Commercial Landlord remedies during Covid-19

Many landlords are trying to find ways to work with their tenants during this time by offering concessions to reduce the risk of vacant properties and tenant insolvency. However where this is not an option, either due to the persistent default of an agreement or a tenant’s is refusing to communicate with their landlord the Government has issued guidance under the Coronavirus Act 2020 as to what a commercial landlord can and cannot do.

Forfeiture/Re-entry/Possession:

Forfeiture for commercial tenants has been suspended until at least 30 June 2020.

Commercial landlords can however seek a right of re-entry or forfeiture for other breaches of a lease.

Any existing possession orders are extended and the tenant does not need to give up possession before 30 June 2020 (this could be extended)

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Winding-up Petitions:

Any applications made from 27 April 2020 will be reviewed by the court and if the tenant is unable to pay due to Covid-19 then the petition will not go any further, if the tenant is unable to pay for another reason the petition will continue but will be postponed until a later date not yet set.

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Commercial Rent Arrears Recovery

This is still available but has been changed and the tenant must now owe at least 90 days arrears, this is intended to allow tenants flexibility with their finances during this time.

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Statutory Demands

No statutory demand can be served on a tenants until at least 30 June 2020, however demands for payment can still be made against Guarantors and potentially the original or previous tenants as this is not prohibited under the act.

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Rent Deposits

Depending upon the terms of the rent deposit, the landlord may be able to draw on this to receive payment of rent.

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The aim of the above measures is to encourage landlords and tenants to communicate and come up with a suitable resolution where they are able to do so.

If you are a commercial landlord or a tenant facing issues, please contact us for advice.

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Contacts

Commercial Property

Richard Etheridge 01603 675627

Bruce Faulkner 01603 675608

Litigation and Insolvency

Peter Hastings 01603 675639

Debt Recovery

Maria Taylor 01603 675613

The Abused

Working with victims of abuse has always been a fulfilling part of my job as a solicitor. Being able to help victims of abuse escape their abuser and set them on the path to empowered recovery is in itself empowering. I recently had the pleasure of working with a victim of abuse who appeared in the Channel 5 documentary ‘The Abused,’ as we sought to protect her upon her ex-husband’s release from prison.

Many of us still don’t fully recognise patterns of abuse and men especially can fall victim to abuse that they can’t identify. Below is a list of types of abusive behaviours and if you answer yes to some or all of them then you might be in an abusive relationship.

Emotional abuse

• Does your partner belittle or put you down? Often they can suggest to you and other that they are ‘joking’ but it isn’t an isolated joke it’s continual.
• Do they blame you for their actions or for arguments?
• Downplaying their actions suggesting you are ‘ridiculous,’ ‘dramatic,’ ‘mental.’
• Isolate you from family and friends. Perhaps prioritise their family and friends over yours, suggest that your family or friends are ‘boring,’ ‘don’t like them,’ or that your priority should be ‘them’ and not ‘running around after others’.
• Requiring constant attention and punishing you if you are unable to provide it.
• Accuse you or flirting, having affairs, looking for attention from others.
• Controlling money – determining how money is spent, spending money that causes debt or asking you to obtain credit on their behalf or loan them money.
• Threaten to kill or harm themselves.
• Refusing to accept your boundaries or the word ‘no’, harassing you until you do things their way.
• Destroy your things, stand over you or invade your personal space.

Physical abuse

• Slapping, hitting or punching you
• Pushing or shoving you
• Biting or kicking you
• Burn you
• Choke or hold you down
• Throw things at you

Sexual abuse

• Touch you in a way you don’t want to be touched or pressure you into sexual acts
• Make continual or unreasonable demands for sex and dominate you during sex in a way that hurts you

Forcing your partner to have sex when they don’t want to is rape. It isn’t persistence paying off.

How to escape

• In an emergency always call 999
• Contact Leeway 0300 5610 077 or Refuge 0808 2000 247 they may be able to offer you a safe haven
• Call us or email us and ask for advice 01603 666001 or matrimonial@rogers-norton.co.uk. We can help with domestic abuse injunctions, orders with regards to children, divorce and financial orders. We have payment plans and discounted rates to help you. We have helped hundreds of people escape abusive relationships in a way and at a pace that is right for them. We are here to listen, help and support you.

Furlough for Employers

Putting employees on furlough means they are required to cease all work for at least 3 weeks this includes working from home. They are kept on payroll and will receive at least 80% of their usual gross salary up to a cap of £2,500 a month under the Coronavirus Job Retention Scheme (the Scheme). You can choose to pay the remaining 20%.

Who does it cover?

• The Scheme only covers employees registered on the PAYE payroll on or before 19 March 2020, it includes those who work part time and zero hour contracts.
• Directors can be furloughed and receive 80% of their salary as long as they are registered on the PAYE payroll, whilst they are restricted from undertaking work for the company they are allowed to carry out any statutory duties.
• If an employee is current maternity, paternity or adoption leave they cannot be furloughed until that leave has ended.

Calculating 80%

• For those employees that are full time or part time you will take their actual salary before tax as of 28 February 2020 to calculate what their 80% payment should be.
• For any employee on a zero hours or flexible hours contract if they have been with you for a full 12 months you can claim the higher of either: the same month’s earnings from the previous year or average monthly earnings from the 2019-20 tax year. If they have been with you for less than 12 months you can claim for their average monthly earnings since they started with you.
• If your employees’ salaries are usually commission based, you can claim 80% of compulsory commission, it will however be based on commission from past sales.
• It is important to note that any employees who are also shareholders will only receive 80% of their salary that is paid through PAYE, it does not include any dividends that would be taken to supplement their salary.
• ACAS and HMRC have issued guidance that employees should be paid 100% for any holiday taken during furlough, HMRC have said however that this is under review and could change.

How do I claim?

• The government portal is now live and the Scheme has been extended to run until June 30 2020 and could be extended again.
• Salaries for furloughed staff can be backdated to 1^st March 2020. Employers must pay the 80% and then claim it back using the portal.
• The Scheme is a grant not a loan and will cover the associated Employer’s National Insurance and minimum employer’s automatic enrolment pension.

Choosing Employees

• When choosing which employees to furlough, ensure any decisions are fair and non-discriminatory.
• Discuss with each employee proposed to be furloughed what this means for them e.g. they cannot undertake any work for you , it will be for a minimum of 3 weeks and whether you are going to pay the Scheme covered 80% or more of their salary.
• If an employee does not consent to be furloughed you can choose to make that employee redundant.
• Once an employee has agreed to be furloughed you must keep a written record of that agreement for 5 years, we are able to assist with this, and can provide you with an agreement suitable for you.

Important points to note:

• Furloughed employees can seek temporary employment elsewhere during their furlough period, check your employment contracts to see if your permission is required and make your employees aware of this.
• Holiday entitlement will continue to accrue during any furlough period, up 4 weeks of unused leave can be carried into the next 2 years.
• You must keep a written record of every employee’s agreement to be furloughed and we can assist with this.
• Being furloughed can be an upsetting time for some employees, so keep in regular contact with them and send out regular updates.

We are here for you during this challenging time, we understand the pressures a lot of businesses and employers are currently facing, if you need assistance on any business or employment matter such as a furlough agreement please contact:

Richard Etheridge on 01603 675627 or rwje@rogers-norton.co.uk.

Or in the alternative

Phil Kerridge on 01603 675671 or pnk@rogers-norton.co.uk.