Sending an employee on a business trip? Here is what HR/company should pay attention to.
1) Visa aspect
EU nationals can travel freely within the EU. The first 90 days no registrations are needed either.
Non-EU nationals are always limited by the 90/180 rule, when having a permit in the Czech Republic and travel within the EU. For longer stays, they should be obtaining visas in the given country.
NOTE: Each country has different rules on whether business trip visas are needed. The rules of every given destination should be checked prior the trip.
2) Social security - A1 form
A1 form distinguishes where social insurance is paid. By having it, it confirms that even though a foreigner is abroad on a business trip, his/her insurance is paid in the home country. Should the business trip be longer or too frequent, the insurance may have to be paid in the abroad country instead.
A1 from can be applied even for 1 year ahead, if you know your employees will be going abroad frequently. A1 form should be applied for in case of home offices abroad too!
Not having the A1 form may be checked abroad and may result in fines. Very strict countries that require the A1 form immediately: Denmark, Estonia, France, Italy, Austria, Spain, UK, USA, Belgium, Bulgaria, Serbia, Switzerland, Sweden, the Netherlands, Latvia, Lithuania
There is various types of business trips:
Dispatchement (Vyslání) - for trips that last longer than 12 months (but less than 24 months)
Overlaping activities (Souběh činností) - a person works in 2 or more countries at the same time. This may be home office, short business trips, part-time weekend jobs etc.
Exception (Výjimka) - if the situation does not apply to any of the above cases
3) Tax residency
An employer should always track the number of trips abroad, as when an employee spends more than 185 days abroad, the tax residency may be shifted and the taxes may have to be paid in a different country than the Czech Republic.
4) Labour office obligation - Posted worker notification
Sending an employee on a business trip must be reported to the authorities in the host country. In the Czech Republic, that would be the Czech Labour office.
In case of accepting an employee from abroad, who came on a business trip to your company, the dispatching entity must report this business trip through this form. Note that this serves only for the Czech authorities.
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