The Chamber of Deputies of Czech Parliament approved the Amendment to the Employment Act. It should come into effect on 1 January 2012 and brings material changes especially in the field of potential sanctions for breach of labour laws. By Tereza Erényi and Tomas Liskutìn, attorneys at law at the PRK Partners lawfirm in Prague. (Ref. 110584)
Illegal
work – hiring freelancers for dependant work. Fundamental
change which the amendment brings is a new definition of illegal work – it also
covers performance of dependent work as a freelancer, i.e. concealed employment
(so called “Švarcsystem” in Czech).
Increased activity of the Labour Inspectorates can be expected since the
amendment brings a penalty for ’employers’ in the amount of CZK
250,000-10,000,000 (€10,000-405,000). In other words, the amendment determines
a minimum penalty...
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