What should businesses do now?
Many will have worked collaboratively with their suppliers and customers to deal with the immediate public health crisis. This will have meant offering flexibility as to contractual arrangements, whether in delivery dates, volumes of goods or services supplied, or even in the specification of what has been delivered.
If this is the case, it is important that businesses now do their legal housekeeping and make sure they have a proper record of what has been agreed. Unfortunately, our experience shows that many legal disputes arise out of amendments to contracts, typically where the parties to the contract each have a different view about what exactly they agreed to change.
We would therefore advise businesses to review any amendments that they might have agreed either verbally, by email, or otherwise, and consider whether they need to be captured in a more formal way which will make clear exactly what has been agreed to be varied, and (where appropriate) how long that variation will remain in force.
It’s also important to remember that some contracts contain provisions that set out specific requirements about how amendments are to be made. For example, they might require that amendments are made in writing (rather than verbally). These “No Oral Modification” clauses are commonly found in commercial contracts, and the courts have recently shown that they are willing to enforce them.
Failing to deal with amendments in accordance with contractual requirements could therefore have a serious impact on businesses as they recover from the disruption caused by the lockdown. If they end up in dispute with a customer or supplier, a business could find that the contract has not actually been amended in the way that they think – potentially leading to legal costs and liabilities at the worst possible time.
Related FAQs
Hosted by The North East England Chamber of Commerce, this webinar discussed practical advice on Covid-19 and the specific challenges for International Trade.
Partner Damien Charlton along with Andrew Needham,from Haines Watts and Grant Murray from XE Finance, provided an update on the challenges and potential solutions in their field, as well as a look forward for the “New Normal”.
To watch the full recording, please click here or to view the slides, please click here.
To respond to the crisis businesses might need to exchange information to a greater extent than they would usually. They might need to discuss capacity and to coordinate supply chains (both upstream and downstream). They might need to purchase or sell jointly to ensure vital supplies are maintained. In general agreements or collaboration which:
- Avoid a shortage, or ensure security, of supply
- Ensure a fair distribution of scarce products
- Continue essential services
- Provide new services such as food delivery to vulnerable consumers
Residents will be obliged to:
- Not act in a way that creates a significant risk of a building safety risk materialising
- Not interfere with building safety equipment in the common parts
- Comply with an Accountable Person’s request for information in relation to the assessment and management of building safety risks.
The Accountable Person then has powers in relation to these duties, including:
- Issuing a contravention notice, requiring a resident to pay for replacement or repair of safety equipment which they have interfered with
- Applying for court orders in certain situations
- Requesting access at a reasonable time (in writing with at least 48 hours’ notice) to a resident’s property for the purposes of assessing or managing building safety risks, or checking compliance with the resident’s duties as above.
Secondary legislation is still awaited to bring these provisions into force, so the timing is unknown, but it will likely be within the next 12 months in line with the anticipated timetable for the remainder of the Act.
The basics of health and safety law requires that employers take “all reasonably practicable steps” to ensure workers’ safety and that a suitable and sufficient assessment of risk is undertaken. It is the individual assessment of Covid-19 risk in each workplace that will be central. Employers will be required to conduct a robust risk assessment and then, following the hierarchy of controls, put robust processes and safeguards in place to address those risks.
UK government guidance and HSE advice is continually evolving, which in practice means that any risk assessment will need to be reviewed very regularly as that guidance develops. There is flexibility for individual businesses within the overall government framework and there will need to be a process of evaluation to ensure that the measures in place continue to meet the requirements.
The starting point of avoid, eliminate and control means looking at individuals continuing to work from home where possible (the fewer the number of people back in the workplace the lower the risk), and if not look at risk management, which leads to administrative controls – i.e. changing work practices before ending up at PPE. PPE is generally seen as control of last resort but in practice – facemasks, disposable gloves and constant prompts to wash hands for example.
In terms of changing working practices, employers should be thinking about:
- the workspace and how this is laid layout
- how do we make sure it is kept clean and hygienic
- how do we keep people apart
- how can we use toilets, canteens or other shared spaces/facilities safely
- how do we promote and enable higher levels of workplace hygiene
- if we are going to rely on PPE – can we get it, and is it suitable
- what about limiting customer interactions
- will there be enough first aiders on site
- can we manage fire safety, deliveries etc
- what about higher risk workers
- should work tools and equipment be allocated on an individual basis to employees.
These decisions need to be recorded and clearly communicated to staff members.
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