New state contribution for the employers to the wages of their employees

An amendment to Act No. 435/2004 Coll., on Employment, was published in the Collection of Laws. This amendment allows the state to provide a contribution to the wages of the employees of the employers who occurred in a difficult situation, so a notice does not have to be given to the employees. This amendment will come into effect on 1^st October 2015.

Handling with Employer’s Data and Termination of Employment Law Relationship

If the employee has breached a duty arising out of the legal regulations applicable to the work performed by the employee, the employer may terminate an employment law relationship by giving a notice or by immediate termination. The choice between these two ways of termination depends on the intensity of breach of duty.

Legal Representation of a Company and the Commercial Register

According to the transitional provisions of Business Corporations Act (Act No. 90/2012 Coll.), any provisions in a memorandum of association which were in conflict with mandatory provisions of the Business Corporations Act were repealed by act of law with effect as of 1^st January 2014.

Entry of the way of signing on behalf of a company into the Commercial Register

Limited Liability Companies often incorporate into their Articles of Association a provision that regulates the way the Managing Directors sign on behalf of the company, for example: „The Managing Directors sign on behalf of the company by affixing their signatures to the printed or written name of the company.”

Organizational Changes and Notice

We have already informed you about the way how the scope of redundant employees has to be determined in the decision of the employer about organizational changes.

This time we will refer to you about a decision of the Supreme Court of the Czech Republic (Reference Number 21 Cdo 695/2014) in which the Supreme Court expressed its opinion on a question of existence of organizational changes.

According to the opinion of the Supreme Court, the organizational change has to pursue a change of the tasks of the em

Statement to the Maturity of Wage

The Supreme Court of the Czech Republic has recently issued a judgement (Reference Number 21 Cdo 403/2014) in which it expressed its opinion to the delay of the employer to fulfil his obligation to provide the employee wage, public sector pay or their compensation, namely in connection with default interest.

Evaluating the Intensity of a Breach of Duty by Employee

As we have already informed you, Act No. 262/2006 Coll., Labour Code, explicitly specifies under which circumstances and in which way an employer is allowed to terminate an employment law relationship.

Set-off of the Lease Deposit

According to the “old” Civil Code (Act No. 40/1964 Coll.), set-off of the receivables of the lessor arising from the lease agreement against the lease deposit was very restricted. The lessor was entitled to settle only some receivables (rent and the payments for the costs associated with the flat’s use) against the lease deposit; other receivables arising from the lease contract could be settled only if the receivables of the lessor were awarded to the lessor by an enforceable decision of a court or acknowledged by the lessee in writing.

The Obligation of Prevention of Damage of the Employee

According to provision of Section 249 Subsection 1 of Act No. 262/2006 Coll., Labour Code, the employee shall prevent damage to health and property and also to unjust enrichment. The employee shall notify any threats of damage to the superior employee.

Entitlement to the Reimbursement of Costs of Proceedings in case of Absence of the Pre-Action Notice

For several years, plaintiffs (creditors) that have succeeded in proceedings on the performance of an obligation shall be entitled to the reimbursement of costs of proceedings against the defendant (debtors) only if they had sent the defendant a pre-action notice at least 7 days before filing the law suit.