The COVID-19 epidemic has created unprecedented challenges for entrepreneurs. This guide addresses the most pressing legal questions facing businesses during the pandemic.
1. Force majeure and contract performance
Can the epidemic be considered force majeure? In principle, yes – but only if the contract contains a force majeure clause and the epidemic directly prevents performance. Mere economic difficulty is not sufficient.
Key considerations:
- Review all existing contracts for force majeure clauses.
- Document all circumstances preventing performance.
- Notify counterparties promptly about the inability to perform.
- Consider negotiating amended terms rather than invoking force majeure.
2. Employment law issues
- Remote work – employers can order remote work during the epidemic without amending the employment contract.
- Reduced working time – possible under the Anti-Crisis Shield legislation with government subsidies for wages.
- Temporary layoffs (przestoj) – employees retain the right to remuneration during employer-ordered shutdowns.
3. Government support measures
- Wage subsidies from the Guaranteed Employee Benefits Fund.
- ZUS contribution exemptions for micro and small enterprises.
- Standstill loans (pozyczka na przestoj) for micro-entrepreneurs.
- PFR Financial Shield – direct financial support for businesses.
4. Tax implications
- Extended filing deadlines for certain tax returns.
- Possibility to defer tax payments or pay in installments.
- Retroactive application of tax losses.
Paweł Osiński
Attorney