Is Your Business at Risk?
Liat, the owner of a small shop in Tel Aviv, has experienced one of the most challenging years in her business. After surviving the COVID-19 pandemic, the latest economic crisis hit her business repeatedly. She didn't know if she would receive compensation or if it would arrive on time. Her once-thriving shop now stands on the brink of closure.
Compensation was supposed to be Liat's last hope, but when she checked the situation, she discovered that the compensation might only arrive in a few months—by which time her business might no longer exist. She found herself asking questions she never thought she would: Should she keep fighting, or is it time to give up?
What Courts Really Consider
In cases of compensation for businesses affected by crises, courts focus on several key points. First, the extent of the damage caused to the business must be assessed. Is it temporary or permanent damage?
Second, the causal link between the crisis and the damage caused to the business must be examined. Was the damage a direct result of the crisis, or were there additional factors that influenced it?
Finally, the timing of when compensation is received is crucial. In many cases, compensation arrives after the business is already gone, so it's paramount to check timelines and government commitments.
When is it Relevant — Checklist
- ✓Has your business been economically harmed due to an unforeseen crisis?
- ✓Are you waiting for compensation from the government or other institutions?
- ✓Is the compensation you expect delayed?
- ✓Is your business at risk of closing without timely compensation?
The Specific Law That Applies
The Compensation Law is intended to ensure that businesses affected by crises receive the financial support they need to survive. However, the law does not always provide an immediate solution, and compensation can sometimes be significantly delayed.
The law specifies the exact conditions under which businesses are entitled to compensation and the timelines for when compensation should be paid. However, in practice, bureaucratic processes can delay payment, putting businesses in a difficult situation.
Questions Everyone Asks — But No One Asks the Lawyer
Real Situations — Which Side Are You On?
- Yossi, a restaurant owner, experienced a dramatic drop in income, and compensation arrived only after the restaurant closed. Verdict: No choice but to close.
- Dana, a clothing store owner, managed to survive thanks to quick compensation. Verdict: Business continued to operate.
- Ami, a café owner, waited for compensation that arrived six months late. Verdict: Business at risk of closure.
What to Do Right Now
If you are experiencing these difficulties, it's crucial to check your eligibility for compensation and consult with a lawyer specializing in this area. Do not sign documents without advice.
If you don't act quickly, your business may face more severe economic difficulties, potentially leading to complete closure. Contact us for legal advice that could save your business.