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8.4.2020

Advice on self-isolation during the coronavirus outbreak

Project manager:

Managing partner
Corporate practice, Litigation, Investment projects
April 8, 2020

Advice on self-isolation during the coronavirus outbreak

Case description

BBNP clients faced serious difficulties in complying with work requirements during the coronavirus pandemic and the resulting high alert regimen¹.

For organizations that were allowed to continue operating, strict requirements were established to provide employees with personal protective equipment, maintain a distance between employees, and obtain and extend passes during the period of self-isolation. It was necessary to issue decrees on the number of employees who cannot be transferred to remote work and send appropriate notifications to various inspection bodies.

BBNP clients needed to consult on a daily basis and resolve recurring issues in order to continue their activities. A possible shutdown of companies could result in serious property damage and problems in relations with counterparties. To minimize these consequences and ensure legal work, BBNP specialists were involved.

During the period of high alert, legal acts were clarified and amended almost daily, and it was necessary to monitor them very quickly and efficiently and find legal solutions and mechanisms to continue working.

Thus, some BBNP customers were able to continue operating by supplying equipment to the conveyor due to the impossibility of stopping it — continuous operation. Some customers added “essential goods” to their product range and thus were able to avoid the suspension of activities and related losses. Some also managed to establish distance selling and continue their activities as well. Each of these options required proper legal review and the preparation of relevant orders, certificates and notifications.

In addition, the activities of a number of BBNP clients cover several regions, which made it necessary to analyze the local legislation of the Samara Region, the Vladimir Region, the Yamalo-Nenets Autonomous Okrug, etc. Many issues related to labor migration during quarantine restrictions and the dismissal of some staff, as well as on organizing work using personal protective equipment for employees, depending on local legislation, were considered.

The issue of renting companies that suspended operations during a period of high alert with landlords was also acute. In accordance with legal provisions, a tenant under real estate lease agreements had the right to demand a reduction in rent for the period 2020 due to the inability to use the property due to the introduction of the high alert regime.

These rules are extremely ambiguous and landlords who are not state-owned enterprises were not directly obliged to provide a rental discount during the period of restrictions on activities. Despite this, the participation of BBNP lawyers in the negotiations and the preparation of a legal position on this issue made it possible to reduce and, in some cases, cancel the rent for April-May 2020 for a number of clients, and this allowed them to endure the difficult period with minimal costs.

Result

As a result of the active actions of BBNP specialists, clients were able to maintain and continue their commercial activities during a difficult period without serious losses, ensure the fulfillment of their obligations to counterparties and minimize current costs.

¹ On March 25, 2020, Decree No. 206 of the President of the Russian Federation was issued, according to which non-working days were established from March 30 to April 3, 2020, while employees' wages remain intact. Subsequently, by Presidential Decree No. 239 dated April 2, 2020, the non-working days regime was extended until April 30, 2020, and by Decree No. 294 dated April 28, 2020, until May 8. In addition, at the regional level, a number of resolutions and decrees were adopted to introduce a high alert regime, and then self-isolate citizens and suspend the activities of enterprises and organizations. So in the territories of Moscow. In Moscow and the Moscow Region, the high alert regime was introduced by Decree No. 12-UM of the Mayor of Moscow dated March 5, 2020 and Decree No. 108-PG of the Governor of the Moscow Region dated March 12, 2020, respectively.

² On April 1, 2020, Federal Law No. 98-FZ “On Amendments to Certain Legislative Acts of the Russian Federation on the Prevention and Elimination of Emergency Situations” came into force, in accordance with paragraph 3 of Article 19 of which, a tenant under real estate lease agreements has the right to demand a reduction in rent for the period 2020 due to the inability to use property due to the decision of a state authority of a constituent entity of the Russian Federation to introduce a high alert regime or an emergency situation on its territory ( in accordance with Article 11 of Federal Law No. 68-FZ of December 21, 1994 “On the Protection of the Population and Territories from Natural and Man-made Emergencies”).

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