Outstanding wage and taxation of interest on late payments

If there is a delay in payment of wage, the employee is entitled to interest on late payments. As mentioned the Supreme Court of Czech Republic (decision 20 Cdo 2006/2011, as of 24.04.2013), these interests represent a further income which the employee receives in connection with dependant activities (employment). For this reason it is necessary to tax this income, in the same way as another employee´s wages, and pay social and health insurance. This fact must the employer keep in view most commonly in case

The Czech Constitutional Court annulled the extra standards, hospitals are not allowed to offer it any more

On 2.7.2013, the Constitutional Court decided that the division of the health care into the standard health care and extra standard health care was cancelled as of the day of publication of the Constitutional Court´s finding in the Collection of Laws, i.e. on 05.08.2013. From that day, the so-called extra standards in health care end. Patients cannot pay the difference between the care covered by the health insurance company (the so called standard care) and the price of the extra standards.

An accurate description of a reason of debt as a statutory requirement of an acknowledgement of debt in civil law relations

Acknowledgement of debt as a single side legal act in civil law relations is regulated in provision 558 of the Civil Code. If a person acknowledges in writing that he will pay his debt specified in terms of both the grounds and the amount, it shall be deemed that the debt existed at the time of the acknowledgement. The acknowledgement of debt is clear and simple but it shall meet the statutory requirements, otherwise this legal act cannot be considered as valid.

Change of minimal wage

On 1st of August 2013 an amendment of government directive No. 567/2006 Coll. (amendment No. 210/2013), under which the amount of minimal monthly wage changes from actual amount of 8.000,- CZK to amount of 8500,- CZK per month, becomes effective. The basic amount of minimal hourly wage for employees remunerated by hourly-wage, whose set weekly working-hours is 40 hours per week, newly amounts 50,60 CZK instead of 48,10 CZK per hour. Further to this change, the lowest rates of guaranteed wage, under which th

Wrong information about the debtor's bankruptcy in the insolvency register vs. an application of a receivable

The change of interest from delay and implementation of the minimum compensation for recovery costs for debts

On 1^st of July 2013 an amendment of Government Regulation (Act No. 180/2013 Coll.), which regulates amount of interests from delay and payment from delay according to Civil Code, and which sets minimum compensation for recovery costs for debts (amendment No. 180/2013 Coll) became effective. According to the amendment the annual value of interest from delay will newly correspond to the value of the repo rate set by the Czech National Bank for the last day of the calendar half-year, which precedes the calendar half-year in which the delay occurred, increased by 8% compared with the previous 7%.

The due date according to the amendment of the Commercial Code

On 1^st of July 2013 an amendment of Commercial Code (Act No. 179/2013 Coll.) which regulates due date of prices for delivery of goods or service provision between businessmen became effective. According to the amendment the contracting parties may agree on due date longer than 60 days only in exceptional circumstances if this longer term is not grossly unfair to the creditor.

Travelling to the other countries out of EU only with an identity card

From 21^st of June 2013 the identity card is the only sufficient document for travelling to some other countries out of EU or Schengen area, i.e. the passport is not necessary for this purpose.

Changes in Labour Code from 1.8.2013

On 1.8.2013 amendment to the Labour Code (Act No. 155/2013 Coll.) which concerns to the employment in employment relationship for definite period and the length of continuous rest between two shifts shall become effective.

Driver attention! New duty to adapt the driving speed in the municipality regardless of placing of traffic signs

One of the basic duties of the drivers according to the Act of Road Traffic is to observe the speed limit on the various types of roads. There is a maximum speed limit of 50 km/hour in the municipality.