CJEU Analyses Austrian Law Granting Compensation To Employees Who Were Ordered To Isolate

Summary

On 15 June 2023, the Court of Justice of the European Union ("CJEU"), in delivering a ruling in the case of Thermalhotel Fontana Hotelbetriebsgesellschaft mbH ("Thermalhotel"), a hotel operating in Austria, and the Bezirkshauptmannschaft Südoststeiermark (the "Austrian Administrative Authority"), found that the compensation granted to employees who had been ordered to isolate in terms of national legislation is discriminatory against employees who had been ordered to isolate in terms of their Member States' national legislation.

Background to the case and proceedings before Austrian courts

In 2020, numerous employees of Thermalhotel, underwent COVID-19 testing. Thermalhotel promptly reported the positive test results to the relevant health authority in Austria. However, some of the employees affected were residents of Slovenia and Hungary. Consequently, the Austrian health authority did not enforce isolation measures on these individuals in