17th May 2021

Important legislative changes

Slovakia | Mandatory extension of support for producers of electricity from renewable sources

On 15 April 2021, the Government of the Slovak Republic approved a draft amendment to Act No. 309/2009 Coll., on the Promotion of Renewable Energy Sources, which introduces a mandatory extension of support for electricity from existing renewable energy sources. The amendment is currently in parliament and is scheduled to take effect on 1 August 2021. 

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Czech Republic | New Act on the Registration of Beneficial Owners

A completely new Act on the Registration of Beneficial Owners will enter into force on 1 June 2021. The changes that the law will introduce are important for many legal entities and trust funds, which are already obliged to register their beneficial owners. The law introduces a system of direct sanctions, which can be considerable: for example, a fine of up to CZK 500,000, the inability to vote at the general meeting or a ban on the payment of profits. 

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Austria | Employment contract, contract for work and services, free service contract in Austrian labour law - distinction and legal consequences of incorrect contract classification

The essential characteristic of a "genuine" employment contract is the personal dependence of the employee on the employer. Indicative for the genuine employment contract is the obligation of the employee to submit to the personal and factual instructions of the employer. What is owed is the provision of the work performance, not a specific result. In the case of a genuine employment contract, the employee is subject to the full scope of labour laws, collective agreements and the social insurance provisions of the General Social Insurance Act (ASVG). 

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SK | New termination reason for employees

An amendment to the Slovak Labour Code has introduced a new reason for termination. This may be applied, provided an employee has reached the age of 65 and at the same time is old enough to be entitled to a retirement pension. If both conditions are met, the employer may terminate the employee. The amendment is effective from 1 January 2022. Helga Vernarcová | Senior Associate | Bratislava

SK | Waiver of interest on arrears and penalties as regards taxes

The government decided in its regulation that the payment of interest on arrears for unpaid tax due in 2020 and the imposition of a sanction for failure to file a tax return within the specified period, i.e. from 12 March 2020 to 31 December 2020, shall be waived. Soňa Petrovičová | Senior Associate | Bratislava

CZ | Failure to pay court fee due to hospitalisation

Constitutional Court: If the court fee is not paid together with the motion to initiate proceedings, the court will call upon the petitioner to pay the fee within 15 days. If the fee is not paid even then, the court will suspend the proceedings regardless of the reason (even in the case of hospitalisation). Lukáš Šikel | Associate | Prague

CZ | Return of citizens to the Czech Republic with a positive test for Covid-19

Citizens of the Czech Republic and EU citizens with permanent or temporary residence in the Czech Republic can enter the Czech Republic even with a positive Covid-19 test. After entering the Czech Republic, they must inform the regional hygiene station and undergo the test. They must also remain in isolation for three days after the symptoms of the disease have subsided, but for at least 14 days after the first positive Covid-19 test. Peter Perniš | Senior Associate | Prague

CZ | Restrictions on the shares transferability by registration in the Commercial Register

The restriction on the transferability of registered shares is effective only on the day of registration in the Commercial Register, even if it is already regulated by the articles of association. Until the transferability restriction is registered in the Commercial Register, the shares are transferable without limitation and the transfer of such shares is effective, even if the buyer was aware of the transferability restriction enshrined in the articles of association. Dominika Veselá | Partner | Prague

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