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Key issues:
- Changes to the Czech social security laws have been passed into law and will come into effect on 1 January 2007.
- A second round of related changes was expected but has not yet been passed as a result of the parliamentary elections in June and subsequent delays in the forming of a government. These may not now pass in time.
- Assignees into the Czech Republic from countries outside the EU, and countries with which there is no social security totalisation agreement with the Czech Republic will no longer be exempt from Czech social security under domestic law. As a result, the cost of sending assignees from, for example, the United States or Japan will increase.
- Further Alerts covering the changes will be issued in due course as further details become available. This alert highlights the changes regarding Social Security due on foreign employment contract arrangements.
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