29th June 2016

Czech Legislation Update June 2016

The President signed the Act on Collection of Acts and International Treaties (bill no. 646) The act introduces electronic process of formulating and adopting new legislation and attempts at lowering corruption risks within the legislative process. Read more details in Czech.

The Act on the Support of Research, Experimental Development and Innovation (Bill no. 489) was signed by the President and the Prime Minister.  The aim of the act is to harmonize the Czech law with the new EU legislation and thus increase clarity and applicability of the national legislation. The draft amendment comprises changes in terminology, definitions (industrial research, applied research, experimental development, research organizations), conditions for subsidies and cummulation thereof, etc.


From the sessions of the Chamber of Deputies

The Chamber of Deputies passed the Act on Protection of Competition (Bill no. 702). The stated intention of the bill is alignment with the new Czech Civil Code, improved international cooperation between competition authorities, and introduction of rules for documents that contain trade or bank secrets or other confidential information, for example.

On 29 June, the Chamber of Deputies passed draft amendment to the Act on Association in Political Parties and Political Movements that deals with the issue of political party financing. (bill no. 569). The stated intent of the draft act is to introduce more transparent control of financing of political parties and political movements. This includes using transparent bank accounts, setting limits for donations from physical and legal entities, providing detailed overview of incomes and expenditures within annual reports, including elections-related expenditures, and publishing annual reports on the internet. The draft act also gives political parties and movements the opportunity to set up research-oriented political institutes or think-tanks that would be eligible for state contributions. The draft act also provides for the foundation of an independent authority for controlling financing of political parties, based on GRECO (Group of States against Corruption under Council of Europe) recommendations. According to the draft amendment, the limit for a donation of an individual to a political party is set at 3 million CZK. The proposed limits for election campaign financing are following: 90 million CZK for general elections, 40 million CZK for presidential elections, 7 million CZK for regional elections, No limits were set for municipal elections, including the Prague Magistrate. The limit for elections to the European Parliament remains at 50 million CZK.

Draft amendment to the Act on Insolvency (bill no. 785) had its first reading on 3 June and has been reviewed by the Chamber Committees. 

Draft amendment to the Act on the Conflict of Interest, bill no. 564, had its second reading in the Chamber of Deputies on 29 June 2015. The bill is being debated at the Chamber Committee level, change proposals were submitted. The material proposes the introduction of an obligation to submit a declaration proving the origin of assets owned by public service officers/politicians on the very first day of his/her service in the new function. The current obligation requires submission of such declaration after one year in office.

A group of MPs is proposing exemptions from the Act on the Registry of Contracts. Click here for more details 

Representatives of 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. The Chamber of Deputies will debate it.

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 Chamber of Deputies will debate the bill.

The Chamber of Deputies will debate the draft Act on State Prosecution (bill no. 790).

On 18 December, 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 will debate the bill.

Draft amendment to the Labor Code suggests eliminating the institute of "karenční doba" related to sickness insurance in the first three days of sickness. The bill no. 744 will be debated in the Chamber of Deputies.


The Legislative Council of the Government postponed debate over the draft amendment to the Act on the Residence of Foreigners in the Czech Republic. The material, among others, proposes the introduction of the so-called "foreign investor card", a special type of a long-term residence permit for entrepreneurs, investors. 

Also, the Legislative Council postponed the debate over the draft amendment to the Construction Act. Click here to view the material. 

The Ministry of Labor and Social Affairs submitted a draft amendment to the Labor Code, proposing changes to regulation of homeworking, and measures for workplace stress prevention, among others. 

The interministerial review of the draft amendment to the Act on Employment ended on 9 June 2015. The purpose of the amendment is to regulate temporary employment, including chaining of fixed-term contracts, quotas for temporary employees and protection of temporary employees against insolvency of their employer. Click here to read the draft amendment.






Members of the American Chamber of Commerce in the Czech Republic