With the 2nd COVID-19 Act, further regulations to deal with the COVID-19 pandemic were adopted on March 20, 2020. We summarize the main changes for companies below.

Regulations in connection with employees

Continued remuneration and use of vacation and time credits: If employees are not allowed to enter the company or only to a limited extent due to the current crisis situation, they are still entitled to continued remuneration (Section 1155 (3) ABGB).

However, employers can demand that existing vacation and time credits are used up during this period. However, vacation entitlements from the current vacation year only have to be used up to a maximum of two weeks. Time credits acquired on the basis of the time off option contained in company agreements do not have to be used up. In total, no more than eight weeks of vacation and time credits must be used up (§ 1155 para. 4 ABGB).

However, these provisions will expire on December 31, 2020 (Section 1503 (14) ABGB).

First to contest a termination / dismissal: Rescission periods that have been running since 16.03.2020 or begin to run after this date are suspended until 30.04.2020 (Section 170 (2) ArbVG). Due to the power to issue ordinances contained in the 2nd COVID-19 Act, the deadline can also be extended by the Federal Ministry of Labor, Family and Youth (Section 264 (33) ArbVG).

Deadline for asserting claims arising from the employment relationship: Statutory, collective agreement and individual contract limitation and expiry periods for claims arising from the employment relationship that have been running since March 16, 2020 or begin to run after this date are suspended until April 30, 2020 (Section 18b (2) AVRAG). In this case, the end date can also be extended by the Federal Ministry of Labor, Family and Youth on the basis of the authorization to issue a decree (§ 19 para. 1 no. 44 AVRAG).

Company agreement on corona short-time work: In connection with corona short-time work, old vacation and time credits should also be used up. If there is a works council in a company, a works agreement is required for this (Section 170 (3) ArbVG).

Three-week special childcare leave: Employers can voluntarily grant employees up to three weeks of special childcare leave due to the closure of childcare facilities ordered by the authorities. This includes the care of children up to the age of 14 for whom childcare is compulsory. The special care time should also be granted for the care of people with disabilities if they are cared for and taught in a facility for the disabled or an educational institution for people with disabilities and these facilities have also been closed by the authorities.

In this case, employers are entitled to compensation from the federal government for one third of the remuneration paid during the special care period. The claim for compensation must be submitted to the accounting agency within six weeks of the official measure being lifted (Section 18b (1) AVRAG).

Partial retirement: With the 2nd COVID-19 Act, the Unemployment Insurance Act was also amended with regard to partial retirement. Interruptions to the employment relationship due to the current situation should not lead to any adverse effects on the agreed partial retirement. Even if the employment relationship has been terminated due to COVID-19 measures, it should be possible to continue partial retirement after re-employment.

However, the prerequisite is that the employment relationship is resumed by October 1, 2020 at the latest (§ 82 para. 5 AlVG). Full-time employment for at least three months is not required. Partial retirement benefits are suspended for the period of the interruption and are subsequently resumed to the same extent – provided the conditions (number of hours) are the same. However, the maximum extent of partial retirement should not be extended.

Construction Workers’ Leave and Severance Pay Act: The obligation to pay supplements for the area of leave regulations during short-time work due to the crisis, during which no work is performed (zero weekly working hours), no longer applies. In the areas of severance pay, bridging allowance and winter holiday regulations, no supplements are to be paid at all in the period from 16.03.2020 to 15.05.2020, regardless of whether short-time working is used. For further information, please contact your tax advisor.

Corporate law (COVID-19-GesG)

Meetings of shareholders or bodies of legal entities (in particular limited liability companies) no longer have to take place with the physical presence of the participants. The Federal Minister of Justice will issue an ordinance standardizing more precise regulations in this regard. We will inform you in more detail as soon as the ordinance has been issued.

General meetings of stock corporations must now be held within the first twelve months of a financial year rather than in the first eight months.

All regulations expire on December 31, 2020.

Insolvency law

As part of a restructuring plan, the debtor must make payments to creditors on agreed dates. If the debtor defaults on payment to one of the creditors and receives a reminder from this creditor, the entire claim of the respective creditor is revived. Due to the regulations now adopted, reminders sent to the debtor from the entry into force of the law until 30.04.2020 do not lead to the revival of the claim (§ 5 Federal Act on Accompanying Measures to COVID-19 in the Judiciary). The Federal Minister of Justice may extend the above-mentioned deadline on the basis of the power to issue an ordinance.

Official and judicial proceedings

Deadlines: Deadlines in the following procedures will be interrupted until the end of 30.04.2020. On 01.05.2020, these deadlines will start again. This applies

• in ordinary appeal proceedings of pending official tax proceedings,
• for the running of the objection deadline, the appeal deadline and the deadline for filing a complaint in the financial criminal proceedings,

if the deadlines began to run after March 16, 2020 or have not yet expired by this date. An interruption has also been standardized,

• for the vast majority of time limits in administrative procedures and
• for procedural deadlines in the vast majority of civil proceedings,

if they began to run before the Act came into force or have not yet expired by that date.

However, the respective authorities or courts can declare that time limits are not interrupted for the specified duration. In this case, they must simultaneously set appropriate new deadlines (Section 323c (2) BAO or Section 265a (2) FinStrG or Section 1 (2) Federal Act on Accompanying Measures to COVID-19 in Administrative Proceedings (…) or Section 1 (2) Federal Act on Accompanying Measures to COVID-19 in the Judiciary). In addition, the obligation to carry out a balancing of interests in the event of a deviation from the deadlines provided for was stipulated in paragraph 3 of the respective legal provision.

Based on the ordinance authorizations contained in the 2nd COVID-19 Act, the period of interruption can be extended, shortened or exceptions to the interruption can be provided for.

Time limits for filing lawsuits or applications (e.g. limitation periods or actions for disturbance of possession) are suspended from the entry into force of the law until the end of April 30, 2020 (Section 2 of the Federal Act on Accompanying Measures to COVID-19 in the Judiciary).

Hearings and interrogations in tax, fiscal criminal, administrative and civil proceedings: Negotiations and hearings should only be conducted if absolutely necessary. If necessary, these can also be conducted in the absence of all parties involved using technical means of communication (Section 323b (4) BAO or Section 265a (4) FinStrG or Section 3 of the Federal Act on Accompanying Measures to COVID-19 in Administrative Proceedings (…) or Section 3 of the Federal Act on Accompanying Measures to COVID-19 in the Judiciary).

Miscellaneous

Exemption from fees: Documents and official acts that are required in connection with measures to deal with the current crisis situation are exempt from fees and federal administrative charges. For example, applications for support payments under the Epidemics Act 1950 are to be made free of charge (Section 35 (8) GebG). The regulation comes into force retroactively as of 01.03.2020 (Section 37 para. 41 GebG).

Hardship fund: A hardship fund is created for EPUs, freelancers (§§ 4 para. 4 ASVG), NPOs (according to §§ 34-47 BAO) and micro-entrepreneurs. The Austrian Federal Economic Chamber is responsible for processing the fund.

Relief under social security law: Contributions from companies that have been closed due to the crisis are to be deferred in the months of February to April 2020. However, if a company is not closed, an application for deferral can be submitted if it can be credibly demonstrated that liquidity is at risk due to the crisis. Contributions due are not to be dunned or collected. No late payment penalties are to be levied in the months of March to May 2020 for breaches of the monthly basic contribution notification (with the exception of social insurance registration).

If you have any further questions, please do not hesitate to contact us at any time.