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ARTICLE · 23 MARCH 2021

Compensation: Is There Hope On The Horizon For Entrepreneurs?

Is your business shot down due to government anti-epidemic measures? The first promising answers to the question of damage are provided by the anti-epidemic law.

Czech RepublicCoronavirus (COVID-19)

Is your business shot down due to government anti-epidemic measures? The first promising answers to the question of damage are provided by the anti-epidemic law.

The so-called anti-epidemic law (available here) was announced in a collection of laws. Its primary objective is to establish anti-epidemic powers for a number of state and local authorities, without the need to declare a state of emergency to use them. However, the law also addresses the much-anticipated issue of damage, which we will briefly summarize for you.

According to the law, the state is obliged to compensate for so-called real damage. These are mainly costs incurred in vain, ie costs which the company could not objectively avoid, but which, due to the limitation of its operations, did not lead to the achievement of any income. In practice, according to the anti-epidemic law, companies could, for example, claim compensation for employees' wages paid, rent for their premises or energy payments. Ho

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