Top ten legal news items for businesses in 2018
What will the upcoming year bring for businesses? Below, we present an outline of the most important legal changes in the area of financial services, social security and personal data protection.
Registration of trusts
With the amendment to the Civil Code, from January 2018, trusts have to register in a public register. The basic data of the trust, including the identity of its trustees, shall be publicly accessible. Other data and identifications, such as those of the beneficiaries, shall be non-public. New trusts will only be established upon their registration in the register; existing ones have to register by 1 July 2018, otherwise be terminated.
Registration of beneficial owners
On 1 January 2018, an amendment to the Act of Public Registers of Corporate Entities and Individuals enters into effect, implementing yet another part of the Fourth AML Directive. It introduces the duty to register the beneficial owners of corporate entities and trusts in a new register maintained by registration courts. The register is non-public and extracts from it will only be available to persons stipulated by the act.
New Payments Act
On 13 January 2018, the new Payments Act enters into effect. It mostly implements the rules contained in the EU Payment Services Directive (PSD2) and will mainly affect online services, including authorisations of payments, card payments, provisions of information on payment accounts, or making changes to bank contracts.
Co-owners’ pre-emptive right reinstated
With the amendment to the Civil Code, effective 2018 the pre-emptive right to a co-ownership share in real property has been reinstated, with the exception of transfers to a close person. If a co-owner transfers the title gratuitously, the other co-owners have the right to purchase the share for its usual price.
Increase in the minimum wage
Effective 1 January 2018, the minimum wage increased by CZK 1 200 to CZK 12 200. The eight levels of guaranteed wage increased as well.
Paternity leave
New fathers may take one week paid leave during the first six weeks after their child is born. The benefit is paid from sickness insurance and is similar to the maternity benefit provided to mothers. It may be first used by fathers with children born on or after 21 December 2017.
Drawing of parental allowance
Effective 1 January 2018, the amendment to the State Social Support Act cancelled the maximum limit of the monthly parental allowance amount of CZK 11 500. The allowance can now be drawn depending on the parent’s assessment base.
Employment of disabled persons
Effective 1 January 2018, an amendment to the Employment Act provides a new regulation of the employment of disabled persons, including contributions paid to employers. It is meant to reduce the administrative burden for all parties involved.
Unsellable food to charities
Starting from 1 January 2018, large market chains must offer their unsellable foodstuffs to charities. Unsellable means mislabelled or badly wrapped foodstuffs, not those after their best before date.
Personal data protection
The General Data Protection Regulation (GDPR) will become directly effective on 25 May 2018. At the Czech national level, adoption of a new law replacing Act No. 101/2000 Coll., on Personal Data Protection, is planned. The new act would, however, only contain a fragment of the present regulation, as the majority will be provided for directly by the GDPR.