News and developments
Legal Considerations in Today's Businesses
In this new reality, businesses are in a high anxiety state and undertake intensive actions to secure their staff and retain business relations with clients, shareholders, stakeholders, and partners.
Even though the crisis is critically affecting our way of life, there are intricate business alerts that entrepreneurs should not neglect and seek ASAP the assistance of professional legal advisors and consultants to confront them successfully.
Business Alerts
Business Endurance
Businesses should form an effective business continuity plan with strategies that target the business’s continuation. Professional legal assistance is needed when forming the business continuity plan to safeguard that the business fully complies with the legislative framework, i.e.:- contractual relationships
- employment contracts
- compliance of the industry with its obligations before governmental authorities
- business relationships of company's affairs with employees, clients, suppliers, shareholders, and stakeholders.
Business Insurance Coverage
In today's business environment, many companies have business insurance coverage plans. Consequently, the company's legal advisors should thoroughly examine the insurance policies and coverages to identify if compensations for the COVID - 19 pandemic exist. It is noteworthy to mention that all insurance contacts are subject to high variations when coverage policies and exemptions are concerned. Chambersfield Economides Kranos lawyers can evaluate your business insurance contract and identify possible coverages according to the contractual and related pandemic litigation, as well as determine the coverage percentage of the cause.Employment Law
Almost all the governments of the world, during the pandemic outbreak, issued supportive measures and degrees to safeguard business operations, social welfare and prevent mass layoffs. Moreover, governments issued a safety and security degree for tackling the pandemic effects and provide a healthy, hazard-free workplace environment to all employees. Despite the government's efforts, many people have wrongly or unfairly being dismissed from their employment. Unfortunately, many of them were unaware of legislative and/or regulatory provisions aiming to safeguard their legal rights. An unlawful employment dismissal depends on the individual situation and may violate the Termination of Employment Law, Violation of Constitutional Human Rights, or Breach of Employment Contract. Subsequently, before proceeding with employment termination, businesses should consult their legal advisors to determine if there is a violation of employment rights.Privacy and Security
There are many questions concerning network privacy and security on remote work, especially today that social distancing is promoted as a prevention measure of Covid-19 pandemic spread. Due to pandemic measures, "business as usual" is disrupted, and the vast majority of companies proceeded with the introduction of remote work to maintain their sustainability. At the same time, the implementation of "working from home" raised safety questions to companies regarding:- The disclosure of sensitive data processed or saved in the company's systems,
- Possible unauthorized access or disclosure of data,
- Unsecured Networks that are vulnerable to viruses, malware, etc.
- of remote access in their systems and develop regular risk checks,
- adopt continuous monitor techniques,
- and enhance employees' security access points by implementing double system authentication techniques and encryptions.
Contractual Relationships
The coronavirus pandemic has undeniably affected the world economy and created massive negative impacts on all commercial contacts and activities. Countless trade contracts were affected, and many business transactions were canceled or postponed. Also, concerning contractual relationships, the pandemic has raised reasonable questions of who will be accountable and bear the financial losses of not meeting the contract obligations. Additionally, a wise confrontation should be the implementation of crisis management strategies that will help in minimizing the effects of the outbreak i.e.- Negotiation attempts will involve parties with suggestions that may solve the problem.
- Implementation of relief strategies
- Formation of a Contingency plan
- Legal risk analysis
- Revision of contract clauses
- Governing law, etc.
Financial Concerns
Many companies and individuals have experienced financial distress for their earnings, cash flow, and loans after the pandemic outburst. Also, many companies had to appeal for restructuring their contracts and agreements to cope with the pandemic consequences and continue their business operations. The answer to business sustainability does not lie only with loan restructuring but with overall business restructuring due to Covid-19 unpredictable era effects. Thereupon, for a successful restructuring of your business, entrepreneurs should appoint legal experts that will perform a thorough analysis of the company's current situation and propose sustainably solutions.Merges and Acquisitions
As previously stated, the Covid-19 pandemic has had a significant negative impact on all business activities, not only in nearly every sector of the economy but also on Mergers and Acquisitions transactions. Many M&A transactions after the outbreak were affected in terms of:- Financial Risk - due to future uncertainties on the behavior of the economy, in M&A transactions, entrepreneurs have shown hesitation on whether they will proceed with the transaction, cancel, or postpone it.
- Value - The conditions of the international market have changed dramatically.
- Sustainability - entrepreneurs evaluate possible business sustainability scenarios before proceeding with the M & A transaction.