Solution for permit removal (license cancellation) of the employment agency

JUDr. Jakub Vozáb, PhD. 17.07.2023

Illustration for Solution for permit removal (license cancellation) of the employment agency

Have you received the decision of the labor office to withdraw the permit for employment mediation?

We are LAWYERS focusing on EMPLOYMENT AGENCIES and agency employment.

We will solve the problem of revocation of the employment agency license.

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Phone: +420 603 774 473

Procedure for the issuance of a permit

The employment mediation permit is issued by the Labor Office of the Czech Republic on the basis of an application, in the form of an administrative decision after an administrative procedure in which the applicant proves that all legal conditions have been met.

Grounds for withdrawal of permission

However, the Labor Office can, and sometimes even has to, withdraw the issued permit. One such case is the situation according to § 63 paragraph 2 letter c) of the Employment Act, which include 3 groups of breach of duty.

Among other things, the labor office will revoke the employment mediation permit (must do so) if the permit holder „otherwise violates the obligations arising from the Employment Act“. The cancellation of the permit must therefore come whenever the labor agency violates any obligation arising from the Employment Act. It is therefore not only serious violations such as enabling the performance of illegal work, covert employment mediation, employing foreigners without fulfilling the prescribed obligations or assigning agency employees based on work performance agreements, but also violations of notification and record-keeping obligations.

The number of agencies with revoked licenses is increasing

Since the beginning of 2023, the labor office has already started dozens of administrative proceedings, where the reason is often non-compliance with the reporting obligation or other violations of the Employment Act. In all of these cases, the penalty is the revocation of the license and thus ultimately the liquidation of the relevant employment agency.

Proceedings on withdrawal of permission

The cancellation of the license also takes place in the form of an administrative decision after an administrative procedure has been carried out. Therefore, when the labor office proceeds to cancel the license and issues a decision to revoke the permit to mediate employment, you have the right to appeal within 15 days of the delivery of the decision. Subsequently, an appeal procedure will take place and until the decision on the appeal becomes final, the permit is still valid and effective. The Labor Office, in the decision to withdraw the permit for employment mediation, sets the day by which the legal entity or natural person is obliged to end the mediation activity, which is usually a period of 3 months from the legal effect of the decision.

How to solve a problem with a decision to revoke a permit

If you intend to continue your activity in the field of employment mediation, you must take the right steps immediately after the decision of the labor office is delivered, which will ensure the continuity of your business. At the same time, there is the possibility of a merger with another pre-established (ready-made) company that holds a permit to mediate employment and is not in danger of having its permit revoked due to breach of duty.

We often answer questions like: What will happen to previously concluded contracts with users after the merger? What happens to an already issued de-licensing decision after the merger? Can't the labor office also revoke the license of the new successor company after the merger?

If you are interested in more detailed information, please do not hesitate to contact us. After submitting the necessary documents, we are able to propose a specific procedure in advance and confirm the total final cost of the given transaction.

Key words: withdrawal of employment agency license, cancellation of employment agency license, agency employment, employment agency, reasons for cancellation of employment agency license, agency employees, employment of foreigners through employment agency

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Phone: +420 603 774 473

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