How to stay compliant

Employer-of-Record (EOR) in the Czech Republic: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in the Czech Republic: Do You Need One?

So you want to hire someone in the Czech Republic. Problem is, your company is located somewhere else.  

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in the Czech Republic, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in the Czech Republic are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in the Czech Republic, and it doesn’t involve forking out huge amounts of money for an EOR.  

The solution: Hire your teammates in the Czech Republic as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like the Czech Republic). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.  

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in the Czech Republic:

Everything you should know about using an EOR in the Czech Republic

Are you considering hiring independent contractors abroad? If you're looking to expand your business in the Czech Republic, you may be wondering whether to use an Employer of Record (EOR) or hire independent contractors. In this post, we'll explore everything you should know about using an EOR in the Czech Republic, including legal and regulatory conditions specific to the country. We'll also make the case that hiring an independent contractor might be easier than using an EOR given these conditions.

What is an EOR?

An EOR is a third-party company that acts as an employer for your workers in a foreign country. The EOR takes care of all the administrative tasks associated with employing workers, such as payroll, taxes, and benefits. This allows you to focus on your business operations without worrying about compliance with local laws and regulations.

Legal and regulatory conditions in the Czech Republic

The Czech Republic has a complex legal and regulatory environment that can make it difficult to employ workers directly. For example, employers must comply with strict labor laws, including minimum wage requirements and maximum working hours. Additionally, employers must register with the Czech Social Security Administration and pay social security contributions for their employees.

Using an EOR can help you navigate these legal and regulatory conditions. The EOR will ensure that your workers are paid in compliance with local laws and regulations, and will handle all necessary paperwork and filings.

Should you hire independent contractors instead?

While using an EOR can be a good option for some businesses, hiring independent contractors may be easier and more cost-effective in certain situations. Independent contractors are not considered employees, so you typically do not need to comply with the same labor laws and regulations as you would with employees. And since you’re not shelling out hundreds per month to an EOR, you can save on budget.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

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