The Czech Republic finds itself grappling with a lack of legislation governing the activities of private security agencies, resulting in a myriad of issues plaguing the sector. These include a dysfunctional market, low-quality employees, insufficient legal protection, and meager wages. While the government had initially pledged to present a comprehensive law by the end of this year, the Ministry of the Interior seems hesitant to submit the proposal, raising suspicions of lobbying groups potentially influencing the decision-making process.

Vaclav Nepras, Chairman of the Security Section of the Economic Chamber, notes that nearly every post-revolution government has included the regulation of private security agencies in its program statements. However, consistent lobbying efforts have hindered the progress of such legislation. The most recent iteration of the law, which has been regarded as the most successful, is once again facing delays. Internal reports indicate that the absence of adequate regulation has resulted in subpar workforce quality, exploitative practices, low wages, and significant tax evasion.

Minister of the Interior Vít Rakušan has postponed the proposal of the law from September 30 to the end of 2024. Several sources familiar with the matter have confirmed the potential influence of lobbying efforts. While the law is reportedly nearly complete, requiring only minor adjustments after interdepartmental comments on its economic impact, Minister Rakušan stated that he intends to promote an alternative version different from what the ministry has developed. He attributes the delay to budget cuts, making it infeasible to establish a separate department dedicated solely to licensing within the Ministry of the Interior.

Presently, private security activities in the Czech Republic are regulated under the Trade Licensing Act, which provides only general conditions for entering the industry. Remarkably, the Czech Republic is the last country in Europe, apart from Germany and Austria, to lack a dedicated law for private security agencies. Germany is also in the process of drafting similar legislation.

The new proposal aims to establish precise entry requirements for both entrepreneurs and employees of private security services, focusing on integrity, financial stability, security aptitude, and professional qualifications. Implementing this law and fostering a regulated private security environment is expected to boost tax revenues and increase social and health insurance contributions. Ministry analysts estimate potential annual benefits ranging from two to four billion Czech korun for the state budget.

Experts and industry representatives concur on the pressing need for this new legislation. Oldrich Rutar, Strategic Affairs Director at M2C Security Agency, stresses the importance of a legal framework that provides clear definitions and competence requirements for commercial security, rather than just regulations. Avoiding excessive obligations and administrative burdens is crucial to prevent increased costs. Václav Nepras further underscores that the proposed law could rectify the current state of the market, as the current minimal entry requirements allow entities lacking professional, ethical, and moral qualifications to obtain licenses.

In conclusion, the absence of a law regulating private security agencies in the Czech Republic has given rise to a dysfunctional market, subpar employees, inadequate legal protection, and low wages. Despite previous commitments, the government is currently delaying the submission of the law, raising concerns about potential lobbying influences. The proposed legislation aims to establish precise entry requirements for entrepreneurs and employees, leading to enhanced standards and increased tax revenue for the country.

Article by Prague Forum