UKinbound Covid-19 Webinar – Legal Issues 31 March 2020 Matt Gatenby , Senior Partner Ami Naru , Partner, Head of Employment Emma Shakespeare , Senior Associate, Head of Corporate Governance
Covid-19 & The UK-centric Travel Industry Most Asked Questions – B2C etc… When can a trip/service still go ahead? • Official Governmental positons are important; • Is there a “flicker of hope”? Where is “the line” drawn? Does 21 days work?; Title Text • “Package” or not? If so, Regulation 11(3) notify, offer alternative, refunds; and Regulation 12 (7) consumer right to cancel without fee, refunds; • Not a “Package”, force majeure/ frustration and Consumer Rights Act 2015 etc., • Travel Insurers & Chargebacks are not helping… YOUR TRAVEL AND LEISURE LAW TEAM
Covid-19 & The UK-centric Travel Industry Most Asked Questions – B2B & Suppliers Suppliers (B2B) • PTR not apply; Title Text • As such, your contract terms with your customer is your “go to” and within are usually “the answers”; Three elements to focus on for now are: • Force Majeure – are you relieved from liability to pay ‘compensation’?; • Refunds – Are you required to pay refunds? Can you deduct reasonable expenses?; • Jurisdiction – What law & jurisdiction applies? YOUR TRAVEL AND LEISURE LAW TEAM
Good Corporate Governance for Directors • Directors Duties (Part 10 Companies Act 2006); • Insolvency Act 1986 + Government’s temporary suspension of wrongful trading for 3 months from 1 March; Title Text • If the company is listed, consider any additional obligations/ duties. Delegation is no safe harbour but, no liability for mere ordinary commercial misjudgement. • Hold regular board & management meetings , and prepare clear minutes (steps taken & why); • Directors indemnity insurance; • Indemnity from company (s232 Companies Act 2006); and • Seek professional advice/ training. YOUR TRAVEL AND LEISURE LAW TEAM
Employees – Furlough Can I Make Redundancies / Can I “Furlough”? • Furloughing (not a concept previously known) is to prevent redundancy; • Workers must be designated “Furloughed” & agreement may be needed; • These take place in x3 week minimum blocks, up to 31/05/2020; Title Text • Govt pays 80% of earnings through the Scheme. “When” is a question; • Topping up the 20% is entirely optional – but tell the Workers; • Workers cannot work for you at all. They can volunteer for other things; • Staff illness is yet to be encountered in significant numbers, but we have a handy Flowchart which will help – contact us for a copy: YOUR TRAVEL AND LEISURE LAW TEAM
Self Employed Help for Self Employed – What so know so far: • Pays self-employed a taxable grant of 80% average income – capped at £2.5k pcm; Title Text • Average income over the last x3 years is the basis of the calculation; • Open to individuals with trading profits of up to £50k. 95% expected coverage; • Expected to last x3 months, but not expected to be up before June; • Second jobs invalidate the scheme; • Only open to those who have submitted a tax return for 2019; • To be paid directly via HMRC once details entered into portal. YOUR TRAVEL AND LEISURE LAW TEAM
Thank You! Any Questions? Matt @ travlaw.co.uk Ami @ travlaw.co.uk Emma @ travlaw.co.uk
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