CZECH REPUBLIC Law and Practice Contributed by: Petr Janů, Vladislav Klimeš and Leoš Vavřík, BADOKH
sions restricting competition, abuse of a domi - nant position and anti-competitive behaviour. The purchaser may be obliged to notify the Czech Antitrust Office of certain mergers and acquisitions that meet certain thresholds. The Czech Antitrust Office reviews these transac - tions to determine whether they would signifi - cantly impede competition in the Czech market. For transactions that meet the criteria set out in the EU Merger Regulation (EUMR), the Euro - pean Commission is responsible for reviewing mergers and acquisitions that affect competi - tion within the EU, including the Czech Repub - lic. Transactions falling under the EUMR may bypass national competition authorities such as the Czech Antitrust Office. It is important for companies involved in busi - ness combinations in the Czech Republic to carefully assess the applicability of the antitrust rules and ensure compliance with merger control requirements. Failure to comply with antitrust requirements may result in significant fines or penalties, as well as potential challenges to the settlement of the transaction. 2.5 Labour Law Regulations In general, acquirers ought to take note of the fact that Czech labour law is relatively strict on employers. Employees enjoy fairly strong rights and benefits. The most important labour law regulations that should draw the attention of acquirers include: • Transfer of Employees: Acquirers are to ensure a smooth transition for employees by facilitating the automatic transfer of their employment contracts to the acquiring entity, preserving their existing rights, benefits
and seniority. This may involve amending contracts and informing employees of any changes resulting from the transfer. • Informing the Trade Union: Before the effec - tive date of the transfer of rights and obliga - tions arising from the employment relation - ship to another employer, the parties are obliged to inform the trade union and the works council at least 30 days before the transfer of rights and obligations to another employer, and to discuss with them, with a view to reaching an agreement, the fixed or proposed date of the transfer, the reason for the transfer, the legal, economic and social consequences of the transfer for the employ - ees and the measures envisaged in relation to the employees. • Non-Discrimination and Equal Treatment: Acquirers must comply with the laws on non-discrimination and equal treatment in the workplace to prevent any discriminatory prac - tices based on protected characteristics such as gender, age, disability or ethnicity. 2.6 National Security Review In the case of foreign investments that may jeopardise national security or internal or public order (eg, arms and military equipment or critical infrastructure), the Ministry of Industry and Trade may initiate (ex officio) proceedings to review the particular foreign investment. In response to the war in Ukraine, the EU has been taking additional measures to restrict Rus - sian investment in its member states, including the Czech Republic. These measures include a ban on financing Russian state-owned compa - nies, restrictions on financial transactions with Russian banks and the Central Bank of Russia, and a ban on the re-listing of shares of Russian state-owned companies on EU stock exchang - es. These measures reflect the specificities of
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