In The Debrief, our Practice Leaders across CEE share updates on recent and upcoming legislation, consider the impact of recent court decisions, showcase landmark projects, and keep our readers apprised of the latest developments impacting their respective practice areas.
This House – Implemented Legislation
Labor law in the Czech Republic entered a new chapter this month with the implementation of the long-anticipated Flexi-Amendment. “On June 1, 2025, the Flexi-Amendment to the Czech Labor Code came into being,” Peterka & Partners Partner Adela Krbcova reports. “Training sessions are ongoing, and businesses are exploring the new opportunities offered.”
The good news, according to Krbcova, is that “this time, employers are not overwhelmed with paperwork when adapting to the new rules. It is more about processes and considering which novelties are useful for businesses and therefore worth implementing internally. For example, not all companies want to extend trial periods or employ 14-year-olds who are still in compulsory schooling during the summer holidays.”
According to her, “in brief, the most important thing is to remove clauses that prevent employees from disclosing their salaries to co-workers or other people. Also, the new rules regarding the length, start, and end of the notice period are subject to not having another agreement with employees in individual contracts or specific rules adopted internally.”
Aside from the changes to the labor legislation, Krbcova says that “the government has also updated the rules on granting paid or unpaid days off for various personal occasions. These rules now also cover not only employees’ spouses, but also their partners. Up to five additional unpaid days off may be taken by employees grieving for late relatives. The number of days off for job seeking now depends on the reason for termination, with additional days granted to job seekers who use the advisory services of labor offices.”
This House – Reached an Accord
Poland is amending its employment framework, particularly regarding the regulation of foreign workers. According to Wolf Theiss Associate Marta Wasil, “on May 12, 2025, two statutes were published in the Journal of Laws of the Republic of Poland: the Act on the Conditions for Permitting the Employment of Foreign Nationals in the Territory of the Republic of Poland (the Act on the employment of foreign nationals) and the Act on the Labor Market and Employment Services (the Act on the labor market).” Wasil explains that “these acts adapt and consolidate several existing solutions that were previously regulated under the April 20, 2004, Act on Employment Promotion and Labor Market Institutions, while introducing new provisions.”
According to Wasil, the new legislation establishes “the principles that govern foreign nationals’ access to the labor market, the relevant authorities, and the applicable procedures. Notably, the Act on the employment of foreign nationals fully digitizes the procedures related to the legalization of the employment of foreign nationals. Applications for work permits and related documentation must be submitted via an electronic system. Applications submitted through any other means will be left unprocessed.”
“The most significant change introduced by the Act on the labor market is the implementation of a two-year waiting period for newly established employment agencies,” Wasil highlights. “According to the new regulations, conducting business activities in the fields of recruitment and temporary employment services for foreign nationals will only be possible after two years have passed since the date of entry into the employment agency register. In practice, this means that a newly established employment agency will be limited for two years to providing services in respect to: Polish citizens, EU citizens, and foreign nationals exempted from the work permit obligation.” This restriction, according to her, “aims to prevent the formation of agencies solely for obtaining rapid access to foreign labor. However, this measure will create a significant barrier to market entry and may strengthen the market position of larger, already-established entities.”
This House – The Latest Draft
ACI Partners Legal Manager Carolina Parcalab stresses that Moldova continues to align its competition framework with EU standards. “During a recent public event, the President of the Competition Council announced the upcoming amendments to the Competition Law, aiming to strengthen enforcement tools and align key legal definitions with European practices,” she says. “Notably, one of the proposed changes includes lowering the dominance presumption threshold from 50% to 40% market share. The amendments will also clarify the rules around the execution and suspension of the Council’s decisions, providing greater procedural transparency.”
Meanwhile, in Poland, “work on the long-awaited amendment to the Act on the National Cybersecurity System, aimed at implementing the NIS2 Directive in Poland, has accelerated,” Addleshaw Goddard Head of TMT/IP Szymon Sieniewicz reports. “The new draft law was published on June 6, but is dated April 16, suggesting its release may have been delayed, possibly due to the presidential elections in late May. Some of the amendments are technical, but the draft also introduces significant changes. These include a provision allowing the cybersecurity authorities to mandate external audits with immediate effect and enabling the Minister of Digital Affairs to provide financial support for projects such as developing and improving ICT products, services, and processes in cybersecurity.”
“The draft law was recently discussed by the Standing Committee of the Council of Ministers,” Sieniewicz adds. “It is now likely to proceed to the lower house of the Polish Parliament for further consideration, moving closer to the implementation of the NIS2 Directive in Poland. The new cybersecurity laws are expected to impact tens of thousands of Polish businesses, particularly those in critical sectors such as energy, transport, healthcare, banking, and digital infrastructure.”
The Verdict
A recent case in Serbia has raised pressing questions about directors’ fiduciary duties and minority shareholder rights. “The case involves a former director allegedly receiving illicit ‘kickbacks’ from suppliers in exchange for business, triggering civil proceedings,” Pekic Law Office Partner Stefan Pekic explains. “Additionally, this matter has raised renewed attention to minority shareholder rights in LLCs, specifically the inability of minority members to enforce dividend payouts in the absence of majority support at the general assembly. This highlights the ongoing tension between legal formality and shareholder equity in closely held companies.”
In the Works
CMS Bulgaria Managing Partner Kostadin Sirleshtov highlights that the Bulgarian energy sector remained very active in May with several key developments. “PPC Group, the leading Greek power utility, acquired an 88-megawatt solar PV plant in Bulgaria, marking its second project in the country,” he notes. “The plant is located in the Karlovo region and is expected to be operational in the first quarter of 2026. This project, along with an existing 165 megawatt-peak solar farm and 25 megawatt/55 megawatt-hour energy storage facility in Stara Zagora, strengthens PPC Group’s presence in the Bulgarian renewable energy market.”
Similarly, he says, “one of the biggest Bulgarian operational photovoltaic investment companies – Aratiden Ltd. – signed an EPC contract on the construction of an EU-supported 40-megawatt/82.58 megawatt-hours facility paired with an existing 100-megawatt photovoltaic plant. It is expected that the BESS project will be operational in the first quarter of 2026.”
Additionally, “at the beginning of May 2025, Shell Exploration and Production 96 concluded the oil & gas prospecting and exploration agreement for Block 1-26 Han Tervel offshore Bulgaria,” Sirleshtov reports. “The two-stage EU tender process, launched in July 2024, comprised a qualification round followed by a bidding round. In December 2024, Shell was awarded the permit, and in May 2025, it finalized the agreement with the Bulgarian Government.”
Furthermore, “Bulgaria and Turkiye signed a Memorandum of Understanding in the energy field, following the first investment in the renewable sector of Bulgaria made by the largest Turkish construction company Enka,” Sirleshtov points out. “It is expected that this investment will be followed by further Turkish investments in the Bulgarian energy sector in the coming months.”
Done Deals
In terms of regional M&A, a standout transaction has reshaped the financial sector in the Western Balkans. Pekic highlights a significant deal in the Balkan region, impacting Serbia. “One of the most notable regional M&A developments last month was the finalization of AIK Group’s acquisition of 74.9% of shares in Montenegro’s Hipotekarna Banka,” he notes. “This transaction not only expands AIK Group’s footprint in the Western Balkans but also strengthens its ambition to position itself as a leading financial player in the region, building on synergies across Serbia and Slovenia through its existing banking and leasing operations.”
Regulators Weigh In
In terms of competition developments, Redcliffe Partners Partner Denys Medvediev says that “the Antimonopoly Committee of Ukraine (AMCU) has intensified its enforcement efforts against misleading therapeutic claims, particularly in cosmetics and dietary supplements.” In recent years, “the AMCU has tended to prioritize cases showing measurable harm to fair competition. While technically deceptive claims were often overlooked when their market impact was negligible, the regulator maintained strict scrutiny of health-related cases, even those lacking clear evidence of market distortion. This selective enforcement approach reflects a deliberate policy of strengthening consumer protection in medically sensitive markets.”
“The latest enforcement actions highlight this strategic focus, with three particularly noteworthy decisions,” Medvediev notes. “On May 22, Bauer Medical’s Ukrainian subsidiary received a penalty for improperly marketing its Heparin Dr. Bauer cream as possessing ‘anti-varicose and toning’ medicinal properties,” he says. “On May 29, a state-owned pharmaceutical enterprise faced a penalty for making unsubstantiated claims that its Rotokan solution could effectively treat oral inflammations.” Finally, “on June 12, Delta Medikel incurred a substantial EUR 200,000 penalty for promoting its Lactofiltrum supplement as an effective treatment for allergies and acne.”
“Remarkably,” he stresses, “these decisions uniformly relied on expert evaluations from Ukraine’s Ministry of Health. While the first two penalties remained modest (under EUR 5,000), the substantial June fine clearly indicates a strategic pivot toward deterrence through more severe financial sanctions.”
“The case-specific enforcement approach, lacking broader industry guidance, may raise questions about optimal resource allocation,” Medvediev argues. “While the AMCU’s focus suggests further high-value penalties could follow, some argue that general compliance recommendations would enhance the preventive impact of enforcement. In this evolving landscape, businesses are advised to adopt robust compliance measures, including auditing product claims, revising marketing materials, and, where necessary, reviewing specific batches. In certain cases, it may be prudent to preliminarily negotiate specific packaging designs or marketing materials with the AMCU, using available legal instruments.”
Meanwhile, in Moldova, “recent enforcement actions suggest a shift in how the competition council approaches competition analysis, with a greater focus on economic substance and market realities,” Parcalab points out.
“The first example is a merger control case involving Moldretail Group and its intended acquisition of the Fourchette retail chain,” she says. “The case has moved to Phase II investigation, with the Council citing ‘serious doubts’ regarding the transaction’s compatibility with effective competition. The analysis defined relevant markets by store formats and calculated local catchment areas using walking distances of 10 to 30 minutes – a methodology inspired by the European Commission’s approach in retail mergers.”
“The second case concerned an unfair competition complaint filed by Calarasi Divin against Zolotoi Aist, alleging visual imitation of bottle design and branding,” she reports. “While similarities were noted in packaging, colors, and product naming, the Council found insufficient evidence of actual consumer confusion, underlining the need for tangible market impact rather than assumptions.”
Together, “these developments signal Moldova’s maturing competition regime – less formalistic, more economically grounded,” Parcalab says. “For businesses, the message is clear: compliance now demands a blend of legal accuracy and market insight. Whether dealing with branding or structuring M&A, economic analysis has become an essential part of the legal strategy.”
This article was originally published in Issue 12.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
