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Government approved additional restrictions for the fight against SARS-CoV-2

Company: bpv Braun Partners s.r.o.

On Wednesday the government approved a series of new restrictions for the fight against SARS-CoV-2, which will affect most businesses as well as the lives of everyone in the Czech Republic. Manufacturing is not affected directly. 

Effective as of Thursday, October 22, 2020 at 6:00 am the newly enacted government measures partially restrict retail sales and services as well as freedom of movement. These restrictions do not apply to wholesale operations.

The restrictions are scheduled to last (currently) until November 3, 2020. Depending on how the pandemic develops, however, they may be extended for longer. We provide a summary of the most important restrictions below.

Restrictions on retail sales and services

Generally speaking, all retail sales and provision of services in the shop premises are prohibited with the exception of the commercial activities specifically listed, including:

  • sales of groceries;
  • sales of goods in drugstores;
  • sales of flowers;
  • sales of newspapers, magazines and tobacco products;
  • auto repair shops;
  • sales of household goods.

Restrictions also apply to beauty salons, electronics stores and bookstores, for example. Further restrictions will apply to restaurants and accommodation facilities.

The government is not currently planning new compensation programs for business owners. According to the Minister of Industry and Trade, the current programs compensating part of the key costs along with rent and personal expenses for employees are sufficient. The minister also mentioned the option of requesting compensation for rent under the “COVID-Rent, Challenge 2” program (see https://www.mpo.cz/cz/podnikani/zivnostenskepodnikani/covid-19-najemne--255305/) and compensation of 100% of personal costs for employees (i.e. not only payroll but also mandatory withholdings) under the Antivirus A program (see https://www.mpsv.cz/antivirus). According to the latest statements, the government is not currently planning any special subsidy programs associated with the new economic restrictions.

Tags: Law | Economics | Finance | Politics |

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