COVID-19: New measures for the support of employees and businesses

November 2, 2020

1. Temporary suspension of employment contracts is enabled throughout the country. Suspension of employment contracts in businesses shutting down by a public authority mandate is mandatory.

2. Special purpose compensation (€ 534) and full coverage of social security contributions is provided, in proportion for the days of suspension – Conditions apply.

Attention: Dismissals shall be void for the duration of the suspension. Simultaneously, retaining the same number of employees for the equivalent period after the lifting of suspension is mandatory.

3. In the businesses affected:

a. VAT payment for November is suspended until April 30, 2021. This VAT can be paid in 12 installments without interest or in 24 installments with an interest rate of 2,5%, with the first installment to be paid on May 2021.

b. Payment of installments for regulated tax debts for November is suspended, by moving them at the end of the period of the existing scheme.

4. The payment of bank loans installments is suspended until the end of the year.

Attention: it is valid for specific activity codes (KAD) and prior agreement with the Bank is required.

5. Remote working to at least 50% of employees, where possible, is mandatory in the private and public sector. Flexibility in the arrival and departure times of the employees foreseen – Conditions apply.

6. In red zones, rent reduction of 40%, in businesses, as well as residences of suspended employees is mandatory. In the yellow zones, rent reduction remains optional.

7. For landlords who rent properties to businesses entitled or in agreement with rent reduction, 1/3 of the loss will be offset against tax liabilities.

8. Refundable Advance 4 & 5 is granted, under which new businesses also have the right to participate – Conditions apply.

Should you need more information or our assistance please contact us.