Downtime benefits also for entrepreneurs who are at the same time partners in commercial companies – favourable judgment of the Regional Court in a dispute with the Social Insurance Institution

On 25 March 2021, the Social Insurance Institution (ZUS) issued a decision obliging our Client to return the downtime benefit disbursed in February and March 2021.

In the grounds for the aforementioned decision, the pension authority indicated that our Client, as a partner in a limited partnership and in a limited liability company, does not meet the prerequisites specified in the anti-crisis shield (introduced in connection with COVID-19) for collecting the downtime benefit, as this benefit is available only to persons conducting business and partners in civil partnerships.

The Law Firm filed an appeal drawn up by barrister Krzysztof Topolewski and Wojciech Jankowski from the Firm’s Tax Law Department against the above decision, requesting that it be reversed, emphasising that our Client, apart from being a partner in a limited partnership and a limited liability company, is also a person conducting business and is subject to retirement and disability pension insurance on account of conducting non-agricultural business, thus is fully eligible to receive the downtime benefit.

After considering the appeal, the Regional Court ruled in favour of our Client and amended the decision of the Social Insurance Institution (ZUS) challenged by our Law Firm, stating that she is not obliged to return the downtime benefit.

In the grounds for the ruling, the Court upheld the argument included in the appeal, holding that our Client was entitled to the benefit as a person conducting business and no provision of the Act deprived her of this right due to the fact that she was simultaneously a partner in a limited liability company and a limited partnership.