CZECH LABOUR CODE

CZECH LABOUR CODE - important amendment - summary

Following several years of preparations, the Parliament of the Czech Republic has approved an extensive amendment to Act No 262/2006, the Labour Code, as amended. The amendment was assigned No 285/2020 and will come into effect in two phases: on 30 July 2020 and 1 January 2021.

We have summarised for you all the important details. 

Effective from 30 July 2020:

1.  Delivery of documents

The changes concern the delivery of important documen

Contractual penalty newly allowed in case of a lease of a flat

The amendment to the Czech Civil Code, which entered into force on July 1, 2020, is changing the provision regulating the so-called prohibited stipulations between the lessor and the lessee of a flat.

As the law reflects a special protection of the lessee satisfying his/her housing needs, any contractual penalty was explicitly prohibited until now and the only security to cover debts arising from the lease allowed was to agree the payment of a deposit.

The amendment to the Civil Code cancels the explicit

Right of pre-emption for the co-owners: re-cancellation effective from 1. 7. 2020

Historically the pre-emption right of the co-owners used to have its place in the Czech legal order. It was more or less cancelled once the new Civil Code entered into force in 2014. Later there was some dissatisfaction coming from the co-owners of family houses and blocks of flats or perhaps from some “in-groups”, which intended to have right to influence who is going to co-own their real property and it resulted in re-introduction of the pre-emption right.

Unfortunately, the regulation was adopted in suc