CORONAVIRUS (COVID-19):
How to respond to current legal and economic implications?
CORONAVIRUS (COVID-19):
How to respond to current legal and economic implications?
Force Majeure
Force Majeure
In light of the current situation, our Team continues to monitor closely the situation and is following all relevant government and WHO advice to ensure that we are ready to adapt to the latest guidance. In that regard, we have started seeing a steady flow of force majeure claims and clausula rebus sic stantibus following the coronavirus outbreak and the consequential restrictions and controls introduced by governments. For this reason we’ve produced a series of insightful analysis and concise guides to help you identify and assess the key legal and commercial issues related to the force majeure and clausula rebus sic stantibus. The COVID-19 pandemic and its consequences are having a major and sudden impact on economic activities and in particular the conditions in which contracts are being performed. Our insights are focused on the treatment of the force majeure in the Croatian legislation, together with the review of cases where certain event is agreed as an event of force majeure. We summarized legal possibilities in cases when force majeure was not agreed, as well as enumerated key elements that need to be proven for the existence of force majeure. At the same time, our insights give an overview of the institute clausula rebus sic stantibus, in regard to the amendment or termination of the contract upon changed circumstances, including its treatment in Croatian regulation, statutory presumptions for invoking the institute of clausula rebus sic stantibus, as well as overview of legal possibilities in cases when clausula rebus sic stantibus is agreed between parties. In addition, we presented an analysis of the legal effects of clausula rebus sic stantibus, together with our recommendations in terms of invoking the institutes of force majeure and clausula rebus sic stantibus.
Impact of Coronavirus (COVID-19) on Lease Agreements
Impact of Coronavirus
(COVID-19) on Lease Agreements
The massive economic implications of COVID-19 will in particular also affect the real estate sector, especially lease agreements. As a result of the closure orders issued by the Croatian Civil Protection Staff, commercial tenants find themselves in a dramatic situation where they have lost revenues virtually overnight while the payment obligations under their lease agreements continue to apply. Thus, the position of the tenants is weaken, so for the purpose of continuing good business relationship, the landlords will have to show their understanding for the current situation. For this reason, we have produced an overview of legal regulation of the lease agreements, as well as legal and practical considerations of the institute of force majeure and clausula rebus sic stantibus in terms of fulfilment of the obligations of the contractual parties from the lease agreement, including discharge of the debtor from damages liability, amendment or termination of the contract upon changed circumstances, and impossibility to perform the obligations for which neither party is responsible. We also give an analysis of the impacts of the coronavirus, as force majeure or extraordinary circumstances in terms of clausula rebus sic stantibus, to the fulfillment of the obligations of the contractual parties from the lease agreement, together with review on possible reduction of the agreed rent. Furthermore, our insights present the newest decisions of the Government regarding the lease agreements of the state property. In addition, since Zagreb was recently hit by strong earthquake, the impact of the earthquake as an event of force majeure to the validity and duration of the lease agreement is also considered, with practical recommendations given to the contractual parties.
Legal Implications of Covid-19 to Employment Relationships
Legal Implications of Covid-19 to Employment Relationships
Due to the “coronavirus” (COVID-19) outbreak, employers are faced with a number of challenges regarding the organization of the company’s business in the safest and most efficient way, protecting, above all, the health of their employees, but also taking care of preserving jobs. In that regard, the need for protection of employees’ health from “coronavirus”, but also the emerging economic situation facing entrepreneurs, requires rapid adaptation of employers to new safeguards and changes in work organization. As a result of the closure orders issued by the Croatian Civil Protection Headquarters, and at the same time, the absence of special regulation regarding employment relationships in time of COVID-19, employers and employees are obliged to fulfil their obligations in accordance with the current Labour Act (Official Gazette, No. 93/14, 127/17, 98/19) and other legal sources prescribed. For this reason, we have prepared a list of perceptive analysis and applicable guides to help you to identify and asses the key issues and challenges related to alignment to employment law regulations during the period of COVID-19. In that regard, our insights are focused on employers and employees rights and obligations in case of possible existence of COVID-19 at the workplace. As well, we enumerated employers legal possibilities and ways to organize work in most proficient and secured way. At the same time, our insights give an overview of employers rights and possibilities in relation to the deduction of salary and shortening of working hours. Furthermore, we identified legal implications of COVID-19 to the employers’ compensation for travel and meal costs for employees who are working from home. In addition, we presented an analysis of legal effects to the compensation of salary in case of self-isolation of the employee, as well as the absence from work due to the suspension of work of schools and kindergartens.
