An amendment to the Employment Act has been in force since the beginning of 2024, which, among other things, changes the definition of illegal work. It should now be easier to detect illegal work and therefore punish it. So what is considered illegal work and how can you safely avoid the so-called švarc system?
What is illegal work?
The Employment Act generally considers the following to be illegal work :
performance of work outside an employment chinese overseas british database relationship (i.e. any work without a contract, including the švarc system),
employing foreigners in violation of the issued employment permit or without a permit or in violation of the relevant authorization,
employment of foreigners without a valid residence permit in the Czech Republic.
Signs of the svarc system
Formally, the employee and employer act as business partners (supplier and customer), but in fact it is dependent work.
The main characteristics of dependent work are considered to housing rental market trends, growth, and projections 2032 be the relationship of employer’s superiority and employee’s subordination or the performance of work on behalf of and according to the employer’s instructions. activities.
The black market system is therefore illegal. The purposeful replacement of the employment relationship with other types of contracts significantly limits the employee’s rights (e.g. the right to paid leave, sick leave, notice period, etc.), but also reduces the tax and contribution burden, which has a negative impact on the public budget and the employee’s future pension, or maternity leave, etc.
What has changed in the definition of illegal work?
The aim of the amendment to the Employment Act is mainly to simplify the proof of illegal work . In practice, before this amendment, the biggest problem was proving the consistency of such work, which was one of the most important signs of illegal work. The Labour Inspectorate therefore had to prove that illegal work “for a trade” has been going on for a longer period of time, but in the case of work outside an employment relationship, such proof is almost impossible.
The amendment therefore removed the condition of continuity from the definition of illegal work from 1 January 2024 and explicitly specifies that the duration of such work is no longer decisive . Therefore, if the inspectorate detects illegal work on the day of the inspection, it does not have to prove how long such work has been going on and can immediately impose sanctions.
Sanctions for the švarcsystem are stricter from 2024
The švarc system threatens sanctions not only for the employer, but also for the self-employed person who works for the employer.
The amendment does not change the amount of financial sanctions, but thailand data it introduces another type of sanction, namely a ban on employers from operating for up to 2 years .
TipWith the ČSOB Online Business Finance Configurator, you will receive an offer directly for your business, whether it is financing your business, evaluating deposits or simply everything related to finances. You can process your application quickly and online. From the very beginning, you will be dealing directly with an experienced banker for companies and entrepreneurs.
