News

Important legislative changes - July 2021

We bring you an overview of important legislative changes in the Czech Republic, Slovakia and the legalisation of gambling in Ukraine.

Legislative changes - Czech Republic

Withdrawal from non-compete clauses without a reason is possible

A recent decision by the Constitutional Court on the withdrawal of employers from non-compete clauses has caused considerable uproar. Read more here

Greater protection for minor debtors

From 1 July, the rules for debt recovery for minor debtors will fundamentally change. This should give them an easier start to adult life, unburdened by executions they did not cause. Read more here

In Brief

More complex access to the Land Register

From 13 June, it has become more difficult to obtain some data through a free inspection of the Land Register. To obtain information on owners, liens, encumbrances or, for example, ongoing proceedings, it is necessary to register or enter a special code. Other data are publicly available as before. Ondřej Šudoma | Senior Associate

Repeated petition for a preliminary injunction and obligation to make a security deposit

If your petition for the issuance of a preliminary injunction fails, when re-filing the petition, under certain conditions you do not have to make another security deposit for damages, which can amount up to CZK 50,000. The Constitutional Court has ruled on this issue. Vojtěch Faltus | Principal Associate

Creditor's liability for registered claim in the event of a settlement

Under certain conditions, the court may oblige the creditor to pay part of its "bad" claim filed in insolvency proceedings or to reject the claim as a whole. Is there a risk of the same occurring when a court settlement is concluded in an incidental dispute? If a court settlement is concluded (and approved) and the ascertained amount of the claim is less than 50% of its originally registered amount, it will not apply that the claim in the original total registered amount is not taken into account (the claim is recognised up to the amount specified in the concluded settlement) and no obligation arises on the part of the creditor to pay the unrecognised part of the claim to the insolvency estate. Tomáš Jelínek | Senior Associate

Legislative changes - Slovakia

Land or buildings cannot be acquired based on an invalid contract

Is it possible to acquire land or a building based on an invalid contract? The courts have tackled this issue in different ways. Earlier court decisions protected the original owner and argued this was not possible. Read more here

In Brief

Advertising constructions will need to be removed within three years

All advertising constructions for which a building permit is required are referred to as temporary constructions from 1 May 2021 and their duration may not exceed three years. However, this period may be extended by applying to the relevant building authority. Building permits for advertising constructions issued for an indefinite period before 1 May 2021 are deemed to be building permits with a maximum duration of three years, while this three-year period begins to run from 1 May 2021. Filip Kozoň | Associate

The operation of small securities dealers will be simplified

On 26 June, an amendment will enter into force that will simplify the operation of small securities dealers and lay down rules for the largest investment firms to become subject to the same regime as European banks. This transposes Directive 2019/2034. Katarína Brath Liebscherová | Senior Associate

The addition of mandatory data to the Commercial Register will be automated

In its legislative intention, the Ministry undertook to amend the current obligation to add mandatory data to the Commercial Register so that the state will automatically ensure the addition of data where possible. Details will be revealed after the draft amendment to the Commercial Register Act is published. Petra Marková | Senior Associate

Gambling in Ukraine legalized

Ukraine's parliament legalised gambling last summer, ending a 10-year long ban and thereby fulfilling a campaign promise by president Zelenskiy. Read more here

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