Legal Aspects of the Companies Regarding the Coronavirus

The COVID-19 pandemic has generated a number of implications for all sectors. Governments are facing the enormous challenge of generating public solutions for a problem that their institutions, budgets and employees did not expect. In some places, an enormous debate was held involving the need for health care measures, and the need for those measures not to affect the economy negatively.

Unfortunately, isolation, although it is indispensable for fighting the pandemic, has a direct impact on the relation among corporations and their employees, business partners, and among corporations and governments. Some corporations, affected by changes in consumption patterns, will need to cut back on staff, others will need to modify their delivery or supply commitments, and some others will not be able to satisfy their financial obligations.

Regarding labor issues, corporations face the fact that their employees cannot work at workplaces because of a decree providing for preventive measures against the coronavirus. At the same time, workers have labor rights that must be weighed with respect to any business decision.

As for business scenarios, each represents a difference between those involved. A difference that requires negotiation. It seems simple, but in crisis times, everyone tries to preserve as much as possible; this attitude causes negotiations to harden, generates tensions and makes negotiations to go not as smooth as they should. Nevertheless, the pandemic will eventually end, and business will be restored or even improved. Therefore, it is essential to have necessary support so that, at that time, negotiations with employees, suppliers, partners and authorities can generate solutions to ease the pressures of the moment without sacrificing elations and medium-and-long term business scenarios.

We consider that negotiations should be conducted by a third party who makes the involved parties to trust him, who knows the markets and the business legal framework with the capacity to assist in the solution of differences while maintaining good business relations.

Our lawyers are available to resolve any of your questions on this matter.