rate of 29.2%, resulting in CZK23,360.Theself-employedpersonhasalreadypaidCZK10,386inadvanceandthe-reforeitsunderpaymentamountstoCZK12,974.

QuestionsandAnswers–TradesOBLIgATIOnS Of A SeLf-emPLOyeD PeRSOn

50

Alien Police Directorate Olšanská2,POBOX7813051Praha3Phone: +420 974 841 219 –Director’ssecretariatFax:+420974841093E-mail:[email protected]

Information line for foreigners staying in the Czech Republic Monday–Thursday9:00am–3:30pm,Friday9:00am–2:00pmPhone:+420974841356,+420974841357E-mail:[email protected]

Alien Police operate seven regionaldirectorates, each of them havingseveral subordinate inspectorates ofthe Alien Police. Contact informationoftheindividualinspectoratesmaybefoundattheregionaldirectorateoronthewebsiteoftheAlienPoliceonhttp://www.policie.cz–ÚtvarypolicieČR–Ce-lorepublikové útvary – Služba cizinecképolicie–Kontakty.

Regional Directorate of Alien Police in BrnoKopečná938/360200BrnoPhone: +420 974 620 229 –Director’ssecretariatFax:+420974620345E-mail:[email protected]

Regional Directorate of Alien Police in České BudějovicePražskátřída55837074ČeskéBudějovicePhone: +420 974 220 229 –Director’ssecretariatFax:+420974220660E-mail:[email protected]

Regional Directorate of Alien Police in hradec královéBidlova47750101HradecKrálovéPhone: +420 974 520 229 –Director’ssecretariatFax:+420974520228E-mail:[email protected]

Regional Directorate of Alien Police in OstravaMilíčova2072851OstravaPhone: +420 974 720 229 –Director’ssecretariatFax:+420974720228E-mail:[email protected]

Regional Directorate of Alien Police in PlzeňSlovanskáalej2630751PlzeňPhone: +420 974 320 229 – Director’s secretariatFax:+420974320228E-mail:[email protected]

Regional Directorate of Alien Police in PragueOlšanská213051Praha3Phone: +420 974 820 229 – Director’s secretariatFax:+420974820783E-mail:[email protected]

Regional Directorate of Alien Police in Ústí nad LabemMasarykova2740001ÚstínadLabemPhone: +420 974 420 229 – Director’s secretariatFax:+420974427042E-mail:[email protected]

ADDReSS LIST Of ALIen POLICe InSPeCTORATeS

51

South moraviaSouthMoravian Regional Centre for Sup-portofIntegrationofForeignersMezírka160200BrnoPhone:+420533433540E-mail:[email protected]

moravian SilesiaCentreforSupportofIntegrationofForeigners–MoravianSilesiaRegionČeskobratrská2227/770200OstravaMobile:+420725148522Phone/fax:+420596112626E-mail:[email protected]

Pardubice RegionCentreforSupportofIntegrationof Foreigners–PardubiceRegionBoženyNěmcové262553002PardubiceMobile:+420725148519Phone:+420466736124Phone/fax:+420466952066E-mail:[email protected]

Plzeň RegionCentreforSupportofIntegration ofForeigners–PlzeňRegionResslova1430100PlzeňMobile:+420725874975Phone/fax:+420377223157E-mail:[email protected]

Ústí nad Labem RegionCentreforSupportofIntegration ofForeignersinÚstínadLabemRegionVelkáHradební3340021ÚstínadLabem(inthebuilding ofNárodnídům)Phone:+420475216536Email:[email protected]

zlín RegionCentreforSupportofIntegrationofForeigners–ZlínRegionLorencova379176001ZlínMobile:+420725148515Phone/fax:+420577018651E-mail:[email protected]

From 2010 there will be four new regi-onal centres for support of integration offoreignersinthefollowingregions:

SouthBohemiaRegion–ČeskéBudějoviceKarlovyVaryRegion–KarlovyVaryLiberecRegion–LiberecOlomoucRegion–Olomouc

Forthecontactinformationofthesecentresproceedtothewebsitewww.cizinci.cz.

ADDReSS LIST Of RegIOnAL CenTReS fOR SUPPORT Of InTegRATIOn Of fOReIgneRS

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Capital City of Prague and Central Bohemia Region

Archdiocesan Charity PragueLondýnská44,12000Praha2Phone:+420224246519,224246573Fax:+420222522352www.charita-adopce.cz

Berkat a kC InBázeLegerova50,12000Praha2Phone/fax:+420224941415Berkat–mobile:+420739037353,E-mail:[email protected]áze–mobile:+420739578343,E-mail:[email protected]

Centre for Integration of foreigners (CIC)Kubelíkova55,13000Praha3Phone:+420222713332E-mail:[email protected]

meTA o. s. – Association for Opportunities forYoungMigrantsAdvisoryandInformationCentreforYoungMigrants(PIC)Rumunská29,12000Praha2Phone/fax:+420222521446, +420775339003E-mail:[email protected]

Organisation for Assistance to Refugees (OPU Praha)Kovářská4,19000Praha9Phone:+420284683714, +420284683545Fax:+420233371258E-mail:[email protected]

Advisory Office for Integration (PPI)Senovážná2,11000Praha1Phone:+420224216758, +420603281269Phone/fax:+420224213426E-mail:[email protected]

Advisory Office for Citizenship, Civic and human Rights (PPO)Ječná7,12000Praha2Phone:+420270003280E-mail:[email protected]

Association for Integration and migrationSenovážná2,11000Praha1Phone:+420224224379E-mail:[email protected]

South Bohemia Region

Diocesan Charity of České BudějoviceKanovická16/405,37001ČeskéBudějovicePhone/fax:+420386353120E-mail:[email protected]

Organisation for Assistance to Refugees Žižkova1,37001ČeskéBudějovicePhone:+420389007281,phone/fax:+420387747281E-mail:[email protected]

South moravia Region

Diocesan Charity in Brno, migration Department Šumavská33,60200BrnoPhone:+420545133494, +420603157640E-mail:[email protected]

Organisation for Assistance to Refugees (OPU)Leitnerova9/682,60200BrnoPhone:+420731928388,Phone/fax:+420543210443E-mail:[email protected]

Civic Association Dealing with emigrants (SOze)Mostecká5,61400BrnoPhone:+420545213643, fax:+420545213746E-mail:[email protected]

ADDReSS LIST Of nOn-gOveRnmenTAL ORgAnISATIOnS PROvIDIng ADvISORy SeRvICeS TO fOReIgneRS

53

hradec králové Region

Advisory Office for foreigners and RefugeesDiocesanCharityinHradecKrálovéVelkénáměstí37,50001HradecKrálovéPhone:+420495063135,fax:+420495063134Email: [email protected], [email protected]

Liberec Region

Advisory Office for Long-Term Legally Staying Citizens in Česká LípaParishCharityinČeskáLípaDubická2189,47001ČeskáLípaPhone:+420487823922,+420774116412Email:[email protected]

Olomouc Region

Civic Association Dealing with emigrants (SOze)Ostružnická28,77200OlomoucPhone:+420585242535E-mail:[email protected]

Pardubice Region

Bridge for human Rights17.listopadu,53002PardubicePhone/fax:+420732754239,467771170E-mail:[email protected]

Plzeň Region

Advisory Office for foreigners and RefugeesDiocesanCharityinPlzenCukrovarská16,30100PlzeňPhone/fax:+42037744173E-mail:[email protected]/plzen

Organisation for Assistance to Refugees (OPU)Tylova2090/1,30100PlzeňPhone:+420377222098E-mail:[email protected]

Ústí nad Labem Region

Diocesan Charity in LitoměřiceDómskénáměstí10,41201LitoměřicePhone/fax.:+420416733487E-mail:[email protected]

multicultural Community CentreAdvisoryOfficeforIntegrationVelkáHradební33,40021ÚstínadLabem(inthebuildingofNárodnídům)Phone:+420475208449,+420731175833Phone/fax:+420475216536E-mail:[email protected],www.multikulturnicentrum.cz

vysočina Region

Civic Advisory Office in JihlavaŽižkova13,58601JihlavaPhone:+420567330164E-mail:[email protected]

Civic Advisory Office in Jihlava, detachedofficeinTelčMasarykova330,58856Telč(inthebuildingofpolyclinic)

OP Třebíč – Civic Advisory Office in TřebíčDreuschuchova17,67401TřebíčPhone:+420568845348E-mail:[email protected]

ADDReSS LIST Of nOn-gOveRnmenTAL ORgAnISATIOnS PROvIDIng ADvISORy SeRvICeS TO fOReIgneRS

54

LABOUR InSPeCTIOn BODIeS

TheofficehoursforthepublicarethesamefortheStateLabourInspectionOfficeandtheregionallabourinspectorates:Monday–Wednesday8:00am–5:00pmTuesday,Thursday,Friday8:00am–2:00pmThe consultation centres usually operateonedayaweekoronedayperfortnight.The phone numbers of the consultationpointsandotherinformationcanbefoundonthewebsitesof the individual inspec-torates.

State Labour Inspection Office Hornínáměstí103/2,74601OpavaPhone:+420553696154,fax:+420553626672E-mail:[email protected],www.suip.cz

Regional Labour Inspectorate for the Capital City of Prague Kladenská103/105,16000Praha6Phone:+420235364006,fax:+420235362007E-mail:[email protected],www.suip.cz/oip03

Regional Labour Inspectorate for Central Bohemia RegionVeSmečkách29,11000Praha1Phone:+420221924200,fax:+420222211498E-mail:[email protected],www.suip.cz/oip04

Consultation offices at labour offices (open once a fortnight):Benešov(Dukelská2080),Beroun(Okružní26),Kladno(Dukelskýchhrdinů1372),Kolín(Kutnohorská 39), Kutná Hora (Benešova2/70), Mladá Boleslav (Jaselská 292/IV),Nymburk(Dělnická4/402),Příbram(nám.T.G.Masaryka145),Rakovník (nábř.T.G.Masaryka2473)Consultationoffice:Mělník(Tyršova106)

Regional Labour Inspectorate for South Bohemia and vysočina Regions Vodní21,37006ČeskéBudějovicePhone:+420387843411,+420387424271,fax:+420387843419E-mail:[email protected],www.suip.cz/oip05

Regional office in JihlavatřídaLegionářů17/4181,58601JihlavaPhone:+420567302107,fax:+420567301262E-mail:[email protected]

Consultation offices:ČeskýKrumlov(Plešivec251),Písek(nábř.1.máje2259),Tábor(Roháčova2614),Hav-líčkůvBrod(Jihlavská42),Pelhřimov(Praž-ská127),Třebíč(Sedlákova1),ŽďárnadSá-zavou (Strojírenská28), JindřichůvHradec(Janderova147),Prachatice(Poštovní113),Strakonice(Textiláků393)

Regional Labour Inspectorate for Plzeň and karlovy vary RegionsSchwarzova27,30100PlzeňPhone:+420377423066,fax:+420377372926E-mail:[email protected]/oip06

Regional office in SokolovJednoty654,35601SokolovPhone/fax:+420352672172,phone:+420352672180E-mail:[email protected]

Consultation offices at labour offices: KarlovyVary,Klatovy,Rokycany,Domažlice,Tachov,Cheb

Regional Labour Inspectorate for Ústí nad Labem and Liberec RegionsSNP2720/21,40011ÚstínadLabemPhone:+420472774165,fax:+420472772589E-mail:[email protected],www.suip.cz/oip07

Regional office in Liberecnám.Dr.E.Beneše24(1stfloor,room12–19),46073LiberecPhone:+420485244481,fax:+420485244485E-mail:[email protected]

ADDReSS LIST Of RegIOnAL LABOUR InSPeCTORATeS, LABOUR OffICeS

55

Consultation offices at labour offices:OSSZ Litoměřice (Seifertova 2063/3), Dě-čín (Březinova 442/1), Jablonec nadNisou(E. Floriánové 3), OSSZ Teplice (Přítkovská1576/44),Most(tř.Budovatelů1989),Louny(Pod Nemocnicí 2380), Semily (Bořkovská572), OSSZ Chomutov (Roháčova 4183),ČeskáLípa (Děčínská389,buildingB–be-hindthecourt,groundfloor–room101)

Regional Labour Inspectorate for hradec králové and Pardubice RegionsŘíční1195,POBOX53,postoffice2,50101HradecKrálovéPhone:+420495217494,495219012,fax:+420495219070E-mail:[email protected],www.suip.cz/oip08

Regional office in ChrudimMěstskýpark274,53701ChrudimIVPhone:+420469623130E-mail:[email protected]

Consultation offices at labour offices:Rychnov nad Kněžnou, Trutnov, Náchod,Jičín, Pardubice, Ústí nad Orlicí (buildingof District Social Security Administration),Svitavy

Regional Labour Inspectorate for South moravia and zlín RegionsMiladyHorákové3,65860BrnoPhone:+420545321285,fax:+420545211303E-mail:[email protected]/oip09

Regional office in zlíntř.TomášBati3792(buildingofDistrictSo-cialSecurityAdministration),76001Zlín

Consultation offices:Blansko(K.J.Mašky2),Břeclav(nám.T.G.Masaryka9A),Hodonín(Dukelskýchhrdinů3653/1), Kroměříž (Husovo nám. 535/21),UherskéHradiště (Svatováclavská568),Va-lašské Meziříčí (Železničního vojska 1349),Vyškov(Nádražní7),Zlín(Kúty3967),Znoj-mo(Masarykovonám.22/449)

Regional Labour Inspectorate for moravian Silesia and Olomouc RegionsŽivičná2,70269OstravaPhone:+420950143711,fax:+420596110164E-mail:[email protected],www.suip.cz/oip10

Regional office in Olomouctř. Kosmonautů 8 (1st floor of AB centre),77200OlomoucPhone+420587433249,+420587433238

Consultation offices:Přerov (Žerotínovo nám. 168/21), Šumperk(Starobranská2700/19),Jeseník(KarlaČapka1147), Bruntál (Jesenická 717), Frýdek-Mís-tek(NaPoříčí3510),Karviná(tř.Osvobození1388/60), Nový Jičín (Mgr. Šrámka 1099),Opava(seatofSÚIP,Hornínáměstí103/2)


56

LABOUR OffICeS

ThereisarelativelydensenetworkoflabourofficesintheCzechRepublic;thereisoneineverycity(formerdistrictcapitals).Theindividuallabourofficeshavebranchofficesinsmallertowns.

Forthecontactinformationoflabourofficesvisitthe IntegratedPortaloftheMinistryofLabourandSocialAffairsat:http://portal.mpsv.cz/sz/local.

Hereyouwillgetinformationconcerningemploymentissues,butnotlegaladvisoryservi-cesconcerningemploymentrelationships.

Phone:+420844844803ThepriceofcallfromalandlineisCZK1.53/min.,VATinclusive.ThepriceofcallfromamobilenetworkisCZK4.50/min., VATinclusive.Operationhours:Monday–Friday8:00am–8:00pmE-mail:[email protected], [email protected]

CALL CenTRe Of emPLOymenT SeRvICeS
