Coronavirus Act 2020 – What does it mean to Residential Landlords & Tenants?

The Coronavirus Act 2020 brings into law some changes to the Landlord & Tenant legislation, and in particular the ability of a landlord to seek possession of both Commercial & Residential Premises.

These provisions will remain effective until at least 30 June 2020 for commercial Premises and 30 September 2020 for Residential Premises (“the Relevant Period”), but could be extended if the current situation does not improve.

The main points of this new legislation are:
  • Any notice given to Quit premises or give up possession, must give a notice period of 3 months before court proceedings can be issued.
  • The 3 month period will apply to Rent Act tenancies, Secured tenancies and Assured tenancies.

Although it did not make it into the Act, there was consideration given to the courts not permitting new possession claims to be issued or possession orders made or enforced during the Relevant Period.  It remains to be seen how the courts deal with matters on a practical level or if the legislation is changed to deal with this position. Judges have been reminded not to make orders that risk impacting public health and therefore possession orders are unlikely to be made for the time being.

If you have any questions or unsure about your situation, whether you are a landlord or a commercial tenant, please contact Michael Shapiro directly on [email protected] or 0207 822 2236.

2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Give me a sign

Electronic Signatures

With the vast majority of office workers currently working from home, the use of electronic signatures offers a convenient alternative to the time-honoured printing, signing and scanning of documents.

The signing of contracts electronically has existed for many years, ranging from businesses completing complex commercial agreements, to individuals signing for delivery of goods purchased online.  As is common, legislation has not kept pace with this emerging technology, leaving some doubt as to how and when an electronic signature can be used.

Law Commission – Electronic Execution of Documents

With the above in mind the Law Commission set out to address any uncertainty as to the formalities around the electronic execution of documents.  Their report has concluded that an electronic signature is capable in law of being used to execute a document (including a deed), provided that the signatory intends to authenticate the document and that any relevant formalities, such as the signature being witnessed, are satisfied.

Analysis

The Law Commission reviewed the pragmatic, objective approach taken by the Courts, which have considered all of the surrounding circumstances when determining whether or not a signature is valid.  The Courts have concluded that various non-electronic forms amount to valid signatures, including signing a document with an ”X”, using a stamp of a handwritten signature and even a description (if sufficiently unambiguous), such as “Your loving mother”.  The Law Commission found no reason in principle why the Court should not recognise electronic signatures as valid signatures.  It was noted that the Courts have previously determined that a name typed at the bottom of an email amounted to a valid signature.

Points to consider when using an electronic signature

Electronic signatures are more susceptible to fraud than handwritten signatures, which could put vulnerable people at risk, therefore:

  • you must be satisfied as to the reliability and security of the technology used to create and apply the electronic signature
  • if the signature must be witnessed (as is required in respect of a deed), the witness can apply an electronic signature but must be physically present to witness the signature as the current law does not allow for “remote” witnessing such as by video link.

For further questions please contact Mark Richardson directly on [email protected] or 0207 822 2240

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

新冠病毒(COVID-19) 疫情下英国移民政策须知 (Immigration considerations – COVID-19)

许多签证即将到期或者已经到期的留英访客,都面临着因为旅行限制或者冠状病毒 (COVID-19) 相关的自我隔离,无法回国的状况。

好消息是,英国签证和移民局 (UKVI) 已经在GOV.UK上发布了临时居住指南,确认这些访客不会因为旅行限制或者自我隔离规定而受到处罚,并承若因冠状病毒引起的旅行限制或自我隔离者的签证将延续至2020年5月31日。

但请特别注意,此次不是自动延期。受影响的签证持有者需要主动联系移民局的冠状病毒特别小组进行报备并经过移民局确认后获得签证的延期。

同样,许多持有英国长期签证,由于旅行限制或者自我隔离等规定滞留在英国境外无法返回英国生活的签证持有人,将有可能面临无法满足留英居留条件的问题。移民局对这一点尚未澄清所以请继续留意移民局的官方指南或者联系我们的移民部获去最新信息。

更多详情,请参阅移民局的最新指南Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents 或者通过以下方式联系Carey Xu:邮箱[email protected] 或者 致电 0207 822 2231。

 

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

COVID-19: Иммиграционные рекомендации (Immigration Considerations)

Многие посетители Великобритании, у которых истекает или уже истёк срок действия визы, сталкиваются с трудной ситуацией: они не могут вернуться на родину как из-за ограничений на въезд и выезд из ряда стран, так и в связи с введением режима самоизоляции, связанного с коронавирусной инфекцией (COVID-19).

Хорошей новостью является то, что Визово-имиграционная служба Великобритании (UKVI) на сайте GOV.UK опубликовала информацию о том, что в данной ситуации лица, столкнувшиеся с ограничениями на передвижение и вынужденные соблюдать режим самоизоляции, не нарушают законодательство Великобритании. В информационном письме также сказано, что срок окончания всех истекающих и истёкших виз будет продлён до 31 мая 2020 года.

При этом необходимо отметить, что срок окончания визы не будет продлён автоматически: держателям виз необходимо самостоятельно уведомить Иммиграционную службу по вопросам коронавируса (Coronavirus Immigration Team), учреждённую Министерством внутренних дел Великобритании (Home Office).

Аналогичным образом, держатели британских виз, которые на данный момент находятся за пределами страны, могут столкнуться с проблемой соблюдения требований и условий, на основании которых виза была выдана. В частности, это касается условия о необходимости проживания на территории Великобритании. В информационном письме не содержится разъяснений относительно данного вопроса, поэтому держателям виз следует обратиться в Миниистерство внутренних дел Великобритании (Home Office) для получения более подробной информации. Лица, столкнувшиеся с названными проблемами, также могут обратиться к нашим иммиграционным юристам для получения юридической помощи.

Для получения более подробной информации, пожалуйста перейдите по данной ссылке Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents  или свяжитесь с Жанной Саттон по электронной почте [email protected] или 0207 822 2259.

© 2020 GSC Solicitors LLP. Все права защищены. Юридическая фирма GSC предоставляет разрешение на просмотр этого материала и на печать одного экземпляра на человека для личного ознакомления. Любое иное использование этого материала требует письменного разрешения со стороны представителя юридической фирмы GSC. Данная публикация была подготовлена исключительно для предоставления пользователям общей информации о последних законодательных изменениях. Данный материал не представляет собой официальную юридическую консультацию и не может быть использован в качестве таковой. Вы не должны действовать или воздерживаться от каких-либо действий исходя из информации, которая содержится в этом документе, без получения конкретных официальных рекомендаций от квалифицированных юристов.

Working from home: What do you need to know

Working from home is currently a reality for a lot of us. Whereas some organisations do occasionally allow employees to work from home, the current situation of whole workforces working from home at the same time is unprecedented.

Employers have had no choice but to close down their places of work and tell their staff work from home at short notice. Below are some practical issues to consider in relation to working from home:

  • Confidentiality. Employees have an implied (and if this is dealt with in their contracts of employment, an express) obligation not to disclose an employer’s confidential information. So as to help enforce this, an employer may request that for example a lap top used by an employee to work from home is password protected.
  • Equipment and expenses. Unless a contract of employment says otherwise, there is no obligation on an employer to pay for the equipment needed or expenses incurred by an employee to work from home. However, given the unprecedented nature of the current climate, employers are encouraged to take a flexible approach. Especially as the cost of paying for some equipment for example will most likely be outweighed by the revenue generated for the business by the employee if he or she is able to work from home.
  • Health and safety. So far as is reasonably practicable, and employer has an obligation to ensure that an employee has a safe working environment. For people who regularly work from home, and employer will usually undertake a risk assessment of the home environment for working purposes. Given the speed of the shutdown, such an assessment will not have been possible in most cases. However, an employer should still liaise with employees to check that they are comfortable that they consider that they can safely work from home.
  • Discrimination. Even though the entire workforce is working from home, an employer should still ensure that its employees are treated equally and that employees in a particular group do not feel that they are being singled out. This would include for example making reasonable adjustments for someone who is disabled.
  • Contact. Working from home for a long period of time will be a new experience for most people. Employers should keep in regular contact with their employees and let them know that they are on hand if the employee has any problems. If this is practical, team meetings can be held by video conferencing so that staff feel like they are in regular contact.
  • Looking after others. An employee may have childcare responsibilities or need to look after an elderly relative who is also at home as a result of the current situation. If that is the case, then employers are encouraged to take a flexible approach to the situation such as agreeing that an employee can make up time during non-business hours.
  • Pay. If staff are continuing to do their regular jobs, but are simply doing so from home, then unless a contract of employment states something different, employees should continue to get their usual pay.

If you have any employment law queries, please do not hesitate to contact David Nathan at [email protected] or on 020 7822 2247.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Coronavirus Act 2020 – What does it mean to Commercial Landlords & Tenants?

The Coronavirus Act 2020 brings into law some changes to the Landlord & Tenant legislation, and in particular the ability of a landlord to seek possession of both Commercial & Residential Premises.

These provisions will remain effective until at least 30 June 2020 for commercial Premises and 30 September 2020 for Residential Premises (“the Relevant Period”), but could be extended if the current situation does not improve.

The main points of this new legislation for Commercial Premises:
  1. A landlord cannot forfeit a lease or exercise a right of re-entry.
  2. A landlord will not waive a right to forfeit unless he does so expressly in writing.
  3. In any proceedings that have already been issued, the courts will not make an order requiring a tenant to give up possession before the end of the Relevant Period.
  4. When determining whether a landlord has made out the ground of persistent delay in paying rent, to oppose the grant of a new lease, the failure to pay rent during the Relevant Period will be disregarded.

In short, Commercial Tenants who are unable to pay rent because of Coronavirus will be protected from eviction, meaning no businesses will be forced out of their premises if they fail to pay rent over the next three months.

Please note, however, that this is simply a deferment and the rent will still have to be paid at some point.

With many tenants facing imminent rent payments, early dialogue and agreeing some form of arrangement between the Landlord and Tenant can often be the best solution.

Things to consider:
  • Landlords could agree that their Tenants pay rent on a monthly basis as opposed to the traditional quarterly arrangement. This would assist Tenants with cash flow issues and ensure that if a debt accrues due to lack of payment, it is minimised.
  • If Tenants cannot pay their rent in full, proposals could be made for a reduced payment. This again minimises the potential losses and takes pressure off of the Tenant to a degree and provides landlords with some cashflow. Please do note the balance will need to be paid later.
  • An agreement could be reached for partial payment of rent and partial Deposit deduction for the balance on a monthly/quarterly basis. However, the reduced Deposit will need to be replenished at some point.

It is important that any arrangements, are documented very carefully. It is also imperative that any arrangements between the Landlord and their Tenant:

  • does not vary the lease or rent deposit deed;
  • are in place for a specific and set period of time;
  • can be terminated at any time by the Landlord;
  • are made as a concession due to Covid-19 and nothing else.

Depending on the business, Tenants should, of course, consider available Government support for businesses such as:

  • cash grants
  • business rates exemptions
  • interest free loans
  • VAT deferral and
  • 80% funding of salaries for furloughed employees up to £2,500.

If you have any questions or unsure about your situation, whether you are a landlord or a commercial tenant, please contact Michael Shapiro directly on [email protected] or 0207 822 2236.

2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Immigration considerations – COVID-19

Many visitors whose visas are due to expire or have already expired are facing a difficult situation where they cannot travel back to their home country due to travel restrictions or self-isolation associated with Coronavirus (COVID-19).

The good news is that the UK Visas and Immigration (UKVI) has published their guidance on GOV.UK confirming that these visitors will not be penalised by complying with the travel restrictions or self-isolation rules and their current visa will be extended to 31 May 2020.

However, these extensions will not be granted automatically and whoever is affected must update their situation to a dedicated team set up by the Home Office called Coronavirus Immigration Team.

Equally, many UK visa holders who are currently stranded abroad and unable to travel back to UK, may face an issue of meeting their residence requirement in the UK, a condition attached to their UK visas. The guidance is unclear of this point so please check with the Home Office for updated guidance or contact our Immigration team for an update.

For further details please visit Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents or contact Carey Xu on [email protected] or 0207 822 2231

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

What is the impact of COVID-19 on Court hearings?

Her Majesty’s Courts and Tribunal Service (HMCTS) recognise that during this public health emergency our primary focus should, of course, be on the health and wellbeing of the nation. However, the Lord Chief Justice has made it clear that it is essential that justice continues to be administered.

Arrangements have been in place pre-COVID-19 for hearings to be conducted remotely via telephone and video conferencing facilities. HMCTS are committed to ensuring that conferencing equipment is used to conduct remote hearings wherever possible. The Coronavirus Act 2020 has expanded the availability of video and audio links in court proceedings. There are, of course, exceptions as not every hearing is suitable to such arrangements, the most obvious being jury trials. Where physical trials are to take place, the Lord Chief Justice has confirmed that they are to take place safely and in accordance with the Government’s advice on social distancing.

The Lord Chief Justice has made it clear that parties should not simply be adjourning upcoming hearings as this would contribute to “inevitable backlogs and delays” in the system. Judges are unlikely to be sympathetic to adjournment requests simply on the basis that video hearings are difficult to administer. Parties have a duty to seek to co-operate and facilitate the process of remote justice being administered effectively and to keep costs proportionate. Where remote hearings are not required, for example for the determination of a procedural point, it may be that the judiciary are able to determine such issues on the papers.

HMCTS provides a daily operational summary on courts and tribunals during the COVID-19 outbreak and we recommend that this page is checked regularly for developments.

If you would like guidance or further explanation on the impact that COVID-19 may have on upcoming litigation that you are a party to please do not hesitate to contact Michael Shapiro on [email protected] or 0207 822 2246 or Sana Sheikh on [email protected] or 0207 822 2214.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Family is the priority and has always been one…

Perhaps one of the positives of this challenging and uncertain time has been the opportunity to spend time with our families and loved ones.

It has also given us time to reflect and assess our priorities and our preparedness for unexpected events. While we are usually busy with the demands of day to day life, important planning work often gets put to one side.

Now could be a great opportunity to revisit your estate plan and succession strategies.

It is important to ensure that your loved ones are properly provided when you are no longer around. GSC Solicitors are able to assist you on this and any matters relating so please call James Cohen direct on 0207822 2257 or email [email protected]

Wishing you and your loved ones all the best at these challenging times.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Coronavirus – Practical Legal Steps for your Contracts

Businesses and individuals are facing uncertain times at the moment. There is the immediate risk to health and wellbeing – both physical and mental – physical health issues and other concerns including children staying home from school, exams being abandoned, long-term plans and commitments put on hold and lack of social interaction.

There are also many uncertainties about the impact on businesses and contracts.  Contracts can be highly personal – a wedding or holiday or more long term such as sponsorship, entertainment and supply agreements where either suppliers are required to make guaranteed supplies which they may not be able to do or customers are required to purchase minimum amounts of goods or services which they no longer require.

  • Can I get out of my contract or can the other person get out of their contract with me?

Start with looking at the contract itself. There may be a ‘force majeure’  clause or some other way to terminate the agreement.

  • What is a force majeure clause anyway? This is a legal name for a clause usually stuck in the back of a contract which lets a party avoid performing its obligations in certain circumstances

 

  • What does it mean? That depends – they are all drafted differently and very often not even considered carefully if and when they are negotiated. Each one needs to be looked at individually to see whether it applies and what you have to do to rely on it. Legal advice on its interpretation should be obtained. For example:
  • Is the current issue covered by it
  • If it is, it that the only reason you can’t perform?
  • What else does it say – you must follow any provisions.
  • You may have to notify the other party within a fixed time to rely on it
  • You may have to take steps to minimise the impact (sometimes called ‘mitigation’)
  • In some cases if the event carries on for a particular time the contract may be terminated

 

  • What else should I be concerned about? – if you refuse to perform a contract or wrongfully terminate a contract when you aren’t entitled to, that will create liability

 

  • Is that it for force majeure? Not entirely because Parliament has created laws that may have an impact on whether force majeure clauses will work. For business to business contracts there is the Unfair Contract Terms Act 1977 which may apply and for business to consumer contracts, there is the Consumer Rights Act 2015.

 

  • Can you be more certain? Each case is very much dependant on the facts of the contract so needs to be considered separately. While these clauses have been in contracts for many decades, cases still keep being considered on them so there is no one size fits all.

 

  • I’ve read about the doctrine of ‘frustration’ – will that let someone get out of a contract? This applies when something happens after a contract has been formed which makes it physically or commercially impossible to perform it or even illegal. Although this dates back many years, cases still are being argued over its scope. At the end of last year the courts refused to agree that Brexit was a frustrating event in a long term lease in Canary Wharf to the European Medicines Agency. We may see more leniency from the Courts for Coronavirus but any decisions are likely to only take place after the current crisis has passed. This is a complex area of law and the legal position needs to be considered very carefully in each case. It may be a fast moving area, for example if the Government stops gatherings.

 

  • Other things to look out for – expect some government legislation which may have an impact on these matters to try and relieve contracting parties and reduce uncertainty. If you are a director, also be mindful of your duties as a director and insolvency risks. If you have insurance you should always comply with the terms of the policy.

 

  • Any practical tips? If you can agree something with the other party that would be best in removing some of the likely uncertainties of relying on interpretations of force majeure clauses or legal doctrines. Collect evidence of any facts you want to rely on. It is imperative to understand what your legal position is as accurately as possible as early as you can and then see how you can de-risk any action that you might want to take.

 

  • International Contacts – overseas governments and the EU may start to impose their own laws. This might affect the ability to enforce terms or contracts and limit remedies.

If you have any questions in relation to the above or concerns about your business, contact Clive Halperin, Head of Corporate & Commercial, directly on [email protected] or 0207 822 2220.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.