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COVID-19 Weekly Report 25 – 31 May 2020

COVID-19 Weekly Report | 01/06/2020

2 © Copyright LBR 2020

Table of Contents 1. Executive summary ...................................................................................................................................... 3

2. Content snapshot ......................................................................................................................................... 4

2.1. Chart 1: Work areas with most COVID-19 content published since 27 February 2020 ............................... 4

2.2. Chart 2: Jurisdictions with most COVID-19 content published since 27 February 2020 .............................. 5

3. Key legal issues this week ............................................................................................................................ 6

4. Expert commentary ...................................................................................................................................... 7

4.1. Africa & the Middle East ........................................................................................................................... 7

4.1.1. Employment & Immigration ........................................................................................................... 7

4.2. Asia-Pacific .............................................................................................................................................. 7

4.2.1. Employment & Immigration ........................................................................................................... 7

4.2.2. Litigation ....................................................................................................................................... 8

4.2.3. Private Client & Offshore Services ................................................................................................ 8

4.2.4. Tech, Data, Telecoms & Media ..................................................................................................... 9

4.3. Europe ..................................................................................................................................................... 9

4.3.1. Corporate Tax ............................................................................................................................... 9

4.3.2. Competition & Antitrust ................................................................................................................. 9

4.3.3. Employment & Immigration ......................................................................................................... 10

4.3.4. Private Client & Offshore Services .............................................................................................. 11

4.3.5. Real Estate ................................................................................................................................. 12

4.4. Latin America & the Caribbean ............................................................................................................... 12

4.4.1. Insolvency & Restructuring.......................................................................................................... 12

4.4.2. Real Estate ................................................................................................................................. 12

4.5. North America ........................................................................................................................................ 13

4.5.1. Aviation....................................................................................................................................... 13

4.5.2. Employment & Immigration ......................................................................................................... 13

4.6. United Kingdom & the Channel Islands ................................................................................................... 13

4.6.1. Employment & Immigration ......................................................................................................... 13

4.6.2. Private Client & Offshore Services .............................................................................................. 14

4.6.3. Real Estate ................................................................................................................................. 14

5. Videos........................................................................................................................................................ 15

5.1. Latin America & the Caribbean ............................................................................................................... 15

5.1.1. Aviation....................................................................................................................................... 15

6. About ILO .................................................................................................................................................. 16

6.1. Contact us .............................................................................................................................................. 16

COVID-19 Weekly Report | 01/06/2020

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1. Executive summary

With most jurisdictions beginning to ease lockdown restrictions to some extent and various types of business

receiving the greenlight to recommence operations – albeit in a socially distanced way – focus appears to be

turning to long-term survival. Although many employers have implemented temporary measures such as reduced

working hours and pay, furloughs and short-term closures, workforce reorganisations and reductions may still be

on the horizon. Downsizing in the current climate – when many governments have issued emergency legislation

and measures to mitigate the impact of the pandemic on businesses – presents additional challenges both in terms

of the process (eg, consulting with employees working remotely) and the legal analysis (eg, whether the

termination is permissible under any new emergency rules).

As we begin to look forward, many commentators have observed that the challenges presented by the COVID-19

pandemic are far from unique. As such, it is imperative that businesses reflect on the lessons learned from this

crisis and implement proactive management plans to avoid potential disputes and costly clean-up projects in future.

The next section summarises some of the most pressing legal issues faced by our in-house counsel audience over

the past week.

We endeavour to develop and refine the content of these weekly reports over time to ensure utmost relevance and

usefulness to readers' daily practice. As such, we invite you to send any feedback on how the scope of future

editions can be improved to admin@internationallawoffice.com.

Make your voice heard – take our survey now! The aim of the survey is to better understand what corporate counsel need in terms of content and support around the COVID-19 pandemic, and to ensure that we continue to offer a high standard of legal information at this challenging time. www.surveymonkey.co.uk/r/6DQ8JCG

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2. Content snapshot

2.1. Chart 1: Work areas with most COVID-19 content published since 27 February 2020

Chart 1 provides a summary of the 10 ILO work areas with the most COVID-19 content published between 27

February and 31 May 2020. Employment & Immigration continues to have the most published content to date;

notably, Private Client & Offshore Services has overtaken Competition & Antitrust, perhaps as commentators

worldwide consider the interplay between social distancing rules and the legal requirements around will making.

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2.2. Chart 2: Jurisdictions with most COVID-19 content published since 27 February 2020

Chart 2 provides a summary of the 10 ILO jurisdictions with the most COVID-19 content published between 27

February and 31 May 2020. The United States and the United Kingdom have the most published content to date;

this week, Switzerland surpassed Belgium and Italy surpassed Turkey in terms of published content volumes.

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3. Key legal issues this week

DIRECTORS’ DUTIES: When a company is on the verge of insolvency, directors and CEOs often become subject to more enhanced scrutiny. Some jurisdictions impose personal liability on directors and CEOs who knew or should have known that their company was insolvent and failed to take reasonable measures to reduce its impact. As such, directors and management should be aware of these obligations and take necessary steps to ensure that they are free from liability should their company become insolvent due to the pandemic.

1

UNFAIR BUSINESS PRACTICES: Consumer complaints around business practices have increased significantly during the COVID-19 crisis. In addition to complaints of price gouging, billing and cancellation complaints are on the rise – particularly where consumers have paid for a service which they can no longer use due to lockdown restrictions. Businesses should take care not to expose themselves to consumer complaints and should be prepared to back up any price increases with evidence of supply cost increases or other explanations.

2

PROCEDURAL TIME LIMITS: In the early stages of the pandemic, most jurisdictions suspended procedural time limits and statute of limitation expiration periods. As countries ease lockdown restrictions, many have lifted these suspensions, with the courts resuming operations through the use of electronic filing systems and videoconferencing software. Parties must ensure that they pay close attention to developments in this respect to avoid being caught out for missing a deadline.

3

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4. Expert commentary

Over the past seven days ILO’s panel of expert international legal commentators have written about recent

legislative and regulatory guidance. Produced in partnership with a team of specialised editors, ILO content

provides readers with easy-to-digest insight into how COVID-19 is affecting a specific work area and jurisdiction

from a single thought leader in each jurisdiction.

If you would like to submit a question to the ILO panel, please email admin@internationallawoffice.com.

4.1. Africa & the Middle East

4.1.1. Employment & Immigration

COVID-19: DIFC emergency employment law introduced United Arab Emirates - Pinsent Masons

Employers have been given scope to restructure contracts with their employees to adapt to the challenges posed

by the COVID-19 pandemic under a temporary new emergency law introduced in the Dubai International Financial

Centre. Under the new legislation, employers can unilaterally decide to reduce employee working hours and

remuneration on a temporary basis and make further changes to work practices and employee benefits.

Authors: Charlotte Holden, Luke Tapp, Ruth Stephen

Read more

4.2. Asia-Pacific

4.2.1. Employment & Immigration

Impact of COVID-19 pandemic on employment Japan - Nagashima Ohno & Tsunematsu

In April 2020 the government declared a state of emergency due to the COVID-19 pandemic. In response,

prefectural governors have requested certain industries to suspend their business operations. This article provides

information for employers on how to handle employment matters during the COVID-19 crisis, including employment

adjustment subsidies, salary reductions and dismissals.

Author: Eriko Ogata

Read more

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COVID-19: legal position of migrant workers in Malaysian construction sector Malaysia - SKRINE

This article sets out the impact of the COVID-19 pandemic on the legal position of migrant workers in Malaysia,

particularly in the construction sector, including the risk of deportation of undocumented workers and the current

local stigma. This article covers possible restrictions, procedures and challenges faced by documented migrant

workers, documented migrant workers with a permit or pass that expired during the Movement Control Order

period and undocumented migrant workers in Malaysia.

Author: Jeremiah Ch’ng

Read more

4.2.2. Litigation

First judicial consideration of COVID-19 decisions New Zealand - Wilson Harle

The High Court recently issued a decision on a judicial review application which challenged the lawfulness of

exemption decisions made pursuant to an order under the Health Act and sought urgent interim relief. The decision

was the first consideration by the court of the lawfulness of actions taken during the exercise of the sweeping

powers assumed by the government in response to the COVID-19 pandemic.

Authors: Chris Browne, Victoria Rea

Read more

4.2.3. Private Client & Offshore Services

Wills in the time of COVID-19: challenges and solutions India - Cyril Amarchand Mangaldas

The COVID-19 pandemic has led to increased interest in succession planning, including through wills. However,

there are considerable practical and legal challenges to consider when making a will while social distancing,

isolation or quarantine measures are in place. Although no solution is foolproof, there are some measures that may

help testators to overcome the various complications associated with creating a will.

Authors: Radhika Gaggar, Shaishavi Kadakia

Read more

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4.2.4. Tech, Data, Telecoms & Media

Special governance of illegal collection of personal information by COVID-19-prevention and control apps China - AnJie Law Firm

The Tianjin Cyberspace Administration recently issued a circular which requires the operators of apps (including

mini-programs and website tools) for the prevention and control of COVID-19 to fulfil personal information

obligations in accordance with the law, provide relevant information on personal information protection online and

carry out security-based self-assessments and rectification processes, where required.

Authors: Samuel Yang, Yang Chen

Read more

4.3. Europe

4.3.1. Corporate Tax

Tax treatment of debt waivers and other debt-to-equity swaps Switzerland - Walder Wyss

In economic life, debt waivers involving associated companies take on central significance in the context of a

restructuring. It can be assumed that restructuring will greatly increase in the near future due to the financial

difficulties of many companies resulting from the current COVID-19 crisis. Although the tax treatment of a debt

waiver granted by an independent third party is essentially well defined (ie, it is recognised in income), many

questions will arise if debt is waived by a related party – namely, a shareholder.

Authors: Maurus Winzap, Fabienne Limacher

Read more

4.3.2. Competition & Antitrust

COVID-19: CCA remains fully operational Croatia - Moravčević Vojnović and Partners in cooperation with Schoenherr

The government recently announced a phased plan to lift restrictions that were imposed in Croatia as a result of

the COVID-19 pandemic. While many sectors prepare to resume operations, the Croatian Competition Authority

has been fully operational since 11 May 2020.

Authors: Srdjana Petronijević, Ana Marjančić

Read more

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4.3.3. Employment & Immigration

COVID-19: political agreements on expansion and extension of economic stimulus packages and new measures Denmark - Norrbom Vinding

The government and Parliament recently made a series of political agreements to expand and extend the current

economic stimulus packages regarding COVID-19, including the compensation schemes regarding wages and

fixed costs, and to implement various new measures. This article outlines the impact of these agreements on

employers and employees during the COVID-19 crisis.

Author: Søren Skjerbek

Read more

COVID-19: works council consultation, quarantine and social distancing Germany - Mayer Brown

The COVID-19 crisis poses many challenges for employers and employees alike. It also raises new questions

about the cooperation process between employers and works councils and the latter's co-determination. Employers

are wondering how best to consult works councils when regular operations are suspended. After all, business

needs to continue, which can also mean that personnel measures and other changes need to be carried out – all of

which are subject to works council consultation.

Authors: Hagen Köckeritz, Svenja Fries

Read more

COVID-19: workplace health and safety Italy - Stanchi Studio Legale

As Italy is dealing with the COVID-19 pandemic, the national institutions responsible for occupational safety (mainly

the National Institute for Insurance against Accidents at Work and the Labour Inspectorate) have issued rules

concerning health and safety in the workplace. Italian companies which have been authorised to reopen must

enforce a strict set of regulations in order to safeguard the health and safety of their employees and anyone who

enters their workplace during this transitional Phase 2 period.

Authors: Annamaria Pedroni, Matteo Schiavone

Read more

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COVID-19: new support for self-employed workers Luxembourg - Castegnaro

A new Grand Ducal Regulation has introduced a certified emergency allowance for self-employed workers during

the COVID-19 pandemic. The new allowance is available for merchants, artisans and intellectual workers who work

as self-employed persons, including insurance agents and brokers, and may be granted regardless of the number

of employees.

Authors: Guy Castegnaro, Ariane Claverie

Read more

COVID-19: anti-crisis shield updates Poland - Sołtysiński Kawecki & Szlęzak

In response to the COVID-19 pandemic, the government introduced a package of measures – the so-called 'anti-

crisis shield'. This article summarises the employment-related measures offered under the different versions of the

anti-crisis shield relief packages covering topics such as exemptions from social security contributions, downtime

relief payment and reduced working time.

Author: Agnieszka Fedor

Read more

4.3.4. Private Client & Offshore Services

Preventive approach to incapacity issues Switzerland - LALIVE

The COVID-19 pandemic has placed issues of life and death at the forefront of people's minds, with many people

requiring intensive medical care which may deprive them of their capacity of judgement and require others to take

decisions for them. This time of significant change is an opportune moment to consider the importance of taking

preventive steps before a state of incapacity arises to ensure that individuals' wishes are respected, as well as the

various means available to do so.

Authors: Werner Jahnel, Sandrine Giroud, Sébastien Zulian

Read more

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4.3.5. Real Estate

Legal uncertainty over rent reductions due to COVID-19 remains Switzerland - Pestalozzi Attorneys at Law

Numerous shops, restaurants and other facilities throughout Switzerland have had to close their businesses due to

emergency regulations issued to combat COVID-19. This has led to the question of whether the tenants of such

premises are still obliged to pay rent or whether they are entitled to a full or partial rent reduction. Despite many

opinions having been expressed in the legal community and by politicians, this question remains as unanswered as

it was at the beginning of the lockdown.

Authors: Michael Lips, Paola Wullschleger

Read more

4.4. Latin America & the Caribbean

4.4.1. Insolvency & Restructuring

COVID-19 restructuring and corporate recovery measures Cayman Islands - Ogier

The government recently held a virtual meeting with the heads and delegates of financial services industry

associations in Cayman to allow it to engage with them directly on various COVID-19-related business continuity

plans relating to the financial services industry. It is hoped that any chosen actions will be taken swiftly, consistent

with the government's stated desire of assisting users of the financial products that the jurisdiction offers.

Authors: James Heinicke, Marc Kish

Read more

4.4.2. Real Estate

Has COVID-19 affected real estate transactions? Bahamas - Lennox Paton

Restrictions on both domestic and international travel, lockdowns and curfews have been imposed in The Bahamas

to restrict movement in an attempt to reduce the spread of COVID-19. While law firms have had to close their

physical doors to the general public, real estate and resort development attorneys have embraced new and

efficient procedures for closing transactions.

Authors: Nateisha L Anderson-Bain, Kharin Sears

Read more

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4.5. North America

4.5.1. Aviation

DOT issues new guidance regarding airlines' obligation to provide passenger refunds USA - Cozen O'Connor

Passengers who no longer wish to travel due to COVID-19 concerns or who have had their flights cancelled are

demanding refunds from airlines. Airlines, on the other hand, are grappling with a difficult truth: if they refund all

tickets, including those purchased under the condition of being non-refundable or those cancelled by a passenger,

this will result in negative cash balances that will lead to bankruptcy.

Author: Rachel Welford

Read more

4.5.2. Employment & Immigration

COVID-19 ate my homework – recent extensions and relief for retirement plans USA - McDermott Will & Emery

In recognition of the difficulties faced by retirement plan sponsors, participants and beneficiaries due to the COVID-

19 pandemic, the Department of Labour, in conjunction with the Internal Revenue Service and the Department of

the Treasury, recently issued guidance extending a number of retirement plan deadlines, including deadlines for

many participant notices and benefit plan claims.

Authors: Diane M Morgenthaler, Allison Wilkerson

Read more

4.6. United Kingdom & the Channel Islands

4.6.1. Employment & Immigration

MAC launches six-week call for evidence on shortage occupations United Kingdom - Lewis Silkin

Employers have until 24 June 2020 to provide their views to the Migration Advisory Committee (MAC) on what

occupations should be on the shortage occupation lists for UK sponsored skilled migration from 1 January 2021.

Employers can complete an online form outlining details of what occupations they have difficulty recruiting for and

why. In light of the COVID-19 outbreak, the MAC would also like to hear from employers that are unable to respond

before the deadline, but can provide details for future research.

Authors: Andrew Osborne, Joanna Hunt

Read more

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COVID-19: does employers' duty of care extend to commuting to work? United Kingdom - Lewis Silkin

Following the government's publication of its post-COVID-19 recovery strategy, employers are beginning to

consider how they may safely reopen their workplace for those who cannot work from home. Employers have

statutory duties to provide a safe workplace, but what of risks faced by employees during their commute to work?

For many employees, the key concern is not what happens in the workplace, but rather the risks of using public

transport to get there.

Authors: Shalina Crossley, Lucy Lewis

Read more

4.6.2. Private Client & Offshore Services

Executing wills during lockdown Guernsey - Ogier

The legal formalities for executing a will in Guernsey aim to prevent fraud and undue influence. A will must be in

writing and it must be signed, or the signature must be acknowledged, by the testator in the presence of two or

more witnesses who are present at the same time. The witnesses must then sign the will in the testator's presence.

These requirements do not normally cause much of a problem but can become quite challenging in the context of

COVID-19.

Author: Martyn Baudains

Read more

4.6.3. Real Estate

COVID-19: implications for planning appeals Jersey - Ogier

The Law Society of Jersey issued guidance regarding the courts' COVID-19 contingency plans, noting that

planning appeal hearings have been suspended due to independent inspectors being unable to travel to the island.

New appeals will continue to be processed without the final hearing dates being fixed at this stage. Therefore,

parties that wish to appeal a planning decision must meet the usual timeframes.

Authors: Jonathan Hughes, Laura Shirreffs

Read more

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5. Videos

ILO videos are covering the COVID-19 pandemic from a variety of angles, allowing attendees to hear directly from

legal experts how they should be tackling the ever-changing situation.

5.1. Latin America & the Caribbean

5.1.1. Aviation

Aviation industry trends – Argentina Argentina - Freidenberg Freidenberg & Lifsic

OnDemand

The introduction of a 30% tax on international flight tickets for Argentine residents looks set to be a major challenge

for the country's already struggling aviation industry. In addition, the future of Argentina's low-cost airline market is

in doubt due to its inability to capitalise on the fall in fuel prices due to high inflation and devaluation of the

Argentine peso. This video discusses these issues as well as the potential effects of the COVID-19 pandemic on

airport business in Argentina.

Author: Juan Manuel Llobera Bevilaqua

Read more

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6. About ILO

ILO delivers expert legal commentary, in the form of concise weekly newsletter emails, to senior corporate counsel

and law firm partners worldwide. Free to receive, the ILO newsletters have been providing tailored, quality-assured

updates on global legal developments to more than 72,000 registered subscribers since 1998.

ILO content is generated in collaboration with over 500 of the world's leading experts and covers more than 100

jurisdictions.

Produced in partnership with a team of specialised editors, the ILO newsletters provide editorially-driven, high-

quality legal news in the form of concise, regular updates from a single leader in their field.

6.1. Contact us

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