Good governance / Legal Reform and Transparency
This section details initiatives to make government a competitive advantage. It includes analysis and reports of government initiatives, as well as data on accountability and performance measures.
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Spotlight issue
Beware of high penalties when posting workers abroad
Although the European and Czech regulation of special rights of employees posted abroad is quite old, many employers are unaware of its existence or choose to ignore it arguing that no one will find out. With such ignorance, they are risking heavy fines, as the inspection authorities carry out systematic checks in this area. A case in point may be the EUR 54,000 fine faced by a Slovak company posting its workers to Austria.
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Changes to the Aliens Residence Act and to the Czech Personal ID Cards Act
Effective as of August 2021, the Aliens Residence Act of the Czech Republic (Act No. 326/1999 Coll.) has undergone far-reaching amendments concerning a variety of areas, such as EU foreign nationals and British citizens post-brexit, new identification papers, health insurance issues, or the level of language proficiency tests. Also, the Czech Personal ID Cards Act (Act No. 269/2021 Coll.) has been comprehensively restated.
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Proposal for a new minimum wage for 2022
The Ministry of Labor and Social Affairs proposes an increase in the minimum wage with effect from 1 January 2022 by CZK 2,800. The new basic monthly minimum wage rate in 2022 would thus increase from the current CZK 15,200 to CZK 18,000, which corresponds to an increase in the basic hourly minimum wage rate from CZK 90.50 to CZK 107.10.
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