Sponsored briefing: The COVID-19 Handbook – Force majeure and contracts

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Sponsored briefing: The COVID-19 Handbook – Force majeure and contracts

The novel coronavirus, now officially known as COVID-19, was first seen in Wuhan, China in December 2019 and continues to spread rapidly worldwide. The World Health Organization (WHO) declared it an ‘epidemic’ first and then a ‘pandemic’ on 11 March 2020.

As COVID-19 cases continue to surge amid crashed markets and overwhelmed healthcare systems, it is also taking a toll on contractual relationships as countries continue to take drastic measures to flatten the curve of the pandemic. These measures include the ordering of curfews, travel bans and state of emergencies, all of which undoubtedly have enormous impacts on businesses and contracts. Continue reading “Sponsored briefing: The COVID-19 Handbook – Force majeure and contracts”

US worst hit as Cadwalader becomes latest firm to respond to Covid-19 with pay cuts

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US worst hit as Cadwalader becomes latest firm to respond to Covid-19 with pay cuts

Cadwalader, Wickersham & Taft has become the latest firm to take drastic financial measures as the Covid-19 pandemic reaches new heights – suspending partner pay and cutting salaries elsewhere. 

The move comes as the number of confirmed cases of the virus in the US soared to nearly 200,000 today (1 April) and the number of deaths reached 4,000. Cadwalader will stop paying partners, reduce associate salaries by 25% and impose pay cuts of 10% to 25% on staff to mitigate the economic impact of the crisis as it hits businesses around the world.  Continue reading “US worst hit as Cadwalader becomes latest firm to respond to Covid-19 with pay cuts”

Competition, supply chains and act of God clauses – First considerations for GCs in their Covid-19 responses

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Competition, supply chains and act of God clauses – First considerations for GCs in their Covid-19 responses

Businesses have shown remarkable resilience through an era defined by increasingly rapid change. Innovation, diversity and agility have driven adaptability and resilience. But now such resilience is facing a far more severe test in the shape of the coronavirus pandemic sweeping through societies and economies. Yet well-led businesses identify themes and opportunities emerging even from this crisis.

General counsel have the challenge of juggling (i) strategy – working with their boards on strategy and performance; (ii) legal issues and regulatory change; and (iii) team leadership and delivery (who, what, where, how). Identifying a framework and common themes can help decision-making. Continue reading “Competition, supply chains and act of God clauses – First considerations for GCs in their Covid-19 responses”

A&O takes coronavirus threat to task with raft of belt-tightening measures

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A&O takes coronavirus threat to task with raft of belt-tightening measures

 Allen & Overy has pre-empted a likely financial hit from the coronavirus crisis with a host of measures, including altering profit distribution to partners, increasing partner capital levels and freezing some investments and recruitment. 

The firm confirmed today (31 March) what it described as ‘prudent management measures’ as part of its ‘ongoing scenario planning’ as the Covid-19 continues to affect international businesses.   Continue reading “A&O takes coronavirus threat to task with raft of belt-tightening measures”

Ashurst launches consulting arm to handle Covid-19 demand with Deloitte partner hire

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Ashurst launches consulting arm to handle Covid-19 demand with Deloitte partner hire

Ashurst has launched a consulting business with the hire of a senior Deloitte partner in Australia to deal with growing client demand amid the coronavirus pandemic.

The firm said today (31 March) it had hired Philip Hardy, a partner at the Big Four consultancy since 2008 and head of its Australian governance, regulation and conduct advisory business. The resulting Ashurst Consulting will initially be offered in Australia and will advise clients on minimising risk, manage change and bolstering business performance. Continue reading “Ashurst launches consulting arm to handle Covid-19 demand with Deloitte partner hire”

‘Brutal clarity on priorities’ – A&O’s former chief looks back to the banking crisis for lessons to aid law firm leaders now

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‘Brutal clarity on priorities’ – A&O’s former chief looks back to the banking crisis for lessons to aid law firm leaders now

What lessons can we learn from the 2008/09 financial crisis to help law firm leaders manage the escalating disruption of the coronavirus outbreak ravaging populations and crippling economies? Every crisis is different and this one is very different and it’s no use merely fighting the last war. Nonetheless, in terms of dramatic economic upheaval and rolling uncertainty, the impact of the banking crisis shares some common ground and there are some principles that hold good for any financial crisis.

The first principle is that if you’re the leader when a crisis strikes, you need to act like one. My experience as senior partner of Allen & Overy during 2008/09 was that a crisis will probably define you in that role, for better or worse. There is nowhere to hide, so don’t even try; this is showtime and you are centre stage. Put yourself out there so people know someone with calm assurance is in charge. Continue reading “‘Brutal clarity on priorities’ – A&O’s former chief looks back to the banking crisis for lessons to aid law firm leaders now”

Coronavirus latest: Reed Smith to limit partner drawings as firms start to bunker in for the crisis

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Coronavirus latest: Reed Smith to limit partner drawings as firms start to bunker in for the crisis

Reed Smith has ringfenced a portion of its cash reserves against partner distributions as a means to mitigate the impact of the unfolding Covid-19 crisis. 

The new contingency measures will include every office at the firm, with global managing partner Sandy Thomas (pictured) informing the firm’s global partnership in a conference call last week. Monthly drawings will be reduced by 40% for full equity partners and 15% for fixed share partners.  Continue reading “Coronavirus latest: Reed Smith to limit partner drawings as firms start to bunker in for the crisis”

Junior barristers blast the government’s ‘woefully insufficient’ self-employed support package

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Junior barristers blast the government’s ‘woefully insufficient’ self-employed support package

Junior barristers have heavily criticised the government’s self-employed support package as ‘woefully insufficient’ while imploring the Bar Council to address ‘urgent and serious concerns’ about the scheme.

The open letter, published today (30 March), says the government’s Self-Employed Income Support Scheme announced last Thursday neglects newly-qualified barristers as it does not provide financial aid to those without 2018/19 self-employed tax returns that accurately reflect their current earnings. Continue reading “Junior barristers blast the government’s ‘woefully insufficient’ self-employed support package”

Sponsored briefing: Coronavirus’ effects in terms of Turkish labour law

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Sponsored briefing: Coronavirus’ effects in terms of Turkish labour law

A. Introduction

The coronavirus (COVID-19) pandemic constitutes a major problem for the economy and employer-employee relations in Turkey and all over the world. At such a time, it is important to know how the pandemic affects the rights and responsibilities of the employer and the employee. At the same time, it is very difficult for employees and employers to predict how they will come through this, because of the shrinking economy. People tend to do the wrong things in times of crisis. First of all, they can make hasty and wrong decisions in order not to damage themselves. But we should not forget that the law is basically still the same. Although regulatory changes are made according to conditions, like a pandemic, people should not deviate from the basic regulations. Continue reading “Sponsored briefing: Coronavirus’ effects in terms of Turkish labour law”

Guest comment: Covid-19 and City regulators – The limits of forbearance

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Guest comment: Covid-19 and City regulators – The limits of forbearance

Forbearance is something of a dirty word in UK financial regulation, at least with regulators themselves. It describes a situation where watchdogs voluntarily exercise their discretion not to enforce rules or other requirements on the regulated. And that’s why they don’t like it – no regulator has ever prospered by giving its industry a free pass. Long-term pain for the regulator will outweigh any short-term gain to the industry as a whole.

Even so, you’d be forgiven for thinking the coronavirus crisis presents an ideal breeding ground for regulatory forbearance: a world-wide pandemic with seismic economic effects, stock markets tumbling, staff working remotely, and huge potential consumer detriment lurking around every corner. Continue reading “Guest comment: Covid-19 and City regulators – The limits of forbearance”