It is administratively and financially very demanding to employ a worker with a place of work abroad.
Each case has to be dealt with individually, taking into account the specific place of work and the form of the employment relationship, both from a law, insurance and income tax perspective. Unfortunately, there are no general rules that can be universally applied to these cases. It is always necessary to determine under which law the employment contract will be concluded.
- Contract under foreign law - it is necessary to consult a foreign legal advisor.
- Contract under Czech law - the employee is still entitled to apply local law where it is more advantageous for him/her (e.g. shorter working hours, longer holidays, higher minimum wage, higher severance pay). This should be studied and the employee should be allowed to take advantage of these benefits.
In some countries, no other than local legal order may apply, i.e. a contract under Czech law cannot be concluded there.
If a foreign employee with a place of work abroad goes on a business trip to the Czech Republic and is not an EU citizen, he/she is required to obtain a work visa. The employee must report to the local authorities and in most cases this will oblige MENDELU to register with these authorities. However, the authorities often do not communicate and orientation in foreign regulations can be very difficult. The regulations are often only in the local language and the authorities also only communicate in the local language. Among other things this makes impossible to verify information by phone. It may therefore be necessary to arrange and fund translations into the language.
As taxes, social security and health insurance are paid according to local regulations, it is important to study the social security and tax system of the country. International agreements on health and social insurance and double taxation treaties should also be taken into account.
An employee with a place of work abroad is most likely to work in a home office mode. This entails a high demands of the employer to inspect the employee's workplace from the point of view of occupational health and safety, to deal with possible accidents at work and to calculate a lump sum to reimburse the costs that the employee may incur in the home office.