Tag archives: COVID-19

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

Photo of Patrick Bracher (ZA)By Patrick Bracher (ZA) on Posted in General
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?

Photo of Jason WhyteBy Jason Whyte on Posted in General
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

Photo of Donald DinnieBy Donald Dinnie on Posted in Insurance
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

Photo of Keshri ChettyPhoto of Katherine DzwigBy Keshri Chetty and Katherine Dzwig on Posted in General
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

Photo of Murray AlexanderPhoto of Jenine NaiduBy Murray Alexander and Jenine Naidu on Posted in General
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

Photo of Donald DinnieBy Donald Dinnie on Posted in Insurance
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

Photo of Laura MacfarlanePhoto of Frances BarkerBy Laura Macfarlane and Frances Barker on Posted in General
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

Photo of Sabeeha KathradaPhoto of Marelise van der Westhuizen (ZA)By Sabeeha Kathrada and Marelise van der Westhuizen (ZA) on Posted in General
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

Photo of Lolo MhagaPhoto of Aviva HoekstraPhoto of Nicole GoateBy Lolo Mhaga, Aviva Hoekstra and Nicole Goate on Posted in Banking
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

Photo of Jenine NaiduBy Jenine Naidu on Posted in General
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

Photo of Danielle Ebrahim-NaseemPhoto of Murray AlexanderPhoto of Georg KahleBy Danielle Ebrahim-Naseem, Murray Alexander and Georg Kahle on Posted in General
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

Photo of Stephen Kennedy-GoodPhoto of Olivia RadfordPhoto of Yishika MoodleyBy Stephen Kennedy-Good, Olivia Radford and Yishika Moodley on Posted in General
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

Photo of Stephen Kennedy-GoodPhoto of Ugendran OdayarPhoto of Yishika MoodleyBy Stephen Kennedy-Good, Ugendran Odayar and Yishika Moodley on Posted in General
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

Photo of Desiree Reddy (ZA)By Desiree Reddy (ZA) on Posted in Banking
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

Photo of Elizabeth McCaulBy Elizabeth McCaul on Posted in General
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

Photo of Michelle DavidPhoto of Roxanne van RooyenBy Michelle David and Roxanne van Rooyen on Posted in General
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

Risk assessment to be conducted by employers before resuming operations

Photo of Brian DennyPhoto of Mandisa DumaPhoto of Tariq AmodBy Brian Denny, Mandisa Duma and Tariq Amod on Posted in General
The Department of Employment and Labour (DOL) issued the COVID-19 directive on Health and Safety in the Workplace on 28 April 2020, stipulating measures that must be taken by employers to protect the health and safety of workers and members of the public entering their workplace or exposed to their working activities. Employers must do … Continue reading

Alert Level 4 Regulations: 5 factors for employers to consider

Photo of Murray AlexanderPhoto of Jenine NaiduPhoto of Kriyanka ReddiBy Murray Alexander, Jenine Naidu and Kriyanka Reddi on Posted in General
On 29 April 2020, new Regulations were published in terms of the Disaster Management Act which replaced previous lockdown regulations and set out the restrictions that will be imposed during Alert Level 4. These Regulations permit more categories of business to resume operations, subject to the establishment of, and compliance with, strict health protocols and … Continue reading

The challenges faced by employers in trying to retrench during the lockdown

Photo of Murray AlexanderPhoto of Mlungisi KhambulePhoto of Tariq AmodBy Murray Alexander, Mlungisi Khambule and Tariq Amod on Posted in General
The current pandemic and the implementation of the lockdown has forced companies to implement various cost cutting measures to keep afloat. Those companies considering the need to retrench employees must first make every effort to find alternatives to retrenchment. Alternatives to retrenchment include: Companies can make use of support measures implemented by government such as … Continue reading
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