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Lockdown - Extensive closure of companies and (public) facilities

Lockdown - Extensive closure of companies and (public) facilities - what are the consequences for the payment of remuneration and what are the claims for compensation and possibilities of relief for employers?

The German Federal Government and the governments of the federal states agreed on 16 March 2020 on joint guidelines for further action against the expanding Sars-CoV-2 pandemic and the associated disease (Covid-19) and significantly expanded these guidelines on 22 March 2020. In addition to the closure of schools and childcare facilities, the prohibition of (larger) gatherings and events, the closure of public and private leisure facilities and regulations for the retail, catering and hotel sectors, there is also a general "ban of social contacts", which is intended to prevent more than two people - apart from members of the core family - from gathering. The health authorities may also take individual measures within the framework of the Federal Infection Protection Act (Infektionsschutzgesetz - IfSG), which include in particular the imposition of quarantine and the ban on professional activity. Finally, the closure of the whole establishment may also be ordered. These measures, roughly described here, pose considerable challenges to employers. However, even in companies not directly affected by these measures, Sars-CoV-2 raises further questions in the employment relationship: What measures – apart from terminations for business reasons – can and need to be taken in order to react to the declining demand and lack of turnover? Also problems of employees who are basically able to work but have difficulties in caring for relatives and the problem with reaching the workplace have to be addressed.

With this paper we provide an up-to-date orientation on the distribution of risks and public reimbursement and support services for employers in this challenging situation. You will find further guidance and advice, also from other specialist areas than labour law, in our continuously updated Corona Information Centre.

You can read and download the entire document in the download area below.


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