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VIDEO: Force majeure during the coronavirus pandemic

Commercial partner Damien Charlton explains the basic principles of force majeure, and how they are relevant in the current extreme circumstances caused by the Covid-19 pandemic.

Related FAQs

Can employees take annual leave during a period of furlough?

Yes, however holiday pay during furlough must remain at the normal rate of pay and not the reduced furloughed rate. You can still claim for this period under the scheme but you will be responsible for any amounts beyond the maximum you can claim. Employers have flexibility to restrict when leave can be taken both during and after period of furlough in the normal way.

If an employee usually works bank holidays then the employer can agree that this is included in the grant payment. If the employee usually takes the bank holiday as leave then you would either have to top up their usual holiday pay, or give the employee a day of holiday in lieu.

Can NHS or local authority workers be furloughed?

It is envisaged that employees of organisations falling into the first two categories set out above and won’t be eligible for the job retention scheme in relation to the majority of their employees. It is envisaged that NHS Trusts for example are going to require their staff to be working at full capacity where possible. However, the guidance doesn’t definitely exclude public sector organisations from furloughing employees and notably the government expects such organisations to use public money to continue to pay staff and not furlough them, rather than say requires. In reality, it is difficult to see how such an organisation will be able to rely on the scheme, but the guidance doesn’t completely rule it out.

My visa is about to expire, can I apply to extend it?

Yes, you should submit a new visa application before your current visa expires.

The visa application is a two stage process:

  • First you submit the online application and pay the fee
  • Second you attend a visa application centre to enrol your biometrics and verify your passport.

Submitting a valid online application before your current visa expires secures your right to continue living and working in the UK, even after your current visa has expired.

Visa application centres across the world have been closed due to covid19 but are now mostly re-open to enable you to book an appointment to complete your application, albeit some are experiencing a backlog of applications.

How much notice do I need to give people to return to work?

There is no minimum period of notice you are required to give employees of their return, but from a good HR practice point of view you should be speaking to your staff and letting them know what the plan is; giving people a reasonable amount of notice of return will allow them to prepare both practically and psychologically.

What actions and measures should be avoided?

The CMA is particularly concerned about certain activities, its guidance highlights:

  • Exchange of commercially sensitive information where this is not necessary in response to the crisis
  • Collaboration which unfairly excludes third parties
  • Abuse of a dominant position (including a dominant position held as a result of the crisis) – particularly to charge excessive prices
  • Seeking to maintain prices or prevent reductions in prices
  • Cooperation going beyond what is necessary to respond to the crisis in the interests of consumers