PROTECTION OF TENANTS, TEMPORARY PROTECTION OF COMPANIES, AND OTHER IMPORTANT CHANGES

Yesterday, the National Council of the Slovak Republic approved an act[1] which introduces protection measures for tenants, temporary protection of companies, a possibility to apply for an extraordinary postponement of enforcements, and the extension of time limits with respect to the prohibition of the conversion of assets (“Act”).

 

PROTECTION OF TENANTS

 

Until 31.12.2020, landlords are prohibited to unilaterally terminate a tenancy of real estate[2] on grounds of a tenant’s delay in the payment of the rent[3] falling due in a period between 1.4.2020 and 30.6.2020 where that tenant’s delay is directly related to the spread of dangerous communicable human disease COVID-19. However, in the case of a dispute, this reason for the delay in payment must be sufficiently proved by the tenant. The Act is without prejudice to any other grounds for the termination of tenancy.

 

TEMPORARY PROTECTION OF COMPANIES

 

We provided you with the information about temporary protection of companies after the draft act had been approved by the Government.

Since the final version of the Act contains some changes compared to the Government’s draft, we have updated our original article on temporary protection of companies. The updated article is available here: https://www.paulqlaw.com/en/post/temporary-protection-of-companies-approved-wording-23. 

 

POSTPONEMENT OF ENFORCEMENTS FOR NATURAL PERSONS

 

The possibility to postpone enforcement is available for enforcement proceedings commenced after 12.3.2020 and for natural persons only.

Upon the obliged party’s request, a court-appointed enforcement officer will issue a notification of the postponement of enforcement and immediately deliver it to the parties to the proceedings, the obliged party’s wage payer, the bank, the obliged party’s debtor and/or other persons affected by the enforcement.

The obliged party’s request must include a statement that his/her income has temporarily decreased due to the extraordinary situation caused by the spread of dangerous communicable human disease COVID-19 and that the immediate enforcement could have particularly adverse impacts on himself/herself or on his/her family members. A declaration of assets must be attached to the request.

The request will not be taken into account, if (i) it is incomplete, (ii) it involves a repeated postponement, (iii) the obliged party has already been permitted to make payments in instalments, (iv) the enforcement was discontinued, (v) the enforcement concerns unpaid child’s maintenance payments, (vi) the enforcement involves the satisfaction of a right to non-pecuniary performance, or (vii) the enforcement proceedings commenced before 12.3.2020.

The enforcement is postponed for a period of six months from the issuance of the notification of the postponement of enforcement, but not for longer than until 1.12.2020.

During the postponement period, the right of an enforcement officer to take actions aimed at identifying and securing the assets subject to enforcement is not affected. If such actions have been taken before the notification of the postponement of enforcement is issued their effects remain intact.

 

OTHER CHANGES

 

The Act has extended the time limit within which foreclosures cannot be performed, as well as the time limit for which forced conversions of assets by an auctioneer, court-appointed enforcement officer and/or trustee are temporarily restricted, namely until 31.5.2020.

 

Zuzana Judiaková