Coronavirus (COVID-19)

Frustration of purpose

Compensation claims

Compensation by the state?

The Epidemics Act provides in §§ 29 ff for compensation claims by injured parties.

However, the ordinances on the prohibition of entry were not issued on the basis of the Epidemics Act, but a separate legal basis was created with the COVID 19 Measures Act.

The COVID-19 Measures Act does not provide for compensation obligations. In the amendment to the COVID-19 Measures Act adopted on 20 March 2020, a new Section 4 (2) was inserted. Accordingly, the Epidemic Control Act does not apply to ordinances issued by the Federal Minister on the basis of this COVID-19 Measures Act. Due to the inapplicability of the Epidemic Control Act, there is also no obligation to pay compensation. There is therefore no replacement.

We have doubts as to its conformity with the constitution and are preparing measures against it. We will keep you informed on this matter.

Various measures are planned to reduce the economic disadvantages caused, such as the COVID-19 crisis management fund, hardship funds for tourism businesses and for EPU/SMEs, tax deferrals and bridging guarantees. Some of the concrete measures are already available (e.g. tax deferrals), and some of these measures are currently being set up. In any case, you should compile precise documentation about the periods and the amount of your loss of income in order to have it available for assertion.

We will be happy to advise you so that you can find the optimal solution for your company. Please contact us at office@b-law.at or by telephone on 01 725 77.