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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.

Related FAQs

What do we need to do?

Privacy policy – You must make sure the relevant privacy policies deal with how you will process Covid-19 data. You should have an employee privacy policy and this may already deal with health data (if it doesn’t, it should). You might also need to look at privacy policies for customers, visitors and suppliers. This ensures that processing is lawful, fair and transparent.

Lawful processing conditions – You will need to consider which processing conditions you are relying on (remembering that you need both an Article 6 condition and an Article 9 condition – this is the part of the GDPR which deals with special category data). As a lot of the data you collect will be about employees, you can’t use consent so you will have to find another lawful reason under GDPR which allows you to process the data.

Appropriate policy document – When you are considering your Article 9 processing conditions, remember you must also have an “appropriate policy document” in place.

Processing record – Finally make sure your processing record is up to date with information on what data you collect and use.

What is the risk if I insist that my employees have the vaccine?

If you do not have a justifiable reason for insisting that your employees have the vaccine (see FAQ above) your employee could resign and bring a claim of constructive unfair dismissal if they have more than 2 years’ continuous employment. This would be on the basis that you have breached trust and confidence.

If the vaccine includes pig gelatine (as many do), and the employee refuses on religious or because they are vegan, you may face a claim for discrimination under the Equality Act 2010.

Given the recent decline in financial performance, the business is now in breach of its covenants with the bank. Should we be concerned?

That will depend on the terms of your facility and the stance taken by your bank.

Banking facilities often place obligations on businesses to stick to certain financial criteria. For example, an obligation to keep turnover or profit above certain levels or a commitment to keep the bank’s exposure within an agreed percentage of the value of the company’s assets (known as loan to value ratio).

The consequences of breaching those covenants will depend on the terms of your facility, but normally this amounts to an event of default. Events of default can result in the loan (or whatever form the facility takes) becoming repayable and could give the bank certain powers to take action to recover the money that they are owed.

Whether the bank will take action during these unprecedented times is another matter, particularly given the extent of support being offered to businesses via mainstream lenders and the political desire to keep viable businesses up and running. Lenders themselves will no doubt wish to remain supportive where possible. The underlying performance of the business (and whether but for the effects of Covid-19 it would have been in a healthy financial position), the relationship you have with the bank and your history with them will no doubt be relevant to the approach taken by the bank. However, early engagement with your bank (as well as other key stakeholders in the business) will be important.

Is it possible to apply for a grant of probate at the moment?

Yes. The system for Probate Applications has moved on-line and continues to be available as well as by post. However, if you need to complete an Inheritance Tax Return IHT400 you are likely to experience problems collating information due to delays in many organisations being able to provide you with current values while their offices are closed and staff working remotely. Property valuations will be particularly problematic where surveyors or valuers are unable to attend properties to undertake non-urgent work. If you cannot wait, you must use your best endeavours to be as accurate as possible as regards the information you provide in the IHT400 and follow up by providing HMRC with actual values as soon as you can do so. HM Courts and Tribunal Service is however warning that delays can be expected at this time.

Do I need to do anything extra to safeguard my employee’s mental health during the Covid-19 outbreak?

Homeworking can cause work-related stress and affect people’s mental health and being away from managers and colleagues could make it difficult to get proper supervision and support.

Encourage your employees to keep in touch. Put procedures in place so you can keep in direct contact with home workers and can recognise signs of stress as early as possible. Use group chat and video chat tools imaginatively.

Have an emergency point of contact and share this so people know how to get help if they need it.

People are much more anxious than usual and may be less productive as a result – recognise this and try to be patient.