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As part of the debate on the amendment to the so-called ‘Lex Ukraine’ bill, an amendment has been tabled that could have a major impact on the operation of employment agencies, their clients and other companies using external workers.

Disguised employment agency activities could now be classified not only as an administrative offence but also as a criminal offence. In addition to the current fines of up to 10 million CZK, disguised employment agency activities on a large scale could carry a prison sentence of up to 3 years or a ban on business activities. In more serious cases, such as where an organised group is involved or where substantial financial gain is obtained, the sentence could be up to 8 years’ imprisonment.

What does this mean in practice?

The new legislation would apply not only to companies that unlawfully supply labour, but also to their clients (users) who facilitate disguised employment agency activities as part of their business operations. A risk may thus arise, for example, in the context of cooperation based on a contract for work or a contract for the provision of services, if the contractor is in fact merely supplying workers who are subsequently managed and supervised by the client.

The proposal also significantly tightens the penalties for the unauthorised employment of foreign nationals. Under the new provisions, criminal liability would explicitly extend to facilitating the unauthorised performance of work or the disguised placement of foreign nationals without the necessary authorisations. In the most serious cases, this could result in up to 10 years’ imprisonment.

However, the changes are not limited to criminal sanctions. The draft also expands the scope for cooperation between the police, the labour inspectorate and the tax authorities, particularly regarding the sharing of information obtained in the course of tax administration. In selected, more serious cases, it would now also be possible to use wiretaps. Furthermore, employment agencies continue to face the significant risk of having their employment agency licences revoked, a measure already permitted under current law.

How close is the approval?

The amendment was tabled at the end of October and the bill is now heading for its third and final reading in the Chamber of Deputies. It could be debated as early as the beginning of November. If the amendment were to pass through the remaining stages of the legislative process by the end of this year, the new legislation could come into force as early as 1 January 2027.

What should you watch out for?

For employment agencies and companies using external workers, it will be important to review not only the contractual documentation but, above all, the actual nature of the working relationship. What matters is not the designation of the contract, but rather who actually assigns tasks to the workers, manages and supervises their work, and is responsible for the outcome of the services provided. In the case of foreign workers, attention must also be paid to the legitimacy of their employment.

A timely review of supplier relationships can therefore help to prevent not only current administrative penalties but also any potential criminal law consequences. We would be happy to assist you in assessing your existing contractual relationships and putting appropriate measures in place. We will monitor further developments in the legislative process and keep you informed of any changes that are adopted and their practical implications.