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How should we deal with existing petitions already presented at court prior to 27 April?

You should speak to your advisors. We do not know presently how existing petitions will be dealt with by the Court. We do know that if any winding up order is made (based on a petition presented after 27 April), it could be found to be void and a creditor may face challenges. Even for petitions presented before 27th April, there is a risk that the Court will not be keen to make a winding up order so it is important that you look at the facts of your debt and weigh up all of the factors before deciding how to proceed.

Related FAQs

What payments can be included in the claim for a grant?

You can claim for regular payments you are obliged to pay staff such as non-discretionary overtime, non-discretionary fees, non-discretionary commission and piece-time payments. Overtime in this context is referred to as ‘past overtime’ in the updated guidance which would suggest that you should use the variable pay calculation (see FAQ above) for those who regularly carry out overtime.

What has been the response from the Competition and Markets Authority (CMA)?

The CMA is the government body that is responsible for protecting consumers from unfair trading practices. It has announced programme of work to investigate reports of businesses failing to respect cancellation rights during the Coronavirus pandemic.

Based on the complaints received by them from consumers, the CMA has identified three sectors of particular concern:

  • Weddings and private events
  • Holiday accommodation
  • Nurseries and childcare providers

The CMA has expressed concern about the number of complaints that it has received about businesses seeking to retain deposits for cancelled events, undue restrictions being placed on use of vouchers provided for cancelled bookings, and payments being demanded to hold open nursery places.

The CMA has said it will prioritise investigation of these sectors, and then move on to other sectors.

How do I carry out a Right to Work check during the Covid-19 pandemic?

The Home Office has provided useful guidance on how to carry out a compliant Right to Work check using the temporary adjustments in place for Covid-19. In summary:

  • You will need to ask the job applicant to send you digital copies of their original documents, for example by scan, photo or mobile app.
  • Hold a video call with the job applicant and ask them to show their original documents on camera so you can check them against the digital copies you have already received.
  • On the date you made the check, record that you have done this by using the following wording “adjusted check undertaken on [insert date] due to Covid-19”. Evidence of right to work checks still need to be held securely either in paper or electronic format.
  • You can use the online RTW checking service where the job applicant has Biometric Residence Permit or pre-settled or settled status under the EU Settlement Scheme. You should do this whilst on the video call with the applicant/employee, and you must first obtain their permission to view their details on this scheme.
What about office holders?

Office holders who provide services under an intermediary (such as a service company consultancy agreement) and whose services relate to the office held, would fall under the IR35 regime and must be assessed accordingly.

Are the courts continuing to operate during Lockdown 3.0?

With another lock-down in force in England, it has been confirmed that the courts will remain open. This is different to the first lockdown in March 2020, in which the majority of courts were closed and most face to face hearings did not take place. Hopefully, this new lock-down measure will ensure that cases are still being heard at a steady rate, and there should not be a backlog for your case to be dealt with.

Lord Chancellor Robert Buckland QC MP emphasised the importance of maintaining safety during the new measures: “Our courts & tribunals continue to be an essential public service, served by essential workers and meeting Covid-secure standards endorsed by public health officials. With the use of remote hearings wherever appropriate, this vital work can and should continue.”

A large sum of £110m has been spent in recent months to make courts safe and to ensure that trials should go ahead where necessary. As a result of the expenditure, hearings can now still take place both in person, whilst adhering to the rules, as well as remotely. Your case may be heard in court if it is deemed as being “necessary in the interest of justice”.

Precautionary measures, such as social distancing, will still be in place, with Judges and magistrates ensuring that this happens.

Lord Chief Justice, Lord Burnett of Maldon commented: “The next few weeks will present difficulties in all jurisdictions. But as before judges, magistrates, staff, the legal profession and others involved in the system will meet them and ensure that the administration of justice continues to function in the public interest.”