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Q&As
ICO’s approach in light of coronavirus (COVID-19) On 15 April 2020, the UK’s supervisory body for data protection, the Information Commissioner’s Office (ICO) issued a statement and document setting out how it shall be adjusting its regulatory approach during the current coronavirus (COVID-19) pandemic, with a focus on safeguarding information rights in an ‘empathetic and pragmatic way’ as a result of: • staff and capacity shortages organisations are facing, with furloughed employees • acute financial pressures that
Q&As
There is an enterprise management incentives (EMI) commitment of working time requirement which must be satisfied by any employee in order to qualify to be granted an EMI share option. An employee is eligible for EMI purposes only if their average amount per week of ‘committed time’ equals or exceeds: • 25 hours a week (regardless of any other economic activity they also undertake), or • if less, 75% of their working time Once an EMI option has been granted, this committed working time requirement continues to apply, and in addition to this the employee must actually spend a statutory minimum amount of time on the business of the company
NEWS
Restructuring & Insolvency analysis: We look at what steps Japan has taken in light of the coronavirus (COVI-19) pandemic. Written by Yosuke Kanegae, a restructuring partner in the Tokyo Office of Nagashima Ohno & Tsunematsu and author of the Japan chapter in the Asian Business Law Institute (ABLI)’s publication, Corporate Restructuring and Insolvency in Asia 2020.
Q&As
Is there a force majeure event? In English law, the expression ‘force majeure’ does not refer to a legal doctrine. Instead, the expression ‘force majeure clause’ is used to describe a contractual term which provides that, on the happening of a specified event or event beyond the parties’ control, one (or both) of the parties: • is entitled to cancel the contract (or it may be cancelled automatically) • is excused from performance of the contract, in whole or in part • is entitled to suspend performance or to claim an extension of time for performance Whether or not a force majeure clause will assist in suspending performance obligations under a contract or give rise to a right to terminate a contract will be subject to the particular drafting of the clause and the general principles of contractual interpretation should be applied. See Practice Notes: Contract interpretation—the guiding principles and Contract interpretation—rules of contract interpretation. It will be necessary to check to see if the definition
NEWS
Dispute Resolution analysis: Force majeure and frustration have suddenly taken centre stage for parties who are either considering their remedies under existing contracts, or deciding what protections need to be built into their future contracts. Patricia Robertson QC, Ben Lynch QC and Deborah Horowitz, barristers at Fountain Court Chambers set out the core legal principles as regards force majeure and frustration, consider their relevance in the context of coronavirus (COVID-19), and identify consequent issues for some of the major industries affected by the pandemic, including construction, trade finance, banking, airline, pharmaceuticals, energy and insurance.
Q&As
Where notice of termination of employment is given, either by the employer or the employee, and the employee has been continuously employed for one month or more, then, in broad terms, the employee is entitled to be paid a week’s pay for each week of the statutory notice period. However: • the liability of the employer to the employee is limited to the period of statutory notice to which: • the employee is entitled, if notice is given by the employer • the employer is entitled, if notice is given by the employee • the rights that otherwise arise during a period of statutory minimum notice do not
Q&As
It is fairly common that where a business is sold, the contract will provide for deferred consideration which is calculated in accordance with a profitability formula. This ensures that while the seller receives a lump sum as part of the purchase price, the remainder of the purchase price is conditional on the performance of the business, thus protecting the seller or the buyer depending on where the risk has been agreed to fall. It is also a useful protection against the seller setting up in competition and attracting away existing clients as the seller has a financial interest in the business remaining profitable, at least for the
Q&As
This Q&A assumes that the tenancy is not a tenancy of social housing or long lease but a residential assured shorthold tenancy (AST) in England to which the Tenant Fees Act 2019 (TFA 2019) applies. A landlord should only expect the tenants to clean the property to the standard that it was in when they moved into the property, while accounting for general wear and tear. Coronavirus (COVID-19) does not change that requirement. The relationship between a landlord and tenant is governed by the terms and conditions of the tenancy agreement between them. However, it is possible for statute to impose implied terms into tenancy agreements and to render the inclusion of certain clauses into tenancy agreements unenforceable. How are the tenancy deposit schemes likely to deal with this? Some tenancy agreements contain a clause that asks for professional deep clean at the end of the tenancy.
Q&As
The Coronavirus Act 2020 (CA 2020) does not impose any restriction on the ability of landlords to serve a notice under section 25 of the Landlord and Tenant Act 1954 (LTA 1954), whether opposing or not opposing a new tenancy. In an opposed notice, landlords remain able to rely on ground (b)—persistent delay in paying rent (see Practice
Q&As
Clearly the execution of a new Will at this time will be a priority for many clients and solicitors are under a duty to act in a timely manner, taking into account factors such as age and state of health, which will be of particular concern at the moment. At the same time many legal practitioners will be struggling to work at full capacity due to lack of childcare. The Department for Education is clear that every
Q&As
As set out in Q&A: What would the statutory position be if the postal system is not available due to coronavirus (COVID-19) and the parties have to serve a statutory notice (absent any emergency legislation which may be introduced to deal with this issue)?, the first step will be to carefully assess both the instrument (for example a contract, deed or lease) under which the notice is to be served, and the statutory regime which applies to the notice. Separate statutes may govern the circumstances in which the notice can or must be served on one hand, and the way in which service can take place on the other. For example, the termination of protected business tenancies is governed by the Landlord and Tenant Act 1954 (LTA 1954), which incorporates the service regime set out in section 23 of the Landlord and Tenant Act 1927 (LTA 1927). Contractual terms as to service Some leases will include deemed service provisions
Q&As
It is assumed that the reference to the ‘Hague Convention’ is to the Hague Service Convention, concluded as part of the Hague Conference on Private International Law in 1965 (the Convention). Methods of service under the Convention The first point to note is that where the Convention is applicable, service must be effected in accordance with its provisions, and it is not possible to circumvent this procedure through an order for alternative service from the courts of this country, or by other means (Cecil v Bayat); that this is mandatory in all cases and not merely in the nature of guidance is confirmed by the approach of the High Court in relation to Regulation (EC) 1393/2007, the Service Regulation in Hornan v Baillie. The primary method of service under the Convention is for the serving party to send