An official “shvarcsystem for startups”? The state prepares a special regime of cooperation with self-employed persons

Mgr. Nikola Šedová
15. October 2025
2 minutes of reading
2 minutes of reading
Legal news

Czech startups have long faced a dilemma: employ people with high costs or hire them externally and risk penalties for the scarcity system. According to the current proposals, a special legal regime should be created that would offer a compromise between these extremes.

New regime – between employee and self-employed

Startups often collaborate with self-employed workers, even though the workers perform tasks like regular employees – daily attendance, performance, project management. However, this practice is risky from the perspective of the current legislation, as it can be qualified as a hidden employment relationship (shvarcsystem).

To make this uncertainty disappear, the state plans to introduce a special “hybrid” labour regime that would allow legal work with freelancers with a limited overlap of employee benefits – for example, minimum wage, holiday or non-discrimination protection – but without a full employment relationship.

Tax incentives and recruitment flexibility

The new startup law should also bring tax benefits for investors and ease hiring procedures for self-employed workers. The Ministry of Industry’s analysis mentions that startups could benefit from more flexible collaboration schemes, while investors could get tax breaks to support startups.

At the same time, hard criteria should be set for what constitutes a startup – such as maximum company age or turnover – so that the system is not abused by wider businesses looking to circumvent the costs associated with hiring.

Benefits and risks, what to expect next

For startups, the new regime would mean greater legal certainty and the opportunity to grow faster without having to worry about penalties for the scarcity system. For self-employed workers, it could mean better stability when working externally. On the other hand, the risk is that the new conditions will be too restrictive or inconsistent, or that the regime will be abused by less risky companies.
The draft law should be ready during 2026.

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