4th July 2017

Czech Legislation Update June 2017

The Chamber of Deputies has postponed the debate over the Canada-EU Comprehensive Economic and Trade Agreement CETA. The Senate approved the ratification.

The Chamber of Deputies has postponed the debate over the Paris Agreement. The Senate approved the ratification.



From the sessions of the Senate

The next session of the Senate will be held on 19 July.

The Upper Chamber passed amendment to the Act on Employment (bill no. 911) aiming at introducing stricter rules for temporary employment and job agencies (More), as well as draft amendment to the Capital Markets Undertakings Act (bill no. 869) proposing, among others, regulation of high-frequency trading on stock exchange.

Other  bills to be discussed by the Senate after 19 July include draft amendment to the Act on Electronic Communications (bill no. 1053), draft Act on compensation of damage incurred by breach of competition rules (bill no. 991),


From the sessions of the Chamber of Deputies

On 27 June, the Lower Chamber passed draft amendment to the Construction Act (bill no. 927), the Chamber version of the bill, that was rejected by the Senate in May.

At its session on 31 May, the Senate rejected draft amendment to the Act on the Residence of Foreigners in the Czech Republic approved by the Chamber of Deputies. The Chamber of Deputies overrode the Senate vote on 27 June. 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 posted within a corporation. Read more in an article by Radio Praha and in a summary (in English) by Petyovsky & Partners here.

The Senate returned draft amendment to the Act on Registry of Contracts (bill no. 699) to the Chamber of Deputies. Change proposals of the Senate rejected most of the Chamber changes made to the original version of the bill. The exemption for state-owned Budějovický Budvar n.p. from the obligation to disclose contracts as well as exemptions for some pharmaceuticals and medical devices remained in the bill. Read more details in Czech. The Chamber final debate over the bill started on 28 June. Another change to the act was passed by the Chamber of Deputies in the first reading on 28 June (bill no. 1124) and is heading to the Senate. This bill, among others, regulates publication of contracts, including exemptions of certain types of contracts where publication could have negative impacts in terms of security, health protection or sensitive data. More.

Draft amendment to the Act on International Cooperation in Tax Administration is heading to final stages of the legislative process in the Chamber of Deputies. The bill no. 999  introduces the obligation for multinational enterprises with annual consolidated group revenues above EUR 750 million to report to respective tax authorities.

On April 28, draft amendment to the Act on Banks (bill no. 1061) has been reviewed by the Chamber  committees. The proposal sugests introducing exchange of information on cyber attacks among banks. The Chamber Committees have been reviewing the bill.

The second reading of the draft amendment to the Act on the Czech National Bank (bill no. 1009), proposing that the Czech National Bank’s recommendation on mortgage parameters to banks, currently non-binding, become binding, started on 6 June, but was postponed.

The Chamber of Deputies received draft proposal of Act on eHealth and draft amendment to the Act on Health Services (bill 1043) that deal with issues related to technology use in health care. One of the goals is to establish the National eHealth Centre. The Government expressed disapproval with the draft proposal due to high costs.

The Chamber submitted to the Government draft amendment to the Labor Code (bill no. 1008) written by a group of MPs proposing the introduction of the institute of nursing leave. The material reacts to the ageing of the population and the need to adapt the current law to the challenges employers and employees are facing. The Government expressed disapproval. The related draft amendment to the Sickness Insurance Act (bill no. 1029) had its second reading on 28 June, change proposals were submitted.

At its session on 24 August 2016, 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 (bill no. 903). The Ministry of Labour and Social Affairs suggested changes (in the areas of paid holiday or telework, for example) to „bring employers and employees closer“ on these issues. The debate over the bill in the Chamber of Deputies continues, the second reading of the bill was posponed on 7 June.

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. (bill no. 744). There has been an ongoing debate within the tripartite (the government, employers and trade unions) on this issue.

The draft amendment to the Act on Social Security Insurance (bill no.1096) suggests differentiation of social security insurance contributions based on the number of children the tax payer takes care of. The contributions by parents of two and more children could decrease from the current 6.5 to 0%.

The Chamber of Deputies has not started to debate the draft Act on State Prosecution yet (bill no.789790). 

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 has not started to debate the bill yet.

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  No debate of MPs over the bills have taken place so far.


From the sessions of the Government

At its session on 14 June, the Government approved passed the 2016 Annual report on the state of public contracts. On 21 June, the Government greenlighted obligation to use the National Electronic Tool (NEN) from July 2018, instead of the electronic marketplace tools. Read more details.

On 26 June, the Government approved Action plan for the Strategy for restructuing of the Ustecky, Moravskoslezsky and Karlovarsky regions. Read more.

Members of the American Chamber of Commerce in the Czech Republic