Legal articles and news for companies

The “Švarc system” in light of a court decision

Employment Law Business
17.3.2026 Hana Krajčíková
In a recent ruling, the Supreme Administrative Court once again examined in detail where the line lies between genuine business cooperation and the prohibited Švarc system. The case, in which a company was fined CZK 2.5 million for enabling illegal work, gave the court an opportunity to refine its interpretation of the hallmarks of dependent work and to show how both authorities and courts assess the actual substance of the cooperation in material terms, not merely the formal wording of the contracts.

What every employer should know about the so-called "flexi amendment", which takes effect on 1 June 2025?

Business Employment Law
1.5.2025 Pavla Nečasová

On 1 June 2025[1] an extensive amendment to the Labour Code takes effect, bringing a number of changes intended to make day-to-day HR administration easier for entrepreneurs - employers. This so-called "flexi amendment" reflects the need for greater flexibility in employment relationships and a more modern legal framework that corresponds to the current needs of the labour market.