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NEWS

Constitutional court to appreciate supreme court’s ground-breaking decision on concurrence of functions


12/11/2018

The Constitutional Court has recently issued another decision on the issue of the so-called concurrence of functions, in which it inferred an unconstitutional interference with the plaintiff’s right to judicial protection in connection with a violation of the freedom of choice and the right to fair remuneration for work. By its decision, it set aside the general courts’ decisions on the invalidity of the director’s contract in question (due to the alleged prohibition of a concurring functions). Among other things, the Constitutional Court referred to its earlier ruling in which it had stressed that Czech laws had never explicitly banned the concurrence of acting as a statutory body (director) and being in an employment relationship; furthermore, if, under these legislative conditions, the general courts wished to infer a prohibition of individual acts otherwise not explicitly stipulated by law, they should put forward very convincing arguments for such conclusions – which in this particular case, according to the Constitutional Court, they failed to provide. At the same time, the Constitutional Court appreciated in its decision the change of judicial practice of the Supreme Court of the Czech Republic, which had taken place in the meantime based on a judgment that won the Judgment of the Year 2018 at this year’s Karlovy Vary Jurists’ Days; the conclusions of the judgment have already been presented in our news. Our firm will be happy to shed more light on the issue of the so-called concurrent functions and help to prepare tailored directors’ contracts for you.