New duties related to posting of employees

The amendment to the Employment Act (act No. 435/2004 Sb., as amended), to the Labour Code (act No. 262/2006 Sb., as amended) and to other regulations, that with delay implements the Directive 2014/67/EU of the European Parliament and the Council on the enforcement of the directive on posting of employees, has become effective as of 1 April, 2017.

The amendment imposes new administrative duties in connection with posting of employees – particularly a duty to retain copies of documents proving the existence of employment relationships of employees (i.e., usually employment contracts) at their place of work in the Czech Republic, including their Czech translations. The amendment also specifies requirements of the records of posted employees, who are nationals of EU Member States that is to be obligatorily kept by the receiving employer based in the Czech Republic.

By changes in section 319 of the Labour Code, the amendment further introduces the concept of secondary liability of the receiving employer in the Czech Republic for the payment of salaries in the minimum guaranteed amount and overtime premiums to posted employees, which may be invoked under circumstances specified by law. Unless the actual length of work is proven, it shall be deemed that the employee performed work in the Czech Republic for the period of three months.