Category: Czech Republic

Prague’s Vaclav Zaloudek has become a Partner in the Global Commercial Litigation practice of White & Case, as part of a global promotion round that saw 42 new additions to the firm’s partnership.

The promotions will become effective on January 1, 2024.

According to White & Case, he “advises clients on energy-related, commercial, and employment litigation, focusing on domestic and EU regulatory issues.” Zaloudek has been with White & Case since 2008, first joining as an Associate Lawyer and becoming a Local Partner on January 1, 2019 (as reported by CEE Legal Matters on November 28, 2018).

Kinstellar, working alongside Skadden, Arps, Slate, Meagher & Flom, has advised Squared Capital on the acquisition of the entire Arriva Group.

Squared Capital is a Miami-based infrastructure investment manager.

Arriva Group is an international transport business of Deutsche Bahn.

The Kinstellar team included Czech Republic-based Partner Jan Juroska and Senior Associate Matej Vecera, Slovakia-based Counsel Dominika Bajzathova and Associate Livia Miklencicova, Croatia-based Partner Edin Karakas and Senior Associate Zrinka Ivankovic, Romania-based Partner Zsuzsa Csiki and Senior Associate Mihai Stan, and Hungary-based Partner Gabor Gelencser and Senior Associate Csenge Koller.

Kinstellar did not respond to our inquiry on the matter.

Former Deloitte Legal Partner Olga Kaizar has joined PwC Legal as an Associate Partner in the Czech Republic.

Kaizar specializes in real estate, ESG, and environmental law.

Before joining PwC Legal, Kaizar spent seven years with Deloitte Legal, joining as an Associate Partner in 2017 and becoming a Local Partner in 2020. Earlier, she spent eight years with Rybar, Soppr & Partneri.

The government has proposed a package of measures aimed at reducing the state budget deficit in the next coming years. The package anticipates savings of almost CZK 150 billion, which, should bring to the state budget, in addition to changes in tax rates, also changes affecting employees and employers.

The Chamber of Deputies and the Senate have already approved the package, which is now awaiting the President’s signature and publication in the Collection of Laws. The changes will be effective from 1 January 2024.

We have prepared a summary of the main changes that will have an impact on employment law in the following areas:

Contributions from income from the agreement on performance of work        

• More strict rules for the exemption from insurance contributions in the case of agreements on performance of work (currently income from all agreements on performance of work up to CZK 10 thousand/month).
• Two new limits for compulsory contributions for employees working on agreements on performance of work:

1. 25% of the average wage for earnings from all agreements on performance of work with one employer,
2. 40% of the average wage for earnings from all agreements on performance of work with multi-employer.

• If employee with an agreement on performance of work exceeds one or the other limit, the employer is obliged to make social security and health insurance contributions.
• A central register of all agreements on performance of work and income from agreements will be established.
• A new obligation for an employee to inform the employer about work on agreements on performance of work with different employers and an obligation for employers to report the amount of income from agreements on performance of work to the Social Security Administration.

Employee benefits 

• Introduction of an aggregate limit for tax exemption of selected employee benefits (e.g. goods and services of a health and medical nature, educational services, admission to sports facilities, admission to cultural events) at the level of half of the average wage (limit for 2024 in the amount of CZK 21,983).
• However, this limit does not apply to all benefits, e.g. pension or life insurance contributions, meal vouchers, etc.

Sickness insurance for employees        

• Sickness insurance for employees is introduced as part of social security contributions.
• The employer will now deduct 7.1% from the employee’s gross wage (compared to the current 6.5%) for social security contributions, while 0.6% is for sickness insurance.

Meals

• The conditions for tax exemption of meals provided to employees are unified and clarified, as the current conditions for the meal voucher lump sum will also apply to meals provided in a non-monetary form (factory meals, meal vouchers).

At the same time, in connection with the amendment to the Labour Code, which is effective as of 1 October 2023, we would like to recommend you once again:

• Revise the templates of agreement on performance of work and working activity,
• Conclude written agreements with all employees working, even if only on a casual basis, from home (legal deadline 31.10.2023),
• Obtain employee consents to electronic concluding of employment documentation and delivery,
• Review work regulations and other internal directives,

Prepare new forms to inform employees (including for employees with agreements) of their rights and obligations.

By Ondrej Benes, Counsel, and Martina Vodickova, Associate, Eversheds Sutherland

BBH has advised Roier.cz on obtaining a crowdfunding license under the new EU crowdfunding regulation. 

Roier is a crowdfunding provider led by David Bystrzycki and Jan Behounek that enables retail investors to invest in real estate projects.

The BBH team included Partner Zdenek Hustak, Senior Associate Adam Necas, and Junior Associate Mikulas Zacpal.

Kinstellar has advised Mineral Ventures Invest on a reverse takeover transaction involving the acquisition of the majority stake in Irish mining and exploration company IMC Exploration Group. Dublin-based Mason Hayes Curran reportedly advised IMC.

Mineral Ventures Invest is a Czech natural resource mining company based in Armenia since 2018. It operates the producing Karaberd mine in the region of Lori.

According to Kinstellar, “MVI – part of the private Czech holding group Holding Zlato – has become the majority owner of IMC. As consideration for the newly issued shares, IMC has acquired an ownership interest in MVI through its Armenian subsidiary, which owns a mining license for a gold mine in Karaberd, Armenia.”

The IMC Exploration Group’s shares are listed on the prime market of the London Stock Exchange. The transaction had to be cleared with the Irish Takeover Panel and, due to the readmission of the shares in IMC, also involved the publication of a prospectus that required approval from the UK Financial Conduct Authority, the firm reported.

The Kinstellar team included Prague’s Managing Partner Lukas Sevcik, Managing Associate Vaclav Kment, and Senior Associate Matej Vecera.

Wolf Theiss has advised Switzerland-based generic medicines company Sandoz on its long-term office lease agreement with RSJ Investments for business premises in Prague. Wilsons advised landlord RSJ Investments.

Basel-based Sandoz is a provider of off-patent medicines. It reports that its portfolio of about 1,500 generic and biosimilar medicines is being used to treat around half a billion patients around the world.

According to Wolf Theiss, “with no new office development commencing since more than a year ago and the vacancy rate remaining low, office tenants face a growing struggle in search of their new corporate seat in the Prague market.”

The Wolf Theiss team included Counsel Tomas Kren.

The Wilsons team included Partner Alan Spanvrit and Senior Associate Matej Kucera.

Clifford Chance has advised Komercni Banka on a green loan for the Accolade Group.

Accolade Holding is a Czech investment company operating in six European countries, providing infrastructure for European businesses, predominantly in the e-commerce, processing industry, and logistics sectors.

Back in 2022, Clifford Chance advised a club of lenders including Komercni Banka, Ceska Sporitelna, and Raiffeisenbank on a EUR 137.5 million loan to the Accolade group for the construction of an Amazon automated distribution center (as reported by CEE Legal Matters on May 25, 2022).

The Clifford Chance team included Counsel Milan Rakosnik and Junior Lawyer Pavlina Tomeckova.

Clifford Chance did not respond to our inquiry on the matter.

Clifford Chance has advised, pro bono, a joint venture entity including Dennik N, the Independent Press Foundation, the Aegis Foundation, and the Respekt editorial team on the acquisition of the Respekt Magazine in the Czech Republic.

According to Clifford Chance, “this deal carries exceptional importance, not only due to its commercial aspects but also for the commitment to pro bono work that underlies it. Respekt is an independent weekly magazine that offers insightful commentary on current events in domestic and international politics and economics. Since 1989, it has been a continuous source of information, covering politics, economics, history, social issues, trends, and closely following advancements in science and research. The magazine also places significant emphasis on cultural topics and enjoys contributions from numerous prominent figures.”

The Clifford Chance team included Partner Emil Holub, Associate Ondrej Dolensky, and Junior Lawyers Jiri Krejca and Simon Vanek.

Clifford Chance could not provide additional information on the matter.

Briza & Trubac has advised the TJ Spartak sports club in Rokytnice nad Jizerou on the sale of an ownership stake in a company operating a local ski resort to the Trigema group.

TJ Spartak Rokytnice nad Jizerou is a Czech Republic-based sports club.

“The purchase of the Rokytnice nad Jizerou ski resort is an opportunity that fits in with our vision to further develop one of our investment pillars,” Trigema CEO Marcel Soural said. “We have been building places for adventure and leisure for more than 15 years and being part of one of the largest ski centers in the Krkonose was a great motivation for us.”

The Briza & Trubac team included Partner Patrik Kozeluha and Attorney at Law Tomas Munzar.