Establishing an employment agency in the Czech Republic is a process that requires careful adherence to a number of legislative obligations. To operate legally, the agency must meet specific requirements set by law. This article provides an overview of the key steps and obligations necessary for the successful establishment and operation of an employment agency in the Czech Republic.

1. Legal Form of the Agency

Before starting the process of establishing an employment agency, it is important to choose the appropriate legal form. The most common form for this purpose is a limited liability company (s.r.o.). This form of business is popular in the Czech Republic due to its simple administration and limited liability for partners.

2. Obtaining a Trade License

Every employment agency must obtain a trade license. In the case of an employment agency, this is a regulated trade, which means that certain professional requirements must be met to operate it. These requirements include, for example, the professional competence of the responsible representative, which is demonstrated by higher education or experience in the field.

3. Obtaining a Permit from the Ministry of Labour and Social Affairs

To legally mediate employment, it is necessary to obtain a permit from the Ministry of Labour and Social Affairs (MPSV). This process involves submitting an application that includes several requirements. These requirements include:

• Proof of the integrity of the applicant and the responsible representative.
• Professional competence of the responsible representative.
• A description of the business plan.
• Proof of ownership or lease of premises where the agency will be operated.

4. Registration with the Labour Office

After obtaining a permit from the MPSV, it is necessary to register with the relevant Labour Office. The registration involves submitting the permit from the MPSV and other documents, such as contracts with clients and employment contracts with temporary workers.

5. Liability Insurance Every employment agency must have liability insurance for damages caused to clients or employees. This insurance covers risks associated with employment mediation and employee protection.

6. Fulfillment of Obligations Towards Employees

The employment agency is obliged to comply with all legal obligations related to employment, including adherence to the minimum wage, ensuring safety and health at work, and maintaining proper payroll and personnel records. The agency is also responsible for social and health insurance contributions.

7. Regular Reporting and Audits

The employment agency is required to regularly submit reports on its activities to the MPSV and the Labour Office. These reports include data on the number of mediated jobs, the number of employees, and their working conditions. In addition, the agency may be subject to audits by state authorities to ensure compliance with legislation.

The establishment and operation of an employment agency in the Czech Republic require careful planning and adherence to legal requirements. It is important to bear in mind that failure to meet any of the legislative obligations may lead to fines, revocation of the permit, or even criminal prosecution. If you plan to establish an employment agency, it is recommended to consult the steps with experts in labor law and legislation.