Termination of employment of a foreigner: What not to forget

Published: January 23, 2025 | Author: DMPF Consulting

Termination of employment of a foreigner: What not to forget

Termination of employment with a foreign employee can be more complicated than with local workers.

It is necessary to follow applicable laws and also consider the specific circumstances related to the foreigner's stay in the Czech Republic. We bring you a basic overview of what to focus on and how to proceed to ensure the process is smooth and professional.

Notification of the Labour Office

According to Act No. 435/2004 Coll., on Employment, § 102, the employer is obligated to inform the regional branch of the Labour Office about the termination of a foreign employee's employment. This obligation applies regardless of whether the employee has a work permit, an employee card, or another residence permit. The notification must be submitted within 10 calendar days from the termination of employment.

Employee's obligations after termination of employment

A foreigner with a work permit, such as an employee card, is obligated to inform the Ministry of the Interior about a change of employer in accordance with § 42g of Act No. 326/1999 Coll., on the Stay of Foreigners in the Czech Republic. This change must be reported no later than 60 days after the termination of the previous employment.

If the employee does not find new employment within this period and fails to handle the necessary administration, their residence permit may become invalid.

Important: The employer is not obligated to find new employment for the employee. It is rather a gesture of goodwill or a recommendation of contacts, if possible.

Did you know?
In India, the term NOC (No Objection Certificate) is often used in relation to employment. When an employee requests an NOC, they typically mean confirmation that the employer has no objection to their further professional steps – such as changing jobs or applying for a visa. However, the employer is not obligated to issue this document if they do not agree with the termination of employment. In such a case, the employee must resign themselves or agree to terminate the employment.

Recommendations for Employers

  1. Transparent communication
    Maintain open and direct communication with the employee. Inform them about the reasons for the termination of employment and the legal steps that need to be taken.
  2. Ensuring administration
    Ensure that all documents related to the termination of employment are properly filled out and handed over to the employee. This includes the resignation, employment confirmation according to § 313 of the Labour Code, and possibly other documents, such as the work record.
  3. Support during departure
    It is not the employer's obligation to find new employment for the employee, but if possible, you can offer contact information for recruitment agencies or provide basic information on how to proceed with changing employers.
  4. Compliance with legal obligations
    Ensure that all administrative steps are carried out in accordance with applicable legal regulations.

Specifics for foreign employees

Employers who employ foreigners are obligated to keep copies of documents proving the legitimacy of the foreigner's stay in the Czech Republic not only during the duration of the employment but also for three years after its termination. This obligation arises from § 102 of Act No. 435/2004 Coll., on Employment, and its purpose is to ensure compliance with rules regarding the employment of foreigners.

Regarding personal data protection (GDPR), this obligation is in line with data protection rules, as the retention of documents is mandated by law and has a legal basis. However, employers must ensure that these documents are securely stored, inaccessible to unauthorized persons, and used only for purposes specified by law.

 

Conclusion

The termination of employment with a foreign employee requires a transparent approach, compliance with legal obligations, and possible support for further steps. This approach minimizes potential risks while demonstrating professionalism and fairness.

DMPF Consulting s.r.o. has extensive experience in providing consultancy and support in the area of adaptation and employment of foreigners. If you need assistance or a consultation, feel free to contact us.

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