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Legal news in brief | Czech Republic

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Czech Social Security Administration launches "Informative Pension Application"

After logging in via the identity of the citizen or the data box, the application calculates the current estimate of the user's old-age pension and states the date of retirement.

Ondřej Beneš | Senior Associate

Unit owners' associations (UOA) have no right to restrict short-term leases

The High Court in Prague has ruled that UOA are not entitled to limit the exercise of the owner's property right by prohibiting the provision of short-term leases (typically Airbnb). An appeal has been lodged in the case, which will be assessed by the Supreme Court.

Jiří Brabec | Associate

Interference with the good reputation of a legal person

The Supreme Court has ruled that if a legal person's good reputation has been interfered, that legal person is not entitled to compensation for non-pecuniary damage, including the provision of adequate monetary compensation. The decision provoked an expert discussion. (file no. 23 Cdo 327/2021

Stanislav Dvořák | Partner

Dishonest intention in insolvency proceedings

Conduct by which a debtor has consistently failed to meet its due obligations, even based on enforceable court decisions (including maintenance debts for a minor son), has acquired a shareholding in a company during insolvency proceedings and has not duly and timely fulfilled the obligations imposed on him by the insolvency court, constitutes dishonest intention.

Tomáš Jelínek | Senior Associate

Postponement of the new Construction Act

According to the proposal, the new Construction Act should apply from 1 July 2023, but only in relation to so-called "reserved buildings", i.e. nationally significant buildings. For other buildings, during the transitional period from 1 July 2023 to 30 June 2024, the "old" Construction Act will be followed.

Katarína Jendželovská | Associate

Offsetting – bank guarantee (BZ)

A bank issuing a bank guarantee may offset its claim against the creditor from the other title than the bank guarantee itself against the creditor's claim against the bank, only if this is specified in the bank guarantee. - 29 Cdo 3267/2019.

Maroš Kandrík | Junior Associate

Be aware of international sanctions

The law requires everyone to check whether the subject of performance or the contractual partner is not subject to international sanctions. Any suspicions must be reported to the Financial Analytical Office. Failure to notify may result in a fine in the order of millions of crowns.

Jan Kohl | Junior Associate

Failure to lend the court file as delay in the proceedings

According to the Supreme Court of the Czech Republic, the time when a court was not lent court files by another should be considered as delay in the court proceedings. The parties to the proceedings are thus entitled to compensation for damages (file no. 30 Cdo 267/2021).

Petra Konečná | Counsel

Flat-rate compensation for employers – deductions from wages

A flat-rate compensation of administrative costs in the amount of CZK 50 per employee per month is introduced for employers who are obliged to make deductions from employees' wages due to a court decision or an enforcement order.

Petra Kratochvílová | Counsel

Termination due to redundancy

Before submitting a notice of termination due to redundancy, make sure that you cannot offer the employee a position where they will apply their type of work even partially - the director of a branch that is not specifically specified may be the director of another branch of the employer within the agreed place of work.

Šárka Kuchařová | Associate

Office for Personal Data Protection published inspection plan for 2022 in anonymised form

This year's priorities will include checking the processing of personal data via cookies (user consent required from 1 January 2022, except for necessary cookies), sending unsolicited commercial communications or inspections of enforcement authorities.

Radek Matouš | Partner

Clients have the right to expect professionalism from contractors

Decision of the Supreme Court No. 33 Cdo 77/219 confirmed that the contractor must act professionally in carrying out their work. In this case, this meant that the contractor should have check the properties of the subfloor before laying the floor.

Eliška Miklíková | Associate

The care of a good manager must be assessed also with regard to the object of the company's line of business, not only its profitability

The member of the statutory body is responsible for the decision and not for the result, at the time the decision was made according to the documents and information at hand and with regard to the nature and purpose of the company.

Hana Mikulková | Associate

Amendment to the Addictive Substances Act - cannabis busiess

With effect from 1 January 2022, the conditions for doing business with cannabis are changing. The legislation is now very favourable for growers and will create a competitive environment. The most significant changes include raising the THC content of medicinal cannabis to 1% and abolishing the selection of growers only in the tender procedure.

Karolína Rechtorovičová | Junior Associate

The CNB's new opinion on anti-money laundering of investment funds under the AML Act

In its opinion, the CNB specified that the obligated person (investment funds sector) under the AML Act is the administrator, but in some cases, it may also be a manager, an investment company and a non-self-governing investment fund.

Lukáš Šikel | Junior Associate

Withdrawal from purchase contract and right to refund of blocking deposit according to reservation contract

If nothing is agreed in the reservation contract regarding the return of the blocking deposit upon withdrawal from the purchase contract concluded on the basis of the reservation contract, the buyer is not entitled to the return of the blocking deposit from the agent if the agent has fulfilled everything it has committed to in the reservation contract.

Dominika Veselá | Partner

Remuneration for overtime work only with the consent of the employer

An employee is entitled to remuneration for overtime work only if the employer has clearly given its consent, even tacitly, to such overtime work. If it is up to the employee how to organise and when to perform the work, it cannot be regarded as overtime.

Martina Vodičková | Junior Associate

(In)direct effect of EU law

In its preliminary ruling, the CJEU has ruled that a national court deciding on a dispute between individuals is not required to refrain from applying national legislation contrary to EU law if that applicable EU law does not have direct effect.

Barbora Bugová | Junior Associate