The outbreak of coronovirus across the world has triggered a raft of measures, implemented globally, aimed at containing the epidemic from the Italian lockdown, international travel limitations and cancellations to the abandonment of sporting and other public events and closure of public services.   Nationally, self-quarantine and working from home measure are being employed.

The extensive disruption the outbreak is causing organisations will almost certainly lead directly to legal issues arising, now and in the future.  As this is an unprecedented situation it is understandable that many disaster recovery plans do not include a measure to address a rapidly spreading pandemic.

The immediate concerns are safety first for employees and customers and how to maintain day to day business dealings.  Organisations are going to have to act swiftly and decisively.

Legal Law Limited provides below some general points to assist in managing the immediate challenges presented.

Business Continuity and Crisis Management

• Review existing policies
• Reiterate as to who the key managers are and who has authority to make vital decisions related to maintaining the business with regard to the coronavirus crisis
• Develop and maintain a communication plan
• Set up regular alerts to inform the wider staff of any measures that may affect them
• Inform customers, suppliers and investors as to how the business is managing the coronavirus issue and the potential impact on them.
• Plan for operating on a skeleton staff
• Plan for business closure and how the business could continue with staff working from home.
• Business travel should be limited to essential trips only.

HR and Employment Issues

To protect the health and safety of your staff ensure that:

• Ensure there are places for staff to wash their hands in hot water with soap.
• Provide staff with hand sanitiser and tissues.
• Remind staff of the frequent 20 second-hand washing principle.
• If appropriate to your industry sector provide face masks.
• Ensure that all managers can identify the symptoms of coronavirus.
• Make certain that the emergency contact details for all employees are up to date.

Time off

• If a member of staff contracts coronavirus, the normal contractual sick pay of the business apply.
• Self-isolation, the government announced that should NHS 111 or a doctor advises an individual to go into isolation that they should receive statutory sick pay from day one.  It would be good practice for a business to extend their normal contractual sick pay to such employees.
• In the current circumstances, an employee may not be able to provide a sick or fit note.
• An employee asked by their firm to self-isolate should receive their normal pay.
• If a member of staff requires time off to care for a child whose school has been closed down, the provision for time off for an emergency applies, there is no entitlement to pay an employee in these circumstances, however, the opportunity for the member of staff to take holiday should be considered.

Contractual Obligations and Potential Disputes

• The unprecedented circumstances that the coronavirus presents may provide a basis for disputes.
• Review all contracts.
• Review force majeure clauses.
• Ensure that any requests for variations or a waiver in connection with contracts are clearly understood before agreeing to them.
• Review and clarify any disclosure obligations, particularly for listed companies.
• Be aware of all regulatory obligations to all parties regarding a material change to the business plan and reporting of principal risks and uncertainties.