Transfer of a business and labour law
The case involved an Austrian entrepreneur which rendered catering services to a hospital. The meals were prepared in the premises made available by the hospital specifically for that purpose. The service provider was also supplied by the hospital with media and necessary equipment. Eventually, the hospital rescinded the service agreement concluded with the entrepreneur who was replaced by another service provider (“successor”).
The successor refused to take over the employees of the entrepreneur. They, however, argued before an Austrian court that their employment should continue whereas the successor should also take on the entrepreneur’s duties as an employer. The latter refused to apply Council Directive 77/187/EEC of 14 February 1977 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of businesses (“Directive”), claiming that the facts of the case do not qualify as a transfer of an undertaking.
The ECJ pointed out that the Directive is meant to ensure continuity of employment in a given undertaking, regardless of the change of its ownership. For that reason, the decisive criterion, when assessing whether the Directive applies, should be whether the business entity in question retained its identity. That may be the case especially when the previous activities of the undertaking are continued or restored.
The ECJ took the position that the Directive should be applicable also when there are no legal relationships between the transferor and the acquirer of an undertaking. Such transfer may thus take place through a third party.
The ECJ explained that the Directive is clearly applicable also when – pursuant to contractual arrangements – there is a change of an individual or an entity in charge of certain services which, correspondingly, should step in the employer’s duties towards the employees of the undertaking, regardless of whether or not the ownership of the assets used for the relevant activity has been transferred.
Other articles
KŠB assisted Seyfor with the extension of its financing provided by Raiffeisenbank, Tatra banka and, newly, Slovenská sporiteľňa.
The KŠB team provided legal advice to its long-standing client Seyfor in connection with the continuation and expansion of its syndicated financing. The existing lending banks, Raiffeisenbank Czech Republic and Tatra banka, decided to continue supporting Seyfor’s growth, with Slovenská sporiteľňa joining the financing as a new lender.
Evidence skutečných majitelů: Co přinese znepřístupnění od 17. prosince 2025?
Letošní rozhodnutí Nejvyššího soudu a Nejvyššího správního soudu navázala na rozsudky Soudního dvora Evropské unie, a, s platností i pro Českou republiku, konstatovala, že zveřejňování údajů v rámci evidence skutečných majitelů představuje nepřiměřený zásah do základních práv majitelů na soukromí a ochranu osobních údajů. Důležitým aspektem těchto rozhodnutí byl závěr, že sankce, které postihují povinné subjekty jako reakce na nesplnění jejich povinnosti zápisu do evidence skutečných majitelů, není možné vymáhat, dokud je evidence veřejná. Tato situace se změní 17. prosince 2025, kdy ministerstvo znepřístupní evidenci skutečných majitelů; povinným subjektům tak budou opět hrozit závažné sankce.
30th Advent Concert for the Committee of Good Will – Olga Havlová Foundation
This year again, during the pre-Christmas season, the Advent Concert of Good Will took place. Since 1995, it has been organised by the law firm Kocián Šolc Balaštík in support of the Committee of Good Will – Olga Havlová Foundation. This was already the 30th anniversary edition, made exceptional by the fact that we organised it for the first time together with our partner, Smetanova Litomyšl, as part of a broader mutual cooperation. As always, the concert was held in the concert hall of the Church of Sts. Simon and Jude in Prague’s Old Town.
