Legislative Changes in the Employment of Foreign Workers in 2024
This year has brought significant changes in the employment of foreign staff in the Czech Republic, aimed at making it easier for companies to access foreign labor. The new legislation primarily focuses on simplifying administrative processes and expanding the list of third countries whose citizens have free access to the domestic labor market.
Lawmakers have made these adjustments to streamline the system, ensuring it better aligns with the dynamic demands of the labor market. This change allows companies to respond more flexibly to workforce shortages in specific sectors. One such sector is construction, which heavily relies on foreign workers, particularly from Ukraine.
In this article, we will examine the key legislative updates and their impact on the business environment, helping entrepreneurs navigate these new requirements more effectively.
Key Legislative Changes in the Employment of Foreign Workers
Abolishment of the Labor Market Test
The labor market test previously required employers to first advertise a vacant position through the Czech Labor Office. Only after failing to find a suitable candidate from the local population could they apply for a work permit for foreign workers.
Under the new legislation, this requirement is removed for foreign workers holding an employment card, applicable only when unemployment is low. In regions with unemployment rates of 7% or higher, the labor market test can be reinstated. However, employers are still obligated to report job openings to the local labor office.
Reporting Job Vacancies
The reporting obligations have also changed, affecting the system of recording vacant positions. Now, the Czech Labor Office will automatically remove any position from its records if it remains unfilled for six months. This change does not apply to positions already part of an ongoing migration process connected to residence or visa permits.
Moreover, the office can remove job listings in cases where employers do not cooperate during inspections of vacant positions (so-called "non-cooperation").
Expansion of the List of Third Countries with Free Access to the Czech Labor Market
Several industries in the Czech Republic heavily depend on foreign labor, making the expansion of the list of countries with free access to the Czech labor market a logical step. Until now, this advantage has primarily been utilized by staffing agencies for temporary manual labor positions. The expanded list aims to attract more qualified foreign workers.
As of July 1, 2024, companies can hire workers from Australia, New Zealand, the United Kingdom, Canada, the USA, Israel, Singapore, Japan, and South Korea without complicated administrative hurdles.
These legislative changes provide new opportunities for businesses and foreign workers alike, contributing to a more dynamic and adaptable Czech labor market.