The Legislation, Information and Consultancy Department of the Czech Chamber of Commerce issued an online handbook which aims to inform entrepreneurs about the current issue of the so called Svarc system ("švarcsystém" in Czech). The term "Svarc system" describes the situation when people doing dependent work for an employer are not his employees but individual entrepreneurs. It has been illegal and considered as an offense since 1 January 2012.
In the introduction, the handbook explains what the Svarc system is and what documents must be presented to inspectors of the State Labour Inspection Office in case of a control. Then it focuses on specific tips on how to avoid the Svarc system in practice and what to look for when preparing particular contracts. Procedures associated with individual subjects during a control, judicatures and tax aspects of the issue are described as well.
The handbook cannot be construed as a binding and comprehensive guide to dealing with the Svarc system because a specific situation can be evaluated differently by a specific inspector. The aim of the Chamber of Commerce was to summarize important information at one place. You can download the handbook here.
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