Anglický jazyk pro. právníky Units REVISION OF UNITS 1-12 ~ 0 ~ 1. TRANSLATE

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1 Anglický jazyk pro REVISION OF UNITS TRANSLATE právníky Units přijímací zkouška 2. závazný 3. dodatek, novela zákona 4.odpůrce 5. poměrné zastoupení 6. volební místnost 7. mezinárodní smlouva 8. zdědit 9.ochranná známka 10.nájemní smlouva 11.zánik smlouvy dohodou 12.pěstounská péče 2. CIRCLE THE RIGHT ANSWER 1. Which of these universities is not in Great Britain? 2. Which fact is not typical of Common law? 3. Which word does not mean the same as the word law? 4. Which party is not a party to civil proceedings? 5. Which offence is not serious? ~ 0 ~

2 CHAPTER 15 COMPANY LAW BUSINESS ORGANISATIONS IN GB AND US SOLE/INDIVIDUAL PROPRIETORSHIP a form of business ownership in which one individual owns a business, and may either be the sole worker of the business or may employ as many individuals as needed to run the business. Individual proprietorships are commonly used in retail establishments, service businesses, and agriculture. ADVANTAGES the proprietor, as the sole owner, controls all of the decisions and receives all of the profits. The proprietor s net earnings are not subject to the corporate income tax, but are taxed as personal income. DISADVANTAGES the proprietor is subject to unlimited personal liability for the debts of the business. The investment capital in the business is limited by the resources of the sole proprietor. The authority to make contracts terminates upon the death of the owner, and the business is subject to disintegration. PARTNERSHIP a business organization which does not exist in the Czech law. There are, for example, some associations of lawyers who call themselves partners, however this is not a partnership in the Anglo-American sense of the term. A partnership involves the pooling of capital resources and the business or professional talents of two or more individuals with the goal of making a profit. Law firms, medical associates, and architecture and engineering firms may operate under the partnership form. ADVANTAGES individuals pool resources and conduct their business without the requirement of a formal organizational structure and without the expense of organizational fees. Partnership agreements are often informal and may be unwritten. DISADVANTAGES unlimited personal liability of each partner, the uncertain duration of the business because the partnership is dissolved by the death of a partner, and loss of income tax advantages available under the corporate form. ~ 1 ~

3 BUSINESS CORPORATION a business association which has the character of a legal person, distinct from its officers and shareholders. This is significant, as it allows the company to own property in its own name, continue perpetually despite changes in ownership, and insulate the owners against personal liability. Business corporations exist primarily to make a profit. They are created by government grant, and the statute regulating the creation of corporations requires a corporate structure consisting of shareholders, directors, and officers. The shareholders, as the owners of the business, elect a board of directors who are responsible for the management of the business. The directors employ officers, who run the day-to-day operations of the business. ADVANTAGES the shareholder s risk of loss from the business is limited to the amount of capital the shareholder invested in the business. A corporation is a separate legal entity capable of holding property, contracting, suing, and being sued in its own name. The death of a shareholder has no legal effect on the entity. A corporation is also a separate taxable entity. DISADVANTAGES a corporation is required to pay corporate income taxes. Shareholders, when they receive a distribution of profits for the corporation, are required to pay personal income taxes on the amount received. This is a form of double taxation. Incorporation also involves the expenditure of funds for organizational and operational expenses. COMPANY FORMATION The process by which a company is formed is called INCORPORATION. After incorporation a corporation becomes a legal person distinct from its members (= separate legal entity). Property and debts of the corporation concern the corporation only, not its members. The corporation can sue and be sued in its own name. A company is formed upon the issuance of a certificate of incorporation by the appropriate governmental authority (U.S. the Secretary of State, U.K. the Registrar of Companies). A certificate of incorporation is issued upon the filing of the constitutional documents of the company, together with statutory forms and the payment of a filing fee. The first constitutional document is the Memorandum of Association-U.K./Articles of Incorporation U.S. which is concerned with the regulation and outward appearance of the company (it usually contains the name of the company, the situation of its registered office, the objects of the company, the liability of the members and the amount of share capital and its division). The second constitutional document, the Articles of Association U.K./By-laws U.S., contains provisions for the internal management of the company, e.g. the regulation of general meetings, the appointment and ~ 2 ~

4 regulation of the powers of company directors, rights attached to shares, share capital and dividends or accounts and capitalisation of profits. VOCABULARY BUSINESS ORGANIZATIONS IN GB AND US Account Articles of Association/By-laws Asset Be subject to Board of directors Business corporation, company Certificate of incorporation Conduct business Corporate income tax Director Disintegration Dissolve Distinct Distribution Double taxation Duration General meeting Incorporation Insulate Memorandum of Association/Articles of Incorporation Net earnings Objects of a company Officer Operational expenses Organizational expenses Partnership Personal income tax Pooling of capital Profit Proprietor Registered office Registrar of Companies Retail establishment Seize Separate legal entity Separate taxable entity Shareholder Sole Sole/individual proprietorship Účet Stanovy obchodní společnosti Jmění, aktiva, majetek Podléhat, spadat pod Správní rada a.s., představenstvo Obchodní společnost Přibl. výpis z obchodního rejstříku Obchodovat, podnikat Daň z příjmu právnických osob Ředitel, člen správní rady/představenstva Rozpad Rozpustit, rozvázat, zrušit Odlišný od, rozdílný Rozdělování, rozdělení Dvojí zdanění Trvání Valná hromada Utvoření obchodní společnosti Izolovat, chránit Společenská smlouva obchodní společnosti Čistý zisk Předmět podnikání Výkonný vedoucí pracovník Provozní náklady Režijní náklady Podnikatelské sdružení osob Daň z příjmu fyzické osoby Sdružení kapitálu Zisk Vlastník, majitel Sídlo Britský úředník obchodního rejstříku Maloobchod Zabavit co, zajmout koho Samostatný právnický subjekt Samostatný daňový subjekt Akcionář, podílník Jediný, výhradní Univerzální vlastnictví ~ 3 ~

5 TYPES OF COMPANIES IN THE CZECH REPUBLIC Unlimited Liability Company v.o.s. Formed by two or more natural persons or legal entities. All members are entitled to act on behalf of the company. All members assume unlimited liability for the debts/obligations of the company (they are liable with all their property jointly and severally). The members' names and addresses of the company's registered office must be recorded in the Commercial Register. A Memorandum of Association must be drawn up. The audit requirements are the same as for a limited liability company. Limited Partnership Company komanditní společnost Formed by two or more natural persons or legal entities of which at least one general partner must assume unlimited liability and is responsible for the obligations of the partnership. The limited partners are only responsible for the obligations of the partnership up to the level of their unpaid capital contributions (they must contribute at least 5,000 crowns). A partnership agreement must be drawn up. The entry in the Commercial Register must also include the partners' names and addresses or the partnership's registered office, a statement as to who are the limited and general partners, the amount of paid-in capital by each limited partner... Only general partners are permitted to actively manage the partnership. The audit requirements are the same as for a limited liability company. ~ 4 ~

6 Co-operative družstvo At least 5 members or 2 legal entities undertake business for the economic or social benefit of the members The company is liable for its debts. Registered capital minimum 50,000 crowns Members set up the company during the establishing meeting where they approve the amount of the registered capital, articles of association and elect the board of directors and the control commission. Limited Liability Company s.r.o. Details in the Commercial Register include: a list of shareholders (maximum 50) and their contribution, the names and addresses of the Supervisory Board (if established), the amount of registered capital (minimum CZK 200,000), each shareholder s contribution (minimum CZK 20,000). The shareholders are not liable for the debts of the company provided they have paid their contributions in full and such information has been recorded in the Commercial Register. An Executive must be appointed. This is the statutory body of the company and is responsible for its management. The business must have an Establishment Memorandum or Memorandum of Association and the business name must include "spolecnost s rucenim omezenym" or the abbreviation "spol. s.r.o." or "s.r.o." A non-distributable reserve fund must be created at the company's registration or in the first year in which the company is profitable. The reserve fund contribution must be a minimum of 10% of the net profit up to a maximum of 5% of the value of the registered capital. In subsequent years, a minimum of 5% of net profit must be transferred until the fund reaches a minimum of 10% of the value of the registered capital. A General Meeting of shareholders must be convened at least once a year. A limited liability company is subject to a mandatory statutory audit if at least two of the following criteria are met for both the current and previous year: the net turnover exceeds CZK 80 million, the total assets exceed CZK 40 million and the average number of employees exceeds 50. ~ 5 ~

7 Joint-stock Company a.s. The company exists independently of its shareholders. The shareholders are not liable for the debts/obligations of the company. A Board of Directors and Supervisory Board must be elected. Articles of Association must be prepared. A joint-stock company must have a minimum registered capital of CZK 2 million however if it is established by a public offering of shares the minimum registered capital is CZK 20 million. A non-distributable reserve fund is required to be set up from the first year's net profit up to at least 20% of the net profit up to a maximum of 10% of the nominal value of the reserve fund. A general meeting of shareholders must be convened at least once a year. A joint-stock company is subject to a mandatory statutory audit if at least one of the following criteria are met for both the current and previous years: The net turnover exceeds CZK 80 million The total assets exceed CZK 40 million The average number of employees exceeds 50 VOCABULARY BUSINESS ORGANIZATIONS IN THE CZECH REPUBLIC Assume liability Convene Co-operative Exceed General partner Jointly and severally Joint-stock company Limited liability company Limited partner Limited partnership company Registered capital Supervisory Board Převzít odpovědnost Svolat Družstvo Převyšovat Komplementář Společně a nerozdílně Akciová společnost s.r.o. komanditista Komanditní společnost Základní kapitál Dozorčí rada ~ 6 ~

8 The Commercial Register Turnover Unlimited liability company Unpaid capital contribution Obchodní rejstřík Obrat v.o.s. Nesplacený vklad EXERCISES 1. ANSWER THE QUESTIONS 1. Provide examples of a partnership. 2. What are the advantages of sole proprietorship? 3. What kind of liability does a sole proprietor have? 4. Does a sole proprietorship have infinite duration? 5. What does pooling resources mean? 6. Does it require many formalities to form a partnership? 7. What kind of liability does a partner have? 8. What is the structure of a company? 9. What kind of entity is a corporation? 10. Who is the owner of a corporation? 11. Explain the term double taxation. 12. Is it easy and cheap to set up a company? 13. What is issued when the company is formed? 14. Whose office is authorized to form the company in GB and US? 15. Which constitutional documents do you know, what are they called in GB and US and what do they include? ~ 7 ~

9 2. FILL IN THE CROSSWORD-PUZZLE Across 3. aktivum, majetek 5. zisk 8. utvření obchodní společnosti Down 1. rozdělení 2. podnikatelské sdružení osob 4. trvání 6. účet 7. akcionář 3. TRANSLATE THE EXPRESSIONS Živnost Zisk Daň z příjmu práv. os. Neomezené ručení Podnikatelské sdružení osob Podnikat Organizační struktura Právnická osoba Představenstvo Samostatný daňový subjekt Zápis do obch. rejstříku Zakládací dokument Sídlo Stanovy Dividenda živnostník čistý výdělek daň z příjmu fyz. os. dluh sdružení kapitálu režijní náklady obchodní společnost akcionář částka dvojí zdanění výpis z obchodního rejstříku společenská smlouva předmět podnikání valná hromada účet ~ 8 ~

10 4. FILL IN THE TABLE XXXXXXXXXX Veřejná obchodní spol. English transl. Komanditní spol. Společnost s ruč. om. Akciová spol. Družstvo Purpose of the company Minimum or maximum number of members Liability Registered capital Minimum contribution of members Statutory bodies Other bodies Audit requirements Mandatory reserve fund? ~ 9 ~

11 Sources: Amy Krois-Lindner International Legal English Chromá New Introduction to Legal English II Gillian D. Brown, Sally Rice Professional English in Use, Law entity/index.html ~ 10 ~

12 CHAPTER 16 DISSOLUTION OF A COMPANY INSOLVENCY describes the financial state of a company when its debts or liabilities exceed its assets and available cash. This inability or lack of means to pay the debt does not have to terminate the existence of the corporation, but as soon as a company is insolvent, it must take action to resolve the situation. Insolvency scenarios include administration, receivership, bankruptcy proceedings and liquidation. ADMINISTRATION aim - to rescue the company or to achieve a better result for the company s creditors than if the company went into liquidation a company or its creditors file notice at court for an administration order the court will issue an administration order and appoint an administrator the debts of the company are frozen the administrator takes control of the company and maintains it as a going concern or secures better realisation of its assets (he can borrow finance, defend the company in legal proceedings, employ or dismiss employees, appoint or remove directors ) the administrator sends a statement of proposals to the creditors, Registrar of Companies and company members o o the creditors do not like the proposals the court will discharge the administration order the creditors approve of the proposals a committee of creditors will be appointed the administrator may help the company continue trading and avoid the liquidation OFFICIAL RECEIVER After a debtor is adjudicated bankrupt and before the bankruptcy order, an official receiver may be appointed by the court to take care of the bankrupt s property (e.g. to sell perishable goods) and to investigate the conduct and affairs of the bankrupt and make such a report to the court. The official receiver may also summon a meeting of bankrupt s creditors. The court then orders bankruptcy proceedings and a trustee in bankruptcy replaces the official receiver. ~ 11 ~

13 BANKRUPTCY An insolvent individual, corporation or creditors may initiate bankruptcy proceedings. When a corporation is adjudicated bankrupt, a sale of all its assets will be ordered. This leaves the corporation without any assets with which to do business unless there should be a surplus above the amount required to pay off the debts of the corporation. The bankruptcy proceeding does not, however, terminate the legal existence of the corporation. Bankruptcy proceedings in the ČR the court adjudicates the debtor bankrupt the court appoints the trustee in bankruptcy (in the US, the trustee may be also appointed by a general meeting of creditors or the Secretary of State) the creditors go to the bankruptcy court and register their claims, the trustee considers them and either approves or denies them the trustee realises, sells or mortgages the property and recovers outstanding debts the trustee s activity is under the control of the court and the committee of creditors after the realisation of all the assets, the trustee distributes them in the following order: the trustee s salary, the costs of the bankruptcy proceedings, preferential debts (e.g.wages of employees, taxes and social security contributions), secured creditors (e.g. banks) and unsecured creditors (e.g. suppliers) the surplus is returned to the debtor the court discharges the bankruptcy proceeding, the company is liquidated and the Registrar of Companies strikes it off the register the trustee is relieved of his duty LIQUIDATION Liquidation is a process by which a company is brought to an end and its property administered for the benefit of its members and creditors. Liquidation is also called windingup or dissolution, although dissolution refers to the last stage of liquidation. A company may be ended voluntarily by its shareholders, it may also be ended involuntarily by the state in which it was incorporated (administrative dissolution), by the court (judicial dissolution) or by the creditors (creditors liquidation). ~ 12 ~

14 TYPES OF LIQUIDATION VOLUNTARY LIQUIDATION INVOLUNTARY/COMPULSORY LIQUIDATION The shareholders of the company decide to wind up the company (e.g. because the period for the duration of the company expired or the aim why it was formed was reached or the form of the company was changed). The company files the Articles of Dissolution with the Secretary of State and stops carrying on business. The Secretary of State issues a Certificate of Dissolution. The company must prove its solvency. All creditors are informed that the company is going to be dissolved. The general meeting will appoint the liquidator. The liquidator collects and realises the assets of the company, he pays the debts and distributes the remaining assets. After the liquidator winds up the company s affairs, he calls a final meeting of the members of the company and the creditors, he sends final accounts to the Secretary of State and notifies the court. The company is dissolved and struck off the register. Administrative dissolution Secretary of State starts the proceedings because the company didn t pay taxes, file its annual report, it doesn t have a registered office or statutory body. Judicial dissolution The court starts the proceeding because the management is deadlocked and the shareholders can t do anything about it, or because there is a threat to the company. Creditors liquidation The creditors start the proceeding there must be 3 creditors with unsecured claims of at least $5,000 or one unsecured creditor with an unsecured claim of $5,000. ~ 13 ~

15 VOCABULARY Account Adjudicate Administration Administration order Administrative dissolution Administrator Articles of Dissolution Bankrupt Bankruptcy court Bankruptcy proceeding Certificate of Dissolution Committee of creditors Creditors liquidation Deadlock Deadlocked Dissolution Expire File annual report File notice Freeze the debts Insolvency Insolvent Investigate Involuntarily Judicial dissolution Liquidation Liquidator Mortgage Notify Official receiver Outstanding debts Perishable Preferential Receivership Register one s claims Secured Strike off the register (struck, struck/stricken) Summon Surplus Trade Trustee in bankruptcy Unsecured Voluntarily Wind up Účet Soudně rozhodnout Nucená správa Usnesení o ustanovení nucené správy Úřední zrušení Nucený správce Návrh na zrušení společnosti Úpadce Konkursní soud Konkursní řízení Osvědčení o zrušení společnosti Výbor věřitelů Zrušení společnosti na návrh věřitelů Neschopnost se dohodnout a jednat Uvázlý na mrtvém bodě, neschopný rozhodnutí Zrušení Vypršet Podat výroční zprávu oznámit, podat návrh na Zmrazit dluhy Platební neschopnost V platební neschopnosti Vyšetřovat Nedobrovolně Soudní zrušení Likvidace Likvidátor Hypotéka, zastavit (co) Oznámit, informovat o Dočasný správce Nezaplacený, dosud nevyřízený Podléhající zkáze Přednostní Dočasná správa Přihlásit své pohledávky Zajištěný Vymazat z rejstříku Svolat Přebytek, likvidační zůstatek Obchod, obchodovat Správce konkurzní podstaty Nezajištěný Dobrovolně Zlikvidovat, ukončit ~ 14 ~

16 1.TRANSLATE THE CLUE WORDS, UNSCRAMBLE THEM AND COPY THE LETTERS IN THE NUMBERED CELLS TO OTHER CELLS WITH THE SAME NUMBER. Nezajištěný, likvidace, nucená správa, zboží podléhající zkáze, platební neschopnost, zastavit něco, mzda, daň, věřitel, dočasná správa, pohledávka, přednostní, dlužník, konkurzní řízení, výbor, přebytek, zajištěný, nucený správce, vymazat z rejstříku, výroční zpráva ~ 15 ~

17 2. CHOOSE THE CORRECT WORDS IN BRACKETS TO COMPLETE THE SENTENCES. 1. A (debtor, creditor, director) is a person or body owed money by a company. 2. Suppliers are often (unsecured, preferential, secured) creditors. 3. A liquidator is appointed by the creditors or the members to (exceed, realise, discharge) assets which may then be divided up among the creditors. 4. If the company has insufficient assets to (discharge, realise, exceed) its debts, creditors may decide to put the company into liquidation. 5. Employees and occupational pension schemes fall within the class of (solvent, preferential, secured) creditors, who are entitled to receive certain payments in priority to secured creditors. 6. Liquidation is also called (dissolution, administration, winding up). 7. The court appoints a (liquidator, trustee in bankruptcy, official receiver, administrator) who tries to rescue the company and avoid liquidation. 8. The last step of liquidation is (striking, hitting, beating) off the register. 9. If the company decides to wind up, its members file (Articles of Dissolution, Certificate of Dissolution, Articles of Association). 10. If the creditors start the proceedings, it is called (voluntary, involuntary) liquidation. 3. ANSWER THE QUESTIONS 1. Who may initiate involuntary liquidation? 2. What may be the reasons of administrative dissolution? 3. What may be the reasons of judicial dissolution? 4. What does the term insolvency mean? 5. Who may initiate voluntary liquidation? 6. What does an administrator do to help the company continue trading? 7. When is an official receiver appointed? 8. Who is a trustee in bankruptcy appointed by? 9. In which order are assets distributed? 10. What terminates the legal existence of a corporation? 11. Who strikes the company off the register in U.S. and U.K.? 12. What is a surplus? 13. Who controls the activities of a trustee in bankruptcy? 14. Describe the course of a bankruptcy proceeding. 15. What are the differences between administration, official receivership, bankruptcy proceedings and liquidation? ~ 16 ~

18 4. MATCH THE TERMS WITH THEIR DEFINITIONS 1. annual report A. The settlement of the financial affairs of a business or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs, or other parties with a legal claim. 2. assets B. A person who holds a special legal right in particular property of the debtor to assure him or her of repayment of the debt. 3. bankruptcy C. The amount left after paying the debts. 4. creditor D. To use property (real or personal) as security for the payment of a debt. 5. deadlock E. property 6. debtor F. The first liquidator when the court makes a winding up order against a company. 7. liquidation G. Creditors who are given priority over ordinary creditors. 8. official receiver H. The voluntary exchange of goods, services, or both. 9. preferential I. A situation in which no progress can be made. creditors 10. registered office J. A document which a company presents at its Annual General Meeting for approval by its shareholders. 11. secured creditor K. A person who has received something from the creditor, in return for which he has promised to make repayment at a later time. 12. surplus L. A person who gathers the debtor s non-exempt property, manages the funds from the sale of the assets, and then pays expenses and distributes the balance to the owed creditors. 13. to mortgage M. A person to whom someone owes money. 14. trade N. An authorized procedure by which a debtor an individual, corporation, or municipality is relieved of total liability for its debts by making court-approved arrangements for their partial repayment. 15. trustee in bankruptcy O. An official address of a company, an association or any other legal entity. 5. TRANSLATE 1. Dlužník byl prohlášen úpadcem. 2. Závazky převyšují aktiva. 3. Ta společnost je v platební neschopnosti. 4. Soud stanovil nuceného správce. 5. Výbor věřitelů a soud dohlíží na činnost správce konkurzní podstaty. 6. Úpadcovi věřitelé přihlašují své pohledávky u konkursního soudu. 7. Konkurzní řízení neznamená zánik právnické osoby. 8. Společnost zaniká výmazem z obchodního rejstříku. 9. Likvidátor přejímá funkci statutárního orgánu. 10. Cílem likvidace je vypořádání majetkových poměrů společnosti, tj. uspokojení práv všech věřitelů společnosti a rozdělení eventuálního výtěžku mezi společníky. ~ 17 ~

19 Sources: Debra S. Lee, J.D., Charles Hall, Marsha Hurley, J.D., American Legal English, The University of Michigan Press, 1999 Chromá, Marta, New Introduction to Legal English, Volume II, Univerzita Karlova v Praze, Nakladatelství Karolinum, Praha 2007 Chromá, Marta, Anglicko-český právnický slovník, Leda, 1995 Gillian D. Brown, Sally Rice, Professional English in Use Law, CUP ~ 18 ~

20 CHAPTER 17 - LABOUR LAW LABOUR LAW is the branch of law which regulates the relationship between and among employers, employees, and labour organizations, often dealing with issues of public law. It is distinguished from EMPLOYMENT LAW which deals only with employment contracts and issues regarding employment and workplace discrimination and other private law issues. THE EMPLOYMENT RELATIONSHIP is the relationship of an employer and an employee based on an express or implied agreement of the parties. The employee performs services or does work under the direction and control of the employer. An EMPLOYEE is hired only to work under the control of the employer, as contrasted with an AGENT, who is to negotiate or make contracts with third persons on behalf of and under the control of a principal, and with an INDEPENDENT CONTRACTOR, who is to perform a contract independent of the control by the other party. A BLUE- COLLAR WORKER is an idiom referring to a member of the working class who performs manual labor and earns an hourly wage. Blue-collar work may be skilled or unskilled, and may involve factory work, construction, repair or mechanical work. Blue-collar workers are distinguished from WHITE-COLLAR WORKERS, whose jobs are not considered manual labor. White-collar workers earn a monthly or annual salary rather than an hourly wage. COLLECTIVE BARGAINING is an important activity usually carried out by TRADE UNIONS on behalf of the employees. Representatives of the employees (trade union officials) bargain with an employer for an agreement on wages, benefits, promotion, working hours and working conditions for the employees. COLLECTIVE BARGAINING CONTRACTS govern the rights and obligations of employers and employees in many private and public sector employment relations and they are generally subject to a ratification vote by the employees. The parties to any contract have both rights and duties. Duties of employers are, for the most part, rights of employees. The main statutory RIGHTS OF EMPLOYEES include entitlement to: a national ~ 19 ~

21 minimum wage; equal pay for the similar work; a written statement of employment particulars; an itemised pay statement; time off and holidays; statutory sick pay; a healthy and safe working environment; family and parental leave; notice of termination of employment; not to have unlawful deductions from wages; not to be discriminated against on grounds of sex, race, sexual orientation, disability, religion, age, trade union membership, part-time or fixed term employment. All employees should receive written notice specifying the following matters: an identification of the parties and the date of the commencement of the employment; the method of calculating the remuneration and the intervals at which it is to be paid; conditions relating to hours of work; entitlement to holidays and holiday pay; provision of sick pay and pension schemes; the length of notice which the employee is obliged to give and entitled to receive to terminate the contract. There are also some duties on the side of an employee that may or may not be written expressly in the contract; they, however, must be fulfilled. EMPLOYEES HAVE DUTIES, such as to render personal service (the work must be carried out personally), to take care and exercise reasonable skill (an employee must take care of his employer s property and be careful not to harm fellow workers so as to impose vicarious liability on his employer), to obey instructions and to give loyal and faithful service (an employee must carry out his duties at work in an honest and responsible manner). WAGES are usually defined as the amount paid periodically, especially by the day or week or month, for the manual or mechanical work (labour) or service of an employee. SALARY is a fixed payment made periodically to a person as compensation for regular non-manual or non-mechanical work. The amount of wages may be fixed by negotiation, may depend upon a collective bargain or may be implied from the custom of the trade. In the absence of any agreement, there is an obligation to pay a reasonable amount. It is usual practice for employers and employees to enter into a written agreement which sets out their respective obligations and rights, and which constitutes a CONTRACT OF EMPLOYMENT, either at the commencement of employment or shortly before. A contract of employment must include certain clauses, such as the type of work to be performed by the employee, the place of work, the starting date. Other possible clauses deal with pay, hours of work, absence, confidentiality, giving notice or grievance procedures. An employment contract may be concluded either for a definite or indefinite period of time. If the period is indefinite, the contract may be terminated at any time by either party by giving notice to the other. If the period is definite (a fixed-term contract), the employee cannot ~ 20 ~

22 terminate at an earlier date without justification for so doing. A contract for fixed term or a particular piece of work normally ends automatically on the expiration of the time or completion of the work. An EMPLOYEE MAY BE justifiably DISMISSED (DISCHARGED) because of his nonperformance of duties, misrepresentation or fraud in obtaining the employment, disobedience to proper directions, disloyalty, theft, possession or use of drugs or intoxicants, wrongful misconduct or incompetency. When employees are without work through no fault of their own, they are eligible for UNEMPLOYMENT COMPENSATION BENEFITS. The unemployed person must be available for placement in a similar job anb be willing to take such employment at a comparable rate of pay. The SOCIAL SECURITY SYSTEM ensures that people in need will receive various kinds of financial support, e.g. death benefit, old-age benefit, maternity benefit, sickness benefit, family allowance or nursing allowance. VOCABULARY Agent Bargain Blue-collar worker Collective bargaining Commencement Confidentiality Contract for a particular piece of work Death benefit Deduction Definite period Discharge Dismiss Employee Employer Employment Employment contract Employment law Entitlement to Equal Expiration Zmocněná osoba, obchodní zástupce, agent Vyjednávat, sjednat, dohodnout se Dělník Kolektivní vyjednávání Zahájení, začátek Důvěrnost Smlouva o dílo Pojistné plnění při smrtelném pracovním úraze Srážka, odpočet Doba určitá Propustit, dát komu výpověď Propustit, dát komu výpověď Zaměstnanec Zaměstnavatel Pracovní poměr, zaměstnání, zaměstnanost Pracovní smlouva Pracovní právo Nárok na, subjektivní právo Stejný, rovný Vypršení ~ 21 ~