Due to Directive 2011/7/EU on combating late payment in commercial transactions, a number of new provisions on monetary debt and its fulfillment will come into force on March 16, 2013 and our clients will now be informed below about the main changes and updates to these provisions.
The so-called Late Payment Act (ZVG) affects the General Civil Code, the Commercial Code, the Labor and Social Courts Act, the Tenancy Act, the Consumer Credit Act and the Consumer Protection Act. Any amendments will be discussed in this order on the basis of the government bill of February 21, 2013:
General Civil Code (ABGB)
- Section 905 is amended (subsection 2 is deleted) and the new section 907a is inserted. This now reads as follows:
- A monetary debt must be fulfilled at the creditor’s domicile or place of business.
- The debtor has the choice between handing over the amount of money to the creditor (cash payment or transfer) or by bank transfer.
- If the creditor’s registered office or bank details subsequently change, the creditor shall also bear the risk and costs of fulfillment.
- In the case of bank transfers, the debtor must issue the transfer order in good time so that the creditor can dispose of the amount owed on the due date.
- If the due date – without a payment deadline – is otherwise triggered (consideration, invoicing, request for payment), the creditor must issue the transfer order without undue delay, which is generally a period of two, three or four working days after the due date.
- The debtor bears the risk of delay, unless the cause of the delay lies with the creditor’s bank.
Austrian Commercial Code (UGB)
- The “eighth section” contains the new chapter “Default in payment”, which includes the new sections 455 to 460 UGB. This section regulates legal transactions between companies and legal transactions between an entrepreneur and a legal entity under public law.
- A statutory interest rate of 9.2% (previously 8) points above the prime rate shall be owed in the event of a delay in the payment of monetary claims. The base interest rate applicable on the 1st calendar day shall be decisive for the respective half-year. If the debtor is not responsible for the delay, he only has to pay interest in accordance with Section 1000 (1) ABGB.
- The duration of acceptance or inspection procedures (provided for by law or contract) to determine whether the service has been provided in accordance with the contract may not exceed 30 days from receipt of the goods or provision of the service. However, a longer period may be agreed, but only if it is not grossly disadvantageous to the creditor.
- The creditor can demand a lump sum of EUR 40.00 for collection costs; anything in excess of this must be claimed in accordance with Section 1333 (2) ABGB.
- If the creditor has a contractual provision on
- the payment deadline,
- the default interest rate
- or the compensation for debt collection costs is grossly disadvantageous, it shall be null and void.
Labor and Social Courts Act (ASGG)
- Increase in statutory interest for claims in connection with an employment relationship
- Section 49a ASGG increases the statutory interest from 8% to 9.2% above the prime rate applicable on the day after the due date for all claims arising from March 16, 2013 onwards.
Tenancy Act (MRG)
- Regulation on the payment date of the rent
- If no later payment date has been agreed between landlord and tenant, the rent must be paid in advance (at the latest) on the 5th of each calendar month. This provision is unilaterally mandatory in favor of the tenant. This provision is also applicable to current tenancies when it comes into force and only applies within the full scope of application of the MRG.
Consumer Credit Act (VKrG)
- Assumptions for the calculation of the effective annual interest rate are given in the notes.
Consumer Protection Act (KSchG)
- There is a new provision in Section 6a KSchG:
- Paragraph 1 of Section 6a states that the trader must provide the consumer with a customary bank account for the payment of the debt, unless cash payment is customary due to the nature of the transaction.
- Paragraph 2 states that it is sufficient for timeliness if the consumer issues the transfer order for the payment of his debt on the due date, even if the due date is determined in advance.