COVID-19 Venezuela: Consequences Under The Venezuelan Legal System

COVID-19, or Coronavirus as it is commonly known, has had a significant impact on a global scale. On March 13, 2020, the Government of Venezuela announced the existence of several infected patients, and took a series of measures directed to preventing the spread of the virus, including a collective quarantine in several States of the country.

This newsletter attempts to illustrate the legal consequences the virus will have in certain areas of the law - since its impact and the measures it entails generate de facto situations that differ from the ordinary regulation of the day-to-day dynamic of a society or country, as opposed to the current unprecedented events.

1. Declaration of National Alarm:

   The Government has declared a situation of National Alarm, pursuant to the provision in article 338 of the Constitution:

   "Article 338: A state of alarm can be declared when catastrophes, public calamities or other similar events take place that seriously endanger the security of the Nation, or its citizens. Said exceptional state will last thirty days, and can be extended for an additional thirty days...".

2. Contracts in General:

   The situation at hand has been argued to be one of force majeure, and as such, it may be raised in multiple contracts, including those that are common in the daily economic activity of individuals and corporations: sales, rent, construction work, services, etc. This is commonly included in standard clauses and under the provision in article 1272 of the Venezuelan Civil Code.

   "Article 1272: The debtor is not under the obligation to pay damages, when as a consequence of force majeure or an act of God, it has stopped providing or performing that which it was under obligation of, or has performed that which was prohibited.".

   However, force majeure issues have to be reviewed on a case-to-case basis, since it is ultimately fact specific.

3. Labor Law:

   The Venezuelan Government has declared the suspension of labor activities, with the exception of the health, food and services areas (the Excepted Areas).

   The companies and corporations must abide this declaration and are subject of closure if these demand its workers to avoid it against the decreed prohibition.

   All employees must be informed of the Coronavirus COVID-19, and the measures for prevention of its spread.

   The employees of the Excepted Areas, must mandatorily comply with the duties and obligations contained in article 54 of the Law for Prevention, Condition and Work...