Rules for Employment via Agencies to Tighten Up

23. 6. 2017

A bill containing amendments to the Employment Act and related legislation, especially the Labour Code and the Act on Work Inspection, is awaiting approval of the President. The amendment aims to tighten the rules for employment secured via an agency and sanction subjects which intend to violate them. Should such an agency try to 'disguise' their mediation activities as if they were performed via a different legal institute so as to bend the respective rules, they may find themselves in danger of severe penalties being imposed.

Also, agencies are to deposit CZK 500,000 along with the application for a permit for job arrangements.

Furthermore, the conditions for legal representatives the appointment of which may only be held solely in an employment relationship with the number of working hours exceeding 20hours per week; this condition, however, does not apply for physical persons who are a statutory body or a statutory body member of the respective legal entity.

The amendment also specifies and completes the Labour Code in terms of prohibition of discrimination.

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