Foreigners on the jobs market in the Czech Republic

The topic of foreigners and the jobs market is a delicate one, which is perhaps why many myths have grown up around it. For instance, we frequently hear it said that “foreigners are taking work away from us” (in general, not only in the Czech Republic).
In the following pages, we would like to offer more precise information on this topic.
In the dialogue itself, we can notice that the fear of losing a job is felt by both foreigners and Czechs (Pavla’s mother). However, for many foreigners the loss of a job can have considerably more serious life consequences (they will not receive unemployment benefit, might even have to leave the country, etc.).

  • What is...?

Employment: Work undertaken for an employer for remuneration, i.e. a wage, under the terms of a contract signed between the employer and employee.

The economically active population: Employees and businesspeople, including persons with a link to these activities, even if they are not pursuing them at a given time (sickness leave, maternal leave, etc.), together with the unemployed. Economically inactive people refers to children aged up to 15 years old, people who cannot be employed for health reasons, and pensioners who are not employed or do not do business.

Unemployment: The share of unemployed people of the entire economically active population in the society in question. A person is deemed to be unemployed who is of a productive age, has no income from employment or business activities, is temporarily released from work and is expecting to rejoin work, is looking for active employment or wants to do business, and is willing to take up a job or start doing business. Every society contains a certain number of unemployed people.

The jobs market: An imaginary space where those offering work opportunities, i.e. employees, and those offering their labour for a certain wage, i.e. potential employees, meet. The social and economic situation, the personal attributes of individuals, and the possibilities of companies can in many cases prevent, or, on the contrary, support the access of employers or potential employees to the jobs market.

Work alternatives to employment: All other work activities which a person does not perform for a wage from an employer. This includes, for instance, business activities, subsistence farming, work at home, hobbies, voluntary work, etc.

  • Topic

Foreigners figure on the jobs market as employers or potential employees. Just as in the case of Czech citizens, their entry onto the jobs market is influenced by many social, economic and individual conditions.

Certain business advantages (e.g. tax relief) are frequently provided to foreign companies on condition that they create new jobs or infrastructure in the country. Foreigners enter the jobs market as employees either directly, i.e. as specialists on the basis of a special permit to undertake work in which there is interest in the country (e.g. the Green Card in the USA, or the active recruitment of qualified workforces in the CR), or on the baiss of a work permit which must be acquired upon arrival in the CR. A person cannot be employed without this permit. However, many foreigners enter the CR for a purpose other than employment (starting a family, business activities, studies, asylum seekers, etc.).

In contrast to Czech citizens, foreigners entering the jobs market must overcome legislative and administrative barriers, and also barriers of a socio-cultural character. Upon their arrival, foreigners often do not know Czech, the educational qualifications they received in their country of origin may not be recognised in the CR, they do not know the specific conditions of employment in the CR, they do not know the local customs, etc. All these and many other associated barriers can lead to foreigners choosing a form of work other than employment: business activities, work at home, work under conditions other than those covered by Czech legislation. Foreign communities often replace a complex administrative and legislative system with their own organisation of work, thus creating their own jobs market. We call such organisations mediated work or entrepreneurial services. The organisations referred to are often the only helping hand which a foreigner with insufficient information can use to remain in the CR.

The approach taken by foreigners to the jobs market naturally depends on their motivation. Several foreigners come to the CR for the purpose of attaining a profit: they want to support their family at home economically, but not to live permanently in the CR or to become citizens of the CR. One of the essential conditions for the employment of foreigners in the CR is the level of their voluntary and active integration.

For the sake of completeness, several figures should be given. In 2004, 173,203 foreigners worked in the Czech Republic, of which 62% had the status of employees and 38% had a valid trade license. It should therefore be pointed out that foreigners form only a small part of the workforce in the Czech Republic. On the other hand, foreigners are frequently employed in jobs in which Czech citizens have no interest (like cheap labour on construction work, hospital nurses, etc.).

Let’s now take a look at the jobs market through the eyes of the families of our heroes. To sum things up, we could say that foreigners are perceived on the jobs market according to the type of residency they have. EU nationals, foreigners with permanent residence, and recognised refugees enjoy very similar conditions to citizens of the CR, but specific differences apply to individual groups.

The employment of foreigners: Olga’s mother is looking for a job without success. Because she has long-term residence, she must have a work permit. But even though she has this, the Labour Office will check to ensure that it is not possible to take on a Czech citizen in this position. Only if this condition is met can Olga’s mother be offered the place. Jami’s parents, who have applied for asylum, are in a different situation. In the first year of the asylum procedure they were not able to work at all, and thereafter on the basis of a work permit. However, having received asylum, they are actually better off than Olga’s family, because the same rules apply to them as apply to all persons with permanent residence.

Business activities and foreigners: Let’s imagine that Olga has an uncle here who would like to do business. If the uncle has his permanent residence in the CR, he can do business as though he were a Czech citizen. If he has temporary residence, he must record his trade in the Commercial Register.

Unemployment of foreigners: Olga’s mother can’t actually be unemployed as long as she only has long-term residence, since this is linked to the condition that she has work. Were she to lose her job, she would have to terminate her residence in the CR. Olga’s father has lived here more than 10 years and so can apply for permanent residence. He would then be able to be unemployed without this threatening the possibility of his remaining in the CR.

  • Stories and examples

The families of our heroes encounter various problems when looking for work, not least the attitude taken by Czech civil servants. The employees of labour offices and foreigners very often do not speak a language in common by which they would understand each other. What’s more, all the relevant forms are written in Czech. And so, very often a foreigner who can make themselves understood in Czech does not understand exactly what the terms on a form mean (just for a moment let’s try and imagine an English or German form – even though we can make ourselves understood, the language on the form could prove a hard nut for us to crack).

In several regions, especially those with a high level of unemployment, there is not much motivation on the part of Czech authorities to employ foreigners when they cannot even offer work to Czech citizens.

Employers can take on foreigners as employees. But this means lots of administration and money. The employer must advertise a vacant job position at the labour office in advance, must apply for permission to acquire an employee from abroad, and must then pay a fee of CZK 2,000. The labour office decides on the matter, which means that the employer has no security that he/she will receive such permission. The foreigner must also apply for a work permit, and this will cost them CZK 500.

The story of Mr. Vasil: Mr. Vasil came to the CR looking for work. It was clear to him that at home in the Ukraine he would not be able to provide his children with a good education, since he was simply not being paid. He studied the saxophone, and taught music at a secondary school for several years.

When he arrived in the CR he discovered that he could only just pay the rent from his wages as a teacher. And so he began to work as a labourer, and taught himself all the different jobs which might be needed on small construction sites (bricklaying, plastering, paving, etc.). However, he is not complaining. He has now been here several years, along with his wife and children, has taught himself Czech, and pays for his children to attend a private school where they learn more, in his opinion.

However, he has no inclination to return to playing the saxophone – and anyway, he couldn’t support himself from it.

  • Sources

References:

Český statistický úřad (2005). Legislativní a praktické podmínky ekonomické aktivity cizinců na území ČR. http://www.czso.cz/ciz/cizinci.nsf/i/ekonomicka_aktivita

Moree, D. (2005). „Work in Prague“ i pro cizince. Podnikatelské lobby, leden 2006.

Internet:

http://www.cizinci.cz

http://www.czso.cz/ciz/cizinci.nsf/i/ekonomicka_aktivita

http://www.domavcr.cz

 
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