§ 19 of Act No. 125/2006 Z. z. · Employment Law & HR

Certificate of no illegal employment fine: when a company needs it and what prevents issuance

The labour inspectorate issues it within seven working days. A fine in recent years creates a problem, potentially excluding the business from contributions, grants and some contracts.

Most employers first request a certificate confirming that no final fine for illegal employment has been imposed when someone asks for it: in a contribution or grant application, or procurement. The labour inspectorate issues it within a short deadline. The greater difficulty is when it cannot do so.

What is illegal employment?

§ 2(2) of Act No. 82/2005 Z. z. has three branches. Illegal employment occurs where a business uses an individual’s dependent work and:

  • Has not established an employment-law relationship with them.
  • Has such a relationship but fails to register the person with the Social Insurance Agency within seven days after the statutory deadline, and in any event before an inspection starts.
  • The person is a third-country national and the conditions for their employment are unmet.

The second branch is a common trap: the seven-day tolerance lasts only until inspection begins. If an inspector arrives on the third day of delay, it does not apply.

What is excluded?

§ 2a excludes work for an entrepreneur, or an s.r.o. with at most two shareholders who are direct-line relatives, siblings or spouses, performed by such a relative if pension-insured, receiving a pension or a pupil or student under 26. Outside that framework, unpaid “family help” is ordinary illegal employment.

Imposing a fine is not discretionary

For a breach, the inspectorate must impose a fine. § 19(2)(a) of Act No. 125/2006 Z. z. gives no discretion whether to fine:

  • EUR 4,000–200,000.
  • At least EUR 8,000 if two or more people were illegally employed simultaneously.

Proceedings may begin within six months after inspection ends, no later than three years after the breach. One concession applies: payment of two thirds within 15 days after the decision becomes final counts as payment in full (§ 19(7)).

What follows the fine, and why it may be worse than the amount

The fine does not remain between the company and inspectorate.

  • Public list. The National Labour Inspectorate maintains a public central list of persons fined within the previous five years, with identification numbers and finality dates (§ 6(1)(t)).
  • Other authorities are notified. Findings go to the Social Insurance Agency, central and local labour offices, tax office and, for foreign nationals, the police.
  • Labour office contributions. Eligibility for any contribution under the Employment Services Act requires no illegal employment fine in the two years before application (§ 70(7)(c)). This includes support for hiring someone over 50.
  • Trade authorisation. Repeated fines are notified to the trade licensing office for revocation purposes.
  • Agencies. For temporary employment agencies, the inspectorate may propose suspension or licence revocation.

The certificate itself

On request, the inspectorate confirms that no final illegal employment fine had been imposed as at the request date, within seven working days (§ 7(3)(n)). Apply to the inspectorate responsible for the registered office; the National Labour Inspectorate publishes the form and submission methods.

Authorities often check directly: the National Labour Inspectorate supplies the same data electronically to public bodies. Failure to provide a certificate therefore does not conceal the status; it merely delays proceedings.

When to request it early

Do so whenever compliance is an entry condition rather than a formality: before a contribution or grant application, procurement, foreign-worker applications or a transaction involving target-company checks. Seven working days fit a timetable only if planned.

If an inspection is under way or a report has arrived, we review it before deadlines expire through our labour inspectorate inspection service. Self-employed contractor arrangements help structure cooperation against reclassification as dependent work.

Sources

This article provides general legal information as at 16 August 2026. It does not constitute legal services or advice on your specific matter. Laws change and the details of your situation may differ. Check the appropriate course of action or contact us before making a decision.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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