Yes, but only within a narrow exception. A direct-line relative, sibling or spouse may help an individual entrepreneur or a family s.r.o. with no more than two related members without a contract. The helper must also have pension insurance, receive a pension, or be a pupil or student under 26. Outside these conditions, the work is illegal employment carrying a fine from EUR 4,000.
A wife helps in the shop during the busy season, a son delivers goods after school, or a mother looks after the premises. This is natural in a family business, but Act No. 82/2005 Coll. on Illegal Work and Illegal Employment provides only a narrow exception where such help needs neither an employment contract nor a work agreement. Outside it, this is illegal employment even if the relative helps for free.
The exception covers sole traders and family s.r.o. companies
Section 2a of Act No. 82/2005 Coll. covers two situations. The first is help for a natural person conducting business, typically a sole trader. The second is help for a limited liability company with no more than two members who are direct-line relatives, siblings or spouses:
It is not illegal employment where work for a natural person conducting business, or a legal entity that is a limited liability company with no more than two members who are direct-line relatives, siblings or spouses, is performed by a direct-line relative, sibling or spouse of that natural person or of one of those members, provided that the relative, sibling or spouse has pension insurance, […] receives a pension under separate legislation […] or is a pupil or student under 26 years of age.
— Section 2a(2) of Act No. 82/2005 Coll. (unofficial English translation)
Older guidance limiting the exception to sole traders is therefore no longer entirely correct: a family s.r.o. with one or two members from the immediate family also qualifies. By contrast, a joint-stock company, general partnership or s.r.o. with a different membership structure cannot rely on it.
Who may help, and what conditions must they meet?
The eligible group is closed: direct-line relatives (parents, children, grandparents and grandchildren), siblings and spouses. For a family s.r.o., the relationship is assessed against one of its members. Labour inspectorates consistently interpret the exception as excluding cousins, siblings-in-law and parents-in-law, as well as unmarried partners even if they share the entrepreneur’s household.
The helping relative must also meet at least one of three conditions: pension insurance coverage, for example through employment elsewhere or compulsory insurance as a self-employed person; receipt of a pension; or pupil or student status under 26. An unemployed relative without pension insurance does not qualify, and their help is not covered by the exception.
When the exception does not fit
The ordinary regime then applies: dependent work requires an employment-law relationship, generally at least an agreement for work outside an employment relationship, and Social Insurance Agency registration before work begins. Without this, the labour inspectorate imposes an illegal employment fine of EUR 4,000 to EUR 200,000, or at least EUR 8,000 for two or more people simultaneously (Section 19(2) of Act No. 125/2006 Coll.). Further consequences accompany the fine, from entry in a public list to loss of access to contributions; we discuss them in late registration with the Social Insurance Agency.
How we can help
We assess whether your family help falls within the exception or needs to be formalised and prepare employment contracts and work agreements that withstand inspection. If an inspection is underway or announced, we take over communication with the authority through our labour inspectorate inspection service. We monitor company templates and agreements through ongoing employment documentation support.
If your family helps regularly, arrange the relationships properly before the inspectors arrive.
This answer provides general information on the law as at 29 August 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.
