Tag archives: COVID-19

Extended business cover confined to physical not financial loss by government Covid-19 action (Aus)

In this August 2021 judgment, the Federal Court of Australia in Star Entertainment Group Limited v Chubb Insurance Australia Limited [2021] FCA 907 had to deal with the interpretation of an insurance policy of the insureds who owned and operated various casinos and associated businesses.  The insureds allege that the government’s directions in connection with … Continue reading

COVID-19 Vaccines: A step towards mandatory vaccination in the workplace

Whilst Government had initially taken the view that vaccinations against COVID-19 would not be made mandatory, the revised Consolidated Directions on Occupational Health and Safety Measures in certain workplaces (the Directions), promulgated by the Minister of Employment and Labour, on 11 June 2021, reflect a significant change of approach. In particular the Directions now implicitly permit, … Continue reading

Covid-19 insurance claims and physical loss (US)

Another American court in G & A Family Enterprises, LLC d/b/a Smokin’ Pig BBQ & Others v American Family Insurance Company 1: 20-CV-03912-JPB has held that State-imposed Covid-19 restrictions do not qualify as a “direct physical loss” under the insurance policy held by the insureds. The court held that while the phrase “direct physical loss” … Continue reading

Merger ends due to failure to operate in the ordinary course, but COVID-19 not MAE (US)

In December 2020 the Delaware court held that the COVID-19 pandemic did not cause a Material Adverse Effect on the target of a merger because the MAE excluded ‘natural disasters and calamities’. Despite this, the buyer was not obliged to close the transaction and was entitled to terminate the sale agreement because the target made … Continue reading

Can South African employers require their employees to undergo mandatory vaccination and testing for COVID-19?

Global efforts have successfully developed both expedited means of testing for the COVID-19 virus and, more recently, vaccines. Employers may thus wish to explore the introduction of workplace policies which formalise mandatory testing and vaccination protocols in order to restore their workplaces to some level of normality, particularly workplaces where remote working is not suitable. … Continue reading

COVID-19 infectious disease extensions and the FCA test case

The English high court, in a test case between the Financial Conduct Authority and Arch Insurance (UK) Limited and a number of other insurers, engaged in a nuanced analysis of their different policy wordings relating to business interruption cover for COVID-19 related losses. The court largely sought to resolve causation issues by interpreting each policy. … Continue reading

Managing construction sites and other workplaces in the new normal

Construction sites and other workplaces need to comply with regulations and manage health and safety risks, while attempting to increase production, as we move into less restrictive lockdown levels. The announcement of South Africa’s move to lockdown Level 2 with effect from 18 August 2020 is being celebrated by almost all economic sectors. Despite this, … Continue reading

Sick leave and self-isolation: A guide for employers

With the increasing number of COVID-19 infections, employers must deal with employees who test positive for the virus, those who come into contact with individuals who test positive, and those who present with COVID-19 related symptoms. It is therefore important for employers to understand when sick leave must be used. The different sick leave options … Continue reading

COVID-19, business interruption and physical damage

In South Africa and the United Kingdom, coronavirus coverage disputes are centring around the interpretation of various non-damage extensions provided under the policy’s business interruption section. In North America, both in Canada and the United States, the focus has been whether COVID-19 caused direct physical loss or damage to the insured property triggering business interruption … Continue reading

Balancing employee religious rights and the need for protective equipment

The COVID-19 pandemic has brought to the fore the rights of an employer to insist on the wearing of personal protective equipment (PPE) despite religious objections. For COVID-19 protection, such equipment may include masks, gloves, goggles, face shields, and other forms of protective gear. Ordinarily, the failure to adhere to an employers’ reasonable PPE requirements … Continue reading

Money laundering risks in a global pandemic

The Financial Intelligence Centre (FIC) published a notice in March 2020 indicating that there will be no relaxation of obligations under the Financial Intelligence Centre Act 2001 (FICA) during the nationwide lockdown. A robust money-laundering policy ought to form an integral part of any company’s compliance program. Business’s compliance functions must operate effectively, even if … Continue reading

International Financing Institutions’ loans available to government and private companies as relief from COVID-19

In his address on 21 April 2020, President Cyril Ramaphosa announced that government will be approaching international finance institutions such as the International Monetary Fund, the World Bank, the BRICS New Development Bank and the African Development Bank to help fund the R500 billion COVID-19 economic relief package that will be provided by government. International … Continue reading

e-Commerce directions: Key measures for retailers, customers and courier and delivery service personnel

From 14 May 2020, the sale of all goods on e-Commerce platforms, with the exception of alcohol and tobacco products, are allowed. However, in terms of the new Alert Level 4 e-Commerce directions, retailers, delivery services and customers are required to observe strict protocols at all stages of the transaction. Below are the key measures … Continue reading

Chief Inspector of Mining ordered to publish health and safety guidelines to manage and mitigate against COVID-19 under Alert Level 4

The Labour Court’s looming deadline of 18 May 2020, compels government to issue detailed guidelines on health and safety and requires that all employers prepare and implement a Code of Practice to mitigate the effect of COVID-19 on mine employees returning to work. Under Alert level 4, various mining operations are allowed to operate at … Continue reading

CIPC has changed its approach to business rescue application filings during the lockdown

Voluntary business rescue applications filed with CIPC during 24 March to 30 April 2020 will be processed by CIPC to reflect the dates on which they were filed. These applications do not have to be resubmitted.  Similarly, the appointment of business rescue practitioners that were filed with CIPC during 24 March to 30 April 2020 … Continue reading

Annual returns process updated to include the completion of a compliance checklist

The CIPC has granted an extension for the filing of annual returns (due to the lockdown), but the process now includes the completion of a compliance checklist, to prove compliance with the Companies Act. Annual returns All companies (including external companies) and close corporations are required to file their annual returns with the Companies and … Continue reading

Dirty money and the rise of digital payments

Exchanging bank notes and coins are increasingly seen as risky business, as noted by Thomson Reuters in an article on the rise of digital money transactions. The COVID-19 pandemic may speed up the global move towards digital-only payments. Apart from the more widespread use of payment apps, electronic funds transfers and cryptocurrencies, the idea of … Continue reading

The opening of the deeds office, or not

The Regulations to the Disaster Management Act published on 29 April 2020, include the 11 Deeds offices in South Africa as an essential service under Alert Level 4. However, deeds offices may need some time to implement workplace safety measures before they are able to formally open again, and therefore the backlog in deeds registrations … Continue reading

Economic relief measures for members of pension funds

People unable to work due to the pandemic may be looking to access their pension credits in this time of financial hardship. The position in South Africa remains that a member cannot access their pension benefits while they are still in service. Several other countries have however included, as part of their economic relief packages, … Continue reading
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