Change in the Process for Reporting Posted Workers to the Czech Labour Office

A requirement for EU companies to report the posting of foreign employees to the Czech Republic in the context of the transnational provision of services has existed for many years in the Czech Republic. This reporting is important as it allows the Czech Labour Office to monitor compliance with labor standards, prevent “social dumping“ from countries with lower level of employee labour law rights, and ensure that posted workers receive fair treatment comparable to local workers.

Since 30 July 2020 the reporting obligation was met by foreign employers filing a notification form with the Regional Labour Office. The law has been recently amended so that effective from 1 July 2024 the process for filing the notice related to posted employees needs to be filed with a new entity by only electronic means on a special portal (hereinafter „Portal“):

Portal for posting workers in the Czech Republic (mpsv.cz)

This system simplifies the reporting procedure, making it more accessible and efficient for employers. At the current time the Portal is available in Czech, English, German and Polish.

The foreign employer is obliged to notify the State Labour Inspection Authority of this fact through the Portal no later than on the day on which the posted employee starts working. The foreign employer is also obliged to communicate any change in information originally provided or any earlier than planned end of an employee‘s posting no later than 10 calendar days from the date on which the change occurred or when they became aware of it.

Please find below a table which shows the main changes to the approach

	Up to 30 June 2024	From 1 July 2024
Report filed with which entity	Regional Labour Office	State Labour Inspection Office
Format of report	PDF form via data box or post or e-mail with valid electronic signature	Only via registration portal of State Labour Inspection Office
Required informtation and documents in Report	• Detail on type of posting (assignment based on service agreement, assignment to branch/group company or temporary work assignment) • Identification information of foreign employer (company name, registered office, VAT number) • Identification information of Czech entity receiving employee (company name, registered office, place of work, business ID number, contact person) • Duration and location of the posting, classification of type of work • Personal information of posted employee (name, citizenship, place and date of birth, passport number, level of education) • Documents proving existence of labour relationship (also with translation into Czech) – this should be available at the posted employee’s workplace in the Czech Republic	• The requirements are more or less the same as what previously applied. • There will be an actual need to provide a copy of the posted employee‘s employment contact with Czech translation via the Portal.

However, there are some exceptions for the reporting which needs to be made in connection to posted workers who had initially been reported to Labour Office prior to 1 July 2024. If there occurs a change to their information, their period of posting extended or terminated, such reporting of change should still be made with the PDF form to the Regional Labour Office in the period up to 31 December 2024. Alternatively, the new Portal can be used if the foreigner employer decides to use it.

At the current time, there are some practical issues to be resolved about how a foreign employer can access the Portal as access rights are connected to a single e-mail address. This fact may make it difficult for larger companies which may have multiple employees from different locations posted to the Czech Republic.

Authors:

Bryan McSweeny, Tax Manager

Gabriela Ivanco, Tax Manager