Corona: VfGH rejected company complaints



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It was a commercial company, the landlady of a shopping center and a travel agency. They had requested compensation for the loss of income suffered in the first confinement. According to Monday’s broadcast, the VfGH saw no constitutional concerns. Both the responsible district administration and the regional administrative court had rejected the applications for lack of legal basis. In their complaint, the companies referred to the Epidemic Law, according to which people are entitled to remuneration if they run a company that has been “restricted or blocked in its operation” due to the occurrence of a reportable disease, resulting in loss of income .

However, the COVID-19 Measures Act passed in March 2020 states that the provisions do not apply if a corresponding ordinance has been issued to prevent the spread of the coronavirus. The VfGH confirmed the regulation. The law covers all the measures that have been taken, and there is no possibly non-objective differentiation between business closures, entry bans, and other measures.

Constitutional judges also referred to the government’s “extensive package of measures and bailouts.” In particular, this would have given the companies in question the opportunity to receive short-time assistance.

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