Category: Corona

Granting of deferrals for some tax debts and other measures

Posted on by Jessica Zenz-Spitzweg

Royal Decree-Law 7/2020, of 12 March, adopting urgent measures to mitigate the economic impact of COVID-19 (“RDL 7/2020”) includes the granting of deferrals for some tax debts, provided the following conditions are met:

(1) They must be debts with a total or partial guarantee waiver (i.e., amounting to less than 30,000 euros). The regulation sets this amount by referring to the Order on guarantee waivers. As a result, it is not clear if the latter is fully applicable or not (i.e., if said amount must be the aggregated sum of all deferred periods and taxes or if it refers to each individual tax and period).

(2) The measure touches on the withholding and prepayment of Personal Income Tax (“IRPF”), Value Added Tax (“IVA”) and on fractioned Corporate Tax (“IS”) payments (whose deferral and fractioning were, up until now, not generally allowed).

Only covers returns/liquidations that must be submitted and paid between 13 March and 30 May 2020. The following will be included:

  • Personal Income Tax/VAT: corresponding to February, March, and April, as well as those of the first quarter.

    (1) Corporate Tax: first fractioned payment and final statement (in certain split years).

    (2) This measure is only available to taxpayers who registered a turnover of less than 6,010,121.04 euros in 2019.
  • Deferrals will be granted for a six-month period and no interests for late payment will be accrued for the first three months.

In this context, we believe the following scenarios are possible:

A. The taxpayer is able to meet his/her tax obligations:

This is the ideal scenario, so there is no need to analyze it further.

B. The taxpayer does not have the means to meet his/her tax obligations but meets the requirements set forth in RDL 7/2020:

If the taxpayer meets the aforementioned requirements, he/she can ask for a deferral according to the terms and conditions mentioned above.

C. The taxpayer does not have the means to meet his/her tax obligations and does not meet the requirements set forth in RDL 7/2020:

In principle, the requirements set forth by RDL 7/2020 are clear. However, we believe taxpayers whose debt exceeds 30,000 euros and/or whose 2019 turnover exceeds the amount stated may also push for this sort of deferral.

We believe the granting of deferrals should include taxpayers who had a turnover of more than 6,010,121.04 euros in 2019, so as to avoid discriminatory stances that go against the very principles that govern our tax system. Following a similar line of reasoning, one might also call for the deferral of sums over 30,000 euros in certain cases.

We believe we could also fight the imposition of penalties, as well as of surcharges, for defaults caused by force majeure events.

It is worth noting that the following months will bring plenty of new scenarios. As a result, it is crucial to study matters on a case-by-case basis so as to plan the best possible strategy.

Other measures

Electronic certificates expiring soon

In its website, the Spanish Tax Agency has published a warning that reads as follows:

“The Spanish Tax Agency informs taxpayers whose electronic certificate is about to expire, or has already done so, that it will allow the use of said certificates in its site in accordance with the provisions set forth in Royal Decree 463/2020, of 14 March.

If you encounter problems with your regular browser, we suggest switching to Firefox (where you can carry on using it).”

Cadaster formalities

The time limit to reply to information requests and orders submitted by the General Directorate of Cadaster will be extended to 30 April 2020, provided this time limit had not already expired when Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19 (“RDL 8/2020”) entered into force (18 March 2020).

The periods to take appropriate measures regarding the launch of allegation procedures or hearings notified by the General Directorate of Cadaster from 18 March 2020 will be extended to 20 May 2020 (unless the general rule sets a longer period, in which case the latter shall apply).

If the taxpayer complies with the court order, supplies the information with tax significance requested or submits his/her allegations, the proceedings will be deemed fulfilled.

The period ranging from 18 March to 30 April 2020 will not be taken into account when setting the maximum duration for procedures launched by the authorities. However, during this period, the Administration can order, prescribe, or carry out essential formalities.

Exemptions from the Property Transfer and Certified Legal Documents Tax for certain mortgage operations

The first final provision of RDL 8/2020 modifies Royal Legislative Decree 1/1993, of 24 September, approving the consolidated text of the Law on Property Transfer and Certified Legal Documents Tax.

This way, a new number is introduced under article 45.I.B) to declare notarial documents and formalization deeds on credit contract novations and mortgages concluded under RDL 8/2020 are exempt from the gradual fee to be paid for Certified Legal Documents.

Customs formalities

Import customs formalities for the industrial sector shall be streamlined. To do so, the Customs and Excise Department of the Spanish Tax Agency can authorize the customs declaration and clearance procedure to be carried out using the computer applications available, without any amendments on the part of bodies or officials working for the Customs and Excise Department.

Personal data protection amid #coronavirus

Posted on by Lisa Fortmüller


The response to the COVID-19 outbreak has infiltrated nearly every aspect of daily life. Polish laws have not been immune to the epidemic’s impact either, with the government recently announcing a draft of the so-called Anti-Crisis Shield designed to amend a number of acts in order to support businesses. Amid the fight against the coronavirus, in the statement of 12 March, the President of the Personal Data Protection Office (UODO) declared that the personal data protection regulations must not stand in the way of the coronavirus response. Read the article below to learn more about the protection of personal data in the face of the coronavirus epidemic.

GDPR still applie

There is no doubt that data protection should be no barrier to managing the coronavirus spread, however, one must bear in mind that all personal data protection regulations, including GDPR (and administrative fines), still apply, regardless of how difficult and unprecedented the current situation is. The statement issued by UODO’s President was meant as guidance only and it does not change the fact that personal data requirements must still be complied with.

However, there are still no specific regulations for business who worry about the legal processing of personal data in managing issues concerned with the coronavirus.

Are employers allowed to take a worker’s temperature?

There has been growing concern over whether employers are allowed to take the temperature of a worker or a person not employed thereby and, if so, what rules should they follow.

Body temperature data represent data concerning health – one of special categories of person data the processing of which is prohibited, in accordance with Article 9(1) of GDPR. Data concerning health may be processed only in cases specified in Article 9(2) of GDPR.

Without going into theoretical detail, we believe that personal data may be processed in connection with body temperature measurement in the case of both employees and other persons so long as the below rules are followed.

Taking an employee’s temperature

We believe that the legal basis for the measurement of a worker’s temperature is Article 9(2)(b) of GDPR, stating that the processing of the personal data is necessary for the purposes of carrying out the obligations and exercising specific rights of the controller or of the data subject in the field of employment and social security and social protection law in so far as it is authorized by Union or Member State law or a collective agreement pursuant to Member State law providing for appropriate safeguards for the fundamental rights and the interests of the data subject. The relevant obligation of the employer in the field of employment law is provided for in Article 207 of the Labor Code.

It should also be noted that the draft bill on amending the act on emergency solutions designed to prevent, counteract and combat COVID-19, other infectious diseases and emergency situations caused thereby, and amending selected other acts, dated March 13, 2020, includes Articles 3a, which provides that:
“in order to counter the spread of COVID-19, the employer has the right to:
1) request an employee to confirm whether or not he/she has recently been to a region affected by COVID-19;
2) request an employee to undergo the necessary medical examinations where there is a reasonable belief that he/she is infected with COVID-19 or has recently been to a region affected by COVID-19; medical examinations represent health care services as defined in Article 9;
3) screen an employee for symptoms of COVID-19 before allowing him/her to work, especially through body temperature measurement;
4) introduce additional workplace sanitary regulations or occupational health and safety regulations;
5) request an employee to go to a regional affected by COVID-19 only when necessary and with the employee’s consent, in accordance with Article 3a.”

The above-quoted provision would be a valuable addition to the Polish labor law as it would settle all the doubts surrounding temperature measurement by employers.

Taking a non-employee’s temperature

In our opinion, employers are allowed to measure the temperature of a person not employed by them on the basis of such person’s explicit and freely-given consent, in accordance with Article 9(2)(a) of GDPR. Written form of the consent is not required.

As far as body temperature measurement is concerned, we see a growing popularity of thermal imaging cameras, which may be used without the need to process personal data.

Whatever the method of processing, you should remember about fulfilling the obligations in the field of personal data processing resulting from GDPR, especially the obligation to provide relevant information to the person whose data are processed.

In case you have any questions, do not hesitate to contact us.

Poland’s shopping malls to close?

Posted on by Lisa Fortmüller

A draft amendment to the COVID-19 Act has been published on the Polish parliament’s website today. The full version of the document is available here.

Based on this draft, article 15ze of the Act, which provides for a 90% rent discount for entities whose operations in large retail centers have been restricted, is supposed to be replaced with a new provision, according to which the obligations of parties to lease agreements or other similar agreements (under which retail space is let for use) will expire for the period of restrictions applicable to malls with a sales area of over 2,000 sqm. Additionally, this provision entitles tenants to submit a proposal for extension of the lease term by six months; in case such proposal is not delivered, it will be assumed that there has been no temporary expiration.

As specified in the statement of reasons to the draft amendment, “it is now forbidden or substantially less profitable (due to a drop in the number of customers) to conduct operations in large shopping centers. Hence, lease agreements should expire temporarily, so that lessors and tenants are not obliged to perform their contractual duties which generate costs for the parties while restrictions are in force“.

Both the provision itself and the statement of reasons indicate that the lawmaker’s goal is for all lease agreements in large retail malls across Poland to “expire temporarily.”

It is unclear if parties that want to continue their operations in shopping centers will be able to enter into settlement agreements based on which leases could remain in effect despite the statutory “temporary expiration.”

Given the implications arising from failure to submit an extension proposal (which should be submitted within 3 months of the ban lifting date, rather than now), it might be challenging to determine whether lease agreements are in effect as of now (and to handles a range of related processes, such as invoicing).

Contact us in case of any questions.

Further relief for companies affected by COVID-19: Germany adopts suspension of the statutory obligation to file for insolvency!

Posted on by Jessica Zenz-Spitzweg

In order to mitigate the economic impact of the spreading SARS CoV-2 virus (“COVID 19 Pandemic”), the German government has introduced a protective shield for companies in crisis, which, in addition to short-time work benefits and tax deferrals, also provides for an unlimited credit line from the Kreditanstalt für Wiederaufbau (“KfW”).

As an accompanying measure, the German legislative bodies additionally now adopted a temporary suspension of the obligation to file for insolvency, since due to organizational and administrative reasons stemming from the approval process it cannot be guaranteed that such government aid will reach the affected companies in time. As a direct legal consequence, the management of such companies might be legally obligated to file for insolvency on behalf of the company in the meantime if over-indebtedness or insolvency occurs. This welcome suspension of such obligation will give companies that have fallen into economic difficulties as a result of Covid-19 more time to survive the crisis without necessarily having to file for insolvency.

1.Which companies are exempt?

Prerequisites for the suspension of the obligation to file for insolvency are that  

  • the insolvency or over-indebtedness is caused by the consequences of the COVID 19 pandemic, and
  • there are reasonable prospects of eliminating the existing insolvency.

However, these prerequisites are legally considered to be met if the company concerned had not already been insolvent on 31 December 2019.

2. What does “suspension of the obligation to file for insolvency” mean exactly?

If these prerequisites are met, the persons normally obligated to file for insolvency pursuant to section 15a of the German Insolvency Code (e.g. the managing directors of a limited liability company) are temporarily not required to do so during the suspension period. If the crisis of the company is not averted even after the end of the suspension period, the regular 3-week period to file for insolvency starts to run again.

3. How long does this suspension apply?

The suspension applies retroactively from 1 March 2020 and for the time being until 30 September 2020 but may be extended by the Federal Government until 31 March 2021.

We will keep you updated!

Main recommendations about contract matters

Posted on by Jessica Zenz-Spitzweg

Contracts that are currently in force

A procedure needs to be established to review these contracts, prioritizing those that are more financially significant or are strategically important.

Parties to contracts that present detailed regulations and provisions regarding inevitable or unforeseeable events (such as natural disasters or epidemics) must accept the consequences set forth at the beginning of the contractual relationship.

If the potential scenarios under the contract do not cover procedures or consequences linked to inevitable or unforeseeable events, the parties must refer to the applicable legislation. In this case, the Spanish legal framework allows parties to waive (totally or partially) their contractual obligations under force majeure or fortuitous events. A more detailed definition of these scenarios can be found in article 1105 of the Spanish Civil Code.

We must also mention that force majeure events can also exempt parties from extra-contractual obligations deriving from business relationships.

It is important to note that employers must meet the contractual obligations they have assumed using any means at their disposal (both ordinary, i.e., those used under normal circumstances, and extraordinary) and exercise the due diligence they are legally obliged to provide.

If the contract concluded does not mention any procedures or consequences linked to a force majeure event that greatly impacts the obligations assumed and agreed upon, we recommend signing an annex that is legally rigorous and details how to proceed in such circumstances.

Contracts that haven’t been signed yet

All contracts to be signed in the following days must contain a clause that expressly refers to force majeure events as situations in which parties cannot be considered liable for unfulfilled obligations. Moreover, force majeure events must be considered a valid reason to call off penalties, delays, etc. This clause will be adapted depending on the sector for which it is intended.

It is of the outmost importance to include COVID 19, or coronavirus, among these force majeure events (together with any mutations the virus may have).

International contracts

The legislation that is applicable to these contracts must be reviewed, since the definition of force majeure varies from country to country and the legal consequences foreseen by our legislation (or the guidelines set by the Spanish authorities) may not necessarily apply to contracts that are not subject to our legal framework.

Public procurement

Article 34 of Royal Decree-Law 8/2020 establishes a series of singular provisions related to the execution of public contracts. The legal solution offered varies depending on the type of contract, but will not be applicable in any of the following cases:

  • Sanitary supply or care provision contracts, be them pharmaceutical or not, related to the health crisis caused by COVID-19.
  • Contracts related to security and cleaning services, as well as the maintenance of IT systems.
  • Supply or service agreements that are necessary to guarantee the mobility and safety of transport services and infrastructures.
  • Contracts granted by public entities listed in official stock markets that do not derive earnings from the General State Budget.

As for all other contracts, some of the novelties introduced are detailed below.

A. The suspension of service and supply agreements that are impossible to execute is agreed upon, granting the contractor the right to claim the following damages from the Administration:

  • The salary costs effectively paid by the contractor, during the suspension period, to the staff that, on 14 March 2020, was employed to perform the contract.
  • The costs of maintaining a definite guarantee during the suspension period.
  • The rental or maintenance costs of machinery, facilities, and equipment during the suspension period, provided they were needed in order to execute the contract and the contractor can prove they were not used for any other purposes during the suspension period.
  • Costs corresponding to the insurance policies set forth in the specifications and linked to the purpose of the contract, provided they were taken out by the contractor and remained in force when the contract was suspended.

Once the impossibility to execute the contract is ascertained, the Administration shall have five natural days to quickly process the contractor’s request. If, during that period, no relevant notice is received, the request shall be deemed dismissed.

B. When it comes to public service and supply agreements that are different from the ones mentioned in the previous section, the execution period is extended (without any penalties for the contractor or the option to terminate the contract). To meet this extension, the contractor shall be entitled to receive any additional salary costs.

C. In the case of works contracts in force that, according to the «development and works plan», were meant to be completed between 14 March (first day) and the end of the state of alarm but that, given the COVID-19 situation or the measures adopted by the Spanish government, may not be delivered, the contractor can ask the contract to be suspended from the moment obligations could not be met because of the situation until works can be resumed. It is noted that the provisions set forth in section 2.a) of article 208 and under article 239 of the Spanish Public Sector Contracts Act (LCSP) will not be applicable to these suspensions.

D. When it comes to the granting of works and services through arrangements that were in force at the time this royal decree-law entered into force, the contractor shall be entitled to restore the contract’s financial balance by (as appropriate) extending its initial duration up to 15% or amending the financial clauses in the contract. However, in order to do so, the contracting body must be certain contract execution is impossible.

Litigation scenarios

Given the foreseeable avalanche of contractual non-compliances, jurisdiction-related clauses need to be revised. At the moment, relying on alternative conflict resolution methods (mediation or arbitration) seems more desirable as they are quicker and more efficient at solving trade disputes.

In any case, all potential evidence should be collected and every attempt to reach an agreement should be well-documented. The same applies to acts of good faith when exercising rights and showing the outmost due diligence when meeting obligations. All of this shall be incredibly valuable in the event arbitral or judicial proceedings are lodged against a counterparty.

Article 43 of RD-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19

Posted on by Jessica Zenz-Spitzweg

Article 43 of RD-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19, modifies the deadlines set by the Spanish Bankruptcy Act to request a declaration of bankruptcy.

Current legislation

Article 5 of the Spanish Bankruptcy Act specifies the debtor (be it a natural or legal person) must file for bankruptcy within two months since becoming aware of the situation. This realization will be deemed to exist when one of the following situations occurs:

  1. The general cessation of obligation-related payments.
  2. Seizures or repossessions that generally affect the debtor’s equity.
  3. Ruinous clearance or asset stripping.
  4. The non-payment, during the last three months, of tax obligations, social security contributions and labor debts.

The consequences of not meeting the obligation to request a bankruptcy declaration within the deadlines set are that, in the event the debtor is finally declared bankrupt, said person can be blamed for the situation. As a result, the members of the board may be banned from exercising these duties again and can be made personally responsible for the company’s debts (whether partially or totally).

Extraordinary regulations

The RD-Law suspends, while the state of alarm is in force, the need to request a declaration of bankruptcy (even if the conditions that make such request compulsory are met). The norm, however, does not clarify if, once the state of alarm is over, a new two-month period is launched in which to submit that request or whether said period needs to be calculated on the basis of the time lapsed until the Royal Decree-Law entered into force.

The new norm, however, does specify that new requests for bankruptcy declarations will not be processed by judges (even if the debtor is insolvent) for as long as the state of alarm lasts plus the two following months. If the debtor requested a voluntary insolvency process after an involuntary process was launched, the voluntary request will be processed first.

The RD-Law does not prevent any voluntary insolvency requests from being filed while the state of alarm is in force but notes that their processing will be suspended for as long as it lasts.

If the debtor was already in the first stages of an insolvency situation (article 5 bis of the Spanish Bankruptcy Act), the RD-Law suspends, while the state of alarm is in force, the obligation to request a declaration of bankruptcy if, within the four-month period specified by the Bankruptcy Act, no agreement is reached or the number of necessary endorsements has not been obtained to process an early agreement proposal.

Flexibilization of temporary adjustment mechanisms to prevent dismissals

Posted on by Jessica Zenz-Spitzweg

Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19 (“RDL 8/2020”).

Exceptional procedural measures related to the termination of contracts and reduction of working hours in the event of force majeure

Force majeure events: Contract suspensions and working hour reductions directly deriving from the loss of business activity as a result of COVID-19 (including the declaration of the state of alarm). Said losses shall imply the suspension or cancellation of activities, the temporary closure of establishments open to the public, restrictions on public transport and the free movement of people and goods, a lack of supplies that puts great strain on ordinary activities, or extraordinary and urgent situations caused by the infection of staff members or the adoption of measures calling for pre-emptive isolation (issued by the relevant health authorities).

Procedure

  • The company shall file a request and attach a report detailing the loss of business activity caused by COVID-19, as well as any supporting documentation (where available). The company must notify workers of its request and submit the report and any supporting documentation to their representatives (if any).
  • Labor authorities, regardless of the number of workers affected, must corroborate a force majeure event.
  • The decision taken by the labor authority shall be issued within five days from the date of the request, following a report (where applicable) of the Labor and Social Security Inspection Body.
  • The Inspection Body decides on the application of measures related to contract termination or the reduction of working hours, effective from the moment the force majeure event takes place.
  • The report drafted by the Labor and Social Security Inspection Body, as requested by the relevant labor authorities, will be looked at within a non-extendable period of five days.

Exceptional procedural measures related to the termination of contracts and reduction of working hours for financial, technical, organizational, and production-related causes

  • In the event no legal representation exists, the main trade unions in the company’s sector will make up the commission in charge of representing the workers. They shall lawfully negotiate the applicable collective agreement. The commission shall be made up of a member of each trade union that meets the abovementioned requirements. Decisions will be taken on the basis of the representative majorities established. In the event the commission cannot be constituted this way, it shall be made up of three workers from the company, elected in accordance with the provisions set forth in article 41.4 of the Workers’ Statute. The representative commission must be constituted within a non-extendable period of five days.
  • The consultation period between the company and the abovementioned workers’ representatives shall not exceed seven days.
  • The report drafted by the Labor and Social Security Inspection Body, as requested by the relevant labor authorities, will be looked at within a non-extendable period of seven days.

Extraordinary contribution-related measures related to the termination of contracts and reduction of working hours in the event of force majeure due to COVID-19.

  • In temporary lay-offs caused by a force majeure event, the company shall not have to pay corporate contributions for as long as contracts are suspended or working hours reduced for said cause, provided that, on 29 February 2020, the company was making social security contributions for less than 50 workers. If, however, the company had 50 or more employees for whom social security contributions were being paid, this exemption will cover 75 %of the contributions made by the company.
  • This waiver will have no effects for the worker, since contributions will be deemed to have been regularly paid during this period.
  • The Social Security Treasury will apply these contribution exemptions upon the request of the employer. Said person must have previously identified the workers affected and notified the duration of the suspension or reduction of working hours.

Extraordinary measures in terms of unemployment benefits, based on the application of the procedures mentioned in articles 22 and 23

  • The recognition of the right of workers affected by this situation to receive unemployment benefits, regardless of whether they have met the minimum contribution requirements or not.
  • The period of time a person spends on unemployment benefits as an immediate result of these extraordinary circumstances will not be taking into account when calculating the total benefits the worker is entitled to based on his/her contributions. The goal is for workers to be covered by unemployment benefits for as long as possible.

Temporary limitation of the effects caused by submitting extemporaneous unemployment benefit requests.

  • During the period extraordinary measures are in force, the submittal of first-time unemployment benefit requests (or those of a continuous nature) outside the deadlines legally established will not reduce the duration of the benefits period.

Sixth additional provision. Employment safekeeping. The extraordinary employment measures set in the present royal decree-law shall be subject to the company’s commitment to guarantee employment during the six months that follow the resumption of business activities.

Tenth final provision. Term of validity. The measures foreseen shall remain effective for one month from their entry into force (18 March 2020). However, after a careful assessment of the situation, the Government can extend their duration by means of a royal decree-law. Notwithstanding the foregoing, the measures foreseen that do have a specific period assigned will be valid for the term detailed.

How COVID-19 outbreak is disrupting sports events, measures adopted by the Italian Government.

Posted on by Luca Vicarioli

The Prime Minister’s Decree dated 9 March 2020 has suspended all sports’ events and competitions.

The sports facilities can be used only behind closed doors to allow the training sessions of professional and non-professional athletes (i.e. athletes recognized as being of national interest by CONI and the respective federations).

Sports associations and clubs, through their medical staff, must implement appropriate controls to contain the risk of propagation of the COVID-19 among athletes, technicians, managers and all other persons involved.

On 17 March 2020, the Italian Government issued the Law Decree no. 18 containing measures to support the National Health Service and economic support for families, workers and business related to the epidemiological COVID-19 emergency, adopting some specific economic measures also for the sport field.

In particular:

  • Article 61 provides that payments of withholding tax, social security contributions, and the mandatory insurance premiums to be made by national sports federations, sports promotion bodies, sport associations, amateur sports clubs and for those who manage stadiums, sports facilities, gyms, clubs, dance and fitness center and swimming pools, are suspended until 31 May 2020. Such payments mentioned above shall be made either in a lump sum by 30 June 2020 without the application of penalties or interests, or in a maximum of 5 monthly installments, starting from June 2020.
  • Article 95 provides the suspension from 17 March to 31 May 2020 of the rent payment for public sports facilities owned by the Italian State (and by local authorities) remained unused during this period. In any case, the rent for the mentioned months shall be paid out either in a lump sum by 30 June 2020 without the application of penalties or interests, or in a maximum of 5 monthly installments, starting from June 2020. Moreover, the provision doesn’t apply to lease agreements for private facilities.
  • Article 96 provides the payment by Sport e Salute S.p.A. (former Coni Servizi S.p.A. owned by the Ministry of Economy) of an indemnity of 600 euros for the month of March 2020 in favor sport collaborators with VAT number and to holders of a non-fixed term employment contract registered to the so called “gestione separata” Inps as of 23 February 2020, provided that they are not retired and not registered with other forms of mandatory social security, they didn’t get any other wage and/or indemnity.

Remainder understood that the all other provisions of the Law Decree no. 18/2020 apply also to the operators in the world of sports, where applicable (i.e. Ordinary Wage Guarantee Fund, etc.).  

For the time being, Sport e Salute S.p.A. set aside a fund of 50 million euros but needless to say that this provision is not sufficient to cover the payment in full of the mentioned indemnities due to the considerable number of workers employed in the associations and sports clubs registered with the CONI.

Furthermore, it is necessary that the Italian Ministry of Economy and Finance provides for the procedures for filing the relevant applications and it determines the rules for the management and control of the fund (expected within 1 April 2020).

Concerning European competitions, UEFA (Union of European Football Associations) decided to postpone the final match of UEFA Europa League, UEFA Champions League and UEFA Women’s Champions League, all originally scheduled for May 2020.

UEFA, also, announced the postponement of its flagship national teams’ tournament, UEFA EURO 2020 until next year. UEFA stated that the reasons of postponement are: i) the protection of the health of all those involved in the game; ii) the avoidance of placing any unnecessary pressure on national public services involved in staging matches; and iii) the postponement should help all domestic competitions, currently put on hold due to the COVID-19 emergency, to be completed.

In a note dated 17 March 2020, the representatives of the 55 national member federations, as well as representatives of the European Association of Clubs, European Leagues and FIFPro Europe, reiterated that given the health emergency, the plan adopted is the best solution.

Announcing the above decisions, the Chairman of UEFA Aleksander Čeferin said: “We are at the helm of a sport that vast numbers of people live and breathe that has been laid low by this invisible and fast-moving opponent. It is at times like these that the football community needs to show responsibility, unity, solidarity and altruism”.

In the same view, FIFA decided to postpone the FIFA Club World Cup, which should have had taken place in June/July 2020, to a date to be set in the international match calendar which has to include also the new dates for CONMEBOL Copa América and UEFA EURO tournaments.

Finally, the IOC Chairman and the Prime Minister of Japan have concluded that XXXII Olympic Games in Tokyo must be rescheduled to a date beyond 2020 but not later than summer 2021, to safeguard the health of the athletes, everybody involved in the Olympic Games and the international community.

Prohibitions and restrictions imposed by the authorities under Military Ordinance no. 3/24.03.2020 in order to restrain the fast spreading of coronavirus disease among population

Posted on by Ana Pandelea

On March 16, 2020, the President of Romania enacted the decree declaring a state of emergency in Romania as a response to the fast spreading of COVID-19 virus.

In line with the prerogatives given to the authorities during the state of emergency, the Minister of Internal Affairs enacted Military Ordinance no. 3/24.03.2020 based on which new interdictions and restrictions were imposed with respect to the free movement of people in order to prevent the spread of Covid-19 .

We have included below a short review of the main measures implemented by this Military Ordinance:

  1. Irrespective of the time interval, the movement of people outside their home is prohibited
  • Exceptions are made for the following specific cases: travelling to work where not possible to work from distance, basic shopping, urgent medical assistance, movement for grounded reasons (such as childcare/ assistance of elderly people and people with disabilities, death in the family), short trips around the house / household for individual physical activity, as well as for pets’ needs, blood donation, humanitarian actions and volunteering, agricultural activities or trade of agri-food products;
  • A special case is provided for the old people who have reached the age of 65, as they can leave their houses only for a part of the exempted cases described above and only during the hours of 11:00 – 13:00. They can circulate outside the aforesaid hours only in case they are travelling to work (where not possible to work from distance) and for agricultural activities.
  1. Affidavit and certificates issued by the employer

The grounds for movement / circulation will be verified by the authorities based on the following deeds:

  • a work card (legitimatie) or a certificate issued by the employer for proving the movement for work purposes;
  • an affidavit for (i) operators performing agricultural activities and (ii) movement for any other circumstances than those specified above.

The certificate / affidavit can be presented to the authorities in digital / electronic form, using the telephone, the tablet or any other similar electronic device, a physical document not being necessary in such cases. Given the fact that the affidavit must include, among other, the signature of the author, there are two possibilities:

  • the statement shall bear electronic signature or
  • the statement shall bear handwritten signature and the interested person shall present to the authorities a picture / a scan of the respective statement via the chosen electronic device.

The same regime should apply to the certificate issued by the employer.

  1. Supervision of people in quarantine and self-isolation

All entrants on Romanian territory after March 25, 2020 will be put in quarantine or in self-isolation.

In order to verify the compliance with the related interdictions and restrictions, the national security institutions will design specific communication and IT applications which shall allow the permanent and real time communication of the authorities with the individuals in quarantine or self-isolation.

  1. Suspension of flights

In addition to Italy and Spain, all flights to and from France and Germany to and from Romania, from all airports, shall be suspended for a period of 14 days starting with March 25, 2020, 23:00 EET.

Note: Such measure is not applicable to state aircraft, transportation of goods and correspondence, humanitarian or emergency medical services as well as to non-commercial technical endorsements.

  1. Documents which expire during the emergency state

The documents issued by the public authorities which expire during the emergency state may be changed within 90 days calculated as of the emergency state end date.

  1. New measures applicable to economic operators
  • Additional measures must be applied by public institutions and economic operators, which are required to mark the areas designated for the public / clients’ access within their respective spaces, as well as the customer-care and the sales’ area with visible indicators to guide the people to observe the minimal safety distance of 1.5 meters.
  • Stricter safety measures have also been adopted for the agri-food market administrators, which must organise the sale activity so that social distancing is maintained between agricultural producers, merchants and purchasers. Agricultural producers and merchants are also obliged to wear safety masks and gloves.
  1. Certain activities have been exempted from the temporary suspension

The temporary suspension of the commercial activity conducted in a shopping center which was imposed by the Military Ordinance no. 2/2020 shall no longer apply in relation to (i) the economic operators selling electronic products and home appliances if they ensure home delivery and (ii) the sale of medical optical products and services.

Changes in civil procedure following COVID-19 outbreak

Posted on by Lisa Fortmüller

In an effort to counter the coronavirus outbreak, the Ministry of Justice has unveiled a set of emergency regulations designed to mitigate the impact it has on, i.a. civil procedure.

The regulations proposed by the Ministry of Justice have been included in the draft bill on amending the act on emergency solutions designed to prevent, counteract and combat COVID-19, other infectious diseases and emergency situations caused thereby (the “Draft Bill”), which is currently the subject of inter-ministerial consultations.

Key changes:

Urgent matters

1. The Ministry of Justice is to compile a list of urgent matters. The idea behind the list is to avoid a standstill in the administration of justice in respect of the most urgent matters, which must be dealt with by the courts, even if the court with territorial jurisdiction over the matter is shut down due to COVID-19, e.g. in the case where judges, associate judges and other court staff need to be quarantined.

In accordance with the Draft Bill, the act currently in place would be to include a provision listing the following matters (among others) as urgent:

  • preventive detention applications,
  • arrest cases,
  • cases regarding criminal preventive measure orders,
  • European arrest warrant cases,
  • cases regarding temporary release from a correctional facility with the use of electronic monitoring system,
  • cases regarding detention orders where a foreigner in placed in a detention center or under arrest,
  • cases regarding imprisonment or other sentences or coercive measures resulting in imprisonment, so long as the court’s decision regards the release from jail or prison or is necessary to enforce the sentence or coercive measure,
  • cases regarding the removal of a person from the care of a parent or legal guardian,
  • the case referred to in the Act on Mental Health Protection,
  • cases regarding the placement of a juvenile offender or extension of a juvenile offender’s stay in a juvenile detention facility,
  • cases regarding the placement of a minor in a child and youth care facility,
  • preliminary injunction applications,
  • cases involving the examination of a person for the purpose of securing evidence or examination of a person with respect to whom examination in a trial may not be possible,
  • administrative cases which must be heard by a court within the deadline prescribed by law and cases regarding applications to prevent the enforcement of an act or performance of an action.

2. The course of action for a case which ends up on the urgent matters list would be the following:

  • if a common or military court has been shut down due to COVID-19, the chief judge of the appeals court will be able to assign cases of urgent nature within the jurisdiction of the court which has been shut down to a different court of the same instance, located within the same appellate circuit;
  • if all common or military courts within an appellate circuit have been shut down due to COVID-19, the First Chief Judge of the Supreme Court, upon the request of the chief justice of the appeals court within the appellate circuit all courts of which have been shut down, will be able to assign cases of urgent nature within the jurisdiction of the court which has been shut down to a different court of the same instance, located (as far as possible) within the adjacent appellate circuit;
  • if a voivodship administrative court has been shut down due to COVID-19, the Chief Justice of the Supreme Administrative Court would be able to assign cases of urgent nature within the jurisdiction of the court which has been shut down to a different voivodship administrative court.

3. The court assigned to an urgent case in accordance with section 1.2 above would handle the case until the end of proceedings within given instance.

Deadlines

1. In accordance with the Draft Bill, following the announcement of a state of epidemic threat or the state of epidemic due to COVID-19, the procedural deadlines in court proceedings, incl.:

  • administrative court proceedings;
  • enforcement proceedings;
  • criminal, fiscal penal and minor offence proceedings;
  • administrative and administrative enforcement proceedings;
  • as well as the deadlines in other proceedings pending on the basis of the act;
    would not be triggered and, if they have already been set running, would be suspended until the state of epidemic threat or the state of epidemic announced due to COVID-19 is called off.

1.2. The abovementioned rule would also apply to:

  • the deadline for declaring an administrative case handled as a result of an implied decision;
  • deadlines in other cases where the lack of a public agency’s objection, decision, ruling or another determination serves as the grounds for a party to proceedings to take action or complete a formality or affects the scope of the party’s rights and obligations;
  • the deadline for a public agency to issue a ruling of general or individual nature.

It should be noted that before the deadline referred to in section 2.1.1 expires, a public agency or entity would be able to issue ex officio a decision on full acceptance of the party’s request, statement on the lack of grounds for objection and a ruling of general or individual nature.

The relevant public agency, court or entity would be able to request a party to proceedings to perform certain action within the prescribed deadline, if a failure to perform the action might result in:

  • danger to human or animal life or health;
  • severe damage to the public interest;
  • irreparable property damage.

In such a case, the party to the proceedings should perform its obligations within the deadline.

Actions performed as part of the proceedings listed above during the state of epidemic threat or the state of epidemic are effective.

Moreover, pursuant to the Draft Bill, during the state of epidemic threat or the state of epidemic announced due to COVID-19:

  • the regulations covering public agencies’ idleness and the obligation of a public agency and entity to notify a party to the proceedings about the failure to deal with the case on time would not apply;
  • public agencies or entities would not be liable to a fine in the case where they fail to issue a decision within the prescribed deadline.

The Draft Bill also provides that legal measures cannot be pursued on the grounds of idleness, excessive length of proceedings or the right of a person to have their case handled without undue delay in the case where a public agency or entity has stopped operating during the state of epidemic threat or the state of epidemic announced due to COVID-19.

2. In addition, certain other deadlines, provided for in civil and administrative law, would not be triggered or would be suspended, namely:

  • deadlines which must be met in order to obtain legal protection before a court or a public agency, and deadlines for the performance of actions which affect the scope of rights and obligations of a party to a legal relationship;
  • periods of adverse possession, statute of limitation, prescription;
  • final dates which, if not met, produce adverse effects for a party to proceedings;
  • deadlines for entities or bodies required to be listed in the register of business or register of associations, other community and professional organizations, foundations and independent public complexes of health care facilities, the National Court Register (Krajowy Rejestr Sądowy) or a different register kept by a public administration agency to perform an action which must be reported to the relevant register, as well as deadlines for the above-named entities or bodies to perform obligations resulting from regulations pertaining to them.

Similarly as in the case of deadlines discussed in section 2.1, the relevant public agency, court or entity would be able to request a party to proceedings to perform certain action within the prescribed deadline, if a failure to perform the action might result in:

  • danger to human or animal life or health;
  • severe damage to the public interest;
  • irreparable property damage.

It is pertinent to mention that actions performed to exercise a right or discharge an obligation at the time when the deadlines listed above are stopped, triggered or interrupted are effective.

Pleadings

The Ministry of Justice intends to use the Draft Bill to add a provision to the applicable act stating that, during the state of epidemic threat or the state of epidemic, or if a universal postal service provider stops its operations, a pleading may be filed with the court through e-PUAP platform. A pleading filed in this manner should be executed by a qualified electronic signature.

In addition, a pleading with a qualified electronic signature or an electronic copy of a pleading signed by hand may be filed with the court through e-mail.

If a pleading is sent from the sender’s e-mail addressed provided beforehand or if there are no doubts as to the sender’s identity, the pleading is deemed to be executed with a signature producing legal effects equivalent to the effects of a handwritten signature.

Appendices to pleadings filed in one of the above manners should be submitted in digital form, with no need to provide them in hard copy.

It should be noted that the Draft Bill is a work in progress, which means that the final shape of the changes discussed above is yet unknown.

Let us know if you have any questions.