CZECH REPUBLIC Law and Practice Contributed by: Petr Mlejnek, Robert Klenka, Matěj Manderla, Jan Wagner, Ivo Hartmann and Arbër Balliu, Tenacta, advokátní kancelář, s.r.o.
result in personal liability of shareholders, members of corporate bodies or other individuals connected with a company. Such liability typically arises from breaches of statutory duties rather than from a general disregard of the company’s separate legal personality. Such situations may arise particularly in connection with: • breaches of duties in insolvency situations; and • breaches of duties by members of corporate bod - ies, including breaches of the duty of due manage - rial care. However, in the context of ordinary business activities, separate legal personality and limited liability remain fundamental principles of Czech corporate law.
European Union legislation also significantly influ - ences Czech employment law. EU law has shaped
numerous areas including: • working time regulation; • equal treatment requirements; • anti-discrimination rules; • employee health and safety;
• data protection in employment relationships; and • employee rights in corporate transformations. Although judicial decisions do not formally constitute an independent source of law, decisions of higher courts play an important practical role in interpreting employment legislation and promoting consistency in application. 4.2 Characteristics of Employment Contracts Employment contracts must generally be concluded in writing. Czech law requires employment contracts to contain certain mandatory elements, including: • type of work to be performed; • place of work; and • commencement date. Additional provisions are frequently included concern - ing: • remuneration; • working hours; • probationary periods; • confidentiality obligations; • benefits; • notice arrangements; and • intellectual property matters. Employment contracts may be concluded either for an indefinite period or for a fixed term. Indefinite employment relationships remain the stand - ard form of employment and are generally preferred in practice. Fixed-term employment contracts are subject to stat - utory restrictions intended to prevent the repeated or
4. Employment Law 4.1 Nature of Applicable Regulations
Employment relationships in the Czech Republic are governed primarily by statutory law, particularly the Labour Code, which represents the principal source of regulation for employment matters. The Labour Code establishes mandatory rules concerning employment relationships, working conditions, employee protec - tions and employer obligations. Additional regulation may arise from:
• implementing legislation; • sector-specific regulations; • collective bargaining agreements; • internal employer regulations; and • individual employment agreements.
Employment law in the Czech Republic is generally characterised by a relatively high level of employee protection. Many statutory provisions are mandatory and cannot be excluded or reduced by agreement to the detriment of the employee. Employment agreements and internal regulations may therefore supplement statutory rules only where they provide terms more favourable to employees.
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