New Regulation on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I bis)

On 12.12.2012 The European Parliament and the Council have adopted the regulation Nr. 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (Brussels I bis).

Debt Relief of Natural Persons Conducting Entrepreneurial Activity

As we have already informed you, a new amendment to the Insolvency Act (Act No. 182/2006 Coll.) became effective on 01.01.2014. This amendment gives the natural persons, who used to conduct entrepreneurial activity, the opportunity/possibility to file the petition for the discharge, i.e. to include debts from their entrepreneurial activity to the discharge.

Employees with children are entitled to reduced working hours

On 9July 2014, the Supreme Court issued an interesting decision (No. 21 Cdo 1821/2013) concerning Sec. 241 Subsec. 2 of the Labour Code. According to this provision, if an employee looking after a child under fifteen years of age requests to reduce the number of working hours or some other suitable modification of full-time working hours, the employer shall satisfy such request, unless serious operational reasons prevent him to do so.

European Account Preservation Order

The European Parliament and the Council have adopted a new regulation Nr. 655/2014 of 15.05.2014 that establishes a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters. The regulation is to be used from 18.01.2017.

Simultaneous performance of functions in commercial corporation

One of the most discussed topic with regard to the recodification of the civil law is so called “concurrence of functions” – simultaneous performance of functions in commercial corporation when one person is a statutory body in commercial corporation and simultaneously an employee (in most cases with scope of work of general director).

We hold the view that this concurrence of functions is in conformity with current legal regulation, namely for this following reasons:

1)    What the law does not expressly prohibit, it is allowed.

Agreement on the Change of the Taxpayer of the Real Estate Transfer Tax

As we already informed you in January 2014, provision of Sec. 1 Subsec. 1 letter a) of an Statutory enactment of the Senate No. 340/2013 Coll., on Real Estate Acquisition Tax Act, consequently approved by the resolution of the Chamber of Deputies No. 379/2013 Coll., has allowed the contracting parties which are concluding a purchase or a exchange (barter) contract to stipulate that the acquirer of the ownership right (i.e. the purchaser) is the taxpayer of the real estate transfer tax.

The amendment of the lawyer’s tariff

Since 1^st of July 2014 the amendment of the regulation No. 177/1996 Col., on fees and remuneration of lawyers for the provision of legal services (the lawyer´s tariff) is effective. On the bases of the amendment special provision about reimbursement of costs of judicial proceedings was included. The judicial proceedings have to fulfill these conditions:The judicial proceeding was initiated by a motion filed on the same sample repeatedly by the same complainant in cases factual and legal similar and at the same time the subject of the proceeding is financial fulfillment, which value does not exceed CZK 50.000. The rate for such each legal service is calculated according to the special provision. In the provision the rate is set so that, the tariff values up to CZK 10.000 is for each legal service the amount of CZK 200, over CZK 10.000 the amount of CZK 300 and over CZK 30.000 the amount of CZK 500.

Liability of Heirs for the Deceased’s Debts

The new Civil Code (Act No. 89/2012 Coll.) has fundamentally changed the liability of heirs for the deceased’s debts. New regulation is to be used if a deceased died after 1^st January 2014.

According to the old Civil Code (Act No. 40/1964 Coll.), the heir was liable for the deceased’s debts up to the amount of the value of the acquired inheritance. According to the new Civil Code, the heir is fully liable, i.e. he may also be liable with his entire property.

The Constitutional Court expressed to the question about on joint custody after divorce of parents

On 26^th of June 2014 the Constitutional Court issued the judgment No. I. ÚS 2482/13, in which it expressed the constitutionally consistent interpretation of the institute of joint custody after divorce of parents.

Compared to the current practice of putting children in care of mother the Constitutional Court supported the institute of joint custody and pointed its importance. The Constitutional Court expressed an opinion that “the joint custody should be a rule in cases where both parents are capable to br

Distraint and possibility of recourse of travel allowances

The Supreme Court dealt with a question (decision 21 Cdo 3774/20103) whether a decision can be ordered and enforced by debiting other financial receivables (according § 59 Sec. 1 letter b) of the Executory Order or § 312 of the Civil Process Order) by affection of travel allowances of the employee. The Court concluded that the travel allowances, to which the employee is entitled, cannot be enforced by this manner.