Legal News 2025

Author of the article: JUDr. Jakub Dohnal, Ph.D., LL.M., ARROWS (office@arws.cz, +420 245 007 740)

The amendment to the Labour Code prepared by the Ministry of Labour and Social Affairs promises to significantly improve conditions for both employees and employers. Key changes include flexible working hours, shorter notice periods and new opportunities for minors. But the changes also bring new rules that are good to know to avoid problems.

1. Returning after parental leave and more flexible working hours

The amendment to the Labour Code brings long-awaited relief for parents. Employees who return from parental leave within two years of the child's age will be guaranteed the opportunity to return to their original position. This brings greater certainty when planning family and professional life.

Another interesting new feature is the possibility of earning extra income during parental leave by doing the same type of work with the same employer. For example, if you were working full-time before your parental leave, you can now conclude a work performance agreement or a work activity agreement while you are on parental leave and still stay in contact with the company.

In addition to parents, other employees will appreciate the flexibility. Self-scheduling of working hours, which was previously only possible in the home office, will now also be available in the workplace. This change can contribute significantly to a better work-life balance.

2. Notice periods and young workers

One of the most significant shifts is the change in notice periods. Now, the notice period will start immediately upon receipt of the notice, rather than from the first day of the following month. This change is particularly welcome for employees who plan to move more quickly to a new employer, but may be disadvantageous for those who need more time for a transition period.

The opening of the labour market to young people aged 14 and over during the summer holidays is also a major step forward. However, temporary workers will be limited to a maximum of 7 hours a day and employers will have to ensure the safety of their working environment. This change gives young people the opportunity to gain work experience at an early age, which can be a valuable asset for their future careers.

3. Cryptocurrencies, severance pay and other legal changes

The amendment to the Income Tax Act introduces more favourable conditions for investors in cryptocurrencies. Annual income from cryptocurrencies of up to CZK 100,000 will be exempt from tax. In addition, a three-year time test for the exemption of income from cryptocurrency holdings is introduced. These changes respond to the growing popularity of digital assets and their importance to the economy.

Another important innovation is the change in the issue of severance pay. In cases of termination of employment due to work-related injury, compensation will now be paid by the employer's insurance company, which should simplify administration.

Another interesting feature is the new possibility of paying wages in foreign currency. If an employer has a currency listed in the CNB exchange rate list, it can use it to pay employees, which will simplify the situation, especially for international companies.

4. Cannabis

Another major innovation is the clarification of the rules for the use and distribution of cannabis. The changes respond to the growing demand for medicinal cannabis and the drive to make it more accessible. The new legislation regulates the conditions for the cultivation, distribution and sale of medicinal cannabis. Entrepreneurs considering entering the sector will have to meet strict licensing and inspection criteria to ensure the safety and quality of the products.

This regulation will also facilitate access for patients who use cannabis for medicinal purposes, reflecting a modern approach to healthcare and encouraging economic development in this area.

5. Auctions

5.1. Dutch auctions

Act No 250/2023 allows for the first time the use of Dutch auctions. This method of bidding brings interesting opportunities but also specific requirements:

• The auctioneer lowers the starting price until one of the bidders submits a bid.
• The pre-emptive right must be settled, otherwise it expires.

Why should you care? This system can be attractive for the sale of movable assets such as machinery, vehicles or more expensive equipment, where it encourages buyers to make a quick decision. On the other hand, it requires precise planning and knowledge of the market value of the auction item to avoid undervaluing it.

5.2. Central registration of public auctions: more transparency, less chaos

The new information system managed by the Ministry of Regional Development will bring major improvements in the clarity and accessibility of auction information. The central register will allow:

• Easy search for planned auctions.
• Verification of the legal status of auction items.
• Reduce the risk of irregularities thanks to a single system.

This means greater certainty for auction participants and more efficient processes for organisers. However, transparency goes hand in hand with accountability - careful preparation of documents will be a must.

5.3 The new transfer of ownership

Transition of ownership: New approach, new risk

Until now, the ownership of the auctioned item passed to the auctioneer at the moment of the auction, provided that he paid the price within a specified period of time. However, the new law brings a change:

• In the case of movable property, ownership is transferred only after payment of the price.
• In the case of immovable property, the transfer of ownership will take place only after registration in the Land Registry (after payment of the price).

This new procedure is closer to a traditional sale, but there is a time window between the transfer of ownership and the transfer of ownership. For the auctioneer, this means a period of legal uncertainty. What happens if the auctioneer goes bankrupt or a dispute arises over the validity of the auction? Professional advice is crucial in these cases to avoid losses or legal complications.