CORONAVIRUS: Legal implications for businesses in the Czech Republic

The government has started the announce the dismantling of certain Covid19 measures and from Monday, April 27, 2020, it now allows business trips for foreigners to the Czech Republic, in respect of which  entrepreneurs have been repeatedly demanding. However, it set a number of conditions and rules. 

The Parliament of the Czech Republic approved a law on certain measures to mitigate the effects of the coronavirus epidemic known as SARS-CoV-2 on the tourism sector (the “Act”). The Act, for which the designation "Lex Voucher" was used, was promulgated on 24 April 2020 in the Collection of Laws in Volume 69 under No. 185/2020 Coll.

On 23 April 2020, the Municipal Court in Prague issued a judgment upholding the petition for annulment of certain measures of the Ministry of Health issued in connection with the COVID-19 pandemic. With effect from 27 April 2020, the Court annulled two extraordinary measures of the Ministry of Health of 17 April 2020 and 26 March 2020 on the restriction of retail sales and two extraordinary measures of the Ministry of Health of 15 April 2020 and 23 3. 2020 on the restriction of free movement of persons ("Extraordinary Measures"). The court found that by issuing these Extraordinary Measures, the Ministry of Health exceeded its competence, respectively did not have sufficient material scope to issue them, so they are illegal, which the government immediately corrected and at its meeting on 23 April 2020 "overturned" the repealed measures into the form of crisis measures, in which it proceeded to the announced relaxing of the measures.

The new COVID Prague program focused on business activities in the Capital City of Prague followed the fate of its predecessors COVID I and COVID II. This means that the available funds were exhausted on the same day as the receipt of applications, which thus ends. The COVID I and COVID II programs are also exhausted. Entrepreneurs thus have no choice but to wait for the announcement of the conditions of the COVID III program. What should be its parameters?

On 6 April 2020, the Government approved a bill on certain measures to mitigate the impact of the SARS-CoV-2 coronavirus epidemic on the tourism sector. On 8 April 2020, the bill will be discussed by the Chamber of Deputies Committee for Public Administration and Regional Development and subsequently by the Chamber of Deputies.

Currently, when measures are being taken due to the coronavirus epidemic, a number of questions arise regarding the payment of social security and health insurance premiums. In addition, self-employed persons are resolving, for example, how the permitted late filing of income tax returns will affect the deadline for submitting an overview of income and expenditure for 2019 and the payment of insurance premium supplements and other advance payments.

Are you considering how to maintain employment of your employees and minimize economic losses? Take a look at what financial instruments the state has prepared for entrepreneurs whose employees have been affected, directly or indirectly, by government measures taken to combat coronavirus.

The set of several emergency measures of the Ministry of Health dated 23 March 2020 banned the retail sale of goods and services, banned the public presence at selected premises or selected times, prohibited the operation of certain premises, prohibited the free movement of persons or restricted the activities of public authorities and administrative bodies.

The set of several emergency measures of the Ministry of Health dated 23 March 2020 banned the retail sale of goods and services, banned the public presence at selected premises or selected times, prohibited the operation of certain premises, prohibited the free movement of persons or restricted the activities of public authorities and administrative bodies. Take a look at their list, the vast majority of which were already based on previous emergency or emergency measures.

The government explicitly stated in the Emergency Resolution that the Health Ministry’s existing emergency measures are not to be affected by the state of emergency, which means that they remain valid and must be observed. All the Health Ministry’s special measures introduced valid after the emergency was announced must be observed as well. A brief summary (updated on 19 March 2020) is outlined below.

By Resolution No. 250 dated 18 March 2020, the Czech Government set rules and established a legal framework for tracking (on an indicative basis) the whereabouts of individuals in which COVID-19 has been confirmed. The Minister of Health is the authority assigned to implement the measure.

From what point exactly is the spreading of COVID-19 a criminal offence?  Is it only intentional spreading that is punishable or is negligence also a criminal offence?  What is at stake? What are the aggravating circumstances and when do the penalties increase? And can these criminal offences also be committed by a legal entity?

Update 18 March 2020

The government explicitly stated in the Emergency Resolution that the Health Ministry’s existing emergency measures are not to be affected by the state of emergency, which means that they remain valid and must be observed. All the Health Ministry’s special measures introduced valid after the emergency was announced must be observed as well. A brief summary (updated on 18 March 2020) is outlined below.

List as of 14 March 2020