Employing Ukrainian Nationals in the Czech Republic

Who has free access to the labour market?

The Employment Act stipulates that a foreign national may only be employed with a valid work permit – unless they fall under the exceptions listed in Section 98 of the Act. These exceptions grant so-called free access to the labour market, putting them on an equal footing with Czech citizens. These mainly include:

• Holders of temporary protection (extended until 31 March 2026): Under Section 2(2) of Act No. 66/2022 Coll. (Lex Ukraina), foreign nationals with valid temporary protection granted in the Czech Republic are considered, for the purposes of the Employment Act, as foreign nationals with a permanent residence permit. They therefore have free access to the labour market. Temporary protection can be identified by a visa sticker in the passport with the code D/DO/667 (UA citizen), D/DO/668 (family member), or D/DO/669 (other reason), or by the older sticker D/VS/U (special tolerated stay visa issued after 24 February 2022), which has been automatically considered temporary protection since Lex Ukraina came into effect (21 March 2022). The validity of temporary protection has been repeatedly extended, currently until 31 March 2026.

• Permanent residence permit holders: Foreign nationals who have been granted a permanent residence permit in the Czech Republic (Section 87 of the Act on the Residence of Foreign Nationals - ARFN) have free access to the labour market.

• EU/EEA/Swiss citizens and their family members: These citizens have free access to the labour market. A Ukrainian citizen may fall into this category if, for example, they are a family member of a Czech or other EU citizen and hold a corresponding residence permit (e.g., a temporary residence permit for an EU citizen's family member).

• Other groups under Section 98 of the Employment Act: The Act also lists other cases where a foreign national does not need a work permit, e.g., foreign nationals granted asylum, students and graduates of Czech secondary schools and universities under certain conditions, holders of a long-term residence permit for the purpose of family reunification, etc.

Cases requiring a work permit

Not all Ukrainians have free access to the Czech labour market. If a worker does not fall into the categories above, they need a specific work permit:

• Visa for the purpose of tolerated stay (other than temporary protection): Ukrainians who are not eligible for temporary protection (e.g., because they were already legally residing in the Czech Republic before 24 February 2022 under a different residence permit, or do not meet other conditions) may obtain a visa for the purpose of tolerated stay under Section 33 of the ARFN. Holders of this type of visa (which is not temporary protection) do not have free access to the labour market and require a work permit issued by the relevant regional branch of the Labour Office of the Czech Republic for legal employment (Sections 89, 95-97 of the Employment Act).

• Employee Card: This is a dual permit for long-term residence and employment (Section 42g of the ARFN, Section 95 of the Employment Act), intended for positions not requiring high qualifications. It is issued by the Ministry of the Interior (MV ČR) based on the foreign national's application and a vacant position that the employment agency has reported in advance to the Labour Office of the Czech Republic and which is suitable for an Employee Card. The card is tied to a specific agency and job position. It is valid for a maximum of 2 years (and can be extended). It requires the conclusion of an employment contract or an agreement to perform work (DPČ) with a weekly working time of at least 15 hours and a wage at least at the level of the minimum wage. Any change of employer or job position is subject to the approval of the MV ČR.

• Blue Card: Similar to the Employee Card, but intended for highly qualified employees (Section 42i of the ARFN, Section 95 of the Employment Act). The conditions include completed university or higher vocational education lasting at least 3 years and an employment contract guaranteeing a gross salary of at least 1.5 times the average gross annual salary in the Czech Republic. It is issued by the MV ČR based on a vacant position reported to the Labour Office as suitable for Blue Cards. It is valid for up to 3 years (and can be extended). A change of employer or position in the first 2 years requires the consent of the MV ČR; afterwards, only a notification is required.

• Work Permit: A separate work authorisation – not linked to a residence permit, which the foreign national must have separately – issued by a regional branch of the Labour Office of the Czech Republic (Sections 89, 95-97 of the Employment Act). It is required in specific cases where an Employee Card or Blue Card cannot be issued, typically for holders of a visa for the purpose of tolerated stay, for seasonal work, internships, etc. It is issued for a specific job at a specific agency, for a maximum of 2 years (and can be repeatedly extended). Its issuance is generally subject to an assessment of the labour market situation (the so-called labour market test), unless a statutory exception applies.

For an employment agency, it is absolutely crucial to correctly identify the type of residence permit of each Ukrainian worker. Mistaking temporary protection (free access) for a tolerated stay visa (requires a work permit) could lead to illegal employment with serious consequences for the agency.

The reason is the specific regime introduced by the Lex Ukraina Act, which applies only to holders of temporary protection and differs significantly from the standard rules for employing third-country nationals under the Employment Act and the ARFN, which apply to other Ukrainians. The agency must therefore have a reliable process for checking and recording residence documents during recruitment and throughout the entire duration of the employment relationship.

It must be able to distinguish between the different types of visa stickers and residence cards and know their precise implications for labour market access. It is also essential to consistently retain copies of these documents for the period stipulated by law (Section 102(3) of the Employment Act).

Specific obligations of the agency when employing and assigning Ukrainians

In addition to general obligations, when employing Ukrainians (depending on their residence status), the agency must also fulfil specific duties towards state authorities, particularly the Labour Office of the Czech Republic.

Reporting vacant positions to the Labour Office

This obligation only applies to cases where the agency intends to hire a foreign national for a position who needs an Employee Card or a Blue Card. The agency must report such a vacant position (VPM) to the relevant regional branch of the Labour Office of the Czech Republic according to the place of work. In the report, it must specify that the position is suitable for an Employee Card or a Blue Card.

The Labour Office will assign a unique identification number (ID VPM) to the position, which is subsequently needed for the foreign national's card application. For the employment of foreign nationals with free access to the labour market (including holders of temporary protection), this specific procedure for reporting vacant positions for foreigners is not required.

Information duty towards the Labour Office (Sections 87, 88 of the Employment Act)

This duty applies to all employed foreign nationals, regardless of whether they have free access to the labour market or require a work permit. It therefore also applies to EU citizens, permanent residence permit holders, and holders of temporary protection!!! The agency must inform the relevant regional branch of the Labour Office of the Czech Republic (according to the foreign national's place of work) in writing of the following facts:

• Commencement of employment: No later than on the day the foreign national starts performing work for the agency or the user.

• Termination of employment: Within 10 calendar days of the date of termination of employment.

• Changes in data: Within 10 calendar days of the date the change occurred in the data previously reported (e.g., change of job classification, place of work, change in the foreign national's identification data, address, etc.).

Form of notification: As of 1 July 2024, the information duty towards the Labour Office of the Czech Republic can only be fulfilled digitally. Agencies have a choice of three channels:

1. Filling out the electronic form on the Integrated Portal of the Ministry of Labour and Social Affairs (MPSV).

2. Sending an XML data file to the data box of the Labour Office of the Czech Republic.

3. Direct integration of the agency's information system with the MPSV interface (API). Paper form (by post, e-mail) is no longer accepted. A single form is used for reporting both commencement and termination. If the agency indicates the expected termination date when reporting the commencement (e.g., for a fixed-term contract) and this date is adhered to, it does not need to report the termination separately.

Keeping records of employed foreign nationals (Section 102(2) of the Employment Act)

An employment agency is obliged to keep records of all foreign nationals it employs in an employment relationship or temporarily assigns to a user, again regardless of their residence status (including EU citizens and holders of temporary protection). These records must contain at least the following data:

• Identification data of the foreign national (name, surname, date and place of birth, nationality).

• Address in the country of permanent residence and address for service in the Czech Republic.

• Travel document number and the name of the issuing authority.

• Type of work, place or places of work.

• The period for which the employment is to be performed (duration of the employment relationship, duration of the assignment).

• Sex of the foreign national.

• Classification according to the Classification of Occupations (CZ-ISCO).

• Highest level of education attained and the education required for the performance of the given work.

• Validity period of the work permit, Employee Card, Blue Card, or residence permit (if required).

• The day of commencement and the day of termination of employment or temporary assignment.

Specific obligations of the agency when employing and assigning Ukrainians

Retention of documentation (Section 102(3) of the Employment Act)

The agency is obliged to retain copies of documents proving the legality of the foreign national's residence in the Czech Republic (e.g., a copy of the visa sticker, residence permit card, Employee/Blue Card). If the foreign national requires a permit to work, the agency must also retain copies of these documents (e.g., a work permit). The agency must keep these copies at its registered office or place of work for the duration of the employment and for a further 3 years after the termination of this foreign national's employment.

Compliance with Government Regulation No. 64/2009 Coll.

An employment agency may not temporarily assign foreign nationals (regardless of their residence status, unless a specific exception exists) to perform work listed in this government regulation. This mainly concerns underground work in mineral extraction and certain other jobs requiring a level of education lower than secondary school with a school-leaving examination (with exceptions defined in the regulation's annex).

Other obligations

• Social and health insurance: The agency must duly register employed foreign nationals for social security and public health insurance contributions and pay these contributions for them in accordance with applicable regulations. For persons with temporary protection, specific rules apply regarding participation in sickness insurance, even when working under agreements to complete a job (DPP) or agreements to perform work (DPČ).

• Posting abroad: If the user intends to post an agency employee to perform work within the framework of the transnational provision of services in the territory of another EU Member State, they are obliged to inform the employment agency in advance (Section 309a of the Labour Code). The agency then has reporting obligations towards the authorities of the host state and possibly also towards the State Labour Inspection Office (SÚIP) in the Czech Republic.