Tag Archive for: COVID-19

You are here: / / COVID-19

Posts

CMS European M&A Study 2021

/in /by

Europe has returned to a ‘buyer-friendly’ environment, after the COVID-19 pandemic created more risk-averse attitudes. As a result, CMS’ latest annual M&A study identified significant increase in liability caps, longer limitation periods and fewer locked box deals.

The multi-year analysis of the key legal provisions within M&A agreements is the most comprehensive of its kind and is based on a proprietary database comprising more than 5,000 deals.

The study reveals that the primary deal driver for transactions continues to be buyers entering a new market (45%), a marginal decrease on 2019 (46%). Almost a third (31%) of all deals were either the acquisition of know-how or acqui-hire transactions, whilst 22% of deals were the acquisition of a competitor.

Louise Wallace, Head of the CMS Corporate/M&A Group, said:

It comes as no surprise that the first half of last year was difficult for dealmakers, with more delays and renegotiation of terms. But it was perhaps not as gloomy as many feared – we saw a strong recovery towards the end of 2020 and many corporates have confidently adapted their processes to the continued uncertainty and early shoots of ‘new normal’. The strength of equity capital markets and the resilience of private equity, with trillions of dry powder, indicates there should be an increase in transaction volumes – all of which makes us hopeful about the future of deal activity in Europe.
Louise Wallace

Stefan Brunnschweiler, Head of the CMS Corporate/M&A Group, said:

Deal volumes aside, the dynamics of deal terms playing out should be watched closely. Up until 2020, Europe has been regarded as favouring the seller. This year, we are seeing far more ‘buyer-friendly’ positions – a similar risk allocation to across the pond in the US.
Stefan Brunnschweiler

Signals of more ‘buyer-friendly’ trends include:

  • Longer limitation periods – there was an increase in limitation periods of 24 months or more (23% of deals – up 4% from 2019)
  • Increase in liability caps – the level of liability caps applying to transactions increased significantly in 2020. There were fewer deals where the cap was less than 50% of the purchase price – down to 49% from highs of 60% in 2017 – and we saw more deals where the liability cap was equal to the purchase price
  • Use of locked box transactions – slight decrease in non-PPA deals (51% in 2020 vs 56% in 2019, although the overall upward trend remains
  • De minimis and basket provisions are the market norm – applying in majority of transactions (74% and 68% respectively vs 73% and 66% in 2019)

Other key findings include:

  • Steady use of Warranty & Indemnity (W&I) insurance – popularity of W&I insurance dropped off in 2020 by 2% (down to 17%), though it was still used in almost half of transactions over EUR 100m
  • Gradual decline of purchase price adjustments (PPAs) – a small decrease in the use of PPAs in M&A agreements (44% compared with 45% for 2019), suggesting parties are seeking more certainty as to the amount of the purchase price when signing transaction documentation
  • Earn-outs remain consistent – Despite the anticipaton of more earn-outs due to COVID-19, there was little change albeit at 21% of deals. This is above the average level of the last decade, though still less popular than use in the US

Regional differences

The COVID-19 pandemic has triggered a shift in favour of the buyer in Europe, similar to the US where more ‘buyer-friendly’ positions are common. However, market practice in Europe relating to PPA has remained consistent in the 44-45% range for the past three years. This is a noticeable difference to the US where a PPA features in almost all deals (95%).

The analysis also revealed marked differences in market practice between the European regions:

  • The UK used PPAs in 54% of transactions, well ahead of France (36%) and Benelux countries (34%).
  • CEE and the Southern European countries have significantly higher liability caps (67% and 76% of transactions respectively had a liability cap of more than 50% of the purchase price), compared to the European average of 43%.
  • The take up of W&I insurance cover remains low in France, Benelux, and the Southern European countries – ranging from 5% to 20% – and has dropped off significantly in the UK (from 37% in 2019 to 27% in 2020).
  • Locked boxes dropped off significantly in the UK (30% vs 61% in 2019) but not in other European countries.
  • There was a large increase in the use of earn-outs in CEE with 20% of transactions compared to 8% in 2019 – more in line with the European average of 21%.
  • Limitation periods for warranty claims are much longer in CEE, France and the Southern European countries.
  • Arbitration was used as the dispute resolution mechanism in a third (32%) of deals. It was less popular in certain regions (UK, France and Benelux) than others (CEE, German-speaking and Southern European countries).

Download the report here: cms.law/int/publication/cms-european-m-a-study

José Luís Arnaut

Anderson Mori & Tomotsune Future Working System

/in /by

In response to the spread of the 2019 coronavirus disease (COVID-19), our firm has set up a response team to deal with any new developments. We have taken advance measures in consideration of the safety of our clients, business partners and personnel. In light of the government having lifted the state of emergency declaration across Japan on March 21, we will implement the following measures from March 22 (Mon).

Combination of Increased Frequency of Personnel Coming to the Office and Working from Home

With effect from March 22, 2021 (Mon), we will slowly increase the percentage of our personnel working in the office. Simultaneously, our personnel will still be able to work from home to the extent that it does not interfere with their work.
Even in the case of working from home, you may still contact the office email address and the direct phone number of the attorney or patent attorney in charge of your matter. We may not be able to answer your call in a timely manner, but we will return your call wherever possible.

Non face-to-face Conferences and Meetings

We will continue to conduct conferences, internal meetings and external meetings with clients non face-to-face (by online or telephone conference, etc.) as much as possible. In addition, we will also refrain from holding face-to-face seminars.

Recommendation for staggered working hours and thorough implementation of measures to prevent the spread of COVID-19 such as by having our personnel wear a mask at all times

We will thoroughly implement measures to prevent the spread of COVID-19, such as ensuring that our personnel take their temperature before coming into the office, recommending our personnel stagger their working hours when going back to work in order to avoid rush hour, having our personnel wear a mask at all times in the office, having them wash their hands and use hand sanitizer, and ensuring that social distancing is carried out.

We apologize for any inconvenience that this may cause our clients and business partners, and we kindly ask you for your understanding.

Our firm will continue to promptly implement measures based on the policies and action plans of the national and local governments, giving the highest priority to preventing the spread of COVID.

Hirohito Akagami

COVID-19 comes to an end – Extension of Limitation

/in /by

In view of the outbreak of COVID-19 pandemic in March 2020, the Supreme Court of India by an order dated March 27, 2020 extended the period of limitation prescribed under the general law or special laws with effect from March 15, 2020 till further orders.

On March 5, 2021 the Supreme Court reviewed its decision and observed that in view of the changing scenario relating to the pandemic, the extension of limitation has served its purpose and should come to an end.

Accordingly, by an Order dated March 8, 2021 (https://main.sci.gov.in/supremecourt/2020/10787/10787_2020_31_1501_26732_Judgement_08-Mar-2021.pdf) the Supreme Court has directed that in computing the period of limitation for any suit, appeal, application or proceeding, the period from March 15, 2020 till March 14, 2021 shall stand excluded. Consequently, the balance period of limitation remaining as on March 15, 2020, if any, shall become available with effect from March 15, 2021.

In cases where the limitation have expired during the excluded period, all persons shall have a limitation period of 90 days from March 15, 2021. The Supreme Court also clarified that this order shall apply to limitation for instituting proceedings, outer limits (within which the court or tribunal can condone delay) and termination of proceedings.

Manisha Singh

India & Vietnam: Increasing Trade and Investment Relations

/in /by

The year 2020 marks the 42nd anniversary of India-Vietnam bilateral trade. Vietnam and India have shared strong bilateral relations historically, and for the past two decades, trade between the two countries has risen considerably. These economic ties have materialized into several Indian investments in Vietnam in various sectors.

The enormous volatility in the global trade environment has pushed businesses into diversifying their supply chains away from China, which has increased the importance of the India-Vietnam trade route for international business.

India, which is one of the fastest-growing economies in the world, currently ranks fifth globally in terms of GDP. The ASEAN-India Free Trade Area (AIFTA), which Vietnam is a part of, was established in 2009 as a result of convergence in interests of all parties in advancing their economic ties across the Asia-Pacific.

Vietnam’s manufacturing industry has rapidly emerged as a highly effective location for incoming electronics and telecom manufacturers who are relocating from China due to increased costs and the US-China trade war. The country has bolstered investor confidence with quick and efficient containment of the COVID-19 pandemic. Vietnam is becoming a leading choice for major companies looking to set up their new manufacturing hubs and diversify their supply chains.

India has significant expertise in IT services, pharmaceuticals, and oil & gas, all of which can significantly benefit Vietnam. Additionally, there are export opportunities in zinc, iron, steel, and man-made staple fibers from India to Vietnam.

A large middle class in India’s 1.3 billion population and its customs-duty exemption for ASEAN products make it a lucrative destination for Vietnamese exports. There is a notable scope for the development of services related to wholesale & retail trade, transportation & storage, business support along with trade opportunities in cotton and knitted clothing.

Bilateral trade

Over the past two decades, bilateral trade between Vietnam and India has steadily grown from US$200 million in 2000 to US$12.3 billion in the financial year 2019-2020.

The two countries aimed to raise bilateral trade to US$15 billion by 2020, but COVID-19 related trade disruption resulted in a 9.9 percent trade shrinkage to US$12.3 billion in the last financial year. Vietnam has emerged as the 18th largest trading partner of India, while the latter ranks seventh among Vietnam’s largest trading partners.

Exports from Vietnam to India include mobile phones, electronic components, machinery, computer technology, natural rubber, chemicals, and coffee. On the other hand, its key imports from India include meat and fishery products, corn, steel, pharmaceuticals, cotton, and machinery.

After India announced its decision to opt-out of the Regional Comprehensive Economic Partnership (RCEP), the India-ASEAN FTA is expected to be reviewed to compensate for the potential trade loss.

Foreign direct investment

Vietnam’s strategic location close to existing manufacturing hubs, its favorable position in accessing other Southeast Asian markets, and its proactive approach towards opening its markets to the world has helped it gain popularity as an attractive manufacturing and sourcing location.

The rising importance of Vietnam in global supply chains has the potential to strengthen India-Vietnam ties further. India is estimated to have invested nearly US$2 billion in Vietnam including funds channeled via other countries. Over 200 Indian investment projects in Vietnam are primarily focused on sectors including energy, mineral exploration, agrochemicals, sugar, tea, coffee manufacturing, IT, and auto components. Several major Indian businesses such as Adani Group, Mahindra, chemicals major SRF, and renewables giant Suzlon have shown interest in venturing into Vietnam.

India’s salt to IT conglomerate Tata Coffee recently inaugurated their 5000 MTPA freeze-dried coffee production plant in Binh Duong province of Vietnam last year. This US$50 million coffee facility was commissioned within 19 months of the ground-breaking ceremony.

Another example is HCL Technology Group, which is considering establishing a US$650 million technology center in Vietnam and plans to recruit and train over 10,000 engineers within the next five years.

With the implementation of major infrastructure projects like Tata Power’s Long Phu – II 1320 MW thermal power project worth US$2.2 billion, the investment figures are expected to rise considerably. The thermal power project was first coined in 2013 and was originally expected to be fully operational by 2022, but the revised seventh Power Development Plan (PDP7) indicates an eight-year delay, shifting its launch to 2030.

This delay appears to be due to Vietnam’s shift toward renewable energy. Nevertheless, opportunities remain for Indian investors in the renewable energy industry, specifically in solar and wind due to increased power demand. Reports indicate that the Tata group is in talks of investing further in solar- and wind-power projects.

Opportunities for Indian investors

Vietnam provides several lucrative reasons to invest such as increased access to markets, favorable investment policies, free trade agreements, economic growth, political stability, low labor costs, and a young workforce. As per a Standard Chartered report on trade opportunities, Vietnam’s exports to India have the potential to grow by 10 percent annually, or approximately US$633 million. This projected growth is primarily focused on goods export (53 percent) and services (46 percent).

Pharmaceutical

Vietnam’s domestic pharmaceutical industry is currently able to meet just 53 percent of the country’s demand, representing significant opportunities for Indian investors as India is among the leading global producers of generic medicines supplying 20 percent of total global demand by volume. There is an enormous potential for Vietnam to purchase generic medicines from India, but the former is actively trying to get Indian pharmaceutical companies to manufacture in Vietnam instead of importing.

Agriculture

Vietnam is seeking alternate buyers for its agricultural exports, after the reduction in demand from China due to the pandemic. Lifting India’s trade barriers on the import of agricultural products can open a new market for Vietnamese agricultural exporters. Also, there is a significant potential for investment in breeding technology, irrigation technology, and storage facilities. Vietnam’s topography, climate, and fertile soil make it suitable for coffee plantations. The TATA group has expressed plans of investing in the installation of agricultural machinery to serve demand in the Mekong Delta.

Tourism

The tourism industry in Vietnam is a largely untapped market sector for Indian businesses, which is likely to gain strong traction after the pandemic. The country received over 15.5 million international arrivals in 2018, a seven-fold increase from 2.1 million in 2000. Over 31,400 Vietnamese visited India the same year, a 32 percent increase from the previous year. India is a preferred destination for Vietnamese pilgrims and medical tourists.

India’s low-cost carrier Indigo launched direct flights linking India’s Kolkata with Vietnam’s Hanoi and Ho Chi Minh City in November 2019. Following this launch, Vietnamese low-cost carrier, Vietjet Air started direct flights connecting India’s New Delhi with Hanoi and Ho Chi Minh City. Improved connectivity will help Vietnam in diversifying its tourism portfolio, which currently is largely dependent on Chinese and South Korean tourists.

SMEs

SMEs play a large role in both India’s and Vietnam’s economies. Most recently, India and Vietnam held a promotion conference titled ‘Boosting trade-investment cooperation opportunities between Vietnamese and Indian SMEs’ organized by Vietnam’s Trade Office of the Vietnamese Embassy in India, India’s Uttar Pradesh state government, the Indian Industries Association (IIA), and Vietnam’s Hanoi SME Association. The takeaway was that several major businesses have shown interest in coming to Vietnam.

The IIA noted that Vietnam is looking to attract investment in sectors such as energy, mineral exploration, agriculture, tea, IT, and automobiles. Nevertheless, challenges remain regarding high corporate income tax rates for specific sectors such as oil and gas.

SMEs contribute close to 40 percent of India’s exports but also need government support to thrive. Indian SMEs will have to further internationalize. For example, India’s Tamil Nadu state has a diversified manufacturing industry dominated by SMEs with a number of factories and special economic zones. However, at the moment, SMEs in Tamil Nadu are yet to connect to business opportunities in Vietnam. This is a missed opportunity. As per ADB such businesses can connect through India’s Market Access Initiative and Market Development Assistance schemes to tap into potential businesses and market sectors.

Apart from streamlining regulatory standards between both countries, both governments will also have to hold seminars, events, and trade fairs to ensure that SME are aware of the various opportunities in the relevant market fields.

Supporting industries

Vietnam is an attractive destination to produce and export, thanks to its assortment of free trade agreements with several countries, allowing products to be exported to these countries with attractive low tariffs. There is a need for the development of the local supporting industry to support major manufacturers, and Indian businesses have the potential to fill the gaps in this sector.

Takeaways

With Vietnam’s strong economic growth in the past few years, a review of the India-ASEAN free trade agreement is necessary to foster further trade in promising emerging sectors between both countries. As per Vietnam’s Foreign Investment Agency (FIA), India had almost 300 projects in Vietnam accounting for almost US$900 million as of December 2020.

As pointed out by the Standard Chartered report, there is considerable scope to increase trade between India and Vietnam should both governments take a proactive approach to trade and investment and realize this potential.

 

Eliza Low named Partner at MDP Law

/in , /by

Melbourne, February 8th, 2021 —Eliza Low was promoted to Partner at mdp Law after six months as Special Counsel.

Eliza’s exposure to large scale, multi-jurisdiction deals as a Senior Associate at Baker McKenzie, combined with her extensive corporate law experience, marked a significant expansion of mdp’s legal capabilities when she joined in September 2020. Read more

Kirkland & Ellis

Kirkland & Ellis set to hit $5 Billion Annual Revenue

/in , /by

Already the world’s highest-grossing law firm, Kirkland & Ellis has seen strong growth across all of its strongest areas.

Kirkland & Ellis LLP is on track to achieve annual revenue of around $5 billion following an upsurge of demand during the COVID-19 pandemic, the Financial Times first reported.

Insiders at the Chicago-based firm said that its turnover was approaching $5 billion for the twelve months to the end of January, up from $4.45 billion in the previous year. One partner described the firm’s performance as “eye-watering”.

Read more

Federal appeals court blocks Cuomo’s limits on religious gatherings in New York

/in /by

The US Court of Appeals for the Second Circuit ruled Monday that New York Governor Andrew Cuomo’s restrictions on the number of attendees at religious gatherings were likely to be a violation of the Free Exercise Clause of the First Amendment. The Court enjoined the state from enforcing these limits, put in place to address the spread of COVID-19 in areas with the highest prevalence.

Governor Cuomo issued an executive order in October that categorized areas into “zones,” which were assigned colors corresponding to their COVID-19 rates. In all zones, a capacity limit was imposed on houses of worship, but not on essential businesses.

These measures were reviewed by the Supreme Court in late November, and it held similarly that the executive order be blocked because the plaintiffs, including Agudath Israel of America and the Roman Catholic Diocese of Brooklyn, New York, were likely to succeed in challenging these measures once the case was fully litigated.

The Second Circuit took particular issue with the separate identification of houses of worship for certain restrictions. It found the classification of essential businesses versus non-essential businesses, which also have different restrictions, to be “questionable” in some cases. It pointed to the fact that Cuomo “has not asserted that his categorization of businesses as ‘essential’ or ‘non-essential’ was based on any assessment of COVID-19 transmission risk.” Particularly, Cuomo failed to cite data supporting his belief that places of worship have greater transmission rates.

Brazil top court upholds constitutionality of COVID-19 vaccination

/in /by

Brazil’s Supreme Federal Court (Supremo Tribunal Federal, STF) decided Thursday that it is constitutional for the State to order compulsory vaccination against COVID-19. The State cannot forcibly immunize its citizens. But fines, bars on attending certain places and on enrollment in school may be imposed upon vaccination refusal.

Brazil has been one of the nations worst-hit by COVID-19. It has recorded more than five million cases since the onset of the pandemic, making it the nation with the third-highest number of cases after the US and India, according to Reuters.

The court’s justices viewed this as a public health concern necessitating the creation of herd immunity. They recognized that in the past, widespread immunization has been instrumental in eradicating a number of diseases. Minister Rosa Weber argued that the restrictions on individual freedoms are impositions on constitutional rights, which make it necessary to adopt measures to protect health and life. In addition, he stated:

Faced with a serious and real threat to the life of the people, there is no other path to be followed, in the light of the Constitution, but one that ensures the use of the necessary, adequate and proportionate means for the preservation of human life.

Minister Luís Barroso supported the constitutionality of compulsory vaccination, as long as the immunizer is registered by a health surveillance agency, is part of the National Immunization Plan, has its mandatory inclusion within the law or its application determined by a competent authority.

The responsibility of implementing the restrictions with limitations was given to the Union, the states, the Federal District and the municipalities.

Cyprus: Government Assistance During the COVID-19 Pandemic

/in /by

The global pandemic of COVID-19 has left no country unaffected, with a second wave currently sweeping through Europe. Since its arrival on the island in March 2020, the Cypriot government closely monitored the situation and acted swiftly. Early lockdown measures and widespread testing were effective in flattening out the initial infection curve, providing valuable reaction time to better equip and organise the healthcare system with medical resources and staff. The government’s response subsequently shifted from containment of the virus, which had brought the economy to almost a virtual standstill, to a re-opening of the economy with reinforced protection. To this effect, various measures, plans and schemes were enforced by the government in order to support the economy, its citizens, and workers from the severe impact of the pandemic.

As part of a budgetary policy response in the wake of COVID-19, Cyprus introduced its “Stability Programme 2020–2023”. The aim of the Programme has been to provide emergency relief and support the Cyprus economy under the present exceptional economic crisis that has arisen as a result of the pandemic. One of the measures introduced by the Stability Programme was the suspension of loan instalments for enhancing liquidity, enabling a payment moratorium for nine months to apply to credit-worthy borrowers that have been affected by the restrictive measures imposed by the authorities.

These temporary measures are applicable for a period from 30 March 2020 to 31 December 2020. The moratorium covers capital, interest and compound interest payments, and both physical and legal entities are eligible.

Liquidity Aid Measures

In addition to the above in May 2020, the Cyprus government announced further stimulus measures to “jump-start” the Cypriot economy, impacted by the COVID-19 pandemic, with major input from the European Investment Bank (“EIB”), in the form of loans worth approximately EUR 1.2 billion, along with interest rate subsidies for businesses and housing loans. By utilising the tools provided by the European Union and European financial institutions, the Cyprus government introduced various liquidity aid measures, as follows:

Pan-European Guarantee Fund

By participating in the Pan-European Guarantee Fund (established to tackle the adverse economic consequences of the pandemic), and in return for a contribution of EUR32.5 million, Cyprus expects to be allocated EURO 300-400 million of direct guarantees from the Fund for the needs of businesses. The Fund will guarantee up to 80% of the bank’s indebtedness to small- and medium-sized enterprises employing up to 3,000 people, with the caveat that they must not have laid off staff during the lockdown period. The guarantees are intended to encourage the banks to cover working capital shortfalls for businesses that were viable before the onset of COVID-19.

State Guarantees

The government will provide an additional EUR 500 million of state guarantees to the EIB, which will, in turn, advance loans at more favourable interest rates to businesses in the small- and medium-sized enterprise sector.

The Cyprus Entrepreneurship Fund

The Cyprus Entrepreneurship Fund will be expanded by EURO 800 million. Businesses with a maximum of 250 staff will be eligible to apply for a maximum loan of EURO 1.5 million, repayable over a period of up to 12 years at interest rates currently ranging from 2.55% to 4.5%, depending on the perceived risk of the loan. The Cyprus government will fund 50% of the new money via a loan from the EIB, with local lenders providing matching funding with a 50/50 split of the risk between the parties.

Scheme to Subsidise New Loan Interest Rates

A scheme that will subsidise interest rates for new loans taken out between 1st March 2020 and 12th December 2020 provided that the maximum interest rate for such loans does not exceed 4.25%. The subsidy will run for four years and cover loans taken out between 1st March 2020 and 12th December 2020, provided that the maximum interest rate on them does not exceed 4.25%. All previously viable businesses adversely impacted by the pandemic will be eligible to participate.

The loans may be used for the purpose of investment or, as working capital, but they cannot be used to repay existing indebtedness or for the purposes of restructuring a business.

Tax Measures

Aside from the aforementioned measures, and in order to further aid business liquidity, numerous tax and other measures were implemented, providing temporary suspensions of the duty to pay VAT (without any penalties) for February, March and April 2020, until November 2020, and an extension for the submission of tax returns and the settlement of overdue tax liabilities. Relief from import duties and VAT on imports of goods needed, from the European Commission to combat the effects of COVID-19 for the first seven months of 2020, was introduced as a further measure.

Extensions of two months were provided for the settlement of overdue contributions to social-insurance-related funds.

The increase in special contributions regarding the General healthcare system (GESY) was suspended for the period of three months, applicable from April–June 2020.

Business Suspension of Operations Schemes 

Certain business and other emergency measures were quickly introduced to alleviate hardship in households, to support businesses and to prevent termination of employees’ employment.

Among these was the payment of unemployment benefits to employees under the plans for the Complete or Partial Suspension of Business operations. This was an extremely useful measure, as business employers were encouraged to retain their employees during the lockdown period between March–May and thereafter, and to participate in these schemes, under which the employees received a percentage of their salary ranging from 60% for partial suspension, to 90% for complete suspension of business operations (in the form of a state benefit). During this period for which Special Unemployment Allowance was paid, the employer’s duty to pay the salaries was waived with regards to employees who received the allowance. A business employer could participate in the Special Complete Suspension Scheme, subject to it not carrying on any business other than the administrative work of the business while the entire business was required to suspend activity, provided by the decrees of the related Ministries and decisions taken by the Council of Ministers and in addition that the business’s nature was not altered. A business employer could participate in the Special Partial Suspension Scheme, provided its operations were partially suspended due to its turnover decreasing by more than 25% in March 2020 until April 2020, in comparison to the previous corresponding period and such decline in turnover was caused solely by COVID-19.

One of the essential conditions to enable participation in the Scheme was the pre-requisite that no employee had been dismissed from 1st March 2020, and once approved to participate in the scheme, no employee could be dismissed for the duration of business participation in the scheme and for an additional period equal to the period of participation – plus an additional month, except for reasons justifying dismissal without notice. Hence, participating businesses were unable to dismiss employees for financial reasons during this period.

Other Measures

Other measures included special sickness benefits, special leave for the care of children, and amendments to the Statutory Tenants Law to suspend eviction of tenants until the end of May 2020.

Conclusion

In summary, the Cypriot government took immediate measures to combat and contain the effects of the pandemic, and has continued to take measures to restart much of the social and economic activity which came to a standstill in the past months, as well as to support the economy through these challenging times. How substantial and effective these measures will be to relieve and reverse the socioeconomic impact of the pandemic, especially in light of the inevitable domino effect of other world economies and how they fare from the crisis, remains to be seen.

Law Firms in SE Asia inching back to the office

/in /by

The COVID-19 outbreak has severely disrupted normal life in Southeast Asia, forcing a big chunk of the region’s workforce to work from home, lawyers not exempted. But as the number of cases subsides in certain countries, and governments attempt to bring economies back on track, offices are beginning to reopen.

However, law firms say that given the potential for another spike in cases of this highly contagious disease, no reopening approach can be too cautious.

Patrick Ang, managing partner of Rajah & Tann Singapore, says that the firm has a slew of social distancing measures in place, which were enhanced during the circuit-breaker (Singapore’s term to describe its lockdown) period

.“We are maintaining a two-team segregation system, so that even if a lawyer needs to go to the office, he should only be in the office according to the schedule. In addition, we have temperature checks, health declarations, staggered hours, seating one metre apart, and a maximum number of people in the office at any one time,” Ang says.

Voicing similar thoughts is Indonesia’s Assegaf Hamzah & Partners (AHP) which plans on reopening the office around mid-June.Bono Daru Adji, AHP’s managing partner, says that the firm will be implementing social restriction measures in the office including “dividing our lawyers and business professionals into two segregated teams based on their current seating arrangement to ensure that there is a minimum of one-meter distance between each person.”

“We will also be limiting the number of people inside common areas. Further, a staff member will measure the body temperature of each person attending the office and those using public transport must bring a pair of spare clothes to change into before entering the office,” Adji adds.