What if there is no Will? Can I challenge what I would receive ?

• A taxable grant worth 80% of the average monthly profit over the last three years (one or two years will be reviewed for those who do not have three years of tax returns)
• The grant will be capped at £2,500 per month
• The scheme was initially available for three months and has been extended as necessary
• Individuals claiming a grant can continue to do business (unlike employees who must not work when furloughed)

Employees will be reluctant to take unpaid leave or a sabbatical but when faced with the alternative prospect of redundancy may give it some serious consideration. This would remove the cost of that employee from the employer’s business for an agreed period of time. This is an option which can be offered to employees but again, imposing it without agreement creates significant risk.

An obvious cost cutting measure is to reduce salaries, either temporarily or permanently. If you are to seek a reduction in salaries, this should be done fairly – either across the board or by selecting teams/individuals based on objective business reasons.

Note that this cannot be imposed without significant risk. Without agreement, this would need fair selection and consultation.

State aid rules are contained in the Treaty on the Functioning of the European Union (previously referred to as the Treaty of Rome). The State aid rules prohibit the use of state resources, or any public support with an economic value, which given selectively has the capacity to distort trade by favouring certain undertakings, or the production of certain goods, and which has the potential to affect trade between Member States. Where aid is present it must not be granted unless it has been specifically approved in advance by the European Commission or benefits from a general exemption to the rules.

In general, the rules apply to all State actions which might assist businesses including:

• Grants
• “Soft” loans
• Selling to business at an undervalue
• Buying from business at an overvalue

Hosted by Advanced Manufacturing Forum, Partner, Matt Cormack discussed in this webinar how to avoid risks associated with your customer and supply chain contracts during this challenging Covid-19 period.

The webinar covers common questions such as:

• Can force majeure excuse me or my suppliers from paying on time?
• What are the risks to my business if I can’t perform on time due to Covid-19?
• What will happen to my contracts if the Government takes steps to require me to close down my facility?

To watch the full recording, please click here. (To note the recording begins at 10 minutes)

If you have any follow up questions, please do not hesitate to contact one of our lawyers detailed below or use our ‘ask us a question‘ feature.