The amendment to the Law on Electronic Communications

Posted by bara 27/11/2014 at 12h31

On 6th November 2014, President of the Czech Republic Miloš Zeman signed an amendment to the Electronic Communications Act. The European Commission has started an investigation in the Czech Republic, because the amendment worsens the position of subscribers to electronic communications. There is a conflict with European legislation. All people who have internet, telephone or cable or satellite television are subscribers of e-services. Telecommunication Office criticizes the amendment to this Act too.

Hand working on a computer

Czech consumer is not protected by European standards. The amendment says that the operator can unilaterally change the terms and it forces customers to remain in unfavourable (adverse) conditions. The European Directive declares that each participant has the right to change the terms of the contract without any penalty.

Currently, clients must be informed about any change at least one month in advance. They must also be advised of the right to withdraw from the contract. The amendment changes this obligation and the operator must only inform the consumer that the conditions is changing, but does not say what is changing exactly. The customer must find information about new condition himself, which can be difficult task in a multi-page contract. One-month period to inform customers remains the same.

Current law defines the essential terms of the contract (price, methods of application of the complaints or the price for number porting). The difference of the new old conditions is that in new one the operator will only inform about the changes that he evaluates as unwholesome for the customer. Informing only applies to fixed-term contracts - the other costumers may not know about the new conditions and they can inadvertently remain in unfavourable conditions.

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Corporate social responsibility in the Czech Republic

Posted by bara 27/11/2014 at 12h30

Terminology of Czech entrepreneurs is enriched by new terms. Trend as the reconciliation of work and family life (work-life balance), creation of corporate values​, corporate culture and improvement of soft skills. Corporate Social Responsibility is also a popular term now.

sticker with inscription responsibility


Social responsibility first appeared in the early second half of the 20th century, and means a way of managing an organisation and building relations with partners which helps to improve the reputation and boost the credibility of all organisations. This is a cross-cutting issue that affects a wide range of aspects - social, environmental and economic. The European Commission now defines corporate social responsibility as: the responsibility of enterprises for the impact their activities have on society.

In the Czech Republic, these terms are in the beginning and we find it only in the statutes of large multinational companies. We can see the positive promotion of social responsibility from the Ministry of Industry and Trade. On 2 April 2014 the Czech Republic Government approved in Resolution No. 199 the strategic document "National Action Plan for Corporate Social Responsibility in the Czech Republic.” The aim of the strategy document, which was prepared under the auspices of the Ministry of Industry and Trade in collaboration with other stakeholders, is to contribute to the development of the concept of corporate social responsibility in the Czech Republic and its positive impact on society, economic development and competitiveness of the Czech Republic. Strengthening control functions is not the intention thereof. The aim of the various activities that are included in the strategy document and respect the principles of voluntariness, is, in particular to motivate commercial enterprises, non-profit organizations and government authorities for the implementation of corporate social responsibility.

The full text of National Action Plan for Social Responsibility in the Czech Republic can be found on the website of the Ministry of Industry and Trade.

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Budget of the Czech Republic in 2015

Posted by bara 27/11/2014 at 12h29

Governmental coalition The Czech Social Democratic Party, ANO 2011 and the Christian and Democratic Union gained the support of the social partners and the regions for the draft budget for next year. The approved budget reflects government priorities under the Government Policy Statement and it is an important step for positive changes in the Czech Republic. The budget envisages a deficit of 100 billion crowns.


The approved budget will stabilize health care, lower taxes for families with children, lower taxation of drugs, indexation of pensions and it will also improve the remuneration of workers in the public sector. State employees' salaries will increase by 3.5 percent from November 2014 minimum wage of employees in the business sector will increase from January 2015. It is one of the pro-growth measures that will increase greater household consumption and individual consumption. Tax credit on second and third child increases and tax credit for working pensioners will be restored.

The Ministry of Finance expects spending 1.219 trillion crowns and revenue 1.119 trillion crowns. Ministry for Regional Development will record largest annual increase of money, total by almost 26 percent to 14.7 billion. The largest decline in revenue confesses Ministry of Environment, and almost 28 percent to 9.4 billion. Most chapters of the budget get more money than this year. Only 14 out of 42 will likely be less.

Ministry of Labour and Social Affairs has been traditionally the largest expenditure (half the total - that means more than 533 billion crowns). This is an increase from the approved budget for this year by 1.5 percent. The Ministry of Justice also gets more money - salaries of the security forces should increase by five percent.

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The minimum wage will be increased in the Czech Republic

Posted by bara 27/11/2014 at 12h28

The Czech government adopted a proposal for a minimum wage increase. It comes into effect on 1 January 2015. The minimum wage will increase from the current 8, 500 CZK per month to 9, 200 CZK per month or from the current 50, 60 CZK per hour to 55 CZK per hour.

The Regulation applies to the valorisation of wages to employees whose wages are not established in in collective agreements and workers in public services. Increasing the minimum wage does not apply to employees in receipt of disability pensions; for these people remains the minimum wage CZK 8,000 per month or 48.10 CZK per hour. This measure is important for stabilization of this specific group in the labour market.

The minimum wage was increased to the current 8,500 crowns a month in August 2013. Between 2007 and 2012 the minimum wage was not increased which means that the purchasing power of workers earning the minimum wage is low. The stagnation of the minimum wage contributed to the fact that the amount of the net minimum wage is currently not sufficient to cover all personal needs (for example housing costs). Czech Republic reflects developments in other developed countries. Minimum wage should achieve in the future to 40 percent of the average wage (currently around 10 000 CZK.) However, economists doubt the benefits of higher minimum wages.

Hand with money

Economic evaluation of policies guaranteed minimum wage

A minimum wage worker receives three percent, which means 100 to 120 thousand people. Increasing the minimum wage is important for all workers, as a minimum wage must increase tariffs for each occupational group. Increasing the minimum wage can be bad for businesses. The rapid growth of the minimum wage harms especially companies with a high share labour costs and it but also affect economically less developed regions. This measure means that higher minimum wages cause deformation in the higher income groups. The impact of increased minimum wage will feel every economic entity. Regulation on the minimum wage in the business sector also reduces the competitiveness of domestic companies. It also can affect the development of unemployment. An expansion of the shadow economy is another negative aspect of raising minimal wage.

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Czech has its own virtual currency Czech Crown

Posted by bara 27/11/2014 at 12h20

On 17th July 2014, the Czech Republic has had its first virtual currency. His name is Czech CrownCoin (CZC) and created her six-member team led by cinematographer TV Nova Ladislav Faith. CzechCrownCoin is a digital currency for internet transactions intended primarily for Czech citizens and businessesmen.

Hand with card

Digital currency began circulating a few years ago. The most successful is bitcoin, which came into circulation in 2009. Father of the virtual currency became a Japanese hacker hiding under the cover name Satoshi Nakamoto, who used it in its P2P network as a universal currency. Experimental currency is quickly transformed into the demand tender, which was reflected in its strength. An one year ago, one bitcoin was around $13, today it is already $956. Although the actual coins and bank notes can not be find in the concept of bitcoin, accept it already and some shops, and also in the Czech Republic. We pay them roughly 25 stone and online stores in the Czech Republic. In Prague this spring began work on the first ATM purchase and sale of Bitcoin.

For residents of Argentina is the only salvation, as annual inflation is around 30% and the government banned exchanged for dollars or euros, limiting the purchase of gold. Another reason for the popularity of bitcoin is that the transaction does not and no thanks to anonymous users are their owners untraceable. The same principle works necessary services such as Goldcoin, DigitalCoin or Litecoin. With its own means of payment already working well for years to be online betting company and makers of computer games. Its currency has for example Amazon online store or social networking site Facebook.

The European Banking Authority warns consumers that unregulated virtual currencies pose a great risk. Their deposits are in no way protected, for example, in the case of an attack by hackers or unsuccessful transfer of money. Her fate and use it for the time being in the stars, the distribution of this exchange will be launched in September 2014.

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