UKinbound Covid-19 Webinar Legal Issues 31 March 2020 Matt Gatenby - - PowerPoint PPT Presentation

31 March 2020

UKinbound Covid-19 Webinar – Legal Issues

Matt Gatenby, Senior Partner Ami Naru, Partner, Head of Employment Emma Shakespeare, Senior Associate, Head of Corporate Governance

YOUR TRAVEL AND LEISURE LAW TEAM

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Covid-19 & The UK-centric Travel Industry

Most Asked Questions – B2C etc…

When can a trip/service still go ahead?

• Official Governmental positons are important;
• Is there a “flicker of hope”? Where is “the line” drawn? Does 21 days work?;
• “Package” or not? If so, Regulation 11(3) notify, offer alternative, refunds;

and Regulation 12 (7) consumer right to cancel without fee, refunds;

• Not a “Package”, force majeure/ frustration and Consumer Rights Act 2015

etc.,

• Travel Insurers & Chargebacks are not helping…

YOUR TRAVEL AND LEISURE LAW TEAM

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Covid-19 & The UK-centric Travel Industry

Suppliers (B2B)

• PTR not apply;
• As such, your contract terms with your customer is your “go to” and

within are usually “the answers”; Three elements to focus on for now are:

• Force Majeure – are you relieved from liability to pay

‘compensation’?;

• Refunds – Are you required to pay refunds? Can you deduct

reasonable expenses?;

• Jurisdiction – What law & jurisdiction applies?

Most Asked Questions – B2B & Suppliers

YOUR TRAVEL AND LEISURE LAW TEAM

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Good Corporate Governance for Directors

• Directors Duties (Part 10 Companies Act 2006);
• Insolvency Act 1986 + Government’s temporary suspension of wrongful

trading for 3 months from 1 March;

• If the company is listed, consider any additional obligations/ duties.

Delegation is no safe harbour but, no liability for mere ordinary commercial misjudgement.

• Hold regular board & management meetings, and prepare clear minutes

(steps taken & why);

• Directors indemnity insurance;
• Indemnity from company (s232 Companies Act 2006); and
• Seek professional advice/ training.

YOUR TRAVEL AND LEISURE LAW TEAM

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Employees – Furlough

Can I Make Redundancies / Can I “Furlough”?

• Furloughing (not a concept previously known) is to prevent redundancy;
• Workers must be designated “Furloughed” & agreement may be needed;
• These take place in x3 week minimum blocks, up to 31/05/2020;
• Govt pays 80% of earnings through the Scheme. “When” is a question;
• Topping up the 20% is entirely optional – but tell the Workers;
• Workers cannot work for you at all. They can volunteer for other things;
• Staff illness is yet to be encountered in significant numbers, but we have a

handy Flowchart which will help – contact us for a copy:

YOUR TRAVEL AND LEISURE LAW TEAM

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Self Employed

Help for Self Employed – What so know so far:

• Pays self-employed a taxable grant of 80% average income – capped at £2.5k pcm;
• Average income over the last x3 years is the basis of the calculation;
• Open to individuals with trading profits of up to £50k. 95% expected coverage;
• Expected to last x3 months, but not expected to be up before June;
• Second jobs invalidate the scheme;
• Only open to those who have submitted a tax return for 2019;
• To be paid directly via HMRC once details entered into portal.

Thank You!

Any Questions?

Matt@travlaw.co.uk Ami@travlaw.co.uk Emma@travlaw.co.uk