Compensation for closings due to COVID-19
Should your practice be closed, you are entitled to § 56 Infection Protection Act (IfSG) to compensation.
The current events surrounding the corona virus are unsettling many of our clients. Because the latent danger of a practice closure is present and not unlikely. We would like to show you ways in which you can protect your practice from the financial consequences of a closure. The following also applies to all other companies that are subject to a similar situation. However, the systematics of the following standards is very complex and should be checked by a lawyer.
In this case, the law speaks of a professional activity ban according to § 31 IfSG. The competent authority can exercise their professional activity entirely for sick people (§ 2 No. 4 IfSG), suspected illnesses (§ 2 No. 5 IfSG), suspects of contagion (§ 2 No. 7 IfSG) and people who are eliminated (§ 2 No. 6 IfSG) or partially prohibit. This applies according to Section 31 sentence 2 IfSG also applies to other persons who carry pathogens in or on themselves and pose a risk of spreading.
In plain language, this means that your practice has been closed because you (as the owner or employee) have been banned from working due to the risk of further spread of COVID-19.
However, you are not without rights in this measure. Section 56 of the IfSG regulates exactly who is the claimant, what amount of compensation is to be paid, what payments employees can demand from their employer, what deadlines have to be observed etc.
Section 56 (1) explains who can demand compensation.
"Anyone who, as a person who has been eliminated, suspected of being contagious, suspected of disease or is otherwise a carrier of pathogens within the meaning of Section 31 sentence 2, is or is subject to prohibitions in the exercise of their previous gainful activity and thus suffers loss of earnings, receives compensation in cash. The same applies to people who have been or will be segregated as excretors or suspected contagionists, but only in the case of excretors if they cannot follow other protective measures. Compensation in accordance with sentences 1 and 2 will not be granted to anyone who, through the use of a protective vaccination or other specific prophylaxis measure, which is required by law or has been publicly recommended in the area of the habitual residence of the person concerned, is prohibited from exercising his previous activity or has been isolated could have avoided. "
Simply put, it means that compensation for everyone in principle, who is affected by a practice closure.
The amount of compensation is based on Section 56 (2) IfSG primarily after loss of earnings (Section 3 in conjunction with Section 14 SGB IV). A distinction is made between the period of the first 6 weeks and thereafter. Will be within the first 6 weeks 100% of the loss of earnings paid. This regulation only applies to employees.
For self-employed this is calculated somewhat differently. This receive monthly 1/12 of the annual work income (§ 15 SGB IV) from the activity subject to compensation.
In summary, this means that both employers and employees are compensated by the state without major losses.
Section 56 (5) IfSG stipulates that the employer must pay the employee compensation for the duration of the employment relationship, at the longest for 6 weeks. This means that the state does not enter into the employer's obligation. The Amounts paid out will be reimbursed to the employer by the competent authority.
But be careful: there is a 3-month period in accordance with Section 56 (11) IfSG!
Since in a practice not only personnel costs but also rental costs, leasing costs etc. are incurred, the law permits according to Section 56 (4) IfSG also the Replacement of additional expenses to a reasonable extent. This means that all other costs can also be covered to some extent. But be careful: the law requires proof of an impending threat to existence if these costs are not also borne.
The law does not provide any information on this. The Authority must however one to the employer Grant an appropriate advance payment of the full reimbursement amount.
Should you have any questions about the corona virus (COVID-19) and its economic and legal implications, our is at your disposal Lawyer Stephan Hendel always available.