International Franchise Post COVID Restart Tracker

Is the country currently in lock down?

Yes. (Although restrictions are easing)

• Australia's states and territories each have their own regulations and orders in place to effect a lock down. The Federal Government has made recommendations for the easing of restrictions, and each state and territory will implement an easing of restrictions as they see appropriate.
  

Are lock down restrictions beginning to be eased?

Yes.

• At a state and territory level some restrictions are being lifted. While the Federal Government has released a three step plan to move out of lockdown, each state and territory will implement its own regulations in line with their local conditions.
  
  

Have local franchise laws been amended?

No franchise specific laws have been amended

Are non-food retailers permitted to be open?

Yes. While many retailers have been shut, as restrictions on gathering ease more stores are re-opening.

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Each state and territory is implementing a relaxation of the lock down orders on its own timetable and with its own specific requirements, including in relation to venue capacity, social distancing, and requirements for COVID-19 safety plans.
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes. In NSW for example, cafes and restaurants can do take away/home delivery. Small bars are permitted to do home delivery

Is the government providing support to businesses?

Yes - subject to criteria

Is the government providing support to employees / self-employed individuals?

Yes - but through the businesses employing them

Is there relief for commercial tenants?

Yes.

On 7 April 2020 the National Cabinet announced a mandatory code of conduct applying to small and medium commercial tenancies impacted by COVID-19. Each jurisdiction will introduce its own legislation to implement the Code.

Local Contacts

Lynne Lewis - Bird & Bird LLP

Is the country currently in lock down?

The government placed the entire country on COVID-19 level 4 alert (i.e., tightened lockdown). As a result, strict social restrictions are currently in place throughout the country. For example:

• the number of persons with whom one can have close contact (‘social bubble’) is limited to 1;
  
  
• a nation-wide curfew is in place between midnight and 5 am (except for essential and non-deferrable travel, such as travel for urgent medical reasons, business trips and home-work commuting);
  
  
• restaurants, bars are closed;
  
  
• contact professions (hairdresser, wellness, massage, etc.) must cease their activities; and
  
  
• for non-essential or non-vital businesses, teleworking is mandatory in all organisations, associations and services for all staff members, unless this is impossible due to the nature of the position, the continuity of the management of the company, its activities, or its services.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

• Restrictions are being reimposed.

Have local franchise laws been amended?

No.

Are non-food retailers permitted to be open?

Yes.

• Non-essential shops reopened since 1 December 2020.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

No.

• Restaurants/cafes/bars are closed.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

The government has taken several measures to provide assistance to businesses, such as:

• As of 1 October 2020 and until 31 March 2021, temporary unemployment benefit for force majeure is no longer limited to the sectors and the companies which have been the most impacted by the crisis. All businesses can benefit from it;
  
  
• Implementation of a delayed payment plan for VAT, social security contributions, payroll tax and corporate income tax;
  
  
• Regional measures, e.g. allowances for businesses;
  
  
• Until 31 December 2020, temporary reduction of the VAT rate from 12% to 6% for the hotel and catering industry;
  
  
• Until 31 December 2020, temporary reduction of the VAT rate to 6% for mouth masks and hydroalcoholic gel
  
  
• Import of goods to combat COVID-19 is exempt from import duties and VAT until 30 April 2021
  
  
• Mortgage credit aid: deferral of payment or extension of the term of credit until 31 December 2020 is possible for businesses facing difficulties in paying their mortgage credit following the COVID-19 crisis;
  
  
• Government guarantee for new bridge credit facilities (for a maximum tenure up to 36 months);
  
  
• No VAT deposit needs to be paid in December 2020
  
  
• Increase of the bonification percentages for Q3 and Q4 income tax prepayments
  
  
• Losses carry-back tax measure (advance tax deduction in FY19 of anticipated FY20 losses)
  
  
• Gifts of qualifying medical equipment to recognised healthcare institutions and of computers to schools are, upon conditions, exempt from VAT and are tax deductible in the hands of the donor
  
  
• Extension of (non-resident) corporate income tax and legal entities tax returns' filing delays
  
  
• Automatic 2-month deferral for corporate income tax, legal entities tax and non-resident (corporate) tax payments relating to assessment notices for tax year 2019 established as of 12 March 2020
  
  
• Priority treatment granted to tax returns resulting in a refund
  
  
• Accelerated refund of VAT credit on VAT current account
  
  
• Conditional repayment plans, exemption from arrears interest and waiver of fines for non-payment of payroll tax, VAT, (non-resident) corporate income tax and legal entities tax
  
  
• Temporary exemption from payroll tax for employers who have benefited from the temporary unemployment system due to COVID-19 pandemic
  
  
• Continued application of payroll tax exemption for teamwork despite derogatory temporary regulation to respect sanitary measures
  
  
• Conditional tax exemption on the allowances awarded in the context of support measures taken by regions, communities, provinces or municipalities
  
  
• Limitation on tax deductibility of reception costs incurred between 08.06.2020 and 31.12.2020 is lifted
  
  
• Consumer cheques may be, under certain conditions, distributed to employees, are fully tax deductible in the hands of the employer and not subject to social security contributions
  
  
• Additional flexibility with regard to the tax deductibility of write-downs for probable losses on trade receivables (simplification of burden of proof)
• Model advance ruling on costs proper to the employer relating to telework
  
  
• Increase of investment deduction rate and extension of carry-forward of excess investment deduction
  
  
• Softening of the conditions for granting and maintaining the tax shelter exemption applicable to the (non-resident) corporate income tax regime(s) for companies negatively affected by governmental decisions against COVID-19;
  
  
• Exemption from fines or sanction in case a federal public contract incurs delays or cannot be executed as a result of COVID-19.

Is the government providing support to employees / self-employed individuals?

Yes.

The government has taken several measures to provide assistance to employees and self-employed persons, such as:

• Temporary unemployment benefit for force majeure for parents in case of closure of their child's school, day-care centre or care centre for people with disabilities;
  
  
• As of 1 October 2020 and until 31 March 2021, temporary unemployment benefit for force majeure is no longer limited to the sectors and the companies which have been the most impacted by the crisis. All companies can benefit from it;
  
  
• Reduction, deferral or exemption from payment of social security contributions for self-employed persons;
  
  
• Replacement income in favor of self-employed persons in certain sectors;
  
  
• Regional measures, i.e., allowances for self-employed persons;
  
  
• Mortgage credit aid: deferral of payment or extension of the term of credit until 31 December 2020 is possible for self-employed persons facing difficulties in paying their mortgage credit following the COVID-19 crisis;
  
  
• Government guarantee for new bridge credit facilities (for a maximum tenure up to 12 months);
  
  
• Until 31 December 2020, temporary reduction of the VAT rate to 6% for mouth masks and hydroalcoholic gel
  
  
• No VAT deposit needs to be paid in December 2020
  
  
• Import of goods to combat Covid-19 is exempt from import duties and VAT until 30 April 2021
  
  
• Increase of the bonification percentages for Q3 and Q4 tax prepayments for self-employed persons
  
  
• Gifts of qualifying medical equipment to recognised healthcare institutions and of computers to schools are, upon conditions, exempt from VAT and are tax deductible in the hands of the donor (self-employed) or qualify for a tax credit amouting to 60% of the gifts’ value (individuals)
  
  
• Losses carry-back tax measure (advance tax deduction in FY19 of anticipated FY20 losses)
  
  
• Automatic 2-month deferral for (non-resident) personal income tax payments relating to assessment notices for tax year 2019 established as of 12 March 2020
  
  
• Accelerated refund of VAT credit on VAT current account
  
  
• Temporary exemption from payroll tax for employers who have benefited from the temporary unemployment system due to Covid-19 pandemic
  
  
• Conditional repayment plans, exemption from arrears interest and waiver of fines for non-payment of payroll tax, VAT and (non-resident) personal income tax;
  
  
• Conditional tax exemption on the allowances awarded in the context of support measures taken by regions, communities, provinces or municipalities
  
  
• Limitation on tax deductibility of reception costs incurred between 08.06.2020 and 31.12.2020 is lifted
  
  
• Consumer cheques may be, under certain conditions, distributed to employees and are fully tax deductible in the hands of the employer, exempted from tax in the hands of the employees and not subject to social security contributions
  
  
• Exemption from fines or sanction in case a federal public contract incurs delays or cannot be executed as a result of COVID-19.
  
  

Is there relief for commercial tenants?

No.

• This depends from the circumstances and/or the contractual terms.
  
  
• First thing is therefore to check the contract: it may provide for a specific regime (hardship clause, force majeure clause).
  
  
• Absent such a governing clause, the parties are always free to renegotiate the contract. However, this entails both parties being willing to renegotiate the contract. Indeed, there is no(t yet) such thing as a doctrine of hardship under Belgian law, which would allow a party to suspend/arrange the execution of the contract due to circumstances which upset the balance of the contract.
  
  
• While this argument is the subject of a controversy, it could be argued that - because of the lockdown measures - the lessor (temporarily) cannot ensure the right to undisturbed enjoyment of the leased property to the tenants. This may qualify as a force majeure or fait du prince event, which would suspend the obligations of the lessor. Even if, in principle, the payment of the rent is not rendered impossible for the tenant, based on the so-called theory of risks, the financial risk is borne by the party which is freed by the force majeure event (in the present case: the lessor). This may constitute a basis for the commercial tenant to justify that no rent is due. However, as mentioned, this argument is controversial.
  
  
• Recently, there have been (first instance) decisions following the above reasoning and ruling that the rent of a commercial lease was suspended during the lockdown. However, these decisions are not settled case law.

Local Contacts

Jean-Christophe Troussel - Bird & Bird LLP

 

Is the country currently in lock down?

No.

• Firstly, it is important to highlight that, in Brazil, the social isolation measures and restrictions to shops and businesses during the COVID-19 pandemic are being issued and imposed by the state and municipal authorities. In view of this, it is not possible to provide an accurate response that is applicable to the whole country.
  
  
• That said, most states in Brazil are adopting only “social isolation” rules, which began on March 11, 2020, when the Federal District suspended classes and events that needed government licenses and permits to take place.
  
  
• Most states have also issued mandatory rules for wearing protective masks at all times when leaving home.

Are lock down restrictions beginning to be eased?

Yes.

• The Brazilian President has rallied for the end of “social isolation” restrictions.
  
  
• In this sense, plans have been created to restart the economy. Most Brazilian states have already implemented a gradual easing of these “social isolation” restrictions in phases.
  
  
• However, as the number of cases of COVID-19 infections and victims is still high and growing in Brazil, many states are alternating between easing or re-tightening social isolation measures. For instance, São Paulo is going backwards in the easing process due to the increase in the number of cases and bars and restaurants are now operating with restricted hours.
  

Have local franchise laws been amended?

No.

• No amendments have been made to the Brazilian Franchise Law due to the COVID-19 pandemic.
  
  
• For information purposes, a new Franchise Law came into force on March 26, 2020 (Brazilian Federal Law No. 13,966 of 2019), but it has not relation to COVID-19.

Are non-food retailers permitted to be open?

Yes.

• Several federal decrees issued by the Brazilian President have defined 57 activities and services as “essential”, which are therefore authorised to operate.
  
  
• Some examples of such services are: (i) health care; (ii) public and private safety; (iii) production, distribution, sale and delivery, either in person or by e-commerce, of products for health, hygiene, among others; (iv) beauty salons and barber shops; (v) gyms.
  
  
• More non-food retailers are now beginning to reopen because social isolation restrictions are being lifted. This reflects the general trend of the gradual resumption of economic activities in Brazil.
  
  
• However, despite such federal decrees, in Brazil, each State or Municipal Government can decide on the restrictions imposed during the COVID-19 pandemic and therefore can determine which non-food retailers should be closed and which can still operate in each city and state.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• As a general rule, restaurants, cafes and bars are now allowed to be reopen for dining in, as a consequence of the easing of the social isolation restrictions and gradual resumption of economic activities.
  
  • However, restaurants/cafes/bars are only permitted to be open with restrictions, such as safety measures and opening hours restrictions.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• As a general rule, restaurants, cafes and bars are allowed to operate take-away and delivery services
  
  
• Restaurants, cafes and bars are adopting special safety and hygiene measures for take-away and delivery.

Is the government providing support to businesses?

Yes.

• The Brazilian Federal government has issued several Provisional Measures and has created rules to help businesses during the COVID-19 pandemic.
  
  
• Such measures include the offering of emergency credit lines, the  possibility of reducing wages and working hours, more time for companies to collect the Severance Indemnity Fund for employees (FGTS), more time to pay federal taxes and the relaxation of some labour rules (such as home office, vacation and hour bank rules).

Is the government providing support to employees / self-employed individuals?

Yes.

• Due to the COVID-19 crisis, the Brazilian President sanctioned a law that established the payment of an “emergency aid” of 600.00 Brazilian Reais for six months for informal workers, unemployed, self-employed, individual micro-entrepreneurs and individuals that contribute to the Social Security fund, beginning from April 2020.
  
  
• For families where the woman is solely responsible for the payment of the household expenses, the monthly amount paid was adjusted to 1,200.00 Brazilian Reais.
  
  
• The Brazilian Government recently announced a new extension of such “emergency aid” until December 2020. However, the amount paid by the Government was reduced to 300.00 Brazilian Reais to informal workers, unemployed, self-employed, individual micro-entrepreneurs and individuals that contribute to the Social Security fund, and 600.00 Brazilian Reais for women that are solely responsible for the payment of the household expenses.

Is there relief for commercial tenants?

No.

• The Brazilian Federal government has not provided any official support or relief specifically targeted at commercial tenants.
  
  
• Demands regarding relief for commercial tenants are being requested in Court. The Brazilian court is analysing the particularities of each case and, based on that, granting or rejecting the requests.
  
  
• After negotiating with the Brazilian Association of Shopping Centers (Abrasce), the Brazilian Association of Shopping Tenants (Alshop) issued a note on 03/23/2020 stating that: (a) the rent amount due in March would be charged proportionately and negotiated in the future; (b) the payment of rent would be suspended while malls are closed; (c) the collection of condominium fees would be eased and reduced; and (d) the amount of promotion fund would be renegotiated in each project, with the possibility of a temporary reduction of up to 90%.
  
  

Local Contacts

Paula Mena Barreto - CMA Law

Is the country currently in lock down?

No.

• Cambodia was in lockdown from 24:00 Thursday April 9, 2020 to 6:00 Thursday April 16, 2020.
  
  
• While the lockdown was effective, traveling from one province to another, and entering and exiting Phnom Penh (Cambodia’s capital city) was prohibited.
  
  
• Solely for implementing this lock down, Phnom Penh was considered as part of Kandal province (an area surrounding Phnom Penh), so traveling within and between Phnom Penh and Kandal Province was permitted.
  
  
• The lock down was supposed to end on 24:00 Thursday, April 16, 2020, but the government lifted the lockdown early (6:00 Thursday, April 16, 2020) to ease traffic jams.
  
  

Are lock down restrictions beginning to be eased?

• The lock down has now ended
  
  

Have local franchise laws been amended?

No.

• Although local franchise laws have not been amended as a result of COVID-19, on 27 June 2020, Cambodia approved joining the Berne Convention for the Protection of Literary and Artistic Works. As a result of joining this convention, laws that relate to franchising, such as the Law Concerning Marks, Trade Names and Acts of Unfair Competition may be amended in the future.
  
  

Are non-food retailers permitted to be open?

Yes.

• All businesses are allowed to be open as normal with the exception of several businesses and activities.
  
  
• On April 5, 2020, the Ministry of Health instructed the public to minimize their use of certain services including hairdressers, nail and beauty salons and other related services. If it is not possible to avoid this, the public must comply with the Ministry’s measures including wearing masks, washing hands, maintaining physical distance, avoiding close communication and other necessary practices.
  
  
• As a COVID-19 preventive measure, Cambodia put temporary bans all kinds of sports and fitness activities that involve gathering together, fitness centres, massage and spa businesses, entertainment clubs and karaokes, casinos, cinemas, concerts, beer gardens, museums (including the Royal Palace), and all religious gatherings.
  
  
• On November 8, the government announced a temporary suspension of all kinds of sports or exercise in the form of gatherings along with the temporary suspension of entry and exit to the Olympic Stadium.
  
  
• On November 8, the government announced a temporary suspension of KTV, entertainment clubs, cinemas, and museums in the entire country.
  
  
• On November 11, 2020, the government also announced a temporary suspension of gyms inside and outside of hotels.
  
  
• On November 19, 2020 (in response to the November 8 closure), the Ministry of Culture and Fine Art announced the reopening of cinemas, theaters and concerts, provided that the cinemas, theaters and concerts singed the MOU with the MCFA.
  
  
• On November 19, 2020 (in response to the November 8 closure), the government allowed the resumption of exercise and sports activities in the Olympic Stadium provided that the guidelines to combat COVID-19 are still complied with.
  
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Restaurants and cafes are open as normal.
  
  
• It is unclear if bars are captured by the COVID-19 bans on certain businesses referred to in the answer above but it has been reported that a number of popular bar areas have been shut down.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Cambodia has not issued any restrictions on take-away and delivery services.
  
  

Is the government providing support to businesses?

Yes.

• Employers have been relieved of the obligation to make seniority payments in 2020.
  
  
• Withholding tax on new loans from foreign and domestic sources has been reduced to 5% for 2020 and 10% for 2021, with the normal rate of 14% resuming in 2022. For existing loans, the withholding tax has been reduced to 10% for 2020, with the normal rate resuming in 2021.
  
  
• As for the airlines industry, all airlines registered in Cambodia will be exempt from their obligation to pay a minimum tax and tax on income for June and July of 2020. According to the announcement of the government on September 30, 2020, the government will continue exempting the minimum tax to all airline entities operating in Cambodia and delaying due date payment of aviation fees for a period of another two months until the end of December 2020.
  
  
• The Agriculture Rural Development Bank (ARDB) dropped interest rates on loans for working capital from 6% to 5%, and on loans for investment capital from 6.5% to 5.5%. Further, the maximum term of ARDB investment loans has been shortened to five years (from seven years), and working capital loan terms remain capped at a two-year maximum tenure.
  
  
• The Ministry of Economy and Finance ("MEF") introduced an additional USD 200 million into the Credit Guarantee Fund so that businesses who may have previously faced difficulty accessing loans have the ability to obtain working capital. In addition, the MEF has also prepared additional financing of USD 300 million to promote growth in primary sectors during and after the crisis.
  
  
• On September 30, 2020, the government announced the extension of the support measures to aid the garment, textile, tourism, and aviation sectors until the end of the year. The government continued tax exemptions for all monthly taxes paid by hotels, guesthouses, and travel agencies located in Phnom Penh, Siem Reap, Preah Sihanouk Province, Kep Province, Kampot Province, Bavet City and Poi Pet City until December 2020. The garment, textile, and tourism sectors are exempt from making monthly contributions to the National Social Security Fund until December 2020.
  
  
• The MOT has also provided exemptions for all tourism license renewal fees for 2021 from 1 January 2021 to 21 December 2021. This will only apply for the licenses which are still valid. However, fines will be imposed if the licenses are expired.
  
  
• Tourism businesses that have been unable to resume operations will be exempt from making monthly contributions to the National Social Security Fund.
  
  
• SMEs in certain priority sectors can borrow up to USD 200,000 for working capital and up to USD 300,000 for investment capital. The maximum interest rate on these loans is 7% per year, and the repayment period has now been lengthened to seven years (from four).
  
  
• On April 2020, the National Bank of Cambodia requested all banks and financial institutions to consider offering their customers financial relief, such as reducing credit-related fees and waiving any penalties until December 2020 to lessen their financial burden.
  
  
• On March 27, 2020, the National Bank of Cambodia issued a directive to all banks and financial institutions to restructure loans in order to maintain financial stability, support economic activity, and ease the burden of debtors facing major revenue declines who may find it difficult to repay loans during the ongoing COVID-19 outbreak. Clients in tourism, garments, constructions and transportation sectors should be prioritized.
  
  
• The MOT allowed a grace period from August 1, 2020 to September 30, 2020 for entertainment businesses, massage centers, entertainment clubs, karaoke clubs and beer gardens to pay the transitional fines for tourism licenses.

Is the government providing support to employees / self-employed individuals?

Yes.

• On July 8, 2020, the Ministry of Labor and Vocational Training issued a Notification on subsidized allowances for suspended employees in the garment and tourism sectors. On September 21, 2020, the Ministry announced the 31st round of the available subsidized allowances from the government to 9,232 suspended employees in the garment and tourism sectors due to COVID-19. Suspended employees in the garment and tourism sectors are entitled to a subsidized allowance of USD 15 if the duration of the employment suspension is between 7 to 10 days, USD 30 if the duration of the employment suspension is between 11 to 20 days, and USD 40 if the duration of the employment suspension is 21 days to 1 month. If the duration of the suspension is 2 months, the subsidized allowance will be provided two times, and the second payment will be made on October 19, 2020. If the employees fail to take the allowance within 10 days after receiving the notification from Wing (Cambodia) Limited Specialized Bank, the allowance will be transferred back to the government.
  
  
• On April 8, 2020, Cambodia’s Ministry of Labor and Vocational Training issued an instruction to its staff not to impose any late penalties on non-Cambodian workers who want to renew their 2019 foreign work permits but have failed to meet the initial renewal deadline, effective until further notice.
  
  
• On April 7, 2020, Cambodia’s Ministry of Labor and Vocational Training released an urgent notification to postpone the Cambodian New Year holiday and require all employers and employees to treat April 13 to April 16, 2020, as regular working days. As a compensation, 5 days of holiday will be given to employees at suitable time when COVID-19 is no longer a risk.
  
  
• On March 23, 2020, the Ministry of Labor and Vocation Training called for an update of contact numbers of all workers in Cambodia to ensure that the ministry can contact them during the COVID-19 pandemic.
  
  
• The Ministry of Labor and Vocational Training announced available financial packages to help employees suspended because of COVID-19. Suspended employees in the textile, garment, and footwear sectors are entitled to a flat benefit of USD 70 (the government would pay USD 40 and employers would pay USD 30) every month. On the other hand, suspended employees in the tourism sector will receive a flat benefit of USD 40 from the government monthly, while their employers have the discretion to pay an amount of wages to employees on a voluntary basis and based on the employers’ actual financial position. On September 30, the government announced that the above benefit would be provided to the suspended employees until December 2020.
  
  
• On 12 June 2020, the government implemented a cash subsidy program for poor and vulnerable families. Payments range from USD 6 to USD 30 per month. 
   

Is there relief for commercial tenants?

Yes.

• Cambodia’s Prime Minister has urged the private sector to reduce or defer rental fees, but no legal requirement to do so is yet in place.
  
  
• Cambodia’s Ministry of Education Youth and Sports suggested landlords and commercial banks should reduce rent for educational institutions to lessen financial difficulties caused by the COVID-19.
  
  
• Note that relief is not mandatory.
  
  

Local Contacts

Thomas Joseph Treutler - Tilleke & Gibbins

 

Is the country currently in lock down?

No (although some restrictions are in place).

• At the beginning of the pandemic in March 2020, all provinces and territories declared states of emergencies or public health emergencies due to the COVID-19 pandemic, which either required a partial closure of businesses or mandatory closures of all non-essential businesses.
  
  
• Most provinces and territories have continued to extend these states of emergencies and have allowed certain businesses to re-open with safety measures, including mandatory face covering policies and limits on capacity.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

• Many provinces and territories have begun to lift mandatory closure orders of certain businesses and re-open businesses with certain restrictions in place.
  
  
• However, as case number have risen, certain provinces and territories have begun reinstating restrictions. For example, Nunavut has recently instituted a two-week lockdown due to a recent outbreak in the Canadian territory, and certain regions in Ontario have restricted indoor fitness facilities to a maximum capacity of 10 persons, regardless of the size of the facility.
  
  

Have local franchise laws been amended?

No.

• In Canada, six provinces have enacted franchise statutes that regulate the offering of franchises and the franchise relationship. In the four other provinces, and territories, franchises are governed by general contract law principles.
  
  
• There have been no amendments to the provincial franchise laws in Canada in response to the COVID-19 pandemic. That being said, and because of the pandemic, various provinces have temporarily halted the running of various limitation periods that would otherwise apply. This may impact certain existing limitation periods in Canadian franchise laws.
  
  
  

Are non-food retailers permitted to be open?

Yes (although some restrictions are in place).

• For the most part, non-food retailers in Canada have been permitted to re-open with certain safety guidelines in place. For example, retailers in certain regions in Ontario, including York region, have been permitted to reopen so long as physical distancing is taking place, patrons are screened when entering certain establishments such as malls, and face coverings are worn.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes (although some restrictions are in place).

• Most provinces and territories have begun re=opening indoor dining at restaurants, cafés and bars, with certain safety restrictions in place, including limits on capacity. However, some municipalities and regions, particularly those with higher case counts and positivity rates of COVID-19, including the City of Toronto in Ontario, have prohibited indoor dining at any business or food establishment.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• In all provinces and territories, restaurants and cafés have been permitted to operate on a take-out, drive-through and/or delivery basis, even if indoor dining is not allowed in the region in which the restaurant or café is located.
  
  
• In addition, some provinces, including Ontario and Prince Edward Island, have amended regulations to allow some restaurants, cafés and bars to deliver alcohol with a food order.
  
  

Is the government providing support to businesses?

Yes.

• The Government of Canada has announced and implemented a COVID-19 Economic Response Plan, part of which provides various types of support to businesses. Some of the support the federal government is providing to businesses includes a wage subsidy which covers a up to 65% of wages of eligible employees, access to guaranteed credit, access to loans including interest-free loans to small businesses, part of which is forgivable if certain conditions are met, and rent relief for certain commercial businesses.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• The Government of Canada has implemented the following programs to provide support to employees and self-employed individuals, including:
  
  
• Making temporary changes to the Employment Insurance (EI) program to support Canadians looking for work, which provides a minimum taxable benefit at a rate of $500 CAD per week, or $300 CAD per week for extended parental benefits;
  
  
• Implementing the Canada Recovery Benefit program, which provides $500 CAD per week for up to 26 weeks for workers who have stopped working or had their income reduced by at least 50% due to COVID-19, and who are not eligible for EI;
  
  
• Implementing the Canada Recovery Sickness Benefit, which provides up to $500 CAD per week for up to a maximum of 2 weeks for workers who (i) are unable to work for at least 50% of the week because they contracted COVID-19; (ii) are self-isolated for reasons related to COVID-19; or (iii) have underlying conditions, are undergoing treatment or have contracted other sicknesses that, in the opinion of a medical professional or certain government authority, would make them more susceptible to COVID-19;
  
  
• Implementing the Canada Recovery Caregiving Benefit, which provides $500 CAD per week for up to 26 weeks per household for workers (i) unable to work for at least 50% of the week because they must care for a child under the age of 12 or a family member because schools, day-cares or care facilities are closed due to COVID-19; or (ii) because the child or family member is sick and/or required to quarantine or is at high sick of serious health implications because of COVID-19.
  
  

Is there relief for commercial tenants?

Yes.

• The Government of Canada, in November 2020, introduced a new relief measure for commercial tenants, the Canada Emergency Rent Subsidy (CERS). CERS is set to replace the previous Canada Emergency Commercial Rent Assistance program that ended on September 30, 2020. CERS has been introduced as part of Bill C-9. The Bill was passed in the House of Commons and is currently before the Senate.
  
  
• The CERS program will provide direct relief to businesses, non-profits, and charities that continue to be economically impacted by the COVID-19 pandemic, through support to eligible organizations by subsidizing up to a maximum of 65% of eligible expenses. The amount of subsidy received depends on the eligible organization’s revenues.
  
  
• In addition to the subsidy, the Government of Canada will provide Lockdown Support, as part of CERS, of 25% of eligible expenses for eligible organizations that have been subject to a lockdown or other public health order issued under the laws of Canada, a province or territory, including municipalities and regional health authorities.
  
  The CERS program aims to be available retroactive to September 27, 2020, until June 2021.

Local Contacts

Larry Weinberg - Cassels Brock & Blackwell LLP

 

Is the country currently in lock down?

No. China has eased lockdown.

• On April 8, China officially lifted outbound travel restrictions and ended the lockdown of Wuhan. Chinese authorities have removed almost all travel bans and lockdowns across provinces and cities in China, but some restrictive measures remain effective.
  
  
• Cities throughout China are now divided into high-risk areas, medium-risk areas and low-risk areas.
  
  
• Most parts of China are low-risk areas, which have already resumed normal life, while high-risk areas shall be subject to epidemic control. Medium-risk areas' restrictions are vary depending on the epidemic situation and subject to detailed local requirements. For example, nucleic acid testing was required for people living in medium-risk area in Tianjin. In Shanghai, those who live in the medium-risk area shall not leave Shanghai in principle. If it’s necessary for some of them to leave Shanghai, they shall obtain the negative nucleic acid testing report issued within seven days.
  
  

Are lock down restrictions beginning to be eased?

Yes

• Lockdown restrictions have been gradually eased for medium-risk areas and low-risk areas since mid-March 2020.
  
  
• In the high-risk areas, the restrictions shall still be maintained according to the epidemic situation.

Have local franchise laws been amended?

No.

Are non-food retailers permitted to be open?

Yes.

• Non-food retailers are in general permitted to open in low-risk areas.
  
  
• Non-food retailers in medium-risk areas shall restore production and normal life according to the local epidemic situation and detailed local requirements.
  
  
• Non-food retailers in high-risk areas are not allowed to open.

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Restaurants/cafes/bars are in general permitted to open in low-risk areas.
  
  
• Restaurants/cafes/bars in medium-risk areas are in general required to suspend their operations or open in a limited capacity according to local epidemic situation and detailed local requirements.
  
  
• Restaurants/cafes/bars in high-risk areas are not allowed to open.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• It is allowed, but it should be noted that certain protective measures are encouraged to be used.
  

Is the government providing support to businesses?

Yes.

• The Chinese government has launched a comprehensive set of measures to support businesses, including but not limited to:

• providing credit support to companies which suffered most during COVID-19,


• reducing interest on company loans and extending repayment periods and granting loans without the borrower having to pay off the principal first,


• exempting/reducing rent costs,


• allowing delays for social insurance payments or waiving late payment fees for social insurance.

Is the government providing support to employees / self-employed individuals?

Yes. 

• The government has encouraged discussions on wages between enterprises and employees during the epidemic period. The local government has instructed enterprises to consult with employees in accordance with relevant national regulations on wage payment during suspension of work and production.
  
  
• For employees who are unable to work due to quarantine in accordance with the law, enterprises must pay their wages according to normal rates. After the quarantine period, employees who still cannot work due to treatment must be paid according to the relevant provisions of the medical period.

Is there relief for commercial tenants?

Yes.

• See comment under Q7

Local Contacts

Sven-Michael Werner - Bird & Bird LLP

Is the country currently in lock down? 

• Yes, as of 22 October 2020 the majority of businesses shall be closed. Moreover, a number of (protective) measures and restrictions in other businesses still apply.
  
  
• As of 28 October 2020, a curfew between 9 PM and 5 AM has been in place (with exception of trips to work etc.). Meanwhile all travel should be limited to essential trips to work, grocery stores, doctors etc.
  
  
• The state of emergency was re-introduced on 5 October 2020 and the state borders are partially open. However, it is possible to travel to the Czech Republic only for essential reasons (tourism is not possible).
  
  
• As of 9 November 2020, an updated "traffic lights" system was introduced. The system divides Schengen countries into three categories (zones) depending on their epidemiological situation and lays down specific conditions for crossing the Czech borders (e.g. a COVID-19 test may be required for individuals traveling from certain countries).
  
  

Are lock down restrictions beginning to be eased?

Yes.

• On 13 November 2020, the Government introduced a 5-colour stage PES nation-wide system based on the index of risk (scale 0-100) as an improved tool to indicate the level of COVID-19 emergency in the Czech Republic.
  
  
• Based on the index value, shifts between stages will be possible. The assessment will be published every Wednesday and the colour stage associated measurer will take effect the following Monday. Currently, the stage 5 applies (the most restrictive measures).
  
  
  

Have local franchise laws been amended?

• In the Czech Republic, there is no legislation dedicated specifically to franchising.
  
  

Are non-food retailers permitted to be open?

No.

• Non-food retailers must be closed as of 22 October 2020 with certain exceptions (drugstores, gas stations, florists etc.).
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

No.

• No, as of 14 October 2020 restaurants/cafes/bars must be closed (except for take-away windows).
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Yes, but only between 5 AM – 9 PM every day.
  
  
• The distance of 2 meters should be observed in the waiting area.
  
  

Is the government providing support to businesses?

Yes.

• Ministry of Labour and Social Affairs released a financial support programme "ANTIVIRUS" for the employers affected COVID-19 and the governmental measures.
  
  
• On the basis of this programme, employers affected by the closure of operation resulting from the anti-epidemic measures may be provided with financial support from public funds in the amount of 100% of the super-gross wage (amount paid by the employer, including social security and health insurance contributions) up to the maximum amount of CZK 50,000. With respect to employees who are in ordered quarantine, employers may be provided with the financial support in the amount of 80% of the super-gross wage up to maximum amount of CZK 50,000. This part of the ANTIVIRUS programme will run until the end of December 2020.
  
  
• In case of related economic difficulties, employers may be provided with financial support from the public funds in the amount of 60% the super-gross wage up to the maximum amount of CZK 39,000. This part of the ANTIVIRUS programme has been prolonged until the end of August 2020.

Is the government providing support to employees / self-employed individuals?

Yes.

• The care-giver allowance has been increased from 60% to 70% of the average pay, retrospectively from 5 October 2020 for the period of the duration of the extraordinary measures (max. until 30 June 2021).
  
  
• Sole traders are entitled to compensation amounting to CZK 500 per day for the period of the duration of the state of emergency. The support applies to (i) those for whom their business activity renders at least 50% of their total income and (ii) subsequent contractors whose income (at least 80%) depends on the entrepreneurs adversely affected by the pandemic.
  
  
• Individuals working under agreements for work performed outside of an employment relationship who were negatively affected by the coronavirus outbreak and who meet certain conditions can apply for financial support of CZK 350 a day for the period of 12 March to 8 June 2020. The application can be submitted until 30 November 2020.
  
  
  

Is there relief for commercial tenants?

Yes.

• A landlord cannot unilaterally terminate the lease solely on the ground of the lessee's default in paying the rent during the "protection period" (until 31 December 2020).
  
  
• A lessee is obligated to prove that the default occurred in the "relevant period" and mainly due to the constraints arising from the extraordinary measures during the epidemics, which had made it impossible or materially difficult to pay the rent.
  
  
• New call was announced by the Ministry of Industry and Trade within the COVID-Rent program compensating commercial rents in the period from July to September. 50% of the costs will be covered and paid out directly to entrepreneurs, this time without a need to ask landlords for cooperation. The call was launched on 21 October and will continue until midnight 21 January 2021.

Local Contacts

Vojtech Chloupek - Bird & Bird LLP

Is the country currently in lock down?

No.

Are lock down restrictions beginning to be eased or re-imposed?

No.

• At the moment, lock down restrictions are being re-imposed.
  
  
• There is a ban on assemblies over 10 people including private arrangements e.g. weddings outside private homes.
  
  
• For locations at which customers/visitors are mainly seated such as theatres or other stage performances, there is a maximum of 500 people allowed.
  
  
• Face masks or shields are now compulsory indoors including on public transport, in retail shops, supermarkets, premises for sports and cultural activities, education institutions, clinics and hospitals etc. However, it is not a general requirement to wear face masks or shields outdoors.
  
  
• There has been an extraordinary development of SARS-CoV-2 variants associated with farmed minks detected in North Jutland in November 2020, leading the Danish authorities to impose further restrictions on the Region of North Jutland to reduce further transmission. Amongst other things, the restrictions include:
  
  
  • Culling of all farmed mink in Denmark, including its breeding stock;
    
    
  • Citizens resident in the affected municipalities are highly encouraged to stay within their municipal border;
    
    
  • Public transport to and from the affected municipalities are restricted to students and persons who carry out critical functions;
    
    
  • Schools and educational institutions must restrict the physical attendance by 50%;
    
    
  • Restaurants, bars, sports, cultural institutions etc. must keep their premises and facilities closed until 3 December 2020.
    
    

Have local franchise laws been amended?

• There are no specific franchise laws in Denmark.
  
  

Are non-food retailers permitted to be open?

Yes.

• Non-food retailers are allowed to open but are subject to guidelines, i.e. on hygiene, ensuring a distance between customers, wearing face masks, setting up awareness posters.
  
  
• However, in the Region of North Jutland non-food retailers must keep their premises and facilities closed until 3 December 2020.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes. 

• Restaurants and cafes are allowed to sell food or drinks for consumption on the premises.
  
  
• Restaurants and cafes can stay open until 10:00 pm. This applies to both indoor and outdoor areas.
  
  
• Face masks are compulsory except when seated.
  
  
• However, in the Region of North Jutland such restaurants and bars must keep their premises and facilities closed until the end of 3 December 2020 due to the spread of the new virus variant.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

The Danish government has put several aid packages in place for businesses.

• Highlights include:
  
  
  •  Compensation on fixed costs
    
    
  • Salary compensation schemes
    
    
  • Extended limit for the state-guaranteed loan scheme for large companies and SME’s
    
    
  • Relaxation of certain corporate and accounting duties, e.g. extension of the deadlines to submit annual reports and conduct annual “general meetings”
    
    
  • SME’s who have paid VAT for the second half and fourth quarter of 2019 may apply to be reimbursed with an interest-free loan.

• These aid packages were set to expire on 29 August 2020. In light of the situation, on 28 August 2020 The Danish Business Authority presented a new political agreement on the extension of many of the aid packages.

• The aid packages were extended for companies that are “forcibly closed”, affected by border closures, travel guidelines or assembly bans. This includes but is not limited to sport associations, cultural institutions, nightlife and the travel industry. The aid packages will continue for the time being for the affected companies until 31 December 2020
  
  
• As a result of the extraordinary development of the virus in North Jutland, the Danish Government and the unions and the employers’ organizations have adopted a new local wage compensation scheme that will account for 75 pct. of total wage expenditures for salaried employees and 90 pct. of hourly workers’ monthly salary. The maximum compensation rate is 30.000 DKK for each affected employee.
  
  
• Due to the government encouraging citizens resident in the affected municipalities to stay within the confines of their municipal border, a new furlough scheme for commuters has been adopted, providing firms with a (higher) wage compensation for employees who are prevented from commuting between municipalities and are unable to work from home.
  
  
• The Government will convene relevant parties for a discussion on a safe reopening of the industries that continue to be subject to restrictions.
  

Is the government providing support to employees / self-employed individuals?

Yes.

• Employers: A new tripartite agreement between the Danish Government and the unions and the employers' organizations was adopted on 31 August 2020 and has replaced the Danish salary compensation scheme that expired on 29 August 2020.
  
  The new agreement intends to enable companies to keep as many employees as possible through lockdown and avoid dismissals.
  
• The headlights are:
• Companies can share their available assignments/labour between the employees instead of making staff redundant;
  
  
• Employees who are sent home due to reduced hours will be able to receive unemployment benefits (“dagpenge”) while retaining employment status. In the period where an employee is sent home, the employees will be able to commence supplementary training and the employee’s right to employment benefit will not be affected;
  
  
• The scheme enables unemployment pay-outs of a maximum of DKK 23,000 pr. Month, which is 20% higher than the normal maximum pay-out;
  
  
• The increased benefit payment will primarily be funded by employer contributions.
  

• Self-employed individuals: were also covered by the various aid packages up until 8 August 2020.
  
  
• Even though the general aid packages have expired, the aid packages are still available for self-employed individuals who are forcibly closed, affected by assembly bans etc.
  
  
• It is possible to apply for such compensation until 30 November 2020.
  
  
  

Is there relief for commercial tenants?

Yes.

• Companies that are forcibly closed, affected by border closures, travel guidelines or assembly bans etc. are able to apply for reimbursement of some fixed costs such as rent.
  
  

Local Contacts

Jesper Langemark - Bird & Bird LLP

 

Is the country currently in lock down?

No.

Remote working recommended, when possible, Social distancing etc.

Are lock down restrictions beginning to be eased?

N/A.

Have local franchise laws been amended?

N/A - No franchise specific laws in Finland

Are non-food retailers permitted to be open?

Yes.

• There are some limitations in respect of social distancing (limited seating, limited opening hours etc.)
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

Opening hours and alcohol sales limited in some areas (including Helsinki region)

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

Various forms of support available

Is the government providing support to employees / self-employed individuals?

Yes.

Various forms of support available

Is there relief for commercial tenants?

No

• No general relief, but many landlords have agreed some sort of reliefs (like deferred payments or temporary rent reductions) with their tenants operating in the sectors most hit by the pandemic (like hotels and restaurants)

Local Contacts

Jori Taipale - Bird & Bird LLP

Is the country currently in lock down?

No.

• The national lockdown ended on May 11th. However, due to the progression of the virus in particular in big cities, new restrictions are currently being imposed on a local level. There are specific measures are notably in public transportation services where wearing a mask is mandatory and in some places such as cafés, bars and restaurants where social distancing measures must be implemented (e.g. limiting the number of customers allowed at the same time in restaurants).
  
  
• On September 23rd a new distinction was made between (i) green zones, (ii) alert zones, (iii) reinforced alert zones, (iv) maximum alert zones and (v) zones under the state of health emergency.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

Yes.

• Since the lockdown has been lifted on May 11th, restrictions had been gradually eased eased until the end of the summer. However, a tightening of restrictions has been noticed since mid-August since the virus is progressing again in the country including in Paris - with in particular the obligation to wear masks in some cities – and these restrictions have been extended and reinforced in September on a local level.
  
  
• On June 2nd, museums and concert venues, monuments, beaches and lakes have been allowed to reopen, along with green zones, swimming pools, gyms, leisure parks and performance halls (those in the yellow zone reopened on June 22). Cinemas reopened on June 22.
  
  
• Since the end of September 2020 in reinforced alert zones (Bordeaux, Grenoble, Lille, Lyon, Montpellier, Nice, Rennes, Rouen, Saint-Étienne and Toulouse) gyms and performance halls are closed. Halls for festive and associative activities are also closed. Gathering of more than 10 people in public spaces are prohibited. Major declared events (e.g. local or student festivals) are prohibited. The maximum number of people allowed in meetings and events is reduced to 1 000.
  
  
• Also, since the end of September 2020, in maximum alert zones (Aix-Marseille and Guadeloupe) all establishments opened to the public are closed unless a strict sanitary protocol is applied and cafes, bars and restaurants are closed (see below).
  
  
• Paris and its area are likely to fall under the maximum alert zones quite shortly (likely on Monday 5 October) and would therefore fall under the regulation applicable to these zones.
  
  
• Also, despite the end of the lockdown, fairs, festivals and other events with large audiences have been prohibited until further notice.
  
  
• Trips on public transportation are now permitted
  
  
• Wearing a mask is now mandatory anywhere unless at home.
  
  
• The French administrative supreme court (Conseil d’Etat) has ruled that demonstrations (limited to 1 000 people in reinforced alert zones) can take place as long as social distancing measures are respected. Such demonstrations are prohibited in maximum alert zones.
  
  
• Schools reopened on June 2nd. Wearing a mask is mandatory indoors and outdoors, for all adults and children aged of 11 or older.
  
  

Have local franchise laws been amended?

No.

• No – and there is in any case very few regulations that applies specifically to franchise under French law.
  
  
• However, and although it is not specifically aimed at franchise agreements, an Order 2020-306 of 25 March 2020 imposed a moratorium on the application of any penalties, constraint or termination resulting from the failure of one party to comply with a contractual deadline during the state of health emergency from 12 March to 23 June – and in particular, any penalties incurred shall be deferred, at the end of the moratorium period, "for a period, calculated after the end of that period, equal to the time elapsed between 12 March 2020 or, if later, the date on which the obligation arose, on the one hand, and the date on which it should have been executed, on the other hand".
  
  

Are non-food retailers permitted to be open?

Yes.

• Since May 11th, non-food retailers have been authorised to reopen, provided that they put in place social distancing measures (notably by requiring their clients to wear a mask, limiting the number of customers in the shop etc.) they can require their staff to wear masks as well.
  
  
• Shopping centres of more than 440 square meters were allowed to reopen on May 31st, except in certain zones (i.e. Mayotte and Guyane).
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes, on a national level, but closed in some cities

• Since June 15th, cafes, bars and restaurants are open for dining in, both inside and on their terrace provided that social distancing measures apply inside the restaurant.
  
  
• Some restrictions however apply on a local level as from the end of September:
  
  
  • In maximum alert zones (Aix-Marseille and Guadeloupe - and likely Paris and its area as from Monday 5 October) and since September 28th, restaurants and bars are closed. All establishments open to the public are also closed unless a strict sanitary protocol is applied.
    
    
  • Please note that a sanitary plan proposal was made to the health council and the government to try and keep the restaurants open under very strict circumstances. It is currently being examined and, if validated, bars and restaurants could potentially reopen in these maximum alert zones.
    
    
  • In reinforced alert zones (Bordeaux, Grenoble, Lille, Lyon, Montpellier, Nice, Rennes, Rouen, Saint-Étienne and Toulouse) and since September 28th, restaurants, bars and establishments open to the public are partially closed - closing hour being decided by the prefect.
    
    
    

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• The government has enacted a health recommendation guide that requires delivery operators to ensure that delivery is contactless, in order to provide maximum protection for meal preparers, deliverers and customers. The guide states that delivery must be contactless: (i) A meal recovery area must be set up by the restaurant, separate from the kitchen, to ensure the recovery of the meal without contact between the person(s) responsible for preparing the meal and the person responsible for its delivery ; (ii) The deliveryman deposits the open bag and the restaurant staff places the meal directly into the bag ; (iii) When the meal is delivered, the delivery person warns the customer of his arrival (by knocking or ringing the bell); (iv) The deliveryman leaves immediately or moves a minimum distance of 2 meters from the door, before the customer opens the door.
  
  
• The guidelines state that food delivery platforms shall remind restaurants, delivery personnel, and customers to take the necessary precautions: barrier gestures (washing your hands very regularly, coughing or sneezing into your elbow or into a handkerchief, etc.). Although the guidelines are unclear on who must provide the following necessary precautions to deliverymen, it seems that platforms have to remind the following to deliverymen: (i) while waiting in front of a restaurant, delivery personnel must ensures that the safety distance of 1 meter between them is respected, (ii) the customer must be warned upon arrival and the deliveryman must leave immediately or moves a minimum distance of 2 meters from the door after dropping off the meal and the delivery equipment must be cleaned regularly, (iii) persons with symptoms of COVID 19 must not work, (iv) delivery equipment must be regularly cleaned using disinfectant wipes or a cleaning product corresponding to the NF or EN 14476 standard.
  
  
• Concerning restaurants – the guidelines specify that (i) barrier gestures (washing your hands very regularly, coughing or sneezing into your elbow or into a handkerchief, etc.) must be applied at all times, (ii) any staff member who is symptomatic (fever or feeling of fever, cough, breathing difficulties) should not work, (iii) bags containing meals must be properly closed and (iv) surfaces and cooking utensils must be cleaned and disinfected regularly.
  
  

Is the government providing support to businesses?

Yes.

• Ordinance No. 2020-306 provides for an extension of the deadlines expired during the health emergency period from 12 March 2020 to 23 June 2020 and is applicable in particular to any tax matters. Time limits for tax returns (Corporate Tax, VAT, Income Tax, etc.) are not affected by the Ordinance.
  
  
• It is possible for companies to obtain accelerated repayment of tax credits which should normally be refunded in the course of year 2020.
  
  
• Companies may temporarily cease their activity or reduce employees’ working time in the period of the crisis, without the employees’ consent, while guaranteeing employees a financial compensation of 70% of their gross salary for hours not worked, which will represent more than 80% of their net salary due to favourable social security treatment. Up to 85% of the amount of this compensation is covered by the State. For companies in sectors submitted to restrictions and to administrative closure such as tourism, restaurants or culture, government still covers 100% of the compensation (until the closure is lifted for companies submitted to administrative closure). Companies which obtain the express or implicit authorization of the administrative authority will get financial assistance from the State in order to be able to pay employees.
  
  
• From 1 July, companies have been able to decrease to working within a 40% limit and for a period of two years. The State will compensate part of the employees loss of revenue depending on the decrease of their working hours.
  
  
• Companies in the hotel, catering, café, tourism, events, sports, culture and related sectors, which have suffered a very significant decline in activity, are receiving increased support from the State (fond de solidarité) until December 31st if requested within two months after the end of the period for which they apply for support. This applies to eligible companies involved in these activities with up to 20 employees (up from the previous 10 employees) and a turnover of up to EUR 2 million.
  
  
• Due to the latest restrictions decided in September and October, other forms of support have been decided:
  
  
• For businesses that are administratively closed (i.e. those in maximum alert zones), the aid will cover the loss of turnover compared to last year up to €10,000 per month during the closure period. Small and medium businesses which have a turnover loss of more than 50% will be exempted from social contributions during their period of closure.
  
  
• In addition, very small companies and medium to small companies that are not directly subject to an opening restriction, but which have lost 50% of their turnover, will be able to apply, on a case-by-case basis, for a remission of contributions due during the closure period.
  
  
• For businesses operating in night sector (e.g. nightclubs) several measures are put in place such as (i) an assistance with fixed costs, including rents, up to €15,000 per month (ii) a 100% coverage of the partial activity allowance for hours not worked until the end of December 2020, or (iii) an automatic exemption from social security contributions for the period of employment between February 1st 2020 and the reopening of the establishment
  
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• See above (last bullet point under question 7) concerning the state guaranteeing employees a financial compensation of 70% of their gross salary for hours not worked in case of reduction by an employer of its employees’ working time due to the crisis.
  
  
• Concerning self-employed individuals, a solidarity fund to help very small businesses, self-employed, micro-entrepreneurs with a turnover of less than 1 million euros and that meet various criteria is proposed and these people can apply for this aid of up to €1,500 through the French tax website. Those people experiencing the greatest difficulties may obtain additional aid of €2,000 on a case-by-case basis.
  
  
• For those who are not eligible for the solidarity fund aid above, an aid scheme depending on the situation of the self-employed professional is also proposed and may take the form of financial assistance or exemption from specific tax contributions.
  
  
• Finally, in April, self-employed workers in the craft/trade sector will benefit from "compensation for loss of earnings". This exceptional aid will depend on the level of contributions of each person to the supplementary pension scheme for self-employed, up to €1,250 net of taxes and social security contributions.
  
  

Is there relief for commercial tenants?

Yes.

• An order n° 2020-316 of 25 March 2020 allows for the postponement of the payment of commercial and professional rents through the paralysis of all the mechanisms that can be invoked by lessors to obtain the payment of rents, including guarantees. However this order applies to a very limited number of companies, i.e. those that (i) have been banned from opening to the public or have suffered a loss of turnover of at least 50% during the concerned period, (ii) have started their activity before 1 February 2020, (iii) have not ceased trading on 1 March 2020 (iv) have a workforce of less than or equal to 10 employees (iv) have a turnover of less than €1 million in the last closed financial year (for new companies that have not yet closed a financial year, the average monthly turnover must be less than €83,333 over the period between the date of creation of the company and 29 February 2020 (v) pay their their manager up to a maximum amount of 60,000 €.
  
  
• Also, see point 3 above (second bullet point) concerning the moratorium on the application of any penalties, constraint or termination resulting from the failure of one party to comply with a contractual deadline during the period from 12 March to 23 June

Local Contacts

Alexandre Vuchot - Bird & Bird LLP

 

(Lock down restrictions will be eased on 11 May)

Is the country currently in lock down?

No.

• According to a decision made by the federal states and the German government on 17 June, civilians must keep a distance of 1.5 meters between other individuals in public. In addition, major events like festivals are not allowed to take place until the end of October.
  
  
• If there are more than 50 new infections per 100,000 inhabitants cumulatively in a district or a city within seven days, immediate regional restrictions like a lock down must be applied.
  
  
• Masks must be worn in shops and on public transport.
  
  
• In some federal states, face-to-face meetings are still limited to a certain number of people. In other federal states, no restrictions apply in this respect.
  
  
• People who enter Germany from a so-called risk area must be tested for COVID-19 and remain in quarantine until the test result is negative. In risk areas, there is an increased risk of infection with COVID-19. They are identified by the government and published in a list on the internet.
  
  

Are lock down restrictions beginning to be eased?

Yes.

• As already mentioned, most of the lock down restrictions have already been eased. Since the numbers of infections are currently rising in Germany, it is unlikely that there will be further relaxations at the moment.

Have local franchise laws been amended?

N/A

• There are no specific amendments to franchise laws in Germany. However, Germany does have a recent amendment to franchising related provisions. In Germany, the so-called “Law to mitigate the consequences of the COVID-19 pandemic in civil, insolvency and criminal procedure law” (referred to as “COVID-19-Mitigation Law”) has been implemented in March which provides for a large number of amendments to provisions under civil and insolvency law (e.g. suspension of debtor’s obligation to file for insolvency, restriction of creditors’ right to apply for insolvency proceedings) that could affect the franchise relationship.
  
  
• Force majeure clauses should also be considered. Under German law, these clauses could be applicable to the pandemic, meaning that franchise fees could be reduced or not payable at all. It is uncertain whether a German court would come to such a decision, as there have been no previous precedents under German case law.
  
  
• Given the uncertainty of the legal framework outlined above and in the spirit of partnership and Fair-Play Franchising, some franchisee systems in Germany have taken an amicable approach, e.g. granting time-bound consent to their franchisees’ closure requests and offering financial relief to them (e.g. deferral of continuing fees payment, partial waiver of advertising/marketing payments).
  
  

Are non-food retailers permitted to be open?

Yes.

• However, customers must wear masks and keep a distance from each other.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• In some federal states, people entering a restaurant must wear a mask until they are seated. In most of the federal states, customers must fill out forms with their personal details before being allowed to order. Buffets are allowed only in some parts of Germany.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

• The German government has adopted aid programs for all businesses according to company size.
  
  
• The German government has set up a 24.6 billion emergency aid program to support small and medium-sized businesses. These funds will be used to provide grants to cover operating costs from June until the end of August. In the event of a 40% decline in sales, the grants cover up to 40% of the fixed operating costs, up to 50% in the case of a 50% decline in sales and 80% in the event of a 70% decline in sales. The maximum granted to small businesses with up to five employees is 9000 euros and for enterprises with up to ten employees, 15,000 euros. For all other small or medium-sized businesses, the maximum granted is 150,000 euros. The grants do not have to be paid back.
  
  
• In addition, the German government has established the so-called “KfW Special Program 2020”. KfW is a government-owned promotional bank. The program is available to small and medium-sized enterprises as well as large companies that have temporarily experienced financing difficulties due to the coronavirus crisis. This means that all companies that were not already experiencing difficulties on 31 December 2019 can apply for a loan. Financing can be provided for investments and working capital.
  
  
• In addition, the KfW has implemented the so-called “KfW instant loans” for small and medium-sized enterprises subject to certain company-related conditions. The KfW grants them loans for working capital and investments up to a maximum of 25% of the annual turnover in 2019.

Is the government providing support to employees / self-employed individuals?

Yes.

• Employees
  The German government has expanded its short-time work scheme, which provides compensation to certain workers whose working hours have been reduced. Short-time work is defined as the temporary reduction of working hours with a corresponding reduction in pay. Compensation for short time work is paid by official employment agencies as a partial replacement for the wages that workers lose due to temporary work shortages.
  
  
• Self-employed individuals
  As already described above (see answers to question 7), the German government has adopted COVID-19 emergency aid programs (one-off payments) to help the small businesses including self-employed persons bridge liquidity bottlenecks.
   

Is there relief for commercial tenants?

Yes.

• The COVID-19-Mitigation Law protects commercial tenants against termination. According to the COVID-19-Mitigation Law, the non-payment of rents due for April, May and June 2020 does not entitle the landlord to terminate the lease until 30 June 2022, provided that the non-performance is due to the effects of the COVID-19 pandemic.
  
  
• The rental payment obligations themselves are not directly influenced by the law. In this respect, the COVID-19-Mitigation Law only prevents termination due to default of payment. However, in practice, some franchisees have so-called business rental contracts with the Franchisors and their rental payments are always subject to the actual sales turnover (i.e. no sales, no rent). This does not relate to any relief programs provided by the government.
  
  
  

Local Contacts

Jiri Jaeger - Bird & Bird LLP

 

Please note: As a general comment, since Germany is a federal country, there are local differences between each of the 16 states. We are giving you some general rules across the most federal states in Germany.

 

Is the country currently in lock down?

Yes.

• All non-Hong Kong residents coming from overseas countries and regions by plane will be denied entry to Hong Kong; all non-Hong Kong residents coming from the Mainland, Macao and Taiwan will be denied entry to Hong Kong if they have been to any overseas countries and regions in the past 14 days.
  
  
• A traveller who has visited any very high-risk specified place (i.e. Bangladesh, Belgium, Ethiopia, France, India, Indonesia, Kazakhstan, Nepal, Pakistan, the Philippines, Russia, South Africa, Turkey, the United Kingdom and the United States of America) in the 14 days before boarding a flight to Hong Kong must provide a test report issued by a laboratory or healthcare institution showing that the traveller was tested negative in a nucleic acid test for COVID-19.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

Beginning to b eased.

• From 22 November 2020, quarantine-free travel between Hong Kong and Singapore is possible, provided that certain conditions are met.
  
  

Have local franchise laws been amended?

N/A

Are non-food retailers permitted to be open?

Yes.

There are currently no measures which restrict or prohibit non-food retailers to be open.

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Dine-in services are only allowed from 5:00 a.m. to 11:59 p.m daily.
  
  
• The number of customers at any catering premises (including bars and pubs) at any one time must not exceed 50 per cent of the normal seating capacity of the premises.
  
  
• No more than 2 persons may be seated together at one table within bars or pubs as well as clubs or nightclubs; no more than 4 persons may be seated together at one table within other catering business premises.
  
  
• Live performances and dancing are allowed in catering premises subject to strict compliance with relevant infection control measures. All karaoke activities carried on at any catering premises and mahjong-tin kau playing facility provided therein must follow the applicable directions.
  
  
• Other requirements and restrictions on catering business premises include:
  
  • tables must be arranged to ensure there is a distance of at least 1.5 metres or some form of partition which can serve as effective buffer between tables;
    
    
  • masks must be worn at all times when in a catering premises, except when consuming food or drink;
    
    
  • body temperature checks must be conducted before a person is allowed to enter a catering premises;
    
    
  • hand sanitiser must be provided at any catering premises.
    
    

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• With various social distancing and stay-home measures in place, the food delivery market has become more popular, with increasing number of eateries including high-end restaurants registered as restaurant partners with delivery platforms such as Deliveroo and Foodpanda. Even luxury hotels have introduced their own delivery services.
  
  

Is the government providing support to businesses?

Yes.

• The Government has introduced various measures to provide relief for hard-hit sectors such as tourism, catering, construction, aviation, passenger transport sectors, and sectors which are completely or partly closed due to Government's safe-guarding measures such as fitness centres operators, amusement game centres and beauty parlour operators. These include one-off relief grants, cash subsidies, rental waivers and more.
  
  
• To ease cash flow problems, a special 100% concessionary low-interest loan will be introduced to SMEs under a scheme known as the SME Financing Guarantee Scheme for which the Government will provide 100% guarantees. The "principal moratorium" will also be extended from 6 months to 1 year, and the Government will increase its guarantee commitment from HKD$20 billion to HKD$50 billion.
  
  
• Other measures include reducing income tax by 100% in Year of Assessment 2019-20 (subject to a ceiling of HKD$20,000), waiving business registration fees in 2020-2021, waiving registration fees for annual returns charged by the Companies Registry for 2 years, providing electricity charges subsidies and waiving water and sewage charges etc.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• The Government has launched an "Employment Support Scheme" (ESS) which provides wage subsidies to eligible employers who undertake not to make workers redundant during the subsidy period, and to spend all the wage subsidies on paying wages for their employees. Processing of applications has generally been completed and the first and second tranches of subsidies have generally been disbursed.
  
  
• On job creation, the Government has earmarked $6 billion to create around 30 000 time-limited jobs in the public and private sectors in the coming two years for people of different skills and academic qualifications.
  
  
• The Government has proposed measures to encourage staff in various professions to learn new skills and to help enterprises apply technology e.g. providing matching grants for training programmes for staff in public and private sectors, providing training subsidies for construction sector, providing funds to assist some SME law firms/ barristers’ chambers to procure / upgrade their information technology system and arrange relevant LAWTECH training for their staff to support the development of remote hearings etc.
  
  

Is there relief for commercial tenants?

Yes. The relief for commercial tenant includes:

• extending the 75% rent concession to eligible tenants of government premises and eligible holders in respect of tenancies on government land from April to September 2020. Businesses which have completely ceased operation will receive a full rent waiver;
  
  
• enhancing the rates concession to non-domestic properties for the second half of 2020-2021 by increasing the exemption ceiling from HK$1,500 to HK$5,000 per quarter;
  
  
•  expanding the scope of the above rent concessions and waiver fee concessions to more businesses/organisations, such as depots, driving schools, regulators’ offices for public transport operators and advertising signboards. Short-term tenancies and waiver holders which are ordered to close or have chosen to close due to Government’s closure orders or other restrictions for safeguarding public health may apply for full concession.

The Government has urged public bodies such as the Housing Authority, the Housing Society, the Urban Renewal Authority and the Airport Authority to provide their commercial tenants with rental concessions and has appealed to landlords in the private sector to reduce rent.

Local Contacts

Hank Leung - Bird & Bird LLP

Is the country currently in lock down?

Yes, partially.

• After the period between 18 June 2020 and 3 November 2020, when the Hungarian government maintained the status “epidemiological preparedness”, the Government again declared the “state of emergency” as of 4 November 2020. This means that during this period (with parliamentary approval) the Government is entitled to take any measures necessary in order to eliminate the consequences of COVID-19.
  
  
• As of 11 November 2020, it is mandatory to wear protective masks in shops, shopping centres, restaurants (while entering for delivery purposes only), administration offices, social institutions, hospitals, in certain open space areas in cities over 10,000 inhabitants, and on public transport (including the connected areas). Visiting sports or other events are prohibited. Private or family events may be organised for up to 10 people. The rules are strictly enforced, not only the individuals, but also the shops and other institutions are subject to a fine of up to HUF 1,000,000 (approx. EUR 2,770) if individuals enter their premises without wearing protective masks. In case of repetitive breaches, the shops and other institutions may be forced to close for up to one year.
  
  
• Since 1 November 2020, new rules have been implemented regarding travelling to Hungary. Nobody may enter Hungary from abroad except Hungarian citizens. The Hungarian citizens must self-quarantine for 10 days unless they can show two negative PCR tests. Special rules apply for duly evidenced business travel, transportation, and professional athletes.

Are lock down restrictions beginning to be eased or re-imposed?

Yes, re-imposed

• After the Hungarian Government eased restrictions during Spring, now new restrictions are in place.
  
  
• As of 11 November 2020, from 8 pm to 5 am nobody may leave their home except for the purposes of performing work, walking the dog, attending sports event or training by a professional athlete or emergency situations. It is still mandatory to wear protective masks at all times when entering shops, shopping centres, restaurants (while entering for delivery purposes only), administration offices, social institutions, hospitals, in certain open space areas in cities over 10,000 inhabitants, and on public transport (including the connected areas).
  
  
• Recreational facilities (incl. gyms, swimming pools, cinemas, theatres, zoos), museums, libraries, archives and hotels (except for business guests) must be closed. Also, visiting sports and other cultural events are prohibited.
  
  

Have local franchise laws been amended?

No. 

• The Hungarian Government has not implemented franchise-specific measures, nevertheless franchises may benefit from certain measures introduced by the Government.
  
  

Are non-food retailers permitted to be open?

Yes, with restrictions.

• Starting from 11 November 2020, all non-food retailers are permitted to be open from 5 am to 7 pm, however people are obliged to wear protective masks when entering shops. Pharmacies and gas stations may be opened without time restrictions.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

No.

• Starting from 11 November 2020, restaurants, bars and coffee shops are not permitted to be open for dining in. Canteens at workplaces, restaurants of accommodations (for serving the staying guests), canteens at educational institutions (for serving students and employees of the institution), canteens at health institutions are exempt from this rule.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Restaurants, bars and coffee shops are fully permitted to operate take-away and delivery.
  
  

Is the government providing support to businesses?

Yes.

• The Government has imposed a moratorium on all loan repayments for individuals and companies until the end of 2020 that has been extended until 30 June 2021 for certain individual groups (e.g. retired persons, families with children). The interest rate on all new consumer loans is capped at the Central Bank’s base rate plus 5 percent maximum.
  
  
• Administrative obligations on companies have been introduced, such as amendments to decision-making rules of companies to ensure an uninterrupted operation during COVID-19.
  
  Preferential loans are available to companies for investments. The Hungarian Export-Import Bank introduced COVID-19 Compensation Programs, including working capital loans where the interest rate is 0.1 percent for small businesses that apply for it within a year.
  
  
• The State will reimburse hotels, camping and other accommodation providers 80 percent of the value of bookings made for 30 days commencing 11 November 2020 if booked before November 8, on the condition that hotels, camping and other accommodation providers will not lay off employees and continue to pay their salaries.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• The Government has introduced several measures and reliefs for employees and self-employed individuals. These include, in particular, a moratorium on all loan repayments for individuals and companies until 30 June 2021 for certain individual groups (e.g. retired persons, families with children). The interest rate on all new consumer loan interest rates is capped at a maximum of the Central Bank’s base rate plus 5 percent.
  
  
• Not only employers, but also employees have been provided with a reduction in their required tax contributions, including a moratorium on pension contributions. Health insurance premiums are also capped.
  
  
• For the month of November 2020, employers will get an exemption from having to pay social contributions for staff at restaurants, bars, and recreational facilities (i.e. gyms, etc.).
  
  
• Also, the employers of the above sectors can apply for a State subsidy for the month of November 2020 that covers 50 percent of these employees’ salaries on the condition that employees keep their jobs and continue receiving their salaries.
  
  

Is there relief for commercial tenants?

Yes.

• It is up to the parties to reduce or release the rental fee through negotiation based on their contract and general rules of the Civil Code.

Local Contacts

Bálint Halász - Bird & Bird LLP

Is the country currently in lock down?

Yes

Are lock down restrictions beginning to be eased?

Yes.*

Have local franchise laws been amended?

N/A**

Are non-food retailers permitted to be open?

No.***

Are restaurants/cafes/bars permitted to be open for dining in?

No.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

No.****

Is the government providing support to employees / self-employed individuals?

No.

Is there relief for commercial tenants?

No.

Local Contacts

Nipun Gupta - Bird & Bird LLP

 

*Partially
**Numerous laws that could impact on franchising arrangements have been modified
***In the most recent relaxation, in a non-hotspot area standalone establishments of non-essential goods are not permitted to open.
****Some measures, but not financial

Is the country currently in lock down?

No.

• Indonesia is currently implementing a "Large-Scale Social Limitation" period.
  
  
•  However, many provinces and cities in Indonesia are currently implementing the “transitional phase” of the large scale social limitation period, wherein restrictions have been eased.

Are lock down restrictions beginning to be eased or re-imposed?

In October 2020, some provinces and cities in Indonesia (including Jakarta, the capital city of Indonesia) which were previously re-imposing the “strict” large scale social limitation, have once again implemented the “transitional phase” of the large scale social limitation.

This has led to several tight restrictions during the “strict” large scale social limitation to be eased-up once again.

Have local franchise laws been amended?

No.

• Not during this period. The latest amendment to the current franchise legislation was the issuance of the Ministry of Trade Regulation No. 71 of 2019 on Franchise which supersede the previous Ministry of Trade Regulation No. 53/M-DAG/PER/8/2012
  
  

Are non-food retailers permitted to be open?

Yes.

• During the “transitional phase,” many major cities in Indonesia have allowed non-food retailers, including shopping malls, to be open. However, retailers and shopping malls have to implement certain health protocols.
  
  
• In June 2020, the Ministry of Health issued a decree (No.HK.01.07/MENKES/382/2020) on health protocols in public places. As such, this decree applies to public places, including hotels, restaurants, shopping malls, fitness centres, convention halls, tourist destinations and public transportation. According to this decree, 1-meter social distancing rules must be implemented. Temperature checks and the use of face masks are also mandatory for both employees and guests.
  
  
• Depending on the Regional Regulations, most of the provinces and cities in Indonesia require retail outlets to reduce occupancy to 50% of maximum capacity. There must also be a reduction on operational hours.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• For regions which still implement the “transitional phase,” restaurants/cafés/bars are allowed to open for dining in services at 50% capacity (this may also depend on Regional Regulations) and follow strict health protocols set out by the Government.
  
  
• In July 2020, the Ministry of Tourism and Creative Economy released health & safety guidelines for the prevention and control of COVID-19 in restaurants. The guidelines include the following requirements: (i) restaurants have to provide hand sanitising facilities for customers before they enter the restaurant, (ii) customers must be seated at an appropriate distance, and (iii) the premises must be sanitised regularly.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Take away and delivery services can remain operational.

Is the government providing support to businesses?

Yes.

• The Indonesian Government has taken several measures in accelerating the National Economic Recovery (PEN) program. This is by providing stimulus for businesses such as tax incentives for certain industries, credit stimulus policies for Indonesian banks that relax credit scoring requirements and special treatment for loan restructuring, and the subsidies to electricity bills to households and businesses. Further, the Indonesian Government will allocate IDR 366.5 trillion (approx. USD 24 billion) in the 2021 state budget following the various stimulus that has been launched in response to the pandemic.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• The Indonesian Government is set to launch a financial stimulus scheme for employees that earn less than IDR 5,000,000 (approx. USD 340) per month. The employees will be eligible for monthly payments of IDR 600,000 (approx. USD 40) for a period of 4 months.
  
  
• In August 2020, the Minister of Manpower issued the Minister of Manpower Regulation No. 14 of 2020 in respect of Government assistance regarding salary/wage subsidies for workers affected by COVID-19. The regulation acts as a set of guidelines which detail the requirements for eligible employees who can receive the funds.
  
  

Is there relief for commercial tenants?

No.

Many commercial tenants have not received any incentive or relief for any closures which occurred during the 'large scale social limitation' period.

Local Contacts

Risti Wulansari - K&K Advocates

 

Is the country currently in lock down?

Yes.

The Irish Government introduced a "Plan for Living with Covid 19" on 15 September designed to provide a framework for dealing with COVID-19 over the medium term: https://www.citizensinformation.ie/en/covid19/living_with_covid19_plan.html. This plan introduces 5 levels of restrictions (5 being the most restrict) depending on the severity of COVID-19 in an area.

Ireland is currently in level 5 of this plan which is a full lockdown. This was introduced as of 21 October 2020 and is expected to run for a period of 6 weeks ending 2 December pending a further review by the Government

Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

Yes Ireland is in a full lockdown

People are to restrict their movements within 5km of their homes unless they are an essential worker or they are leaving for an essential purpose such as going to a grocery store.

Have local franchise laws been amended?

No.

• No. Ireland does not have a specific "Franchise Law".
  
  
• Franchises are subject to the same corporate and commercial laws as other businesses in Ireland.
  
  

Are non-food retailers permitted to be open?

No.

• All non-food retailers are currently closed under the restrictions. Only essential retailers such as pharmacy's are open.

Are restaurants/cafes/bars permitted to be open for dining in?

No.

All bars and restaurants are closed.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

They are allowed to serve takeaway and delivery only.

Is the government providing support to businesses?

Yes.

• Microenterprises can access COVID-19 Business Loans of up to €50,000. These loans include 6 months interest free and a repayment moratorium during that time.

• A €450 million COVID-19 Working Capital Scheme is available for eligible businesses.

• Manufacturing and international trade services businesses who are vulnerable but viable can avail of the Sustaining Enterprise Fund of up to €180 million. There is also a similar fund available for small enterprises for short term working capital injections of up to €50,000.

• The Restart Grant is available and will give direct grant aid to micro and small businesses to assist them with the costs associated with re-opening and re-employing workers following COVID-19 closures.

• The Trading Online Voucher is a grant designed to assist small business to help them to set up trading online.
  
  
• The COVID-19 Online Retail Scheme will be available to support retail companies to enhance their digital capability. 
  
  
• Future growth loan scheme – a fund of €500m is available to eligible enterprises for longer term loans of value from €100,000 to €3m
  
  
• Credit guarantee scheme – a €2billion scheme will provide an 80% guarantee on lending to SMEs until the end of 2020, it can be used for a range of lending products between €10,000 and €1m
  
  
• Business continuity voucher – a voucher up to €2,500 is available for business who employ up to 50 people in order to assist them in paying 3rd party consultancy costs associated with developing their long term strategies.
  
  
• Business financial planning grant – a grant of up to €5,000 is available to companies to develop a Business Sustainment Plan

Full details and information on the supports can be found here

Is the government providing support to employees / self-employed individuals?

Yes.

• Employees of businesses that need to reduce hours or days worked can avail of the Short-time Work Support.

• Enhanced Illness Benefit Payment is available for workers who have been advised to self-isolate or who are diagnosed with Covid-19 and cannot work as a result. 
  
  
• Self-employed individuals can avail of the Temporary Covid-19 Wage Subsidy Scheme, the Covid-19 Pandemic Unemployment Payment or may be eligible to claim Jobseeker's Allowance in certain circumstances.
  
  

Is there relief for commercial tenants?

Commercial rates have been waived until 31 December.

Local Contacts

Damian Maloney - Beauchamps

 

Is the country currently in lock down?

No.

• Italy is not going back into a general lockdown, but new strict measures apply from 6 November 2020 until 3 December 2020, including a general “curfew” from 10 PM to 5 AM and tighter lockdown-type restrictions in certain regions
  
  
• Italian regions have been divided into three areas corresponding to three different risk levels for which modular measures have been set forth:
  
  
  • Red area: Calabria, Lombardy, Piedmont, Valle d'Aosta
    
    
  • Orange area: Apulia, Sicily
    
    
  • Yellow area: Abruzzo, Basilicata, Campania, Emilia Romagna, Friuli Venezia Giulia, Lazio, Liguria, Marche, Molise, Provinces of Trento and Bolzano, Sardinia, Tuscany, Umbria, Veneto
    
• Safety measures, including social distancing and an obligation to always carry along face masks and wear them inside public places and outside (unless the circumstances and characteristics of the place ensure the respect of social distancing) shall continue
  
  

Are lock down restrictions beginning to be eased?

Yes.

• The emergency state has been extended until 31 January 2021 and new strict restrictions have been re-imposed and will apply until 3 December 2020
  
  
• In red areas, travel is only allowed for work, health and other necessity reasons. In yellow and orange areas, such restriction applies from 10 PM to 5 AM
  
  
• Movement between regions and towns within red and orange areas is not allowed, unless for work, health and other necessity reasons
  
  
• Gyms, swimming pools, movie theatres, theatres, arcades, bingos are closed
  

Have local franchise laws been amended?

No.

• Italian franchise law (Law no. 129/2004) and Ministerial Decree no. 204/2005 have not been amended
  
  
• Law Decree no. 18/2020 (“Cure Italy Decree"), converted into Law no. 27/2020, Law Decree no. 23/2020 (“Liquidity Decree") and Law Decree no. 34/2020 ("Relaunch Decree") converted into Law no. 77/2020, and Law Decree no. 104/2020 provide for measures supporting businesses, including franchisors and franchisees
  

Are non-food retailers permitted to be open?

Yes.

• Gyms, swimming pools, spa and wellness centers, arcades, bingos, theatres are closed throughout the national territory
  
  
• Within red areas, non-food retailers other than those selling essential goods shall be closed
  
  
• Hair salons and barbers are permitted to be open
  
  
• Shopping centres have to be closed during weekends and non-working days
  
  
• Where permitted to be open, retailers have to indicate on a sign at the entrance the maximum number of people allowed into the premises
  
  
• Where permitted to be open, retailers have to ensure social distancing of at least 1 metre and staggered entry to the stores and avoid that customers stay into the stores more than necessary
  
  
• Conference of Regions and Autonomous Provinces guidelines provide for certain additional measures to be adopted by retailers
  
  
• Measures include physical distancing of at least 1 metre between customers and the mandatory use of face masks by customers
  
  
• Electronic payments have to be preferred and safety measures at the cash desks, including physical barriers or face masks, have to be adopted
  
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• In yellow areas, restaurants/cafes/bars are permitted to be open for dining in until 6.00 PM
  
  
• In red and orange areas, restaurants/cafes/bars are not permitted to be open for dining in
  
  
• A maximum of four people per table is allowed, unless they are co-habitants
  
  
• The Conference of Regions and Autonomous Provinces guidelines provide for certain specific measures to be adopted by restaurants, cafes and bars
  
  
• Measures for dining in include social distancing of at least 1 metre between customers, table placement that ensures a 1 metre distance between customers and physical barriers between tables. There is a prohibition on buffet style services
  
  
• Restaurants are encouraged to request bookings for dining in and to keep customer data for 14 days
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Take-away is allowed until 10 PM.
  
  
• Delivery is allowed without time limits.
  
  
• Safety measures, including social distancing of at least 1 metre and precautions for packaging and delivery, must be adopted
  

Is the government providing support to businesses?

Yes.

• The Italian government adopted Law Decree no. 18/2020 (“Cure Italy Decree"), Law Decree no. 23/2020 (“Liquidity Decree") and Law Decree no. 34/2020 ("Relaunch Decree") converted into Law no. 77/2020, Law Decree no. 104/2020 (“August Decree”) and Law Decree no. 137/2020 (“Ristori Decree”) providing for support to businesses, workers, families, healthcare, schools, universities.
  
  
• Non-refundable reliefs for business which will suffer losses due to closures and time restrictions
  
  
• Measures include tax incentives for recapitalization, tax credit for capital losses and an SME Fund for subscribing bonds or debt securities for businesses with a turnover of between €5 and €50 million
  

Is the government providing support to employees / self-employed individuals?

Yes.

• Law Decree no. 18/2020 (“Cure Italy Decree"), converted into Law no. 27/2020, and Law Decree no. 34/2020 ("Relaunch Decree") converted into Law no. 77/2020, Law Decree no. 104/2020 (“August Decree”) and Law Decree no. 137/2020 (“Ristori Decree”) provide for economic and financial measures to support families, workers and businesses
  
  
• Under certain conditions, allowances are granted to self-employed individuals
  
  
• Enhancement of the Wage Guarantee Fund
  
  
• Ristori Decree extended furlough programs and ban on dismissals until 31 January 2021
  
  
• Indemnities for entertainment, sport and tourism workers
  

Is there relief for commercial tenants?

Yes.

• Withdrawal of IMU tax due by December
  
  
• Tax credit for real estate rental expenses is granted under certain conditions
  
  
• Tax credit for business branch leases is granted under certain conditions
  
  

Local Contacts

Claudia Ricciardi - Bird & Bird LLP

Is the country currently in lock down?

Yes.

• Lockdown has been extended until further notice according to Notification No. 1202 dated October 31, 2020.

Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

• International checkpoints remain closed except for Lao nationals, foreign employees, foreign investors, and diplomats upon authorization of the National Taskforce Committee for COVID-19 Prevention.
  
  
• Terrestrial checkpoints (other than international checkpoints) remain closed except certain checkpoints, as approved by the Lao government.
  
  
• Tourist visas can be issued to foreign tourists arriving in Laos from countries where the spread of COVID-19 is deemed to be limited (no further indication has been provided at this moment), upon authorization from the National Taskforce Committee for COVID-19 Prevention.
  
  
• Tourists and foreign tourists from countries where the spread of COVID-19 is deemed limited are permitted to participate in group tourism activities in Laos, upon authorization from the National Taskforce Committee for COVID-19 Prevention.
  
  
• For Lao nationals, and foreigners coming from countries where there is no spread of COVID-19, once the first test for COVID-19 is negative, the rest of the quarantine (14 days in total) may be performed at home, or at the workplace.
  
  
• For foreigners arriving from countries where the spread of COVID-19 is still active, a 14-day quarantine period at a location designated by the authorities (e.g., a hotel) will still be mandatory.
  
  
• The importation of goods to and the exportation of goods from Laos is permitted.
  
  
• A limited number of international flights have resumed.
  
  
• All domestic flights have resumed.
  
  

Have local franchise laws been amended?

No.

• There is no specific law on local franchises. Other laws/regulations containing provisions related to local franchises have not been amended
  
  

Are non-food retailers permitted to be open?

Yes.

• Businesses have resumed normal operations except certain business related to the entertainment industry.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

• The Bank of Lao PDR issued guidelines to provide relief to debtors who have been affected by the current crisis. The regulation does not mandate commercial banks to provide this relief. Accordingly, commercial banks are strongly encouraged to:
  
  
  • Revise the debt structures of the affected debtors by agreeing on new instalments for principal and interest, and revise the interest rates so that it is reflects the actual conditions of the debtors. The debtors should be granted a grace period of at least one year to pay the principal and interest.
    
    
  • Provide new loans to debtors and those affected by the pandemic in order to help them maintain their business operations.
    
    
• The government is exempting businesses from customs duties, tax, and related official fees on medical devices and other products for preventive measures against COVID-19 (e.g., masks, sanitizers, medical equipment, and other necessary items) to businesses.
  
  
• The government postponed tax obligations, of the period from April to June 2020, for eligible business operators in the tourism industry.
  
  
• The Bank of Lao PDR decided to provide credit to commercial bank, and then the commercial bank to provide credit to micro-enterprises, and SMEs at a at a low-interest rate.
  
  

Is the government providing support to employees / self-employed individuals?

No.

• The government exempted the salary tax from government officers and employees in private companies who have salaries below LAK 5 million (approx. USD 550) from April to June 2020.
  
  
• The government is providing unemployment subsidies amounting to 60% of the contribution made to the national social security fund in the last six months to individuals unemployed or furloughed due to the COVID-19.
  
  

Is there relief for commercial tenants?

• There are no specific relief for commercial tenants other than for those described above on government support for businesses.

Local Contacts

Thomas Joseph Treutler - Tilleke & Gibbins

Is the country currently in lock down?

Yes.

• On 16 March 2020, the Malaysian government imposed a two-week movement control order (“MCO”) starting from 18 March 2020. The MCO has been subsequently extended for a third time into the fourth phase from 29 April until 12 May 2020.
  
  
• The MCO sets out six major restrictions as follows:-

o   prohibition of mass movements and gathering nationwide, including religious activities, sports, social and cultural events and closure of all houses of worship and business premises, except for supermarkets, public markets, grocery stores and convenience stores selling everyday necessities;

o   restriction on overseas travel for Malaysians and mandatory health checks and self-quarantine of 14 days for returning Malaysians;

o   restriction on entry for foreign visitors and tourists;

o   closure of all kindergartens, public and private schools;

o   closure of all public and private institutions of higher learning; and

o   closure of all government and private premises except for essential services.

• On 1 May 2020, the government announced a relaxation of the MCO to a conditional movement control order (“CMCO”) to be implemented in the fifth phase from 4 May 2020 until 12 May 2020. The CMCO was extended by another 4 weeks to 9 June 2020.
  
  
• On 7 June 2020, the government announced that the CMCO will end as scheduled on 9 June 2020 and will be replaced with the Recovery Movement Control Order (“RMCO”) starting from 10 June 2020 until 31 August 2020 with further relaxations. The RMCO has been extended to 31 December 2020.
  
• From 27 March 2020, specific locations where large clusters were detected were subjected to a stricter enhanced movement control order (“EMCO”) for 14 days in order for the government to conduct a thorough COVID-19 test on all residents and to curb the spread of the virus from the identified locations.

•  The EMCO imposes six major restrictions as follows:-

1. restriction on all residents and visitors to leave the area;
2. restriction on non-residents and visitors to enter the area;
3. closure of all businesses within the area;
4. provision of basic food supplies to the residents by the Social Welfare Department;
5. establishment of a medical base within the area; and closure of all roads to the area.

Are lock down restrictions beginning to be eased or re-imposed?

Eased.

• On 7 June 2020, the government announced the RMCO would be implemented from 10 June 2020 until 31 August 2020, with an extension until 31 December 2020, replacing the CMCO which ended on 9 June 2020, with the majority of social, education, religious and business activities allowed to reopen with adherence to standard operating procedures. These include the following:-
  
  
  • interstate travel is permitted except for areas placed under the EMCO;
    
    
  • all returning Malaysians and foreigners who are allowed to enter Malaysia (for instance, permanent residents, diplomats, expatriates and Malaysia My Second Home participants) must undergo a mandatory quarantine in government-designated centres instead of a home quarantine from 24 July 2020;
    
    
  • face masks are mandatory on public transport and in crowded public areas from 1 August 2020;
    
    
  • the use of the MySejahtera app is mandatory for all businesses nationwide beginning 3 August 2020 to facilitate contact tracing;
    
    
  • more businesses are allowed to reopen in stages if they respect standard operating procedures including barber shops, hair salons, beauty parlours, nail salons, open markets, morning markets, night markets and bazaars starting 15 June 2020. However, pubs and nightclubs remain prohibited;
    
    
  • commercial activities involving sales transactions and marketing outside the business premises are permitted;
    
    
  • museum visits, indoor busking, self-service laundry, recreational fishing activities including commercial fishing ponds, and filming are permitted;
    
    
  • sports and recreational activities are allowed subject to standard operating procedures. These include training activities for sports teams and non-contact sports such as bowling, badminton, archery and shooting, as well as outdoor group activities such as group cycling and motorcycle convoys.
    
    
  • gyms, indoor sports venues and snooker centres are allowed to resume operations from 15 June 2020; and
    
    
  • schools are set to reopen in stages from 24 June 2020, starting with students facing public examinations and equivalent international school examinations this year. Schools for Form 6 Semester 1, Remove Class, Form 1 to 4 for secondary schools and Standard 5 and 6 for primary schools as well as tuition centres are allowed to resume classes on 15 July 2020 while Standard 1 to 4 for primary schools are scheduled to commence classes on 22 July 2020;
    
    
  • pre-schools and kindergartens are allowed to resume operation on 1 July 2020;
    
    
  • students of public universities and private higher education institutions are allowed to return to campus on 8 July 2020. Such institutions are given the flexibility to decide on the appropriate mode of learning, including continuing with online learning. They are scheduled to fully reopen in October;
    
    
  • Hari Raya Aidiladha celebration and Qurban activities are permitted;
    
    
  • public transport including aeroplanes, buses, trains, ferries, e-hailing and taxi services are allowed to operate at full capacity;
    
    
  • mosques and suraus outside of COVID-19 red zones in the Federal Territories are allowed to resume normal operations from 15 June 2020. respectively All mosques and suraus in Selangor can reopen for Friday prayers and congregational fardhu prayers beginning 3 July 2020 with a maximum of 500 congregants and 1,000 congregants for 3 specific mosques (namely, the Sultan Salahuddin Abdul Aziz Shah Mosque, the Tengku Ampuan Jemaah Mosque in Bukit Jelutong and the Raja Haji Fi Sabilillah Mosque in Cyberjaya), excluding officers and mosque committee members. For suraus, the maximum number of congregants is set at 40, excluding officers and surau committee members. However, beginning 15 July 2020, there is no longer a limit on the number of people which is based on area size, provided one-metre social distancing is maintained
    
    
  • all non-Muslim places of worship have been allowed to open from 15 June 2020. From 15 July 2020, there is no longer an area-based limit on the number of people, provided one-metre social distancing is maintained;
    
    
  • wedding ceremonies for non-Muslims can be held at places of worship and religious association premises. From 15 July 2020, there is no longer an area-based limit on the number of attendees, provided one-metre social distancing is maintained;
    
    
  • all court complexes are permitted to be fully reopened by 1 July 2020;
    
    o all organisations including political parties, sports bodies and corporations, are allowed to hold their annual general meeting from 1 July 2020;
    
    
  • cinemas, theatres and live events are allowed to resume operation from 1 July 2020 provided one-metre social distancing is maintained;
    
    
  • both public and private pools at hotels, gated residences, apartments, and condominiums are allowed to resume operation beginning 1 July 2020;
    
    
  • social events including wedding receptions, engagement parties, gatherings and religious events can be held from 1 July 2020 provided one-metre social distancing is maintained and the event does not last longer than five hours;
    
    
  • spas, wellness and reflexology centres are permitted to reopen from 1 July 2020;
    
    o conferences, exhibitions, and travel and trade fairs are allowed to begin activities from 1 July 2020 provided one-metre social distancing is maintained;
    
    
  • family entertainment centres including theme parks, game arcades, indoor funfair parks, edutainment centres, play gyms for children, entertainment games, machines and technology entertainment and karaoke centres are allowed to resume operations from 15 July 2020;
    
    
  • non-contact and individual sports competitions such as motor racing, gymnastics, diving and singles badminton competitions are permitted from 15 July 2020 but without spectators. Operators of commercial fields and facilities such as futsal courts are also allowed to reopen from 15 July 2020. Contact sports competitions are allowed to resume from 15 August 2020 with no spectators as well;
    
    
  • cross-border travel remains prohibited except between Malaysia and Singapore which is permitted under the Reciprocal Green Lane and Periodic Commuting Arrangement schemes beginning 10 August 2020. The former enables cross-border travel for essential business and official purposes between both countries while the latter allows Singapore and Malaysia residents, who hold long-term immigration passes for business and work purposes in the other country, to enter that country for work; and
    
    
  • outdoor sports and co-curricular activities are allowed in schools beginning 1 September 2020.
    
    

Have local franchise laws been amended?

Yes.

• The government introduced amendments to the Franchise Act 1998 (“FA”) via the Franchise (Amendment) Act 2020 (“2020 Act”) to ensure conformity with the current developments of the franchise business in Malaysia. It has been published in the Gazette on 6 March 2020 after receiving its Royal Assent on 20 February 2020 but has yet to come into force.
  
  
• One of the major changes under the 2020 Act is the new requirement for a foreign franchisor to register its franchise separately under Section 6 of the FA which presently only applies to a local franchisor, after obtaining the Registrar’s approval to sell its franchise in Malaysia or to a Malaysian citizen under Section 54 of the FA. This requirement was introduced by extending the scope of application of Section 6 of the FA to foreign franchisors. To enable the smooth transition to the new FA, the 2020 Act further allows all foreign franchisors who had previously obtained the Registrar’s approval under Section 54 of the FA, to be automatically registered under Section 6 of the FA. We anticipate that the Registrar would adopt similar practice in dealing with pending or future foreign franchise applications in view that the level of information and documents required for an application under Section 6 is almost identical to Section 54.
  
  
• The introduction of the double registration requirement means that foreign franchisors are now bound by the post-registration obligations under the FA which presently only apply to local franchisors, namely the pre-contractual disclosure of the franchise agreement and supporting documents which have been approved by the Registrar including the amendments thereto (Section 15 of the FA), the submission of an annual report within 6 months from the end of financial year of the franchise business (Section 16 of the FA) and the submission of a financial statement of a promotion fund which has been endorsed by a registered public accountant within 30 days after the conclusion of the last financial term (Section 22 of the FA). This amendment serves as a wake-up call for foreign franchisors to take steps to comply with the post-registration obligations.
  
  
• The 2020 Act imposes a limited period of effectiveness to be determined by the Registrar (“period”), for franchise registration which presently has no limit in time unless cancelled by the Registrar or terminated by the contracting parties. Franchisors are required to renew their franchise registrations for a further period within 30 days from the expiry date subject to payment of renewal fees and other terms and conditions imposed by the Registrar which may include compliance with the post-registration obligations, and display a certificate of registration at the business premises.
  
  
• The 2020 Act requires the terms of extension to be included in a franchise agreement. It follows that franchisors are required to provide separate a separate extension term which is usually shorter than a renewal term, for franchisees to recoup on their investments. However, this amendment would unlikely affect franchises which had been registered prior to the 2020 Act as it has always been the Registrar’s practice to require terms of extension to be provided in a franchise agreement.
  
  
• The 2020 Act removes Section 18(3) of the FA which renders a franchise agreement that does not comply with the prescribed requirements null and void. Nevertheless, non-compliance with the requirements of a franchise agreement remains an offence under the FA.
  
  

Are non-food retailers permitted to be open?

Yes.

• Under the RMCO, majority of social, education, religious and business activities are allowed to resume operations beginning 10 June 2020 with adherence to standard operating procedures, except those specified in the list of prohibited activities which will be updated from time to time. The use of the MySejahtera app is mandatory for all businesses nationwide beginning 3 August 2020 to facilitate contact tracing.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Under the RMCO, restaurants and eateries can operate until midnight. There is no longer a limit to the number of people sitting at one table but social distancing must be observed. The use of the MySejahtera app is mandatory for all businesses nationwide beginning 3 August 2020 to facilitate contact tracing.
  
  
• However, pubs, bars and night clubs which are operating under an entertainment licence must remain closed.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Eateries such as restaurants, cafes, food courts, hawker centres, food stalls and kiosk are allowed to operate take-away, delivery and drive-thru, as the case may be.
  
  
• Under the RMCO, eateries and food delivery services can operate until midnight. The use of the MySejahtera app is mandatory for all businesses nationwide beginning 3 August 2020 to facilitate contact tracing.
  
  
• However, pubs, bars and night clubs which are operating under an entertainment licence must remain closed.
  
  

Is the government providing support to businesses?

Yes.

• On 27 March 2020, the government announced the PRIHATIN Rakyat Economic Stimulus Package (“PRIHATIN Package”) valued at RM250 billion. Some of the main measures to assist businesses are as follows:-
  
  • an automatic 6-month deferment or suspension on conventional loans or Islamic financing payment obligations (except credit card) for eligible small and medium enterprises (“SMEs”) beginning 1 April 2020 while corporate borrowers/customers may make a request for a moratorium on loan or financing payment with their respective banks;
  • various initiatives and financing facilities for SMEs and micro-entrepreneurs, including the following:-
    - RM5 billion Special Relief Facility for SMEs to finance working capital;
    - All Economic Sector Facility fund of RM6.8 billion to enhance access to financing for SMEs;
    - RM700 million Micro Credit Scheme for micro-entrepreneurs;
    - the BizMula-i and BizWanita-i schemes for SMEs operating less than 4 years to finance up to RM300,000;
    - RM5 billion guarantees with a guarantee up to 80% of the total financing for SMEs that face difficulties in obtaining loans;
    - RM300 million Automation and Digitalisation Facility as incentives for SMEs to automate processes and digitalise operations to increase productivity and efficiency;
    
    
  • RM50 million guarantee scheme with a guarantee of up to 8-% of the loan amount for financing working capital requirements;
    
    
  • RM5.9 billion Wage Subsidy Programme to subsidise employers who are experiencing more than 50% decrease in their income since 1 January 2020, RM600 per month for 3 months for each employee earning less than RM4,000;
    
    
  • a deferment of monthly income tax instalment payments for all SMEs for 3 months beginning 1 April 2020, with other affected sectors allowed to revise the amount of income tax imposed in the third, sixth and ninth instalments during the basic accounting period.
    
    
  • an exemption of 6% service tax for hotels for 6 months beginning March 2020;
    
    
  • a tiered-discount on electricity bills for 6 months beginning April 2020 with rates ranging between 15% and 50% according to electricity usage; and
    
    
  • free internet services with a value of RM600 million to all customers from 1 April 2020 until the end of the MCO.
    
    
    
• On 6 April 2020, the government further announced the Additional PRIHATIN Economic Stimulus Package (“Additional PRIHATIN Package”) worth RM10 billion. Some of the additional measures to assist SMEs are as follows:-
  
  
  • an enhancement of the Wage Subsidy Programme by additional RM7.9 billion for the 3-month wage subsidy to be tiered between RM600 and RM1,200 per month according to the size of the company;
    
    
  • RM2.1 billion Special PRIHATIN Grant for eligible micro enterprises;
    
    
  • abolition of 2% interest rate for the Micro Credit Scheme;
    
    
  • an additional tax deduction equal to the rental discount for landlords of private business premises who give rental discounts to SMEs;

• On 5 June 2020, the government announced the PENJANA Short-Term Economic Recovery Plan (“PENJANA Plan”) worth RM35 billion with RM10 billion direct cash injection, aimed at alleviating the worst effects of the Covid-19 pandemic. Some of the measures to assist SMEs are as follows:-
  
  
  • an expansion of the ongoing Wage Subsidy Programme;
    
    
  • RM1.5 billion in hiring and training incentives to encourage companies to recruit unemployed individuals;
    
    
  • RM75 billion for facilitating policies to support the growth of the gig economy and the welfare of gig economy workers;
    
    
  • a tax deduction for employers who implement flexible work arrangements;
    
    
  • co-funding a programme with MDEC and e-commerce platforms to provide on-boarding training, seller subsidy and sales support for micro enterprises and SMEs to encourage adoption of e-commerce;
    
    
  • RM700 million grants and loans for SMEs that require help digitalising their operations;
    
    
  • tax incentives for local SMEs and entrepreneurs;
    
    
  • various incentives to attract foreign companies to relocate their business into Malaysia; and
    
    
  • tax incentives to support tourism sector.
    
    

Is the government providing support to employees / self-employed individuals?

Yes.

• The government introduced the following measures to assist employees / self-employed individuals:-
  
  
  • a reduction of the minimum EPF contribution by employees from 11% to 7% beginning 1 April until 31 December 2020;
    
    
  • a payment of RM200 to all Bantuan Sara Hidup recipients scheduled for May 2020 to be brought forward to March 2020 with an additional RM100 to be paid in May 2020;
    
    
  • a one-off cash assistance of RM600 each to taxi drivers, tourist bus drivers, tourist guides and registered trishaw drivers;
    
    
  • a monthly cash assistance of RM600 under the Employee Retention Program for a maximum of 6 months for employees earning less than RM4,000 who are required to go on unpaid leave from 1 March 2020.
    
    
• Additional measures were further introduced under the PRIHATIN Package which include the following:-
  
  
  • a 3-month suspension on premiums for insurance or family takaful policies for contributors whose source of income is affected by Covid-19;
    
    
  • RM10 billion Bantuan Prihatin Nasional being a one-off cash assistance to be tiered between RM500 and RM 1,600 according to the monthly income or monthly household income of the individual;
    
    
  • a one-off cash assistance of RM500 to e-hailing drivers;
    
    
  • an automatic 6-month deferment or suspension in conventional loans or Islamic financing payment obligations (except credit card) for individuals beginning 1 April 2020;
    
    
  • free internet services with a value of RM600 million to all customers from 1 April 2020 until the end of the MCO.
    
    

Is there relief for commercial tenants?

Yes.

• SME retailers who are operating on premises owned by government-linked companies are given a waiver or discounts on their rental.
  
  
• The government also encouraged owners of private premises to provide the same convenience by offering rental discounts or waiver to SME tenants during the MCO and three months thereafter with the benefit of additional tax deductions equal to the amount of the rent deduction for the months of April to June 2020. The tax incentive has been extended to 30 September 2020 under the PENJANA Plan.

Local Contacts

Lee Lin Li & Chong Kah Yee - Tay & Partners

Is the country currently in lock down?

Yes.

• Depending on the state of the Mexican Republic, different measures are being taken towards lockdown, which depend on the 'category' (colour) granted to each state.
  
  
• The Government has developed a code: red, orange, yellow and green:
  
  
  • Red: only essential activities can take place,
  • Orange: essential and certain non-essential activities can take place, but companies have to comply with certain measures and restrictions,
  • Yellow: many activities can take place but up to a certain capacity and complying with the measures provided by government, and
  • Green: all activities can take place.
    
    
• Currently, the code varies between red and orange in different regions of Mexico. As of 20 November 2020, only one state (from 32) has reached green (Campeche).
  
  
• Notwithstanding the foregoing, as of November 20, 2020, we are facing a new outbreak of the virus, so it is likely that there will be additional governmental measures in the coming days.
   

Are lock down restrictions beginning to be eased?

Yes.

• The entire country mostly remains in lockdown (orange colour), but depending on the state (and the colour granted under the code), there are different measures being implemented such as:
  
  
  • certain activities considered as non-essential can start operations
  • restaurants can open but with restrictions, mainly regarding the percentage of people that are allowed to attend.
  • cinemas, theatres, restaurants, bowling, museums, aquariums and casinos can open, as well as public pools and fitness centres (but also with restrictions on their capacity), among others.
  • o All these non-essential activities are restricted and must close at 19:00.
    
    
• Each state is issuing specific rules that companies and individuals must comply with in order to operate.
  
  

Have local franchise laws been amended?

Yes.

• On 1 July 2020, the federal government published in the Official Gazette of the Federation a new Federal Law for the Protection of Industrial Property (the "New IP Law"), which repeals the Industrial Property Law.
  
  
• On 5 November 2020 the New IP Law became effective.
  
  
• It is a consequence of the compromises made by the Mexican government with the governments of the United States and Canada to harmonize certain pieces of legislation with the United States, Mexico and Canada Commercial Agreement named USMCA (which substitutes NAFTA), and which entered into in effect also on 1 July.
  
  
• The New IP Law does not modify those provisions applicable to franchising at first glance, however new provisions regarding the protection of trade secrets and unlawful appropriation were included. 

Are non-food retailers permitted to be open?

Yes.

• Depending on the state of Mexico, certain retailers may open (for example, in Jalisco, Nuevo León and Mexico City, shopping malls may be re-opened up to a certain capacity, depending on the type of shopping mall).
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• This depends on the state of the Mexican Republic. In some states, it is still forbidden whilst in other states, restaurants can be opened up to a certain capacity and subject to other restrictions in terms of social distancing and sanitisation measures.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Restaurants, cafes and bars are allowed to have a take-away and delivery service
  
  

Is the government providing support to businesses?

No.

Is the government providing support to employees / self-employed individuals?

No.

Is there relief for commercial tenants?

Yes.

• Mexican law establishes that when a force majeure event occurs, the breaching party may claim that the agreed obligations in a contract cannot be performed. The foregoing means that the breaching party may have the right to request the affected party to modify the obligations set forth in the relevant agreement in order to be able to comply with the agreement.
  
  
• Also, tenants may request relief from their landlord regarding payment of rent or even request early termination of such lease, depending on where the leased property is located, since leases are governed by local Civil Code applicable in each state of the Mexican Republic.
  
  
• As of July 2020, certain commercial establishments were re-opened up to a certain capacity. Then, it is thought that the force majeure event has elapsed and, therefore, the commercial tenants may not allege this situation anymore.
  
  

Local contacts

Jorge Mondragón - Gonzalez Calvillo SC

Is the country currently in lock down?

Yes.

• Myanmar’s Ministry of Transport and Communications and the Department of Civil Aviation announced the extension of international flight restrictions for all airlines operating international air services to and from Yangon International Airport. The extension is until 31 July.
  
  
• On 16 April 2020, Myanmar’s Ministry of Health and Sports restricted gatherings of more than five people in one place. Only certain activities have been allowed, e.g., shopping at a supermarket within county boundaries (limited to one person and a driver per household per visit) and working at a company or a factory.
  
  
• On 19 April 2020, the Government announced prevention guidelines version 3.0 for workplaces, factories and construction sites that opened for business amidst the COVID-19 outbreak, followed by the Announcement on COVID-19 Related Guidance for Workplaces and Businesses of the Ministry of Labour, Immigration and Population dated September 15, 2020.
  
  
• The guidelines highlighted government guidance on shielding and promoting hygiene and sanitation.
  
  
• A construction site is also not allowed to have more than 50 workers and the operator is obliged to strictly follow the hygiene recommendations provided under the announcement.
  
  
• As of November 19, 2020, Myanmar had recorded 73,322 confirmed cases and 1,650 deaths. The Yangon Region Committee imposed the stay-at-home program in 44 townships (except Cocogyun Township) which prohibits people from going outside except for purchasing household essentials or hospital visits.
  
  
• The Ministry of Health and Sport announced Orders No. 107/2020 dated September 20, 2020 and No. 108/2020 dated September 22, 2020 for employees of organizations and companies to apply work-from-home criteria, except for employees of certain essential businesses, for example, financial services, food production, medical supplies, etc. Following the UMFCCI’s order, the employees of essential businesses are obliged to register the QR Pass in traveling between townships.
  
  
• All COVID-19 related notifications and orders have been extended until October 31, 2020.

Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

• Several announcements have caused a significant amount of confusion as details have been vague. The latest notification of the Ministry of Health and Sports in re-imposing the lock- down policy was announced an hour before taking effect.
  
  

Have local franchise laws been amended?

N/A

There is no franchise law in Myanmar.

Are non-food retailers permitted to be open?

Yes.

• Only essential businesses are allowed to be open with the requirement of QR Pass registration.
  
  
• There is government guidance on shielding, hygiene and sanitation.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Restaurants and dine-in services are temporarily suspended pursuant to the Government’s orders.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Myanmar has not implemented any restrictions on take-away and delivery services.
  
  
• Government guidance on shielding and the promotion of hygiene and sanitation applies
  
  

Is the government providing support to businesses?

Yes.

• On March 18, 2020, Myanmar’s Ministry of Planning, Finance and Industry announced measures to remedy the economic consequences caused by COVID-19 by establishing the COVID-19 Fund to provide a 1-year loan at an annual interest rate of 1% to CMP business, hotel and tourism businesses that have been affected by COVID-19, including relief from tax payment obligations.
  
  
• On March 20, 2020, Myanmar’s Social Security Board announced that it will allow employers to make social security payments quarterly, instead of monthly, due to the hardship businesses are facing due to the COVID-19 pandemic.
  
  
• On April 27, 2020, the Government announced the COVID-19 Economic Relief Plan which contains plans for recovery post-COVID-19. These plans include the postponement of corporate income tax payments up to September 2020 and permitting commercial banks to restructure and reschedule existing loans extended to SME business.
  
  
• On September 15, 2020, the Ministry of Planning, Finance and Industry announced the exemption of 2% withholding tax for advanced income tax on goods export to the end of December 2020.
  
  
• On October 20, 2020, the Directorate of Investment and Company Administration (DICA) issued Notification No. 92/2020 to declare that the period between March 29, 2020 (the official lockdown date) and the official country reopening date (not yet announced) shall not be counted in the determination of stay of the ordinarily resident director as prescribed in the Myanmar Companies Law.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• The Central Bank of Myanmar announced several directives regarding the reduction of interest rates to counter the effects of COVID-19 and to encourage the development of the economy for employees and the self-employed. Currently, the minimum interest rate for bank deposits is set at 5% per annum and the maximum interest rate for secured loans is set at 10% per annum.

   

• The COVID-19 Economic Relief Plan also promotes microfinance institutions to have full access to low-cost funding and provides cash or lending support to smallholder farmers who have lost sales revenue or remittance income to support purchases in time for monsoon planting.
  
  
• The Government has suspended electricity tariffs for all households (excluding embassies and international organizations) for up to 150 units per month.
  
  
• On September 27, 2020, the Social Security Board announced the provision of 40% of social security contribution for June 2020 to  insured persons who work for private industries, factories and departments until September 23, 2020, and who paid their contributions for June 2020 as a family assistance fund.
  
  

Is there relief for commercial tenants?

No.

• Myanmar has not announced any relief plans for commercial tenants in the private sector. Any relief will depend on the terms agreed upon between a landlord and tenant.
  
  
• However, according to the COVID-19 Economic Relief Plan, the Government has exempted rent charges for affected firms that have leased state-owned factories for manufacturing who have made progress in their business, and have made regular payments in the past three months for 3-6 months on a case-by-case basis.
  
  

Local Contacts

Thomas Joseph Treutler - Tilleke & Gibbins

Is the country currently in lock down?

No, but certain restrictions apply:

• Requirement of a one meter distance between civilians in public (not including close relatives in the same household).
  
  
• Recommendation of no gatherings of more than 20 people (regardless of whether indoor or outdoor). People may only invite 5 persons into their homes.  
  
  
• People who have been contaminated, are sick in general or have been quarantined (i.e. have been in contact with contaminated persons have been tested for COVID-19 and are waiting for their test results etc.) are prohibited from using public transportation, or go to stores or work. People who have been contaminated are also prohibited from going on walks.
  
  
• Cruise ships with more than 100 people onboard may not dock in Norway. 
  
  
• Certain local restrictions in Oslo and Bergen, where it is mandatory to use face masks on public transportation.

Are lock down restrictions beginning to be eased?

Yes.

• Kindergartens and schools, including universities, are allowed to be open provided they followed certain criteria relating to infection control.
  
  
• Hairdressers, health related services such as opticians, chiropractor, physical therapists, psychologists, private cosmetic surgeons and similar businesses are allowed to be open, provided they follow certain strict criteria's relating to inter alia cleaning, number of customers at the same time etc.
  
  
• Restaurants, bars, cantinas and similar are allowed to be open provided they can arrange for a 1 meter distance between customers. As of 5 November, alcohol may not be served after midnight in restaurants, cafés or bars. Restaurants, cafés and bars are not allowed to accept new customers after 10 p.m.
  
  
• Public events with more than 50 people are not permitted (200 if the seats are unmovable). For outdoor events, this limit was increased to 600 people on 12 October, but as of 5 November this only applies provided all seats are unmovable.
  
  

Have local franchise laws been amended?

N/A

Are non-food retailers permitted to be open?

Yes.

• Non-food retailers are permitted to be open provided they can secure a 1 meter distance between customers.
  
  
• Hairdressers, health related services such as opticians, chiropractor, physical therapists, psychologists, private cosmetic surgeons and similar businesses were allowed to re-open provided they follow certain strict restrictions relating to inter alia cleaning, number of customers at the same time etc.
  
  
• Amusement parks are allowed to be open provided they can follow strict restrictions relating to number of customer etc.
  
  
• As of 5 November, gyms in Bergen and the Oslo region are not allowed to be open. The restrictions have a duration until 7 December and 1 December, respectively. Gyms in the remainder of Norway are allowed to be open provided satisfactory infection control.
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Restaurants, cafes and bars are permitted to be open for dining provided they can arrange for a 1 meter distance between customers.
  
  
• As of 5 November, alcohol may no longer be served after midnight in restaurants or bars. Restaurants and bars may not let in new people after 10 p.m.
  
  
• Public events with more than 50 people are not permitted (200 if seats are unmovable). For outdoor events, this limit was increased to 600 people on 5 November, provided all seats are unmovable.
  
  
• No more than 200 customers are allowed in the restaurants, cafes and bars at the time, still provided a 1 meter distance between customers. As of 12 October, gatherings of 600 people will be allowed provided the restaurants can secure a 1 meter distance between customers and provided seats are unmovable.
  
  
• Groups of more than 20 persons in the restaurants, cafes and bars are not allowed. In Oslo and Bergen, the limit is 5 persons.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• No restrictions relating to take-away and delivery services. 
  

Is the government providing support to businesses?

Yes.

• The Norwegian government provides a guarantee for 90% of new bank loans to both SMB and larger businesses. The arrangements applies for loans which have been approved within 31 December 2020.
  
  
• • There is a Governmental arrangement to cover up to 80% of recurring overheads (i.e. rent, electricity, accounting etc.) for businesses with a qualified revenue loss due to COVID-19. The arrangement was originally intended to cover such costs from March to May, but has been suggested to extend to February 2021. The proposal entails that businesses that have been forced to shut down due to government regulations may be granted compensation for up to 80% of its inevitable and permanent costs. Compensation is calculated based on the following formula: compensation = revenue loss (compared to the same month last year) in percent x inevitable constant costs x an adjustment factor. The proposed adjustment factor for September/October is 0.7, for November/December it is 0.85 and and for January/February it is 0.8. The maximum support per business will be MNOK 30 per month. For amounts exceeding MNOK 30, the exceeding amount will be reduced by an adjustment factor of 0.5. Maximum compensation per company/group will pursuant to the proposal be MNOK 80 per month.
  
  
• Certain industry specific subsidy schemes, including to the airline businesses, privatised kindergartens, seasonal businesses etc.
  

Is the government providing support to employees / self-employed individuals?

Yes.

• From 1 September 2020, employees which have been temporarily laid off are entitled to salary from the employer during the notice period (normally 14 days) and the 10 first days of the lay-off period. From then on, most employees which are laid off more than 40 % are entitled to daily unemployment benefit from the government. The amount of the benefit has been made somewhat more generous. Different support measures applied during the period between 20 March and 31 August 2020.
  
  
• The original maximum time period companies may temporarily lay off employees of 26 weeks, has for now been prolonged to 52 weeks to prevent permanent lay-offs. From 1 January 2021 • the employer must also pay the employee's salary for 5 days if the temporary lay-off has lasted more than 30 weeks.
  
  
• The amount of days working parents may stay home for child care with full pay (10 days per year for parents of 1-2 children, 15 days for 3 or more children) was reset to zero as of 1 July 2020, regardless of how many days working parents had used before 1 July 2020.
  
  
• For self-employed individuals with employees the Government has extended a subsidy scheme, which as of November and December 2020 may to cover up to 60 % of lost income.
  
  
  

Is there relief for commercial tenants?

No.

• Not directly but the Government has established a subsidy scheme where businesses can apply for coverage of fixed costs, including rent, during the COVID-19-outbreak.

Local Contacts

Kjetil Vagen - CLP

 

Is the country currently in lock down?

No.

• There is a state of epidemic across the country
  
  
• Foreign rail transport beyond EU borders has stopped
  
  
• People returning from abroad must remain in a 14-day quarantine, excluding EU citizens and employees of certain industries (e.g. transport, diplomacy)
  
  
• Prohibition of landing of civilian aircraft operating international flights from airports in the territory of, e.g. USA (excluding the states of Illinois and New York), Argentinian Republic, Jordanian Hashemite Kingdom. The ban on flights does not apply to countries that have notified the requirement of passengers to provide a negative COVID-19 test
  
  
• Domestic air traffic operates
  
  
• Travel within EU territory is allowed but not recommended
  
  

Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

• Recently, there are more restrictions. If the infection rate reaches 75/100,000 inhabitants, the government has said that a national quarantine would be introduced. The government has not specified what the term “national quarantine” means.
  
  
• Currently (as of 19 November), the infection rate per 100,000 inhabitants is 57.2.
  
  

Have local franchise laws been amended?

No.

• The government supports companies operating in Poland during the lockdown, nonetheless franchise laws (there are hardly any in Poland) specifically have not been amended. Currently, there are no official notifications announcing forthcoming changes in that sector.
  
  

Are non-food retailers permitted to be open?

Yes.

• Since 7 November, non-food retailers can open only if they operate in separate stores and are not located in shopping malls, because these are closed. As an exception, pharmacies or other stores with life-necessary products [certain essential goods] can open even if they are located in malls. However, on 21 November the government announced that malls (with all type of retailers operating) will reopen on 28 November. Of course, there will be a strict sanitary regime.
  
  
• There is also a limit on the number of customers in retail outlets and special hours (10am - 12pm everyday) when only seniors (people aged over 60) are allowed to enter the store.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

No.

• Eat-in restaurants are prohibited from operating. From 24 October, only take-out and delivery services are allowed, at this point until further notice.

• Hotel restaurants can operate stationary, but only for hotel guests staying at least one night.
  
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Restaurants are allowed to operate take-away and delivery services; however, restrictions still apply concerning the decontamination of the order pick-up point, handling food in disposable gloves, and maintaining a safe distance from customers.
  
  

Is the government providing support to businesses?

Yes.

• The government passed further anti-crisis shields – the 4.0 shield on 20 June and the 5.0 shield on 28 September. Recently, the government is working on a sixth extension of the anti-crisis shield. The draft of this act was notified on 26 October.
  
  
• The 5.0 and 6.0 shields are called “industry-shields” – these acts aim to support specific industries, e.g. tourism, event and cultural sectors (the 5.0 shield) and gastronomy, fitness, retailing (bazaars) and entertainment sectors (the 6.0 shield). From 15 October, entrepreneurs from tourism, event and cultural sectors (the 5.0 shield), can apply for a standstill benefit, additional standstill benefit and exemption from paying ZUS (Social Insurance Institution) contributions. According to the government, in the 6.0 shield there will be ZUS reliefs and PLN 5,000 subsidies for entrepreneurs.
  
  
• The government has extended possibility of obtaining previously known forms of assistance until 30 June 2021 for those who have not benefited from them previously.

Is the government providing support to employees / self-employed individuals?

Yes.

• The anti-crisis shield offers solutions supporting employees and self-employed individuals. In order to prevent employee redundancies, the government has declared wage subsidies for every job at risk. Aid is available to entrepreneurs in two cases:
  
  
  • during the period of economic downturn;
  • during a reduction in working hours.
    
    
• The government has also introduced a relief of up to PLN 2,080 gross for self-employed individuals from the Social Insurance Institution (ZUS). Those who work on the basis of a contract or work order, and can be paid up to three times this amount.
  
  
• Employees who have not received relief three times before, because their situation has improved, can apply again if they meet the conditions. They can receive the relief again, but no more than three times in total (including previously received reliefs).
  
  
• Other forms of employee support depend on the structure of the company. Sole traders can benefit from support for micro-businesses, e.g. a one-time, non-returnable microloan of up to PLN 5,000 to keep the company going.
  
  
  

Is there relief for commercial tenants?

Yes.

• Some solutions were introduced to suspend rents for commercial premises. Among them was a temporary termination of a lease, rental or similar agreement for space in shopping malls. This relief for commercial tenants is again in force (until 28 November when malls will be reopened) since the government re-imposed a ban on operating in commercial facilities with a sales area of more than 2,000 square meters. A condition for obtaining this relief is the tenant submitting an offer to extend the rental period by the length of the ban, plus an additional six months. Without such an offer, the tenant must pay rent and other charges for the duration of the ban.
  
  
• More detailed information prepared by Bird & Bird’s Warsaw Office lawyers explaining the situation of commercial tenants can be found here:
  https://www.twobirds.com/pl/news/articles/2020/poland/200521-zmiany-w-wykonywaniu-umow-najmu
  
  
• There is also the possibility of a grant of relief by the executive body of a local government unit, i.e. full or partial redemption, deferral of payments, distribution in instalments of receivables from lease, tenancy and use of real estate of local government units, for the period of an epidemic or epidemic hazard.
  
  
• Currently, there are no time limits for the above - in the case of a request to waive the recovery of debts, there is a prerequisite for the deterioration of financial liquidity due to negative economic consequences due to COVID-19.
  
  
• Also, entrepreneurs can benefit from three months’ rent or fee exemption from a lease, tenancy or usage agreement to be paid to the State Treasury. This relief can be granted for entrepreneurs who have experienced a decrease in turnover as a result of COVID-19 and apply to an executive body of a local government unit.
  
  

Local Contacts

Kuba Ruiz - Bird & Bird LLP

Russia has not declared a state of emergency. Instead a high alert regime has been introduced by all Russian regions with respective local measures applicable to their respective territories. The responses below relate to local measures introduced in Moscow but similar measures apply in other Russian regions.

Is the country currently in lock down?

No.

• The national regime of 'non-working days' introduced by the Russian President ended on 12 May 2020. Having said this, local Russian regions are entitled to impose and/or keep their own restrictions, including suspension of business activities and self-isolation requirements based on the epidemiological status in their respective territories. 
  
  

Are lock down restrictions beginning to be eased?

Yes.

• Moscow gradually eased the lock down measures in three stages with the final stage completed on 24 June 2020.
  
  

Have local franchise laws been amended?

No.

• Russia has no specific franchise laws and all franchising activities are governed by the Russian Civil Code. There have been no amendments to the applicable articles of the Russian Civil Code as a result of COVID-19.
  
  

Are non-food retailers permitted to be open?

Yes.

• In Moscow, the restrictions on the operation of non-food retailers were lifted at the end of May 2020.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• From 23 June 2020, restaurants, cafes, bars and other catering businesses operated in Moscow were permitted to open subject to compliance with the new requirements preventing the spread of COVID-19. Currently, the following events and/or activities in restaurants, cafes, bars, etc. are prohibited: (i) public events such as weddings, commemorations, anniversaries; (ii) children's areas and play areas; (iii) buffets and salad bars; (iv) crowded zones (for example, dance zones, etc.); and (v) use of hookahs.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• From 23 June 2020, restaurants, cafes, bars and other catering businesses in Moscow were permitted to open. During lock down, take-away and delivery services were allowed, provided that customers did not enter the premises, restaurants, cafes or bars.
  
  

Is the government providing support to businesses?

Yes.

• The Russian Government has introduced a number of measures to support businesses from sectors badly affected by COVID-19. The list has been approved by the Russian Government and includes transport activities (such as air transportation, airport activities, transportation by motor transport and passenger rail transportation activities); leisure and entertainment; fitness and sports activities; tourism and hotel businesses; catering; education including that provided by non-governmental educational institutions; conferences and exhibitions activities; household services provided to consumers (such as repairs, laundry and dry cleaning services and hair and beauty salons); dental practices and retail (non-food products) (the "affected businesses"). The measures introduced to support the affected businesses include, among others:
  
  
  • concessional loans to support and maintain employment: the loan is provided for 12 months for 0% interest rate for the first six months (but no later than 30 November 2020) and then the interest rate can be no higher than the rate at which the lending bank received preferential refinancing from the Central Bank of Russia. The maximum amount of loan is determined based on a formula which takes into account minimum wage, the district, the percentage of premiums/insurance premiums and number of employees. The eligible business has, among other things, to have operated in at least one of the affected sectors for at least one year, and at the date of entering into a loan agreement the business should not be subject to any bankruptcy proceedings and/or its activities must not have been suspended;
    
    
  • government grants to partially compensate for losses: from 1 May 2020, affected businesses were entitled to apply for government grants to partially compensate their losses, including losses for maintaining employees and remuneration of employees for April and May 2020. The grant is calculated on the basis of the number of employees and the minimum wage (which is currently 12 130 roubles). To be eligible to apply for a grant, an affected business must, among other things, prove that it has retained at least 90% of its staff compared to the number of employees in March and the business must be on the unified register of small and medium-sized enterprises;
    
    
  • exemptions from the payment of taxes and contributions for the second quarter of 2020;
    
    
  • introducing further grounds for tax deferral / payment of tax and social security contributions by instalments (individual measures): such grounds include a decrease in income by more than 10% and/or income tax loss during the reporting periods of 2020 if there was no loss for 2019. Depending on the amount of reduced income, the amount of losses incurred and the category of the taxpayer, deferrals in payment may be granted for one year, nine months, six months or three months. The term for payment by instalments is determined at the taxpayer's discretion within the provided limits which generally may not exceed three years;
    
    
  • extending the deadlines for filing tax declarations/reports and payment of taxes and social security contributions: the deadlines for payment of a number of taxes and social security contributions have been extended to three months, four months or six months. The deadlines for filings due in March - May 2020 have been extended for three months for all taxpayers, including the affected businesses;
    
    
  • deferral of payments under loan agreements for small and medium-sized affected businesses: as part of the government programme,
    deferral is granted in relation to loan agreements entered into before 1 April 2020 and applies for a period of up to six months (the "deferral period"), but in any case prior to 31 December 2020. The deferral applies to payment of the principal amount of the loan which should not be payable during the deferral period. Interest charged during the deferral period will be at a preferential rate of about 1/3 of the amount of interest provided for under the loan agreement which will be payable either (i) during the deferral period or (ii) after the deferral period in equal instalments during the remaining term of the loan agreement or (iii) interest may be included into a principal amount of loan;
    
    
  • bankruptcy moratorium: a six-month ban on filing of bankruptcy petitions by creditors has been introduced in relation to, among others, the affected businesses; and
    
    
  • reducing acquiring commissions for the online sale of goods: the Bank of Russia has reduced the acquiring commissions for online purchases to 1% for the period from 15 April to 30 September 2020 (previously, the acquiring commissions varied from 1.2% to 2.2% depending on the type of payment card or product category). This reduction applies to retail and service outlets in relation to the sale of food, medicine and other medical products, clothing and consumer goods. Reduced acquiring commissions also apply to household appliances, electronics and communication devices if the sum of the purchased products is costs to 20,000 rubles.

Small and medium-sized businesses whose activities involve prolonged close contact between staff and visitors will be able to apply for government grants and must implement disinfection measures between 15 July and 15 August 2020. Based on the comments provided by the Minister for Economic Development, businesses carrying out the following activities will be entitled to apply for the grant: sports and fitness, hotels, catering, household services provided to consumers (repair, laundry and dry cleaning services and hair and beauty salons) and further education. 

Is the government providing support to employees / self-employed individuals?

Yes.

• Initially, the Russian President signed a decree which declared that the week commencing Monday 30 March to Friday to 3 April 2020 as a non-working week (subject to certain exceptions).
  
  
• Subsequently, the non-working period was extended to 30 April and later to and including 11 May.
  
  
• The Russian Ministry of Labour commented that the non-working period should not constitute public holidays or days off work and employees should be entitled to full salary. The Russian Ministry of Labour also confirmed that employees may continue working during the non-working period remotely from home with payment of the full salary unless the parties agree in writing to reduce regular working hours and/or salary during the period of working from home.
  
  
• Upon expiry of the non-working period, if Russian regions decide to impose and/or to keep their own measures of suspension over business activities, this should not affect the employees' salary. The latter is expressly provided for in the Decree of the Russian President.
  
  
• Self-employed individuals who are registered as individual entrepreneurs are treated as small and/or medium-sized businesses and the measures outlined in the answer to the question regarding support for businesses will apply equally to such individual entrepreneurs, if they qualify as affected businesses, subject to certain exceptions which may be more favourable to individual entrepreneurs (for example, they may have more choice in relation to payments under loan agreements during the loan holidays than companies).
  
  
• Self-employed individuals who are not registered as individual entrepreneurs may be entitled to a limited number of measures (for example, loans at preferential rates or extensions on the expiry date of licences/permissions for conducting certain business activities for one year if they were to expire during the period from 1 March to 31 December 2020). In addition, income tax paid by this category of self-employed individual in 2019 will be repaid in the full amount. Also, these self-employed individuals are entitled to additional income tax credits equal to the minimum wage (12,130 rubles), which will reduce the amount of income tax payable in 2020.
  
  

Is there relief for commercial tenants?

Yes.

• Small and medium-sized affected businesses who rent federal property are entitled to an exemption from rental payments for the period of April to June 2020.
  
  
• The Russian Government has recommended that similar measures are implemented for properties in the Russian regions/ local municipal authorities.
  
  
• (1) Tenants who are affected businesses and who rent from private landlords, and (2) tenants renting federal, regional and municipal property can also rely on the government's tenant support measures which apply to all landlords. These measures impose an obligation on landlords to allow rent deferral under leases which were entered into prior to the COVID-19 high alert regime until 1 October 2020. Tenants who cannot use rented premises due to the specific restrictive measures imposed by local authorities are also entitled to request a reduction in rent fees.
  
  

Local Contacts

Anna Shashina - Bird & Bird LLP

 

The information below is correct as at 8 December 2020

Is the country currently in lock down?

No

• Nationwide curfew was lifted on June 21.
  
  

Are lock down restrictions beginning to be eased?

Yes.

• Resumption of commercial and economic activities.
  
  
• Select public places have reopened with reduced capacity.
  
  
• Gatherings of up to 50 people are allowed.
  
  

Have local franchise laws been amended?

No.

• Saudi Arabia introduced the commercial franchise law in April 2020 and its implementing regulations on 11 May 2020.
  
  

Are non-food retailers permitted to be open?

Yes.

• Economic activities have been allowed to resume with the safety measures, such as social distancing, mandatory mask-wearing and temperature checks.
  
  
• Shops and malls have reopened with the number of customers allowed in a store limited to one per 10 square meters.
  
  
• Additional restrictions apply in relation to trying on such things as clothing, jewellery and testing perfumes or make-up.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Dine-in activities have resumed with precautionary measures and capacity restrictions.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• The serving of food in restaurants and cafes via food delivery services continues.
  
  

Is the government providing support to businesses?

Yes.

• The General Authority for Zakat and Tax (GZAT) announced a number of measures to assist businesses overcome difficulties arising from the COVID-19 pandemic such as
  
  
  • extending the due date for filing tax returns that are due from 18 March 2020 – 30 September 2020. 
  • suspending fines for late payments during the same time period, etc.
    
    

Is the government providing support to employees / self-employed individuals?

Yes.

• Under the private sector employment guidelines:
  
  
  • Private sector employers can reduce working hours and salary payments over the next six months.
  • Any reduction cannot be made for longer than six months and cannot exceed 40% of an employee's salary.
  • Private sector employers may not terminate employees during this six month period.
    
    

Is there relief for commercial tenants?

No.

• Any relief by landlords would be a matter for negotiation between the landlord and the commercial tenant.

Local Contacts

Melissa Murray - Bird & Bird

 

Is the country currently in lock down?

No.

• The Singapore Government has implemented a three-phased approach to resume activities with the gradual re-opening of economic activities in each phase.
  
  
• Since 19 June 2020, Singapore has been in Phase 2 of the re-opening process. The Government is now considering a further relaxation of measures as it moves into Phase 3 in the coming weeks.

Are lock down restrictions beginning to be eased or re-imposed?

Beginning to be eased.

• Since 19 June 2020, Singapore has been in Phase 2 of the re-opening process. Restrictions on the movement of persons within the community have been eased, but safe distancing measures are still in place to minimise close • Most businesses have been allowed to resume operations at their physical premises. The limits on the number of people allowed to attend work-related events, wedding receptions and worship services have also been increased.
  
  
• Nevertheless, safe distancing measures are still in place to minimise close contact amongst individuals. It is also required that masks continue to be worn in all public places.
  
  

Have local franchise laws been amended?

• Singapore does not have franchise-specific legislation or registration requirements. General contract laws govern the relationship between franchisors and franchisees.
  
  
• Under the COVID-19 (Temporary Measures) Act 2020, temporary relief is provided to individuals and businesses which are unable to perform their contractual obligations due to the unprecedented COVID-19 outbreak through a statutory moratorium on the enforcement of rights and obligations relating to certain contracts to be performed on or after 1 February 2020 and for contracts that were entered into before 25 March 2020. Depending on the categories of contracts, the period of relief is scheduled to end between 19 November 2020 to 31 March 2021.
  
  
• To trigger the relief measures under the COVID-19 (Temporary Measures) Act, the non-performing party must serve a notification for relief on (i) the other contracting party; and (ii) any guarantor or surety for the contractual obligation. Any disputes on suspension of obligations may be referred to an assessor for determination.
  
  
• The Singapore Government is also looking to introduce a Re-Align Framework which encourages businesses to renegotiate selected long-term contracts going forward. Should negotiations fail, the framework will also provide for termination of the contract on fair and just terms. For certain types of contracts, eligible businesses may choose to pay outstanding arrears by instalments, instead of having to resort to termination.
  
  
• A party who wishes to adopt the Re-Align Framework must serve notice on the counterparty, and negotiations must be held within a limited timeframe. More details on this scheme will be released in due course.
  
  

Are non-food retailers permitted to be open?

Yes. 

• Businesses providing retail, dining, education, healthcare, personal health and wellness, and home-based services will be allowed to resume operations at their physical premises.
  
  
• However, businesses owners must continue to comply with safe management measures, such as ensuring a one-metre distance between each group of patrons. Retail outlets with high human traffic (such as malls and large standalone retail outlets) must also restrict capacity, and prevent crowds or long queues from building up. Business owners who fail to properly implement safe distancing measures may subject to a fine or imprisonment
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes. 

• Restaurants and cafes are allowed to resume dine-in services, as long as there is no live music, television screening or any other forms of public entertainment at these venues. Recorded music can be played, but at no louder than 60 decibels. Self-service buffet lines must also be suspended.
  
  
• Business owners must ensure that safe management measures continue to be in place. These measures include limiting each group size to no more than five persons, ensuring at least one-metre spacing between groups of diners or customers in queues, and implementing contact tracing and temperature taking for all customers. Business owners who fail to properly implement safe distancing measures may subject to a fine or imprisonment.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Take-away and delivery services can continue, as long as baseline sanitation and hygiene measures such as temperature taking and frequent sanitisation continue to be observed. Reasonable steps should also be taken to ensure that delivery personnel observe at least a one-metre spacing at all times and do not cluster together.
  
  
• As far as possible, collection and delivery should be spaced out and contactless – for example, by placing food orders at designated locations for pick-up by delivery personnel.
  
  

Is the government providing support to businesses?

Yes.

• The Singapore Government has been providing financial support to businesses, through property tax rebates, rental waivers, and cash flow support. Grants are also available to support capacity building, especially for employee training and digital solutions which facilitate telecommuting. Wage subsidies of up to 50% are available for businesses that are not yet able to resume operations, until they resume or March 2021 (whichever is earlier).
  
  
• Sector-specific support has been targeted at industries hardest-hit by the COVID-19 crisis, especially tourism and aviation. These include enhanced wage subsidies, redeployment programmes, and schemes to encourage local tourism.
  
  
• The Monetary Authority of Singapore ("MAS") has offered low interest rate funding (0.1% per annum) to eligible FIs, to support their lending to individuals and SMEs. The Government has also increased its risk-share of loans under certain SME lending schemes to 90%.
  
  
• Under the COVID-19 (Temporary Measures) Act 2020, the monetary debt threshold for corporate insolvency has been temporarily raised from $10,000 to $100,000. The time period for responding to a statutory demand has also been lengthened from 21 days to 6 months.
  
  
• To support the nationwide move towards digitisation, the Singapore Government has provided pay-outs to F&B and retail businesses to finance the costs of implementing e-payment systems, e-invoicing, and business process or e-commerce solutions.
  
  
• Financial support has been made available for promising start-ups, to encourage matching private investments that can help sustain start-up innovation and entrepreneurship activities
  
  
• The Singapore Government is also looking to introduce a Simplified Insolvency Programme to assist micro and small companies that require support in restructuring their debts to rehabilitate the business, or to wind up the company if the business has ceased to be viable. More details will be released in due course.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• Additional pay-outs have been made to middle to low income Singaporeans who have lost their jobs or are placed on no-pay leave due to COVID-19, union members, and families who require urgent support.
  
  
• A platform has been set up to support employers in providing traineeships to fresh graduates entering the labour force, as well as mid-career workers seeking to upgrade their skills and start new careers. Wage incentives are available to encourage employers to hire those who have completed the relevant reskilling and traineeship schemes.
  
  
• Under the COVID-19 (Temporary Measures) Act 2020, the monetary debt threshold for personal bankruptcy has been temporarily raised from $15,000 to $60,000. The time period for responding to a statutory demand has also been lengthened from 21 days to 6 months.
  
  
• The MAS has worked with banks and finance companies to help borrowers with their repayment obligations under existing residential mortgages, by deferring repayment of the principal or both principal and interest up to 31 December 2020. It is also possible to extend the tenure of the mortgage by the duration of the deferment period, to lower the monthly instalment amount following resumption of regular payments.
  
  
• The Re-Align Framework (as discussed at Part 3 above) will also be applicable to individuals carrying on a business or trade, subject to satisfaction of a stipulated revenue cap and proof that the business has been severely affected even after resumption of economic and social activities. More details will be released in due course.
  
  

Is there relief for commercial tenants?

Yes.

• Property tax rebates of up to 100% have been made available for tenants in non-residential properties. The COVID-19 (Temporary Measures) Act mandates that the landlord must pass this benefit on to the tenant, whether by way of payment or offset of rental fees.
  
  
• Additional rental relief has also been made available for SME tenants or non-profit organisation tenants.
  
  
• However, the Singapore Government is looking to introduce a compensation scheme for small landlords who may be prejudiced by early termination of the lease/license agreement by a tenant. More details will be released in due course.

Local Contacts

Lorraine Tay - Bird & Bird LLP

 

Is the country currently in lock down?

Yes.

• South Africa extended the national state of disaster to 15 January 2021. South Africa is currently at level one of the staged easing of the lockdown regulations. However, certain additional restrictions have been implemented in certain high-risk areas of the country.
  
  

Are lock down restrictions beginning to be eased?

The following additional restrictions have been implemented, with effect 16 December 2020:  

• Individuals such as business owners, managers and all responsible persons who do not ensure compliance with the Regulations by their passengers, customers or employees will be liable to a fine or to imprisonment of up to six months.
  
  
• The Regulations regarding the permitted capacity at gatherings and venues, including religious gatherings, have been reduced to 100 people at indoor venues and 250 at outdoor venues. The total number of people in a venue may not exceed more than 50% of the capacity of the venue.
  
  
• All post-funeral gatherings are prohibited.
  
  
• Festivals, live music, and live performances at beaches are prohibited.
  
  
• Beaches and public parks in the Eastern Cape and the Garden Route District will be closed for the duration of the festive season from 16 December 2020 to 3 January 2021.
  
  
• In KwaZulu-Natal, beaches and public parks will be closed on the 16th, 25th, 26th and 31st of December 2020 and the 1st, 2nd and 3rd of January 2021.
  
  
• The curfew has been adjusted to 11pm – 4am, including on Christmas Eve, Christmas Day and New Years Eve.
  
  
• Non-essential establishments, including restaurants and bars, are directed to close at 10pm in accordance with the curfew and to ensure compliance by staff and patrons.
  
  
• The sale of alcohol from retail outlets will only be permitted between 10am and 6pm from Monday to Thursday.
  
  
• Registered wineries and wine farms may continue to offer tastings and wine sales to the public for off-site consumption over weekends.
  
  
• Alcohol consumption in all public spaces, such as beaches and parks, is not permitted in any circumstance.
  
  
• Travel between provinces for recreational purposes is permitted, including domestic air travel.
  
  
• International travel to all countries is now permitted, subject to strict screening guidelines and the presentation of a negative COVID-19 certificate which was obtained not more than 72 hours before the date of travel. International air travel is restricted to three airports being OR Tambo International Airport, King Shaka International Airport and Cape Town International Airport.
  
  
• The 18 land borders which were partially operational will be fully operational and the 34 land borders which were closed will remain closed.
  
  
• All commercial seaports will remain open.

Have local franchise laws been amended?

No.

Are non-food retailers permitted to be open?

Yes, subject to strict sanitation and social distancing protocols. Non-food retailers are required to restrict the number of people in the establishment at any given time to 50% of the venues capacity and must close by 10pm.  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes, subject to the nationwide curfew and strict sanitation and social distancing protocols.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Yes.

A short summary of the available relief to businesses is set out below:

• The National Film and Video Foundation (NFVF) has provided relief to film practitioners affected by the lockdown. This funding applies to producers already registered with the NFVF.
  
  
• After negotiations with government, most banks have extended payment holidays on loan repayments to businesses. At this stage, some banks have extended the payment holidays afforded.
  
  
• The Department of Tourism has created a relief fund for SMMEs in the tourism industry.
  
  
• Extension to the Employment Tax Rebate (ETI) Programme have been implemented. The ETI provides a rebate to employers for each employee between the ages of 18 and 29 and which earn within certain thresholds. The payment of these rebates have been extended to employees up to the age of 35, the amount payable in terms of the rebate have been extended and the payment date has been moved to facilitate payment during the lockdown period in order to assist eligible businesses.
  
  
• The South African Revenue Services (SARS) has provided for the deferral of provisional tax payments for businesses with a turnover of under R50 Million per annum.
  
  
• SARS has also announced that all businesses liable for Pay As You Earn (PAYE) tax may defer up to 20% of this payment until August 2020, this deferral is free of interest.
  
  
• The Business growth and resilience facility (BGRF) was created by government to assist businesses supplying and manufacturing essential items during the COVID – 19 pandemic. Access to the BGRF is subject to certain prerequisites set out by government.
  
  
• The SMME relief finance facility (SMMERF) was also set up to provide financial assistance to SMMEs for a period of six months from 2 April 2020. Access to this assistance is subject to certain prerequisites set out by government.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

A short summary of the available relief to employees is set out below:

(self-employed individuals are eligible for certain of the benefits set out in point 7 above, provided that they meet the requirements set for relevant the fund/scheme)

• The COVID-19 temporary employee/employer relief scheme (TERS) was created to provide emergency relief to enable employers to pay employees who are temporarily laid off due to the COVID-19 crises for a period of three months from April 2020. This relief is still available to eligible individuals. Applications for this programme closed on 15 October 2020.
  
  
• The Unemployment Insurance Fund (UIF) short time / reduced working time programme allows employees to apply for ‘income replacement’ on a sliding scale up to a maximum amount. This relief could remain payable for a period of up to 12 months.
  

Is there relief for commercial tenants?

Yes.

• Certain measures were announced by government to assist commercial tenants and provide competition law exemptions, these are:
  
  
  • rental payment suspensions and/or rental discounts;
    
  • limitations on the eviction of tenants; and
  • the suspension of or adjustment to lease agreement clauses which restrict certain tenants rom undertaking reasonable measures to protect the viability of their businesses during the lockdown.
    
    
• In addition, the Property Industry Group has created a relief package for retail tenants. This package is only available to members who were in good standing with the Group before the commencement of the lockdown and provides relief to tenants by ensuring that the tenant will not be evicted for a period of two months, provided that no staff is retrenched during that period.
  
  
• While the fund is primarily aimed at assisting SMMEs, assistance will be provided to larger businesses where funding is available.
  
  

Local Contacts

Eugene Honey - Adams & Adams

1. Is the country currently in lock down?

Partially.

• Spain is under state and a nationwide curfew (except for the Canary Island) of alert until early May 2021. The sate of alert enables the regions to adopt more specific restrictions within the general measures established by the Spanish Government.
  
  

2. Are lock down restrictions beginning to be eased or re-imposed?

Re-imposed.

Depending on the region, but in general, as COVID cases keep increasing the restrictions are getting tighter.

3. Have local franchise laws been amended?

No.

4. Are non-food retailers permitted to be open?

Yes.

Most regions of Spain have limited the capacity allowed to 60-75%.

Depending on the region some retailers face bigger restrictions than others. For example: Catalonia only allows a 30% of the capacity of retailer businesses (except pharmacies, orthopaedics, opticians and veterinary centres) while Madrid has no restrictions on them.

5. Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

Most regions of Spain have limited the capacity allowed in bars and restaurants to 60-75%, although terrace spaces can be filled to 100% capacity (providing people social distance by one and a half meters and there is a maximum of 6 people per table). Discotheques, dance halls and bars with live musical performances must be closed. Bar and restaurants establishments must close at 00:00 at the latest new customers cannot be admitted from 23:00.

Note that these restrictions depend on the measures that are being adopted by each region depending on the development of the Covid impact, for example: Castilla La Mancha, doesn’t allow dining in, but does allow dining in terraces, the Basque Country and Catalonia have decreed the closing of restaurants/cafes/bars.

6. Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Take-away is subject to the curfew (it depends on the region, but for all of them the curfew goes at least from 00.00 to 6.00).
Delivery services are also subject to time limitation: it depends on the measures adopted by each region that generally suspend these services at 00.00.

7. Is the government providing support to businesses?

Yes.

Among other measures, the Spanish government is offering to guarantee the financial obligations of businesses vis-à-vis banks resulting from COVID-19 (note that this measure is limited and subject to the fulfilment of certain conditions).

8. Is the government providing support to employees / self-employed individuals?

Yes.

• Asides from "social" those measures referred to in section 7 above, support is being provided to self-employed individuals, such as:
  
  (i) moratoriums on Social Security contributions for six months, without interest, corresponding to the months of May, June and July 2020; and
  
  (ii) deferment of payment of debts to Social Security whose regulatory period of payments takes place in the months of April, May and June 2020, being of application an interest of 0.5%.
  
  
• For employees:
  
  (i) employees who have been dismissed or temporarily suspended will receive unemployment benefits (although they do not need to comply with all the requirements, and the unemployment benefits received during the state of alarm will not be counted when determining the maximum number of months during which such individual can receive benefits).
  
  
  

9. Is there relief for commercial tenants?

Yes.

• In the absence of an ad-hoc agreement, commercial tenants who are SMEs or self-employed individuals who have "large landlords" (i.e. any individual or entity that owns more than 10 properties or more than 1,500 square meters of real estate) will not be obliged to pay rent during the state of alarm and 2 months thereafter, provided that tenant's activity has been highly affected/suspended by COVID-19 (certain thresholds are to be met). The payment of such rent will be deferred during the remaining term of the agreement and for up to 2 years.

Local Contacts

Lourdes Ayala - Bird & Bird LLP

Is the country currently in lock down?

No.

• Sweden is not in lock down, but new recommendations and regulations have been issued to reduce the risk of transmission of COVID-19 in Sweden.
  
  
• Sweden has issued an entry ban to the EU via Sweden until 31 October. The entry ban essentially applies to all foreign citizens travelling to Sweden from all countries except EU Member States, the United Kingdom, Norway, Iceland, Liechtenstein and Switzerland. Swedish citizens are not affected by the entry ban. EU citizens and people who have a residence permit in Sweden may still enter the country for the purpose of returning to their homes and people with particularly urgent needs or who are to carry out essential functions in Sweden may enter the country.
  
  
• To reduce the risk of transmission of COVID-19, Sweden also depends on people and businesses voluntarily following the advice issued the Swedish authorities.
  
  
• All businesses and other operations in Sweden are obliged to act to decrease the risk of transmission of COVID-19.
  
  
• People are encourage to keep a distance of at least an arm's length to each other at all times, stay home when unwell and to not travel unless necessary.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

N/A.

• Sweden is not in lock down. However, the Swedish authorities do not plan on easing the regulations that have been issued to reduce the risk of transmission of COVID-19 at the moment.
  
  
• The Swedish government has decided to lift the visiting ban at nursing homes on 1 October.
  
  

Have local franchise laws been amended?

No.

• Franchisees are obliged to follow the same recommendations and regulations as other businesses.

Are non-food retailers permitted to be open?

Yes.

• All businesses in Sweden are permitted to be open.
  
  
• All businesses in Sweden are obliged to act to decrease the risk of transmission of COVID-19. For example, business may be obliged to limit the number of people allowed at the premises at the same time, find alternatives to queues at the checkout or mark the distance between people queuing on the floor.
  
  
• Employers are encourage help their employees by, for example, adapting the workplace to reduce the risk of employees being exposed to infection, ensuring that employees can work from home when possible, adjusting work hours so it is possible for employees to not travel at rush-hour and by avoiding unnecessary travels.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Restaurants/cafes/bars must ensure that there are no crowds of people in queues, at tables or along buffets or bars. For example, restaurants/cafes/bars cannot operate across a bar where many people gather closely while waiting to order or be served. All visitors should be seated when eating or drinking.
  
  
• Visitors must be able to keep their distance from each other. An arm's length can be used as a guidance for how far apart guests should stay.
  
  
• The same regulations are applied for indoor and outdoor vendors.
  
  
• Restaurants/cafes/bars that do not follow the regulations ensuring there are no crowds on the premises may be ordered to close.

 

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Business are allowed to operate take-away and delivery as usual provided that people waiting, collecting, or paying are not crowded together.
  
  
• Businesses operating delivery have increased since the COVID-19 outbreak in Sweden, mainly in Stockholm.

Is the government providing support to businesses?

Yes.

Sweden has passed a number of new regulations to support business affected by the COVID-19 outbreak, for example:

• A system for short-term layoffs has been put into place and will remain throughout 2020, providing employers with economic support from the government for reducing their employees' working hours instead of terminating the employment. Employers' wage costs can be halved, with the central government covering a larger share of the costs. The system can be applied retroactively from 16 March 2020. Companies that make disbursement of dividends are generally not eligible.
  
  
• All employers will receive full compensation for the cost of sick pay for employees during April and May 2020. Employers will pay sick pay to their employees as usual, but will be compensated through payment to the employer's tax account. Between August and September 2020, the State will compensate employers for the cost of sick pay for employees where this is regarded as higher than the usual.
  
  
• The government guarantees 70 % of new loans that banks provide to companies experiencing financial difficulties due to the COVID-19 virus. The guarantee will be issued to banks, which in turn will provide guaranteed loans to companies. The loans are limited to SEK 75 million per company. The new guarantee is mainly directed at small and medium sized enterprises. Companies can apply for the loan until the end of December 2020.
  
  
• Businesses can apply for a temporary payment respite of general payroll taxes, deducted tax and VAT, which may be granted for up to 12 months. The payment respite covers tax payments for 3 months, if the business reports monthly. For companies that report VAT on a quarterly or yearly basis, respite may only be granted for one reporting period. The respite must concern the period January to September 2020. Businesses must pay interest of 1,25 % on the respite amount as well as an application fee which amounts to 0,2 % of the respite amount per started calendar month.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• Sweden has passed a number of new regulations to support employees / self-employed individuals affected by the COVID-19 outbreak, for example:
  
  
• The social security contributions of self-employed people have been reduced.
  
  
• Sole traders with an F-tax card will be compensated by the state for sickness benefits for days 1 to 14 of their sickness period.
  
  
• The sickness benefit standard deduction has temporarily been discontinued, which means that sick pay is paid from the first day at home (not the second as is normally the case). The new regulation is in force from 11 March until the end of December 2020. The medical certificate requirement from the eighth day of sickness has been temporarily suspended, which means that a doctor's certificate is no longer mandatory during the first three weeks people are absent from work due to illness to receive sick pay. The suspension applies from 13 March 2020 until further notice.
  
  
• Employees and self-employed persons belonging to a group at risk of falling seriously ill with Covid-19 and who cannot work from home may receive a temporary benefit. The compensation is based on the employee’s working hours, capped at 804 SEK before tax per day. The benefit can be received for a maximum of 90 days during July and December 2020.
  
• Individuals who have to refrain from working in order to avoid infecting a close relative belonging to an at-risk group may also receive a temporary benefit. Disease carriers may also apply for an allowance if a doctor has decided that they cannot work due to being infected with a disease that is dangerous to public health and society.
  
  
•  Temporary changes to the Swedish unemployment benefit system have been implemented. These changes have been made to ensure that more people can receive unemployment benefits. Those who are self-employed can pause their business by temporarily ceasing operations to receive unemployment benefit. These changes are due to expire after 3 January 2021.
  
  

Is there relief for commercial tenants?

No.

• The Swedish government has adopted regulations for a rent relief package due to the COVID-19 pandemic directed towards certain exposed industries. The relief package consist of a temporary discount on fixed rental costs were the Swedish state carries parts of the landlord's costs for rental discounts which have been agreed between the landlord and the tenant.
  
  
• Exposed industries cover non-consumables, hotels and restaurants but also other industries such as retail, lodging, dentists and hair and body care.
  
  
• Landlords that reduce the fixed rental costs for tenants in exposed industries during the period 1 April to 30 June 2020 can apply for compensation for part of the reduction. The compensation will be paid by the state with a maximum of 50 % of the reduction, or a maximum of 25 % of the original fixed rental cost. Compensation can be applied for during the period 1 July to 31 August 2020.

Is there relief for commercial tenants?

Gabriel Lidman - Bird & Bird LLP

Is the country currently in lock down?

No.

• The state of emergency has been extended until 15 January 2021 pending Cabinet approval.
  
  
• Some incoming international flights remained banned.
  
  

Are lock down restrictions beginning to be eased or re-imposed?

N/A

• Entry for certain non-Thai nationals (e.g. spouses and children of Thai nationals and those with work permits) allowed.
  
  
• Special tourist visas for foreign tourists from low-risk countries introduced.
  
  
• 14-day mandatory quarantine period applicable.
  
  

Have local franchise laws been amended?

Yes.

• New franchising regulations entered into force recently on February 4, 2020, and amendments entered into force on September 22, 2020.
  
  

Are non-food retailers permitted to be open?

Yes.

• A tracing app called "Thai Chana" has been implemented in business establishments to track visitors.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Eateries have to seat customers 1.5 meters apart.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• There are no restrictions on this.
  
  

Is the government providing support to businesses?

Yes.

• SMEs enrolled in the Soft Loan program for COVID-19 and who are committed to the “single account” program can claim 150% of actual loan interest paid from April 1 to 31 December 2020, as tax-deductible expenses.
  
  
• The government has reduced withholding tax from 3% to 1.5% for payments made between 1 April 2020 and 30 September 2020 in relation to income from service fees, commission fees, intellectual property rights, and more.
  
  
• SMEs can claim 300% of actual salary costs paid to qualifying employees from April to July 2020 as tax-deductible expenses.
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• New regulations have been published under the Social Security Act, allowing affected employees to claim compensation of up to 70% of their daily wage from the Social Security Office if they meet certain requirements. The Social Security Fund contribution rates have been reduced to 2% of employees’ wages, for both employers and employees, from September 2020 to November 2020.
  
  
• Visas have been automatically extended and there has been a temporary suspension on the 90-day reporting requirement for non-Thai citizens, up until 31 October 2020.
  
  

Is there relief for commercial tenants?

Yes.

• The Ministry of Interior ordered local authorities to help commercial tenants who lease government-owned property though providing discounts on rent or allowing rent to be paid late without penalty.
  
  
• The Mass Rapid Transit Authority of Thailand announced relief measures for qualifying commercial tenants, under which businesses that were ordered to close by the government will have rental fees waived for two months, while businesses that were not ordered to close will receive a 50% discount on their rent for four months.
  
  

Local Contacts

Tiziana Sucharitkul - Tilleke & Gibbins

 

Is the country currently in lock down?

Yes

Yes, on 15 December the Netherlands has entered into its strictest lockdown so far. This includes, among others, the following measures:

• all people should keep a 1,5m distance from others who do not belong to their households;
• people can only go outdoors by themselves, with members of their household or in a group of no more than 2 people;
• people are not allowed to receive more than 2 visitors aged 13 or over to their homes per day (provided that on 24, 25 and 26 December people may receive 3 visitors aged 13 or over);
•  a number of locations will be closed:
  • stores (apart from essential stores, such as stores selling mainly foods, pharmacies, opticians, hearing specialists and stores that carry out repairs and maintenance);
  • all establishments that serve food and drinks (including in hotels - these may remain open but they may not serve food and drinks) (take-away is possible);
  • locations where contact-based, non-medical, professions are carried out such as hairdressers and nail salons;
  • museums, theatres, concert halls, cinemas and casino’s;
  • indoor sporting venues such as gyms, swimming pools, saunas and spas; and
  • zoos and amusements parks;

• in all public indoor spaces that are open, people aged 13 and over must wear a non-medical facemask;
• no alcohol may be sold or delivered between 20.00 and 07.00 and people may not drink or carry alcohol in public spaces;
• people should be working from home, unless this is absolutely impossible. If an infection occurs at a place of work, the workplace in question can, under circumstances, be closed down for 14 days;
• primary and secondary schools and institutions for intermediate (MBO), higher and scientific education (HBO and universities) must provide online education in order to reduce in-person contact; and
• public transport is for essential travel only and people aged 13 and over must wear a non-medical face mask while using public transport.
  

Are lock down restrictions beginning to be eased or re-imposed?

No.

• On 14 December 2020 the government announced that the current restrictions will remain in effect until at least Tuesday 19 January 2021. The government will decide whether there is room to lift certain lockdown restrictions ultimately on Tuesday 12 January 2021.

Have local franchise laws been amended?

N/A

• There is currently no franchise law in the Netherlands.
• However, on 1 January 2021 the new Franchise Act will come into force.
• We are not aware of any intentions to adapt the new Franchise Act due to COVID-19.
  
  

Are non-food retailers permitted to be open?

No.

• In principle non-food retailers are not permitted to be open.
• There is however an exception for pharmacies, opticians, hearing specialists, and stores that carry out repairs and maintenance may remain open. DIY stores may operate on a ‘click and collect’ basis.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

No.

• Restaurants, cafes and bars are not permitted to be open for dining in and remain closed for the time being.
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Yes, restaurants/cafes/bars are allowed to operate take-away and delivery, but have to ensure all customers and employees can maintain 1,5m distance from other persons.
  
  

Is the government providing support to businesses?

Yes.

• Yes, the government provides emergency aid to businesses, including income compensation, (partial) funding of salaries of employees, tax relief and credit facilitation.
  
  

Is the government providing support to employees / self-employed individuals?

Yes, for example:

• The government is providing support to employees / self-employed individuals. For example:
  • employees in professions which the government has designated as 'crucial' or 'vital' can make use of childcare services;
  • the government provides emergency aid to employees / self-employed individuals, including income and salary compensation;
  • self-employed individuals can apply for tax relief.
    
    

Is there relief for commercial tenants?

Yes.***

• There is currently no relief provided by the government specifically to commercial tenants.
• However, sector organisations of tenants and landlords have concluded an agreement containing guidelines for how to deal with the consequences of the COVID-19 crisis regarding rent payments. The main guideline is that rent payments for the months of April, May and June may be suspended from 50% up to 100% by retailers who have suffered a decrease in turnover of at least 25% over this period. Parties will at a later time discuss the possibility of remitting rent payment obligations.
• However, these guidelines are not legally binding and individual landlords can therefore refuse the suggested suspensions of payments.

Local Contacts

Roelien van Neck - Bird & Bird LLP

 

*Partially.
**but not all non-food retailers.
***from sector organizations and on a voluntary basis.

Is the country currently in lock down?

Yes.

• Overnight curfew (the ‘national sterilisation program’) remains in place.
  
  
• Precise timing of curfew or travel restrictions will differ, depending on Emirate.
  
  

Are lock down restrictions beginning to be eased?

Yes.

• Depending on Emirate, select public places have reopened with reduced capacity (the exact percentage of restriction differs depending on nature of the public place and the Emirate).
  
  
• Restrictions preventing large gatherings (precise numbers may vary) are in place.

Have local franchise laws been amended?

No.

Are non-food retailers permitted to be open?

Yes.

• Reduced trading hours for retailers (which differ depending on the Emirate).
  
  
• Additional requirements apply in relation to trying on such things as clothing, jewellery and testing perfumes or make-up.
  
  
• Entry into retail outlets may be limited by: (1) capacity, (2) age restrictions, or (3) duration of visit.
  
  
• Visitors may face temperature checks and be required to have PPE (masks and gloves etc.)
  
  
• Reopening stores must have all staff tested for COVID-19 prior to returning to work.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes. (subject to 30% capacity restrictions)

• Same restrictions as non-food retailers apply for restaurants, cafes and bars.
  
  
• In addition, dine-in seating capacity is reduced (exact percentage of restriction depends on the Emirate).
  
  
• Disposable cutlery to be used, additional sanitisation rules apply.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Delivery and take away services can continue.
  
  

Is the government providing support to businesses?

Yes.

• Reductions in various fees (such as utilities, commercial licences, municipality fees etc.)
  
  
• Amount of reduction differs depending on Emirate or freezone where the business is located.
  
  
• Guidelines for private sector employers with expatriate workforces have been issued to reduce labour costs, such as:
  
  
  • putting employees on paid leave;
  • agreeing on unpaid leave;
  • agreeing on a temporary/permanent salary reduction; and
  • terminating employment for operational reasons
    
    

Is the government providing support to employees / self-employed individuals?

Yes – stimulus plans for those sectors most affected by COVID-19. 

Is there relief for commercial tenants?

Yes.

• Differs depending on landlord – relief has ranged from deferring rent payments, rent waivers, or waiver of penalties associated with late rent payment.
  
  
• Commercial tenants struggling to pay rents are exempt from eviction.

Local Contacts

Melissa Murray - Bird & Bird LLP

 

Is the country currently in lock down?

• Yes

England

• A national lockdown will take effect in England from 5 January 2021 until at least mid-February.
  
  
• People have been told to stay at home and not leave except where necessary. You may leave home for the following reasons only:
  
  
  • Shop for basic necessities for yourself or a vulnerable person;
    
    
  • go to work, or provide voluntary or charitable services, if you cannot reasonably do so from home;
    
    
  • exercise with your household (or support bubble) or one other person, this should be limited to once per day, and you should not travel outside your local area;
    
    
  • meet your support bubble or childcare bubble where necessary, but only if you are legally permitted to form one;
    
    
  • seek medical assistance or avoid injury, illness or risk of harm (including domestic abuse); and
    
    
  • attend education or childcare - for those eligible.
    
    
• Colleges, primary and secondary schools will remain open only for vulnerable children and the children of critical workers. All other children will learn remotely until February half term. Early Years settings remain open. Higher Education provision will remain online until mid-February for all except future critical worker courses.
  
  
• If you do leave home for a permitted reason, you should always stay local in the village, town, or part of the city where you live. You may leave your local area for a legally permitted reason, such as for work.
  
  
• If you are clinically extremely vulnerable you should only go out for medical appointments, exercise or if it is essential. You should not attend work.
  
  
• The rules state that you cannot leave your home to meet socially with anyone you do not live with or are not in a support bubble with (if you are legally permitted to form one). You may exercise on your own, with one other person, or with your household or support bubble.
  
  
• Non-essential retail, hospitality venues, accommodation, leisure and sports facilities, entertainment venues, animal attractions, indoor attractions, personal care facilities and community centres have all been required to close, unless they are exempt.
  
  
• Hospitality venues such as cafes, restaurants, pubs, bars and social clubs can remain open where providing food and non-alcoholic drinks for takeaway (until 11pm), click-and-collect and drive-through. All food and drink (including alcohol) can continue to be provided by delivery.
  
  
• Some businesses and venues are permitted to stay open, following COVID-19 secure guidelines, including but not limited to essential retail, repair businesses, petrol stations, banks, post offices, funeral directors, laundrettes and dry cleaners medical and dental services, vets, agricultural supplies shops, outdoor playgrounds, places of worship and crematoriums. The majority of public services will continue and you will be able to leave home to visit them.
  
  
• Anyone who cannot reasonably work from home may continue to enter people’s homes for the purpose of working. This includes cleaners and plumbers (and other tradespeople). Dog groomers can continue to be used but only for animal welfare and not for aesthetic purposes.
  
  
• The government is emphasising the ‘Hands. Face. Space’ guidance as follows:
  
  
  • wash your hands regularly and for at least 20 seconds
    
    
  • wear a face covering in indoor settings where social distancing may be difficult, and where you will come into contact with people you do not normally meet
    
    
  • stay 2 metres apart from people you do not live with where possible, or 1 metre with extra precautions in place (such as wearing face coverings)
    
    
• If you leave home without a ‘reasonable excuse’, the police can issue you with a fine (Fixed Penalty Notice). You can be given a Fixed Penalty Notice of £200 for the first offence, doubling for further offences up to a maximum of £6,400.
  
  
• A ‘reasonable excuse’ includes:
  
  
  • Work – only where it is unreasonable for you to do your job from home, including but not limited to people who work within critical national infrastructure, construction or manufacturing.
    
    
  • Volunteering – where providing voluntary or charitable services.
    
    
  • Essential activities - you can leave home to buy things at shops or obtain services. You may also leave your home to do these things on behalf of a disabled or vulnerable person or someone self-isolating.
    
    
  • Education and childcare – where children are eligible to attend.
    
    
  • Meeting others and care - You can leave home to visit people in your support bubble ( if you are legally permitted to form one – eligibility rules can be found here), to provide informal childcare for children under 14 as part of a childcare bubble (eligibility rules can be found here), to provide care for disabled or vulnerable people, to provide emergency assistance, to attend a support group (of up to 15 people), or for respite care where that care is being provided to a vulnerable person or a person with a disability, or is a short break in respect of a looked-after child.
    
    
  • Exercise - You can continue to exercise alone, with one other person or with your household or support bubble. This should be limited to once per day, and you should not travel outside your local area.
    
    
  • Medical reasons - You can leave home for a medical reason, including to get a COVID-19 test, for medical appointments and emergencies.
    
    
  • Harm and compassionate visits - you can leave home to be with someone who is giving birth, to avoid injury or illness or to escape risk of harm (such as domestic abuse). You can also leave home to visit someone who is dying or someone in a care home.
    
    
  • Animal welfare reasons – you can leave home for animal welfare reasons, such as to attend veterinary services for advice or treatment.
    
    
    Scotland:
    
    
• A new lockdown was entered into on 5 January 2021 and people in Scotland must stay at home as much as possible. By law you can only leave your home if you have a reasonable excuse. The full list of reasonable excuses can be found here.
  
  
• People who live in different places can form an “extended household” if they live alone or they are a couple who do not live together.
  
  
• You can only meet people from another household outdoors and in indoor public spaces for certain reasons, such as for work, to join your extended household, for sport, exercise, social interaction or to provide care and support for a vulnerable person. This can include providing emotional support for someone whose wellbeing is at risk.
  
  
• Up to 2 people from 2 separate households can meet outdoors for sport, exercise or social interaction. Children under 12 do not count towards households or numbers when meeting outside.
  
  
• From 5 January to 29 January, schools can only open to in-person learning for children of key workers and vulnerable children, with remote learning for all other children and young people from 11 January to 29 January.
  
  
• Restaurants, cafes, pubs and bars are closed. Takeaways can still operate as normal, providing food is sold for consumption off premises. All holiday accommodation is closed to tourism.
  
  
• All leisure and entertainment premises must be closed.
  
  Only essential retail will be able to remain open providing they follow and have implemented Scottish Government guidance to ensure the safety of customers and staff.
  
  Wales:
  
  
• All of Wales is now in lockdown (level 4 alert) and the rules are as follows:
  
  
  • Stay at home
    
    
  • Meet only the people you live with
    
    
  • Work from home if you can
    
    
  • Wear a face covering where required
    
    
  • Wash your hands regularly
    
    
  • Stay 2 metres from anyone you do not live with
    
    
  • Not travel without reasonable excuse
    
    
  • The following services will remain open:
    
    
• Schools, colleges and childcare providers (informal childcare should only be essential only). 
  
  
• Higher Education Institutions (mix of in-person and remote learning).
  
  
• Places of worship.
  
  
• Community centres - limited opening (for example, for essential public services).
  
  
• Crematoriums.
  
  
• Playgrounds and public parks.
  
  
• Weddings, in venues that are allowed to be open, and funerals (ceremony limit set by venue).
  
  
  • The following services must be closed:
    
    
• Venues for events and conferences, theatres and concert halls, indoor and outdoor visitor attractions, entertainment venues.
  
  
• Wedding reception or wake.
  
  
• Sport courts, golf courses, leisure and fitness facilities.
  
  
• Outdoor visitor attractions.
  
  
• Holiday accommodation (open only if essential only, for example for work or other reasons) and hospitality (except for takeaway and delivery).
  
  
• Close contact services.
  
  
• Non-essential retail (click and collect allowed) and licenced premises. Takeaway and delivery only between 6am and 10pm.
  
  
• Libraries and archive services (click and collect only).
  
  
• Organised activities limited to public and voluntary services.
  
  
• Nightclubs and adult entertainment venues.
  
  Northern Ireland:
  
  
• A new lockdown was imposed in Northern Ireland on 26 December 2020 for six weeks with a review after four weeks.
  
  
• The rules are as follows:
  
  
  • Stay at home and work from home unless unable to do so.
    
    
  • No more than six people from two households in a private garden.
    
    
  • No household gatherings other than bubbles (exemptions apply).
    
    
  • Outdoor gatherings limited to 15 people.
    
    
  • Outdoor exercise only with members of own household.
    
    
  • Essential travel only.
    
    
  • All tourist accommodation and hospitality closed (exemptions apply).
    
    
  • Non-essential retail closed. Home delivery allowed but collection not permitted.
    
    
  • Gyms, swimming pools, indoor sport and exercise facilities closed. Outdoor and indoor visitor attractions and close contact services are also closed.
    
    
  • Alcohol is not permitted to be sold after 8pm.
    
    
  • Takeaway orders are permitted until 11pm.
    
    
  • Places of worship remain open with restrictions in place.
    
    
  • Weddings/civil partnerships are limited to 25 people and receptions are not allowed. Funerals are limited to 25 people.
    
    
  • Childcare remains open along with public parks and outdoor play areas.
    
    

Are lock down restrictions beginning to be eased or re-imposed?

Lockdown measures have been imposed across the whole of the UK. Specific rules vary across the four nations but the stay at home message is consistent throughout.

Have local franchise laws been amended?

N/A

Are non-food retailers permitted to be open?

• No. All non-essential retail must close.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

• No. All hospitality venues must close for dining in.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

• Yes, take-away and delivery is permitted subject to nation-specific curfews.

Is the government providing support to businesses?

• Yes there are a range of measures including:
  
  
  • £4.6 billion in new lockdown grants – there is a one-off top up grant available for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through the new lockdown period.
  
  
  • Reduced VAT Rate for the hospitality sector – the existing VAT rate of 20% will be temporarily reduced to 5% for food and no-alcoholic drinks from restaurants, bars, cafes as well as hotel and holiday accommodation and admissions to attractions (including shows, theatres, circuses, amusement parks, concerts, museums, cinemas and exhibitions). The reduced rate will have effect from 15 July 2020 to 31 March 2021. If an eligible business has received payments or issued invoices before 15 July 2020 for services that are provided on or after that date, VAT will be due at the new, lower rate of 5%. The business must correct the existing VAT invoice by issuing a credit note.
    
    
  • COVID-19 Corporate Financing Facility - scheme launched by the Bank of England to help investment grade companies to bridge Coronavirus disruption to their cash flows through loans. At least 12 months' support (extended to 21 March 2020) under a Covid-19 Corporate Financing Facility, and for as long as steps are required to relieve cash flow pressures.
    
    
  • Coronavirus Large Business Interruption Loan Scheme (CLBILS) - businesses with turnover of more than £45 million can borrow up to £50m and for larger businesses up to £200m under this scheme with Government guarantee of 80%, loans offered at commercial rates of interest with a term up to 3 years. The scheme is open to applications until 31 March 2021.
    
    
  • Coronavirus Business Interruption Loan Scheme (CBILS) - Small business with a turnover of up to £45m can borrow through the British Business Bank £1,000 up to £5m per company with government meeting interest costs for the first 12 months. Finance terms are from three months up to 10 years (extended from 6 years) for term loans and asset finance and up to three years for revolving facilities and invoice finance. The scheme provides the lender with a government-backed guarantee against 80% of the outstanding facility balance. No personal guarantees for facilities under £250,000. The scheme is open until 31 March 2021.
    
    
  • Bounce Back Loan scheme - will help small and medium-sized businesses to borrow between £2,000 and £50,000 (up to 25% of turnover), and the cash should be accessible within 24 hours of approval for most firms. This is a 100% government-backed loan scheme with the government guaranteeing 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. Loan terms will be up to ten years (extended from 6 year previously) and after first year the interest rate is set at 2.5% per annum. A network of accredited lenders will deliver the scheme. Lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets. The borrower remains 100% liable for the debt. The scheme is open to applications until 31 March 2021.
    
    
  • Support for Innovative UK Companies through Coronavirus Future Fund - This scheme will issue convertible loans between £125,000 and £5 million to innovative companies which are facing financing difficulties due to the coronavirus outbreak. The government initially made £250 million available for the Future Fund, however more funding has been made available. The convertible loan agreement is predefined and cannot be negotiated. Funding must not be used to: repay any borrowings; pay any dividends; pay and bonuses; or pay any advisory fees. An 8%/ annum interest charge applied. This can be increased by agreement. Interest to accrue until the loan converts, when it will either be repaid or converted into equity. The scheme is open for applications until 31 January 2021.
    
    
  • Deferral of VAT and Time to Pay tax schemes available.

Is the government providing support to employees / self-employed individuals?

• The Coronavirus Job Retention Scheme has been extended until the end of April 2021
  
  
  • Employees will receive 80% salary for unworked hours, up to a maximum of £2,500 a month (where the salary is £3,125 per month)
    
    
  • Neither the employee nor the employer needs to have previously used the JRS
    
    
  • Employees can remain employed on a part-time basis
    
    
  • To be eligible under the extension, employees must be on an employer’s PAYE payroll by 23:59 on 30 October 2020
    
    
• Self employed support scheme
  
  
  • Covers self-employed workers with trading profits of up to £50,000 who earn the majority of their income via self-employment
    
    
  • Taxable grant worth 80% of average monthly profits over the last three years (up to £2,500/ month) for those adversely affected by COVID-19
    
    
  • Those eligible will be able to claim online from 13 May 2020, and once a claim is approved payment will be received within 6 working days
    
    
  • On 24 September 2020, this scheme was extended to provide two more taxable grants and in January 2021 it was extended for a third time
    
    
  • Those eligible under the Self-employed support scheme have until 29 January 2021 to claim a third grant. The grant will be worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total

Is there relief for commercial tenants?

• Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction
  
  
  • These measures mean no business will automatically forfeit their lease and be forced out of their premises if they miss payment up to31 March 2021.
    
    
• All property occupiers in the retail, leisure and hospitality sectors including restaurants will receive 100% rates relief between 1 April 2020 and 31 March 2021 with no limit to Rateable Values
  
  
• The government has introduced temporary new measures to safeguard commercial tenants against aggressive debt recovery actions during the coronavirus pandemic
  
  
  • Statutory demands and winding up petitions issued to commercial tenants to be temporarily banned where a company cannot pay its bills due to coronavirus until 31 March 2021.
    
    
  • Landlords prevented from using Commercial Rent Arrears Recovery (CRAR) unless they are owed 189 days of unpaid rent this is in force until31 March 2021.

Local Contacts

Mark Abell & Shelley Nadler - Bird & Bird LLP

 

Is the country currently in lock down?

No.

Are lock down restrictions beginning to be eased?

Varies by state.

• In a number of states, capacity restrictions are beginning to be reimposed. In more rural, conservative states, there remain no restrictions.

Have local franchise laws been amended?

No.

• Registration deadlines had been pushed backed earlier this year, but those dates have passed
  
  

Are non-food retailers permitted to be open?

Varies by state.

Are restaurants/cafes/bars permitted to be open for dining in?

Varies by state.

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

Is the government providing support to businesses?

Unclear.

• Under discussion in Congress. Unclear if it will pass.
  

Is the government providing support to employees / self-employed individuals?

Unclear.

• Under discussion in Congress. Unclear if it will pass.

Is there relief for commercial tenants?

No.

• Eviction moratorium expires at the end of 2020.
  
  
  

Local contacts

Robert Smith - Quarles & Brady LLP

Is the country currently in lock down?

Yes.

• Vietnam has prohibited non-Vietnamese nationalities from entering the country since 22 March 2020. There is an exception for those who arrive for diplomatic/official purposes. Experts, managers, investors and technical workers may be admitted on a case by case basis, subject to prior written approval from the local authority. However, the criteria for obtaining this local approval are more relaxed than before.
  
  
• The Vietnamese authorities have not yet announced a date when foreigners will be allowed to enter Vietnam again. The government is holding discussions with strategic investors in Vietnam (including China, South Korea and Japan) to ease the entry ban on foreigners from these countries on a step-by-step basis. However, these negotiations have not been concluded.
  
  
• Land borders with neighbouring countries (i.e., Laos, Cambodia and China) have been closed partially.
  
  
• Vietnam suspended the granting of visas for foreigners on 18 March 2020.
  
  
• Vietnam has recently re-opened international commercial flights to Guangzhou (China), Taipei (Taiwan), Seoul (South Korea), Tokyo (Japan), Phnom Penh (Cambodia), and Vientiane (Laos). However, only Vietnamese citizens and foreigners in the exceptions listed above and their family members are allowed to enter Vietnam.
  

Are lock down restrictions beginning to be eased or re-imposed?

Yes.

• Vietnam has successfully controlled the second wave of COVID-19 (from 23 July to 1 September 2020) and has allowed all nationwide activities to return to normal.
  
  

Have local franchise laws been amended?

No.

Are non-food retailers permitted to be open?

Yes.

• Please refer to question No. 2.
  
  

Are restaurants/cafes/bars permitted to be open for dining in?

Yes.

• Please refer to question No. 2.
  
  

Are restaurants/cafes/bars allowed to operate take-away and delivery?

Yes.

• Please refer to question No. 2.
  
  

Is the government providing support to businesses?

Yes.

• On 8 April 2020, the Vietnamese Government enacted Decree 41/2020/ND-CP to extend the time-limit for payment of taxes and rent.
  
  
• On 16 April 2020, the Ministry of Industry and Trade issued Official Letter No. 2698/BCT-DTDL which reduced power costs for businesses by 10% for three months.
  
  
• Credit institutions have been instructed to support businesses by increasing the access to capital through increasing capital availability, reducing interest rates and reducing internal fees, etc. (Prime Minister's Directive 11/CT-TTg dated 4 March 2020).
  
  
• For labour-related matters, the Vietnam Social Security suspended payments into pension funds (Official Letter 860/BHXH-BT dated 17 March 2020). The Vietnam General Confederation of Labor implemented an extension on trade union fee payments in the first six months of 2020 (Official Letter 245/TLD dated 18 March 2020).
  
  
• Loans to cover salaries are available through the Vietnam Bank of Social Policy (Government Resolution 42/NQ-CP dated 9 April 2020).
• Resolution 84/NQ-CP dated 29 May 2020 of the Government provides a wide range of subsidies to businesses affected by COVID-19 such as aviation businesses, SMEs and domestic manufacturers.
  
  
  

Is the government providing support to employees / self-employed individuals?

Yes.

• There is a subsidy of VND 1,800,000 (approx. USD80) per month available for employees whose employment contract was suspended (Resolution 42/NQ-CP of the Government dated 9 April 2020, Art. II.41).
  
  
• There is a subsidy of VND 1,000,000 (approx. USD 45) per month available for employees whose employment contracts have been terminated (Resolution 42/NQ-CP of the Government dated 9 April 2020, Art. II.4).
  
  
• There is a subsidy of VND 1,000,000 (approx. USD 45) per month available for the self-employed (Resolution 42/NQ-CP of the Government dated 9 April 2020, Art. II.4).
  
  
• The above subsidies are available for up to three months, and are subject to certain conditions specified in Decision 15/2020/QD-TTg dated 24 April 2020 of the Prime Minister.
  
  

Is there relief for commercial tenants?

Yes.

• The payment dates for rent in respect of state-owned property has been extended under Decree 41/2020/ND-CP.
  
  
• A reduction of 15% of rent is available for commercial tenants who rent property from the Government and whose operation was suspended due to COVID 19 (Resolution 84/NQ-CP, Art. II.1(a)).
  
  
• For tenants who rent from private owners, the Vietnam central and local government has called for private owners to reduce rent. However, it is subject to the willingness of such private owners to provide any relief to tenants.
  
  

Local Contacts

Thomas Joseph Treutler - Tilleke & Gibbins