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

• Yes, if contributions to a defined contribution (“DC”) scheme exceed statutory minimum for auto-enrolment purposes, it may be possible to reduce employer contributions to the statutory minimum, but not further.
• However, the processes required for reduction of DC employer contributions will necessitate obtaining legal advice:
  • Reducing employer contributions may require changes to the employment contracts of affected staff (as does the furlough process).
  • Reducing employer contributions may also require negotiation with trade unions or other staff representative forums.
  • Where group personal pensions are used, the contractual format may not permit changes of employer contributions, and hence it may also be necessary to enter into a new contractual arrangement. Choosing a new group personal pension plan is a not insignificant task in itself.
  • Employers with at least 50 employees are required to conduct a 60-day consultation process with affected employees if they propose to reduce employer contributions (but please see below).
  • Finally, it may require a change to the scheme rules and engagement with the scheme trustees if the scheme is operated under trust.
• For DB schemes, specific considerations apply (see the last section, below).

With the outbreak of coronavirus leading to a requirement for more employees to be working remotely, especially following Government advice that all non-essential travel including to and from work should be avoided, there has been an increased requirement for businesses to be more flexible in their approach to signing contracts.

The traditional approach has been for contracts to be printed and signed with a “wet ink” signature. However, this is not a strict legal requirement in the majority of circumstances and contracts can be formed without this degree of formality. English law recognises that contracts can be formed by electronic means – including the exchange of emails or the typing of a name into a document to signify agreement to it.

Whilst this approach offers a lot of flexibility, more sophisticated electronic signature tools are recommended for important documents, to enable the identity of the signatory to be validated and reduce the possibility of fraud.

If businesses are considering changing their contracting processes because of coronavirus, or because of a general shift towards paperless working, it is important to ensure that proper approval processes remain in place, and to consider whether a software tool should be used to complement them. Systems such as DocuSign are widely used.

There also remain some situations where legal advice is recommended before relying on an electronic signature:

• Where the other party is abroad – as local laws that are different from English law might apply
• If executing a deed – the law requires certain types of document to be executed as a deed (for example, transfers of land and powers of attorney), and the issues around electronic signature and witnessing are more complicated here

The Government’s Corporate Insolvency and Governance Act introduces amendments to the current rules for companies on holding meetings, to address the difficulties companies are facing due to the Covid-19 pandemic.

The new provisions apply to meetings held between 26 March 2020 and 30 September 2020 (referred to as the “Relevant Period”). Subsequent regulations by the Government can be used to shorten this period or extend by up to 3 months but not past 5 April 2021.

The provisions will have retrospective effect, so meetings that were held after 26 March 2020 that may not have met the usual legal requirements due to lockdown, will be validated under these new provisions. These provisions under the Act make amends to relevant legislation and override a company’s articles of association.

For general meetings and certain other meetings of companies, the Act states that:

• The meeting need not be held in any particular place;
• The meeting may be held, and any votes may be cast, by electronic means or other means;
• The meeting may be held without anyone being in the same place
• Persons attending the meeting no longer have the following rights: the right to attend in person, the right to participate in the meeting other than by voting, or the right to vote by particular means.

The aim of these changes is to facilitate virtual meetings, and remove the need for a physical venue.

Where a company was required to hold its AGM between 26 March and 30 September 2020, it can be held at any time before 30 September 2020.  The Secretary of State has the power to make regulations to further extend the deadline.

Employers will be collecting and sharing health information. Health information is sensitive and higher data protection standards apply. Here are a few key pointers.

• Update privacy notices to cover the new collection and sharing of employees’ information and provide these to the workforce. Be transparent and fair.
• Identify the legal basis and condition for use of this information and put any required paperwork in place. The ICO guidance will help. For some conditions such as the employment condition, an Appropriate Policy Document (APD) will be required. The ICO has an APD template.
• Only use the information for the purpose of managing the workforce during the pandemic.
• Only collect or share information if it’s necessary – if it’s a targeted and proportionate way of achieving your purpose.
• Make sure any health information collected and shared is accurate – there may be serious consequences if it’s not.
• Work out how long the information must be kept for. Keep a record of that period and act on it at the appropriate time.
• Security is very important – there may be malicious actors trying to trick employers and employees. Make sure employees know how to identify a genuine NHS Test and Trace contact. Keep the information secure. Use the ICO’s data sharing checklists** and keep a record of the disclosures made and why. Control external disclosures – only certain authorised members of staff should make them.
• Make sure individuals can still exercise their data protection rights – that’s also very important. Keep data protection records up-to-date and ensure any exports of personal information outside the UK are compliant.
• Before introducing employer-led testing like taking temperatures, thermal imaging or other potentially intrusive tests, work out if a data protection impact assessment (DPIA) is required. It will be if the intended processing is ‘high risk’. If it is, then carry out a full DPIA. It will help address the issues systematically and mitigate risks.
• All this demonstrates ‘accountability’ – it shows affected individuals and the ICO that the employer is complying with data protection requirements.

If you need further help, please visit the ICO’s data protection and coronavirus information hub or ask our data protection team.

** Please note that this link is to the ICO’s existing checklists and data sharing code of practice. We will update the link to the ICO’s new checklists after they are published.

If such testing is regarded as a “reasonably practicable step” which has been identified as an appropriate control following a risk assessment then it is something you can do.

Although you can’t physically force someone to have something intrusive done, this is very likely to be a reasonable management instruction and therefore if someone refuses to have this done as a condition of entry into the work place then disciplinary action may follow.

Where this is something that is required of employees, employers should be letting their staff know that this is one of a number of measures that are being introduced into the workplace for their own safety. If the employer can explain, in advance of the return, why temperature checks need to be taken, what the consequences of the results will be- i.e. will they be sent home if over a certain temperature, whether this data will be stored (and if the sole purpose is to determine whether or not they are fit to attend work on a particular day then why are they being stored), and the fact that temperature checks are a requirement of entry to company premises for everyone, then there shouldn’t be significant resistance to this measure.

Large scale temperature checks have in some businesses become part of the “new normal” working environment.