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Work Law
8/28/2025
3 min read time

Unreliable Employer

The criteria and consequences for employers in the Czech Republic being classified as unreliable, particularly regarding the employment of foreigners, including issues like tax debts, insurance, and the use of virtual offices.

AV

Anna Vařečková

Attorney at Law

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Not all employers can hire foreigners. If an employer violates any of their obligations in a serious way, they can be deemed unreliable and therefore cannot hire foreigners.

An unreliable employer is one who has debts to the tax office, customs office, for public health insurance premiums, or to the Czech Social Security Administration. Additionally, an employer who was fined for illegal employment within four months before submitting a residence permit application, or an employer who is not economically active in their registered business field, is also considered unreliable.

Furthermore, an unreliable employer includes those who have had problems reporting their employees to the Czech Social Security Administration or to an insurance company within the past year, or those who are in the process of liquidation.

Employers who wish to employ foreigners must also ensure they have a genuine registered office. If an employer has a so-called virtual registered office and their actual offices are located elsewhere, it is advised to register these operating locations with the Trade Licensing Office or find an alternative solution. Otherwise, the employer may be deemed unreliable.


Work Law