Europe

Corrections to the moratorium

At the beginning of the month Russian regulators implemented a draft law, which provides for the possibility of the Government of the Russian Federation by its act to introduce a moratorium on initiation of bankruptcy proceedings under natural and man-made emergencies, significant changes in the ruble exchange rate and similar exceptional circumstances (for more details see the update). The moratorium on bankruptcy has been in force in Russia since April 4, but now the Law on Bankruptcy is being corrected again. The need for amendments is due to the rushed adoption of the Law, as well as the reaction to criticism from the professional community The law providing for the amendment was signed by the President of the Russian Federation and comes into force on April 24. In particular, the new law establishes the following changes to the regime of the moratorium on bankruptcy.

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Amendments to the procedure for granting idle time benefits

Today, on 23 April 2020, the Cabinet of Ministers amended the criteria for granting idle time benefits. The most essential amendments:

  • the reduction in turnover for any undertaking affected by the crisis shall be calculated by comparing the turnover in March or April 2020 with the average income from economic activity for the months worked in 2019;
  • self-employed persons who perform pedagogical or creative work on a part-time basis and whose monthly income does not exceed the minimum wage are eligible for idle time benefit;
  • idle time benefit shall not be granted to members of management board if during the preceding year and at the time of assessment of the application the member of the management board has been punished for violations in the areas of tax and customs or for the breach of the regulatory enactments governing labour legal relationship, unless a warning or a fine not exceeding EUR 151 has been imposed for a single violation, and the total amount of penalties per year does not exceed EUR 500.
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ILN Labor Group Paper – Paid Leave

Twenty ILN member firms collaborated to answer the question, “Are employees entitled to paid leave due to Covid-19?” The following document addresses in summary form this issue in a number of jurisdictions.

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Compulsory Licensing in Russia in the view of COVID-19

Nowadays the sphere of healthcare is becoming one of the mostly discussed because of a mass spread of the coronavirus pandemic (also COVID-19). Confirmed cases of COVID-19 around the world have passed more than a 2.4 million. As the disease is continuing to surge the World Health Organization is warning that there are no specific vaccines or treatments for COVID-19 as for today. However, there are many ongoing clinical trials evaluating potential treatments and developing drugs conducted by different laboratories in developed countries.

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“Restore Liquidity” Decree: the entry into force of the New Code of business crisis and insolvency is postponed

“Restore Liquidity” Decree: the entry into force of the New Code of business crisis and insolvency is postponed
In the current macroeconomic emergency situation, the Italian Law Decree no. 23 of April 8,…

The Government’s decision is motivated by the fact that, giving birth to an instrument never tested before and studied to face, originally, only “ordinary” crises, could be, in this period of emergency, inappropriate.

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The Ministry of Labour of the Russian Federation made an explanation for remote work on the period since March 30th till April 30th

The period from March 30th till April 30th were declared as non-working days with preservation of salary payments under President’s decrees No. 206 of 25 March 2020 “On declaration of non-working days in the Russian Federation” and No. 239 of 2 April 2020 “On measures for people’s sanitary-epidemiological welfare in condition of new coronavirus infection (COVID-19) spread”. Since primary intention of decrees is to reduce personal contacts during communication of disease, employers subsequently raised up questions about remote work and compensations during this period.

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The supervening impossibility of the performance and the force majeure at the time of Covid-19 in the Italian legal system

The supervening impossibility of the performance and the force majeure at the time of Covid-19 in the Italian legal system
From EXP Legal Contractual Law Team. The crisis resulting from the Covid-19 epidemic is having…

The question arises with particular regard to leasing relationships, whether commercial or for residential use, but is to be considered interpretatively and abstractly extended to any type of contract.

Of course, the problem arises in cases where the parties have not explicitly intended to regulate in the contract the occurrence of an interrupting or suspensive event regarding the obligations undertaken, and therefore in cases where no instances of supervening impossibility and/or force majeure have been typified, which may render the breach or delay in the fulfillment of one or both parties legitimate.

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Force Majeure During the COVID-19 Crisis

Companies have asked “Does the current corona crisis constitute a (global) force majeure – act of god situation from a legal point of view?” and want the answer in a short, summary format – and the ILN has answered – 23 member jurisdictions have weighed in with concise responses to help guide your business in the current crisis.

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Covid-19 in Latvia: Updates regarding Covid-19

Amendments to the procedure for granting idle time benefits

Today, 9 April 2020, the Cabinet of Ministers amended the criteria for granting idle time benefits to employers affected by the crisis. The most essential amendments:

  • An employee receiving an idle time benefit shall be granted an additional allowance of EUR 50 for each dependent child under the age of 24 for whom the employee is entitled to a personal income tax credit on the date of granting the idle time benefit;
  • The members of the management board and supervisory board of the employer affected by the crisis may also receive the idle time benefit, if the income from economic activity of the employer affected by the crisis in 2019 does not exceed EUR 100,000;
  • Idle time benefit is also available to employees concurrently receiving old-age or retirement pension.
  • The procedure for calculating the idle time benefit for micro-enterprise taxpayers affected by the crisis has been adjusted.
  • From now on, only Cabinet Regulation No. 165 will apply to all employers affected by the crisis, regardless of the sector.

The text of the amendments to the Cabinet Regulation No. 165 is available here.

Changes in employment

  • It is determined that illness due to Covid-19 is not considered to be an accident at work;
  • Self-isolation during performance of job duties, if a person does not show signs of acute respiratory infection and the person is not recognized as a contact person of Covid-19 infectious disease, does not apply to:
  1. Latvian citizens, who return from Lithuania and Estonia after performing their job duties;
  2. Lithuanian and Estonian citizens, who enter the territory of Latvia to perform their job duties.

Medical devices and personal protective equipment

  • Procurement organized by public persons, subject to certain conditions, allows the purchase of personal protective equipment and medical devices, the conformity assessment procedure whereof has not been initiated or has not been fully completed, and which do not contain CE mark.

The text of the amendments to the Cabinet Order on declaring the state of emergency is available here.

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As a follow-up to the “rent free period” issue, the Government of the Russian Federation has developed requirements for terms and conditions of deferred payment rent

Now parties can add up the idea of how to exercise the right to defer debt repayment under lease agreement.

In the legal community, it is believed that the deferral applies only to those lease agreements under which the lessee, due to quarantine restrictions, was not deprived of the opportunity to use the leased property for the purposes specified in the lease agreement.

So, according to the Decree of the Government of the Russian Federation dd. 03.04.2020 № 439:

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