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What are the changes to the law?

On 25th June 2020, the Corporate Insolvency and Governance Act, among other things, introduced new restrictions on suppliers of goods and services to terminate the contract in the event that the customer enters an insolvency process.  This has very important consequences for many businesses as it could expose them to greater financial risks.

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.

Are all employees required to stay at home?

No, where employees cannot work from home, and it is safe for them to return to work, they should do so.

How are the Courts applying the new guidance?

Overall it is our experience that the Courts are quickly adapting in the context of the Coronavirus epidemic and making pragmatic decisions. The Judges seem live to the difficulties currently been faced by practitioners dealing with litigation and they are applying the new guidance.

The Courts are also mindful of pressures on NHS frontline staff and are taking steps not to put additional pressures on them at this time, including in our experience vacating an imminent Trial.

Can colleagues meet outside of work during the national lockdown?

Yes, but only for work purposes and where it is unreasonable to do so from home. Work colleagues cannot meet to socialise.

ONLINE EVENT: Global Clinic: Covid-19 and International Trade

Hosted by The North East England Chamber of Commerce, this webinar discussed practical advice on Covid-19 and the specific challenges for International Trade.

Partner Damien Charlton along with Andrew Needham,from Haines Watts and Grant Murray from XE Finance, provided an update on the challenges and potential solutions in their field, as well as a look forward for the “New Normal”.

To watch the full recording, please click here or to view the slides, please click here.