The Chamber of Deputies is debating a proposed amendment to the Criminal Code,[1] which is intended to criminalise (currently this is only an administrative offence) the Undisclosed Employment Intermediation and to impose stricter penalties for the Illicit Employment of Foreigners. In the first case, the offender may face a prison sentence of up to eight years; in the second case, up to ten years’ imprisonment.

The above proposals have been incorporated into the amendment to the Act on Certain Measures in Connection with the Armed Conflict in Ukraine caused by the Invasion of Troops of the Russian Federation,[2] which is currently under discussion, by means of an amendment (Chamber of Deputies Document 213/3). The bill is now heading for its third reading in the Chamber of Deputies; the Guaranteeing Committee recommended its approval in early November.

Undisclosed Employment Intermediation

If the government’s proposal is approved, the Criminal Code will be expanded to include a new Section 250a regulating the offence of Undisclosed Employment Intermediation. Criminal liability would apply to any entity which, on a larger scale – that is, on a scale corresponding to at least CZK 100,000 – engages in undisclosed employment intermediation or, in the course of its business activities, enables undisclosed employment intermediation. Both the entity supplying the workers and the entity receiving them may therefore be held liable. In the basic form of the criminal offence, the offender could be sentenced to up to three years’ imprisonment or a sentence of prohibition of activity; in serious cases, the offender could be sentenced to the aforementioned term of up to eight years’ imprisonment if they obtain extensive profit for themselves or for another, i.e. at least CZK 10,000,000.

Currently, Undisclosed Employment Intermediation is regulated by the Employment Act[3] and is defined as the activity of a legal person or a natural person consisting in the hiring of workforce to another legal person or natural person without meeting the conditions for employment intermediation. Carrying out Undisclosed Employment Intermediation or enabling the Undisclosed Employment Intermediation are currently punishable as an administrative offence, for which a natural person faces a fine of up to CZK 5,000,000 and a prohibition of activity for up to two years, whilst a legal person faces a fine ranging from CZK 50,000 to CZK 10,000,000, a prohibition of activity for up to two years, and the publication of the decision on the administrative offence on the official notice board of the State Labour Inspection Office for a period of one year.

Illicit Employment of Foreigners

The draft bill also provides for the tightening of the offence of the Illicit Employment of Foreigners, as set out in Section 342 of the Criminal Code. An offender who, systematically or repeatedly, under especially exploitative working conditions or in larger extent, illicitly employs, within the scope of their business activities enables the performance of work by, or arranges employment for foreigners staying in the territory of the Czech Republic without an authorisation or foreigners without a valid working permit, if it is required according to a special legal regulation, or engages in undisclosed employment intermediation involving such a foreigner or, in the course of its business activities, enables undisclosed employment intermediation, would, if the proposal were approved in its essential elements, face a penalty of imprisonment for a term of between six months to three years, forfeiture of property or a prohibition of activity, whereas at present the offender may be sentenced to imprisonment for up to six months, forfeiture of property or a prohibition of activity.

If the bill is passed by the Chamber of Deputies at its third reading, it will subsequently be debated by the Senate. We will keep you informed of further developments.

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[1] Act No. 40/2009 Coll., the Criminal Code

[2] Act No. 65/2022 Coll., on Certain Measures in Connection with the Armed Conflict in Ukraine caused by the Invasion of Troops of the Russian Federation, as amended

[3] Act No. 435/2004 Coll., on Employment

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