Combating illegal and disguised employment as one of the government's priorities is taking on new contours. Currently, the Ministries of Finance, Labour and Social Affairs and the Interior have signed a memorandum of cooperation together with the Financial Administration of the Czech Republic, the Customs Administration of the Czech Republic, the Financial Analytical Office, the State Labour Inspection Office, the Czech Social Security Administration and the Police of the Czech Republic. The subject of cooperation is a coordinated procedure, targeted and effective inspections, strengthening of personnel capacities and exchange of information for the planning and performance of control activities of the parties to the Memorandum.
The goal of Cobra 2026 is to raise tens of billions in the state budget annually in social security and taxes, reduce the abuse of social benefits and improve the business environment in the Czech Republic. The Ministry of Finance expects the cooperation to significantly reduce illegal and disguised employment, similar to the introduction of the control report and the Tax Cobra project in the fight against VAT carousel fraud.
The cooperation will include the exchange of information enabling analytical activities, risk assessment and planning of control actions aimed at employers and employment agencies with a higher probability of illegal and disguised employment. The transmission of information is also aimed at unifying administrative practice. Joint inspections are then supposed to bring quick and concrete results in the form of additional assessments of social security contributions and taxes.
In addition to operational steps, some legislative changes can also be expected. The Ministry of Labour and Social Affairs is preparing to tighten agency employment and change the definition of dependent work. A regulation of liability in subcontracting chains can also be expected. We will monitor the plans for legislative changes and the development of cooperation between the concerned administrative bodies and keep you informed about them.
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