Working with self-employed tradespeople on the same project does not in itself constitute disguised employment. It becomes illegal work when a tradesperson actually works as an employee: personally, under your company's instructions, in its name and in a subordinate position. What matters is how the arrangement operates in practice, rather than the contract for work or the trade licence. In Czechia, a company that allows such work faces a fine ranging from 50 000 Kč to 10 000 000 Kč.
A construction or installation company in Czechia has its own crew on a project and, when the workload increases, also engages bricklayers, electricians or drywall installers operating under trade licences. They invoice under contracts for work and work alongside employees on site. Czech law does not prohibit this model. However, the labour inspectorate assesses it by reference to how work actually takes place on site, rather than the contract. If a tradesperson performs dependent work, this constitutes illegal work, for which the company that allowed it is also liable.
When does the arrangement constitute illegal work?
The Czech Labour Code (Act No. 262/2006 Sb.) defines dependent work as work performed personally, in a relationship in which the employer is in a position of authority and the employee is subordinate, in the employer’s name and under its instructions (Section 2(1) of Act No. 262/2006 Sb.). Such work may only be performed within an employment relationship or under an agreement for work performed outside an employment relationship, unless governed by specific legislation (Section 3). If someone performs it otherwise, the Czech Employment Act classifies it as illegal work:
The following quotation is reproduced in its original language:
[…] nelegální prací práce, která má znaky závislé práce podle § 2 odst. 1 zákoníku práce a je konána 1. fyzickou osobou mimo pracovněprávní vztah […]
Under the same provision, the duration of the work is irrelevant. Even helping out for a few days may constitute illegal work.
How the arrangement is assessed in practice
In its judgment of 13. 1. 2022, case no. 4 Ads 256/2021, the Supreme Administrative Court of the Czech Republic dismissed a construction company’s cassation appeal against a fine imposed for engaging a foreign national with a trade licence to carry out auxiliary construction work. The court first assessed whether this was dependent work and reiterated that the actual purpose of the relationship matters, rather than its label. The tradesperson invoiced only for his labour, which was his main source of income. He worked alongside the company’s employees, used equipment belonging to the company or its client and also followed the client’s instructions. The company provided him with occupational safety training, he worked regular hours, and the contract for work specified neither a particular deliverable nor a deadline.
The same court reached the opposite outcome in its judgment of 25. 4. 2023, case no. 10 Ads 235/2021. Two self-employed tradespeople had worked together on façade projects for a long time, with one of them always securing the projects, giving instructions and distributing the remuneration. The court held that this was insufficient to establish subordination. Bricklaying and similar work can be performed either as dependent work or independently, so the individual characteristics of dependent work must be assessed. According to the court, the dividing line for economic dependence is whether the tradesperson can earn an income from their business without projects from their long-term business partner. The court does not regard the conditions in Section 2(2) of the Labour Code—remuneration, work at the employer’s expense and under its responsibility, working hours and the workplace—as separate defining characteristics, but as indicators when assessing dependent work.
When reviewing your own arrangements, therefore, ask who determines how and when the work is performed, who owns the tools and materials, whether the tradesperson invoices for hours or a completed result, whether they have other clients and whether they can entrust the work to someone else.
Consequences for the company and the tradesperson
A legal entity or entrepreneur that allows illegal work faces a fine of up to 10 000 000 Kč, with a minimum of 50 000 Kč (Section 140(1), letter c), and paragraph 4, letter f), of Act No. 435/2004 Sb.). In addition, a prohibition on carrying on activities may be imposed for up to 2 years, along with publication of the decision on the official notice board of the State Labour Inspection Office for 1 year (Section 140(5) and (6)). By performing illegal work, the tradesperson commits a separate administrative offence punishable by a fine of up to 100 000 Kč (Section 139(1), letter c), and paragraph 3, letter c)). Reclassifying the relationship may also have tax and mandatory contribution implications, which we recommend discussing with a tax adviser.
How to structure the arrangement
The contract for work should describe a specific deliverable, its scope, price and deadline, rather than general “construction work as required”. Instructions should concern the result and deadlines, rather than exactly when and how the tradesperson must work. The tradesperson should work mainly with their own tools, invoice for parts of the work handed over and be responsible for defects in them. If someone performs the same work on site as your employees over a prolonged period, during the same hours and under the same foreman, an employment relationship or an agreement for work performed outside an employment relationship is the safer option. If another company supplies a crew that you then direct, this may also constitute disguised employment intermediation, which we discuss in our article on disguised employment intermediation in Czechia.
We will assess your arrangements with tradespeople by reference to how work actually takes place on your sites and prepare contracts and site working rules as part of our contracts with self-employed individuals and contractors service. The question on self-employed real estate agents and illegal employment explains the Slovak rules using real estate agents as an example.
This answer provides general information on the law as at 3 October 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
