From July 1, companies in the Czech Republic are required to report all construction contracts

01.07.2024

Employers in the Czech Republic have new responsibilities starting in July. They must now register all employees working for them under a work contract (Dohoda o provenení práce, DPP) and report the income received under such contracts.

The corresponding amendment to the law will come into force on July 1, 2024. Employers will begin to comply with the new obligations in August 2024.

Up until now, employers only registered their employees under contracts with the Czech Social Insurance Office (SZ) in the register of insured persons if they had health and pension insurance. However, they must now compulsorily register every employee working under a DPP, regardless of whether they are required to participate in the insurance scheme.

Unless they have already registered and their contract extends until July 2024, employees with a contract until July 1, 2024, must register by August 20, 2024.

If an employer ignores this duty, what fine does he face?

An employer may be fined for failing to register a work contract with the ČSSZ. In relation to individuals, legal entities, or entrepreneurs as employers, the current legislation already provides for fines, including for failure to notify the beginning or end of the working period for insurance purposes, according to the ČSSZ.

However, failing to submit a DPP agreement will result in a new sanction. The fine can reach CZK 50,000.

The Social Security Administration will carry out the monitoring. As part of the standard verification of the employer’s fulfillment of social security obligations (health insurance, pension insurance, payment of social security contributions, and contributions to the state employment policy), it will be determined whether the employer has reported all employees to the ČSSZ. Either the district social security office or the employer’s premises will host the inspection.

https://www.podnikatel.cz/aktuality/nove-povinnosti-u-dpp-kdo-je-bude-kontrolovat-a-jak-vysoke-budou-pokuty/