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What are the contractual issues that businesses need to think about as they get back to business following lockdown?

It is clear that we are emerging from a completely unprecedented period of disruption for many businesses, and this may have had a huge impact on their contractual arrangements both with suppliers and customers.

As the lockdown eases, and we get back to business, it’s important that businesses take stock of what has happened, and ensure they review and address the legal and contractual consequences of what has been happening since the start of the global pandemic.

Related FAQs

Who do the Procurement Policy Notes (PPN) apply to?

All three of the PPNs are effective immediately and apply to the following Contracting Authorities:

  • Central Government Departments
  • Executive agencies
  • Non-departmental public bodies
  • Local authorities
  • NHS bodies
  • The wider public sector

In regards to PPN03/20, those in scope organisations that do not currently use procurement cards are advised to immediately put in place arrangements using the relevant Crown Commercial Service Agreement (Lot 2 of RM3828 Payment Solutions).

What happens if a patient is admitted to hospital during the pandemic?
When will I receive a grant under this scheme?

The Chancellor confirmed that payments under the scheme would not be available immediately.

What should I do if I have a hearing scheduled in the COP?

Parties are encouraged to review upcoming matters to assess the viability for there to be any agreement which can be reached in relation to the issues in dispute or to consider whether the case needs to proceed to a remote hearing. If directions or issues can be agreed between the parties, reducing the need for remote hearings, then that is the preferred option.

What other options are there to reduce employment costs?

If you don’t want to make redundancies, or if you can’t reduce employee resource, either in a particular department or across the workforce as a whole, then you need to think about alternatives to redundancy.

Equally, you may want to flex the resource you have available to you – without making drastic changes.  For example you may want to consider:

  • unpaid leave and sabbaticals
  • retraining and redeploying
  • forcing annual leave
  • flexible working
  • capability issues
  • lay off
  • short time working
  • reductions in salary
  • reductions in working hours
  • changing to shift working