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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.

Related FAQs

If an employee refuses to come into work is their absence unauthorised and do I have to pay them?

This would depend on the reason as to why the employee is refusing to come into work. An unauthorised absence is where an employee fails to attend work and they do not have a statutory or contractual right, or their employer’s permission, to do so. An employer will not be obliged to pay employees their normal pay for periods of unauthorised absence.

There are some absences which may be viewed as authorised which would entitle the employee to their full pay. For instance, employees who believe that they are in serious and imminent danger by coming to work would be entitled to stay at home and receive pay if their belief is deemed reasonable.

An employer should always try to discuss any unauthorised absences with an employee. They may then consider whether to take disciplinary action against the employee.

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.”

What form does the relaxation take?

The European Commission has reintroduced its “comfort letter” system for cooperation in relation to shortage of supply. This allows cooperating businesses to check what the Commission’s view of their proposals are before implementing them.

In the UK context the SMA has introduced an exemption for suppliers of healthcare services to the NHS. This allows:

  • Sharing information about capacity
  • Coordination of staff deployment
  • Joint purchasing of goods, services and facilities
  • Sharing or lending of facilities
  • Division of activities, including agreeing whether to expand or reduce the volume or type of services provided by suppliers

In relation to whether the CMA will investigate cooperation, it has indicated:

  • The CMA will use its discretion as to the prioritisation of its enforcement action to permit some agreements/collaboration which would otherwise potentially give rise to enforcement action (including potentially attracting fines of up to 10% of group worldwide turnover)
  • The CMA will use its existing power to exempt certain agreements under the Competition Act 1998 where these are in the public interest
Is there any guidance available for COP proceedings during Covid-19?

The Vice President of the COP, Mr Justice Hayden, has issued guidance to assist parties during this challenging time.

The latest guidance with all relevant updates on developments is available on the judiciary website here.

What are the minimum consultation time limits?

Where an employer is proposing to dismiss:

  • 100 or more employees at one establishment within a 90-day period, consultation must begin at least 45 days before the first dismissal takes effect
  • Between 20 and 99 employees within a 90-day period, consultation must begin at least 30 days before the first dismissal takes effect
  • If you are proposing to dismiss less than 20 employees then there are no minimum time limits but you must adhere to a fair process which will involve individual consultation and providing the employee with a right of an appeal