Czech legislators have recently begun to work on the implementation of Directive 2014/66/EU on the conditions of entry and residence of third-country nationals in the context of an intra-corporate transfer (the “Directive”). The incorporation of the Directive, currently in the competence of the Ministry of Interior, will be achieved by an amendment to the Act on the residence of foreigners in the Czech Republic.

The Directive, which came into force on May 2014, aims to ease transfers of certain high-skilled third country national workers of multinational companies to their subsidiaries located within EU. According to the European Commission, up to 20,000 intra-corporate transfers will take place annually within the framework of the Directive which should add to the economic growth of the EU. Since the Directive is aimed at highly qualified employees, only managers, specialists and trainees will be eligible, subject to certain conditions, for an intra-corporate transfer. Among other criteria, the employee must have worked continuously for the company for at least 3 to 12 months immediately prior to their transfer. The validity of the permits will be limited to 3 years for managers and specialists. Shorter time periods will apply to trainees.

Additionally, in order to secure social security and labour standards, the Directive lays down a broad set of rights for the intra-corporate transferees. For instance, in the member states to which the transferees are admitted the remuneration for the intra-corporate transferee must not be lower than the income of the nationals occupying similar positions. Other rights include the right of a family member to accompany the intra-corporate transferee for the duration of the transfer, the right of the transferees to join a trade union, equal treatment with nationals regarding social security, recognition of diplomas and many more.

The deadline for the incorporation of the Directive by member states is 29 November 2016. Currently, the legislative plan of the Czech Republic assumes the incorporation into Czech law by September 2016.

Until then, intra-corporate transferees from non-EU countries have to obtain both a work permit from a Czech Labour Authority and an employee card from the Czech Ministry of Interim Affairs in order to be able to stay and work in the Czech Republic.