Insights & Articles

The Covid-19 Lockdown is a unique situation that continues to change rapidly and this raises a number of questions and concerns for people, especially in the employment space. The situation surrounding Covid-19 requires flexibility from both employers and employees.

In the wake of the Covid-19 lockdown, many employers are assessing options available to them to save their business and are contemplating cutting staff. This decision should not be taken lightly as the underlying requirements for proper termination of employment still apply.

In response to the Covid-19 outbreak the Government has announced a $12.1 billion support package to support the economy. If you are an employer, contractor, sole-trader or self-employed, you may be eligible to apply for financial support.

The Covid-19 level 4 alert lockdown is having a significant impact on the way people work during this time. Whilst the Government is providing assistance to businesses such as the wage subsidy to pad the landing for employers, there are numerous challenges facing employees in the coming weeks.

The Chief Justice of the Supreme Court, the Right Honourable Helen Winkelmann, has assured the legal profession and members of the public that the Courts will be operational during all Covid-19 alert levels, including lockdown during alert level 4: "Courts are an essential service. New Zealand courts must continue to uphold the rule of law and to ensure that fair trial rights, the right to natural justice and rights under the New Zealand Bill of Rights Act are upheld."

The Covid-19 pandemic and the announcement of the Level 4 Covid-19 threat level in New Zealand has meant that many businesses may be forced to default on their commercial obligations, especially as non-essential businesses are told to close. However if their contracts contain a "force majeure" provision, this may provide them with a way out.

At a press release on 24 March 2020 at 1.00 pm a spokesperson for the Ministry of Business, Innovation and Employment (MBIE) said: "If you are in doubt whether you are an essential service, you're probably not".

We have been fielding an unprecedented (but understandable) number of queries from both tenant and landlord clients wanting to understand the legal position in respect of either termination of commercial leases, and obligations in respect of rental/outgoings payments.

During this unprecedented and unsettling time, there is an opportunity here to take advantage of the phone calls and emails slowing down (for some) and use your time to address those things you have been putting off – a bit like that painting job most people have been meaning to get to.

Can a Will be made from within the Covid-19 virus enforced bubble of self-isolation and social distancing? Extreme events call for extreme challenges and measures no more so than for making a Will right now when the testator is in isolation and no independent witnesses are in the room. Clearly an issue particularly for someone elderly or ill and delay is a concern.