Act No. 33/2020 (hereinafter the “Amendment”), amending Act No. 90/2012, on corporations and associations (the Act on Corporations), as amended (hereinafter the “Act on Corporations”), entered into force on February 13 of this year upon its promulgation in the collection of documents. The Amendment was called “major” because it involves the most extensive changes to Czech corporate law in the past six years. Although the vast majority of provisions in the Amendment take effect as of January 1, 2021, it is important to prepare for them in advance.

New Regime C of the Antivirus programme, waiving part of social security premiums and state unemployment policy contributions mandatorily paid by employers (i.e. 24.8% of the aggregate income of their employees) for June to August 2020, gives rise to the question of an impact of this new regulation on income tax on employment.

On 19 June 2020, the President of the Republic signed an amendment to the Social Insurance Act, which means that mode C of the Antivirus programme entered into force. Providing a waiver of social security premiums for employers with up to 50 employees, the programme aims to support the maintenance of employment for employees in employment.

In connection with the spread of Covid-19, extensive crisis measures have been announced in the Czech Republic with a major impact on all business activities nationwide. Below we provide answers to frequently asked questions, especially in the area of contracts and regulation. Employment law and related issues are dealt with in more detail in our Practical Guide for Employers and Covid-19: Antivirus Employment Retention Program for March - April 2020. Updated on 26 March 2020. We continue to monitor the situation closely.