Czech Corporate Criminal Liability Reform: compliance and remedial measures gain greater significance

More than six months have passed since the amendment to the Czech Act on Criminal Liability of Legal Persons introduced by Act No. 270/2025 Coll. entered into force on 1 January 2026. The amendment significantly expanded the factors courts must consider when sentencing legal persons.

In addition to the nature and seriousness of the offence, courts are now expressly required to take into account the number of employees, the entity’s business activities, whether it carries out activities of strategic or difficult-to-replace importance for the national economy, defence or security, and whether it has implemented effective compliance measures and adopted remedial actions following the offence to minimise the risk of reoffending.

The amendment also reshaped the framework for monetary penalties. While the daily rate continues to range from CZK 1,000 to CZK 2,000,000, courts must now consider not only the financial circumstances of the legal person but also its net turnover for the last completed accounting period, where this can be established. The aim is to ensure that financial penalties are proportionate to the economic strength of the offender.

Although the new rules have now been in force for over half a year, many companies have yet to fully assess whether their compliance frameworks would withstand scrutiny in criminal proceedings. The legislative changes make clear that a robust and well-documented compliance programme can play an important role in sentencing and may contribute to a more favourable outcome. Likewise, prompt and effective remedial measures taken after misconduct has been identified may be viewed positively by the courts.

Businesses should therefore use this period following the reform to review, update and strengthen their compliance systems. Apart from mitigating criminal liability risks, demonstrating a genuine commitment to prevention and remediation may become a significant factor in determining the severity of any future sentence.