Great talent is everywhere. One popular outsourcing destination is Czech Republic — offering a large pool of highly skilled professionals. But sometimes, the problem is legally hiring the talent that you need.
An Employer Of Record (EOR) can be ideal for companies looking to hire and pay talent around the world without the legal hassle.
This article will walk you through the reasons, processes, and advantages of hiring employees in Czechia through an EOR.
Why Hire Talent in Czechia?
Home to 20 tech universities, thousands of developers are graduating every year in Czechia. The country also has a thriving start-up scene. This makes it particularly attractive for companies looking to outsource top tech talent.
In general, the education quality in Czechia is very high. As a result, there are many highly-qualified workers. Combined with a lower-than-average cost of living, employers can offer competitive salaries to top talent while keeping their costs at bay.
Another advantage of hiring in Czechia is the country’s multilingual workforce. In addition to Czech, most locals speak fluent English and many have a working knowledge of other European languages. The country’s location close to large markets like Austria, Germany, and Poland is also ideal.
Finally, Czechia ranks number 41 among 190 economies when it comes to ease of doing business. The friendly environment makes it a great choice for employers looking to hire internationally.
How Can I Legally Hire an Employee in Czechia?
Things can get tricky if you want to legally hire talent in Czechia on your own. For the most part, you’ll need to set up a legal entity to hire in Czechia. The process can be daunting and is only worth it if you plan to set up long-term operations in the country.
This is where EORs come in handy. An EOR acts as a broker for hiring talent outside of the country you legally operate in. It will already have an entity set up and the legal framework in place to do the hiring for you. You, on the other hand, will manage the relationship with your employees.
Going through an EOR is possibly the easiest way to hire talent in Czechia without all the legal hassle.
What Does an EOR Do?
Simply put, EORs take care of the legal procedures while you manage your employees. The legal frameworks for hiring in Czechia can be quite different from those in the US and Canada. EORs handle worker visas and work permits, employment contracts, payroll, local compliance, termination, and any other HR services.
For example, did you know that parents are entitled to a combined 43 months of parental leave? Or that employees under a non-compete agreement are entitled to compensation? EORs will take care of this and so much more.
Contracts and Documentation
An EOR will handle the tedious administration involved in preparing and collecting contracts and documentation. This includes employment offers, signed contracts, banking information, and more so you can focus on growing your business.
Employee Insurance and Benefits
When the world is your competition, it pays to incentivize new and existing hires with attractive benefits like medical, dental, vision and life insurance, and retirement savings plans. A comprehensive EOR will have those kinds of benefits built into its service offering.
Vacation and Public Holidays
Full-time employees in Czechia are entitled to twenty days of paid annual leave. Even so, many employers will offer an additional week of paid leave as a perk to attract top talent. There are different types of leave as well, like sick and parental leave. An EOR can keep track of all this and the corresponding payments for you.
In addition, Czechia has a number of statutory holidays that companies are obligated to provide to their employees.
- January 1: New Year’s Day and Restoration Day of the Independent Czech State
- Friday and Monday of the Easter weekend: Easter (Western Christian)
- May 1: Labor Day
- May 8: Victory in Europe Day
- July 5: Saints Cyril and Methodius Day
- July 6: Jan Hus Day
- September 28: St. Wenceslas Day
- October 28: Czechoslovak Independence Day
- November 17: Struggle for Freedom and Democracy Day
- December 24, 25, and 26: Christmas
Taxes
Employers in Czechia pay a range of taxes or social security contributions, which are calculated based on the employee’s gross salary. These include social security, healthcare, and accident insurance.
This can be a tedious process but is necessary to ensure you are paying employees in a compliant manner. Thankfully, an EOR can handle the logistics and ensure that payroll is processed properly and per the regulations in whichever country you are operating.
What Are Your Responsibilities?
While the EOR handles everything related to legal and HR processes, many aspects of the company’s workings fall under your purview. So, you take care of your staff in the same way you would with your local hires. That means search and recruitment, company onboarding, training, management, day-to-day communications, progress tracking, and so on, should be managed by you.
While the relationship with the employee won’t be all that different through an EOR, you need to be clear with your staff on the legalities of their contracts. Of course, retention is also up to you. You will need to consider how you help your staff grow and succeed in their new roles at your organization.
What Are the Advantages of Going Through an EOR in Czechia?
Using an EOR to hire talent in Czechia will save you time, reduce costs, and mitigate risks.
Setting up an entity for hiring in Czechia is time-consuming and complex. Since the EOR is already set up to hire employees in the country, it will be faster and easier to start hiring right away. In fact, the process won’t be that much different from hiring locally.
The set-up and HR costs can also be quite high, so going through an EOR can save you money.
Most importantly though, you’ll be mitigating the risks associated with non-compliance. Because EORs have extensive experience in navigating complex local HR policies, you won’t have to worry about any issues arising from improper hiring practices.
How Do I Choose the Right EOR for Me?
There are a few key things to consider when you are selecting an EOR in Czechia.
- Local Experience: Does the EOR have experience hiring in Czechia? As discussed earlier, one of the biggest advantages of hiring an EOR is the assurance of compliance. Often, this requires a lot of past experience, so check the EOR’s track record in the country.
- Service Scale: Do you need someone who offers a full suite of services? If you want happy employees that you can retain in the long run, then you may need to offer them benefits like insurance and other welfare. Some EORs have systems in place for this but others may not. Also, certain EORs will offer consulting services to optimize your global hiring practices.
- Data and Systems Security: Protecting intellectual property in a remote working environment is critical. Ensure your vendor of choice has a specific agreement outlining the ways in which they plan to keep your sensitive information safe and secure.
- Collaboration: Ensure your vendor’s approach to communication and collaboration with its clients is aligned with your organization’s approach. Love having a point of contact person? Perhaps all you need is access to a Slack channel so you can quickly reach your vendor. Whatever your communication style, ensure your vendor can meet your needs.
Borderless: The Employer of Record your Company Needs
Need an EOR? Look no further than Borderless. We can help you hire employees in Czechia – giving you access to a massive talent pool without the headaches of traditional global expansion.
Book a demo today and see how we can help you quickly and easily hire, onboard, pay, and retain the Czechia-based talent your organization needs.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
