5th January 2017

Czech Legislation Update December 2016

The Chamber of Deputies and the Senate will vote on Canada-EU Comprehensive Economic and Trade Agreement CETA

The Chamber of Deputies and the Senate have debated Paris Agreement. 

From the sessions of the Senate
(Corrected) At its session on 14 December, the Senate voted on draft amendment to the Act on Corporations (but the session did not reach the quorum of 34 votes) that introduces the right for employees in corporations with 500+ employees (employees with employment contract) to elect or replace members of the company board. Newly, in companies with 500+ employees the number of supervisory board members must be divisible by three; two thirds of supervisory board members will be elected by general meeting and one third (or more) will be elected by employees of the company. The Ministry of Justice has been working on further amendment (details in Czech).

At its session on 19 October, the Senate returned draft amendment to the Act on the Conflict of Interest to the Chamber of Deputies with change proposal. The Chamber of Duputies passed the bill, including the change proposal on 29 November and submitted it to the President. The President returned the bill to the Chamber of Deputies, but the Chamber overrode the veto. According to the bill, companies owned by a member of the government won’t be eligible to participate in public tenders, or profit from investment incentives, for example. MPs approved change proposal that bans members of the government from owning a television/ radio broadcasting company or print media (as is the case of the current Czech Finance Minister Andrej Babiš; the bill was dubbed Lex Babiš). 

From the sessions of the Chamber of Deputies
The Chamber of Deputies passed draft amendment to the Act on Insolvency (bill no. 785). The Senate could debate the bill at its session after 18 January. Look at what the European Commission suggests in the area of insolvency.

The Government proposed a bill (no. 873) summarizing changes to tax laws after 1 January 2017. The bill had its second reading on 30 November. Change proposals have been submitted. Also, the Chamber and the Senate passed a bill proposing reduced VAT for newspapers and magazines. The President returned  the bill to the Chamber of Deputies. An overview of tax changes applicable from January 2017 here (in Czech).

Draft amendment to the Act on the Residence of Foreigners in the Czech Republic was submitted to the Chamber of Deputies. The bill no. 990 proposes, among others, the introduction of the so-called "foreign investor card", a special type of a long-term residence permit and improved rules for employees-foreigners assigned within a corporation, for example. Read more in an article by Radio Praha.  

The draft Act on compensation of damage incurred by breach of competition rules was submitted to the Chamber of Deputies (bill no. 991).  

The draft amendment to the Act on Cybersecurity (bill no. 984) was submitted to the Chamber of Deputies More details (in Czech).  

The draft amendment to the Act on Employment (bill no. 964) is based on EU legislation and aims at better identification of real reasons behind posting of employees. It also aims at anchoring the responsibility on the part of the receiver of the transnationally provided service. It had its first reading on 6 December. More details (in Czech).

The Chamber of Deputies could debate amendment to the Act on the support of R&D and Innovations (bill no. 960) after 10 January.  The aim of the proposal is to define “eligible costs” and ”project of R&D and innovations” more clearly to better meet the purpose of the act. The Government expressed disapproval with the bill.  The Government expressed neutral position on the bill no. 983, another effort to define eligible costs.

The draft amendment to the Construction Act (bill no. 927) had its first reading in the Chamber of Deputies on 26 October. The bill will be reviewed by the Chamber Committees and could be debated after 10 January. Position of the Confederation of Industry and Trade of the Czech Republic is available here.

A group of MPs is proposing exemptions from the Act on Registry of Contracts (bill no. 699). The third reading of the bill was interrupted on 9 December and could resume after 10 January. The material proposes exemption for state-owned Budějovický Budvar n.p. from the obligation to disclose (both sales and purchase) contracts.

The Chamber of Deputies could debate the draft Act on State Prosecution (bill no.789790). The proposal could have its first reading in the Chamber of Deputies at its session starting on 10 January.

Representatives of the Liberecky region submitted draft amendment to the Act on Online Sales Registration (EET, bill no. 846) to the Chamber of Deputies and the Government. The bill suggests that EET could apply only to VAT payers. Another proposal bill no.792 by a group of MPs suggests excluding small entrepreneurs, non-VAT payers. Another proposal, bill no. 867, suggests exemptions for farmers selling their home-grown products at farmers markets. Another bill proposing EET act amendment.  These proposals could have their first reading at the Chamber session starting on 10 January. At the session of the Senate on 14 December, the Upper House of the Czech Parliament rejected a bill submitted by a group of senators suggesting that the online sales registration system EET should be repealed.

At its session on 24 August, the Government approved draft amendment to the Labor Code submitted by the Ministry of Labor and Social Affairs; proposing changes related to senior managerial employees (More details in a summary by Weinhold Legal here (in English), regulation of homeworking, teleworking, contracts for work performed outside an employment relationship, or prevention from stress at workplace, among others. The bill no. 903 will be reviewed by the Chamber Committees. 

On 24 August, the Government passed draft amendment to the Act on Employment. The purpose of the amendment is to regulate temporary employment and job agencies.The bill no. 911 had its first reading in the Chamber of Deputies on 2 December.

At its session on 18 May, the Government approved draft amendment to the Act on Sickness Insurance (bill no. 821) allowing for paid paternity leave, among others. The bill had its second reading on 29 November, change proposals were submitted.

The Senate’s draft amendment to the Labor Code suggests eliminating the institute of "karenční doba" related to coverage of the sickness insurance in the first three days of sickness of employees. The bill no. 744 could have its first reading at the session of the Chamber after 10 January. There has been an ongoing debate within the tripartite (the government, employers and trade unions) on this issue. 

More on what to expect in Labour Law in 2017 here (in Czech). 

On 18 December 2015, draft amendment to the Act on Elections to the Parliament of the Czech Republic was submitted to MPs and the Government. The bill no. 676 proposes rules for correspondence vote. The Government expressed neutral view, the Chamber of Deputies could debate the bill at its session starting on 10 January.

On 18 October, the Government submitted to the Chamber of Deputies draft Act on measures to reduce the cost of deploying high-speed electronic communications networks (bill no. 936). Construction works costs account for the highest (up to 80%) share of the total costs, the material says. The aim of the bill is to introduce rules, a minimum standard, from the very first phase of the process to minimize inefficiencies of electronic communications networks deployment. These rules could accelerate the process of e-government implementation. The proposal had its first reading on 29 November and will be reviewed by the Chamber Committees. 

From the sessions of the Government

At its session on 19 December, the Government approved the entry of the Czech Republic into the Central European Fund of Funds. More details (in Czech).

Also, it approved the 2017 Action Plan to Fight Corruption. More details (in Czech).

At its session on 14 December, the Government passed proposal of list of data to be published as open data. 

The Government approved the list of Legislative, Non-legislative and Implementation works for 2017 and the report Assessment of the Fulfilment of the Maastricht Convergence Criteria and the Degree of Economic Alignment of the Czech Republic with the Euro Area (2016).

At its session on 5 December, the Government passed the updated Strategic Framework of the Development of Public Administration in the Czech Republic for 2014-2020. More details in Czech and English.

At its session on 15 December, the Legislative Council of the Government interrupted review of draft Act on Whistleblowing

Members of the American Chamber of Commerce in the Czech Republic