Parliament: Small businesses can end contracts early under Covid-19 Bill

SINGAPORE - Small businesses affected by Covid-19 may terminate their contracts without penalty if they are unable to agree on new terms with the other party, under proposed laws introduced in Parliament on Monday .

Details are being finalised as consultations with the industry are ongoing, and will be set out later in subsidiary legislation, said Second Minister for Law Edwin Tong at a media briefing on Monday. For the contracts to be eligible under the framework, they must be governed by Singapore law, and were entered into before March 25 before the impact of Covid-19.These contracts may be leases or licences for non-residential immovable property; the sale and purchase of goods and services; rental agreements for commercial equipment and commercial vehicles; and hire-purchase or conditional sales agreements for commercial equipment and commercial vehicles.

More on this topic This is to ensure that while parties have a chance to work out new contractual terms against the backdrop of the current business environment, the framework will not create"uncertainty all around", said Mr Tong. In the case of small landlords who may face financial hardship from tenants terminating their leases early, the framework will ensure that tenants pay additional compensation, with the amount to be determined by an assessor.

More on this topic Mr Tong said he hopes businesses will be able to renegotiate new terms or decide to terminate their contracts without having to turn to the assessors."What we'd like to do is to have the parties in the market, look at the framework and decide for themselves whether or not it's possible - even without invoking the assessors... to come up with a renegotiation on their own as far as possible. That will be the ideal," he added.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

France grapples with COVID-19 lockdown backlash from small shopsNew confirmed coronavirus cases rose by 46,290 in France in the past 24 hours, official data showed on Sunday (Nov 1), while the number of people ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

New framework lets small and micro firms renegotiate contracts, terminate without penaltySMALL and micro enterprises hit by Covid-19 will have a six-week window in which to renegotiate certain contracts, with no penalties for early termination if negotiations fail, under the proposed Re-Align Framework in a Bill introduced in Parliament on Monday. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Small business to get help in restructuring debts under two new schemesHelp is at hand for small firms in financial distress due to Covid-19.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

France grapples with COVID-19 lockdown backlash from small shopsNew confirmed coronavirus cases rose by 46,290 in France in the past 24 hours, official data showed on Sunday (Nov 1), while the number of people ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Britain's Prince William contracted Covid-19 in April: MediaPrince William was struggling to breathe at one stage.. Read more at straitstimes.com. i don't think i will be supporting him in future as i have done recently .. as he can't be upfront and honest with the british public .. He should be upfront and transparent, have been liking him & Kate a lot...but could not agree on this. As a responsible leader, don’t hide by just giving the reason “not wanting to cause panic”, you may win this time but you may lose the trust in the future, not the best decision Cue the nosey busybodies who think they had a divine right to know someone else's personal business.
Source: The Straits Times - 🏆 8. / 63 Read more »

Britain's Prince William contracted COVID-19 in April: ReportsBritain's Prince William contracted COVID-19 in April at a similar time to his father Prince Charles, the BBC https://bbc.in/3efdtj6 reported late ... Ke n ..
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »