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Responding to the Business Impacts of COVID-19

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Responding to the Business Impacts of COVID-19 Responding to the Business Impacts of COVID-19 Navigating legal issues across 80+ territories Report on key legal considerations, including answers to common questions relating to Labour Law, Contract Law, Insolvency Law, Cybersecurity & Privacy Laws and Corporate Law VOLUME 1 - Americas, Asia-Pacific, Middle East & Africa 5 November 2020 back to territories index COVID-19: PwC Global Legal Network 1 Introduction COVID-19: Global Legal Report 5 May 2020 Dear Reader, In a constantly changing environment, COVID-19 is continuing to present significant challenges to both people and organisations around the globe. Many of you will be facing potentially significant business challenges to which you need to respond rapidly. To help you navigate through the complexity, PwC’s team of legal specialists have collaborated to create a resource covering some of the most relevant legal considerations for businesses. That information has been brought together in Volumes 1 and 2 of this Report and includes answers to common questions relating to: ● Labour Law, ● Contract Law, ● Insolvency Law, ● Cybersecurity & Privacy Laws; and ● Corporate Law. Reflecting commentary from more than 80 territories across our Global Legal Network, this Report is one of the most geographically comprehensive legal resources currently available on these topics. The hyperlinks in the ‘Territories Index’ will allow you to easily navigate across the two Volumes and access information for countries that are of most interest to you in a print-ready format. Alternatively, you can navigate this information, together with key insights regarding tax, economic and other government measures, using our online navigation tool: https://pwc.to/2QUBeCA If you would like further assistance on these issues, please either reach out to your usual PwC contact or the relevant Territory Contact listed in the Report. In the meantime, please take care and stay safe in these unusual times. Yours faithfully, Tony O’Malley Global Legal Leader back to territories index COVID-19: PwC Global Legal Network 2 Territories Index Navigate to specific territories via the hyperlinks on this page: Volume 1 Americas Middle East & Africa Asia-Pacific Argentina Australia Algeria Nigeria Bermuda China Angola Qatar Bolivia Hong Kong SAR, China Egypt Saudi Arabia Brazil India Ghana South Africa British Virgin Islands Indonesia Kenya Tunisia Canada Japan Lesotho Uganda Colombia Malaysia Mauritius United Arab Emirates Costa Rica Mongolia Morocco Zambia Dominican Republic New Zealand Mozambique Zimbabwe Mexico Philippines Namibia Paraguay Singapore Peru South Korea Uruguay Thailand USA Vietnam Volume 2 - Click here to access Europe & CEE Albania Greece Norway Armenia Guernsey Poland Austria Hungary Portugal Azerbaijan Ireland Romania Belgium Italy Russia Bulgaria Jersey Serbia Croatia Kazakhstan Slovakia Cyprus Latvia Slovenia Czech Republic Lithuania Spain Denmark Luxembourg Sweden Estonia Malta Switzerland Finland Moldova Turkey France Montenegro Ukraine Georgia Netherlands United Kingdom Germany North Macedonia Uzbekistan Please note that this document is made available for general information purposes only and no PwC Member Firm accepts any liability or responsibility whatsoever for the accuracy or completeness of this information or any use you may make of it. In some instances, content for a territory has been sourced through business relationships with third party law firms. This includes in relation to: British Virgin Islands, Egypt, Lesotho, South Korea, Zambia, Zimbabwe and the USA. Neither PwC LLP nor ILC Legal, LLP provides US legal advice. While best efforts from PwC Member Firms across the PwC Network have been used to compile this information, from reliable sources, matters are moving and evolving at a fast pace as governments respond. Accordingly, you are on notice that any use you make of this information, or any reliance you place on it, is solely your responsibility. back to territories index COVID-19: PwC Global Legal Network 3 Americas back to territories index COVID-19: PwC Global Legal Network 4 Contact for Argentina Contact for Argentina Eduardo Gil Roca Marcelo Brandariz Partner Partner Price Waterhouse & Co. Asesores PwC Legal S.R.L Argentina de Empresas S.R.L T: +54 11 4850 6728 T: +54 11 4850 6728 Labour Law @: [email protected] @: [email protected] Is there capacity to stand down or Possibly. furlough (leave without pay) Current regulations prohibit dismissals and suspensions where the cause does not relate to employees without pay in your employee fault, force majeure, absence or a decline in labour tasks for a period of 60 days. jurisdiction? If yes, what pre-conditions to stand-down or furlough Can an employer direct an Currently Argentina is under a compulsory and general isolation (except in relation to employee to take paid annual, businesses that provide essential services) up to 13 April 2020. During this period, it is not possible to take paid annual leave. holiday or similar leave? Where employees are terminated Yes. due to job elimination or In cases where the dismissal is initiated by the employer, and without reasonable cause redundancy, is there minimum related to an employee fault, the employer must pay the employee: statutory redundancy or severance pay in your ● a severance payment equivalent to 1 month´s salary for every year of service, or jurisdiction? fraction of 3 months or more, using the best regular monthly remuneration accrued during the last year (or time of service where shorter that one year) as a base for Is there any capacity for relief the calculation; from liability for termination benefits due to financial difficulty? ● additional severance where the labor contract is terminated without advanced notice, equivalent to salaries involved in the below periods: (i) by the employee, 15 days prior notice; (ii) by the employer, 15 days prior notice when the employee is on trial period (iii) by the employer, 1 month notice if the employee´s seniority does not exceed 5 years and 2 months when the seniority is superior; ● an additional amount comprising the remuneration for the remaining days of the month in which the dismissal took place, where the contract termination is carried out without the corresponding advanced notice and on a date which doesn´t match the last day of the month; ● unused proportional vacations; ● proportional thirteenth salary. Relief is only considered in cases of force majeure, absence or a decline in labor tasks not attributable to employer. In such cases, the employer is entitled to an amount of half of a seniority payment, after accomplishing a special process before Labor Ministry. Are employees treated as priority Yes. unsecured creditors in your Credits relating to six months of salaries, labor accidents, severance for seniority, severance jurisdiction? payment in lieu of advanced notice and unemployment fund have a special privilege over If yes, what benefits are subject to products, raw material, and machinery of the labor establishment. priority creditor status (eg, salary and wages only, or other benefits Credits relating to six months of salaries, labor accidents, severance for seniority, severance payment in lieu of advanced notice, unemployment fund, vacations and thirteenth salary eg leave entitlements, variable payment have a general privilege, and have a preference of payment in relation to any other bonus pay, etc)? credit (except alimentary credits). Are there any government funding No. arrangements in your jurisdiction In the case of an insolvency scenario, the employee must submit the credit in the insolvency for unpaid employment benefits in judicial process, and this will be count with the payment privileges previously mentioned. an insolvency scenario? Argentina content as at 9 April 2020 back to territories index COVID-19: PwC Global Legal Network 5 Argentina Contract Law Is there capacity in your jurisdiction Yes. to rely upon legislative provisions or There is a statutory definition of force majeure set forth by Section 1730 of the Argentine Civil and general law for relief from Commercial Code (ACCC): “Act of God and force majeure shall be deemed those events that contractual obligations in the event could not have been foreseen or that, having been foreseen, could not be avoided. Under of pandemic or similar? Argentine law, an act must meet certain standards in order to be regarded as an “force majeure: ● must be objectively unpredictable, or irresistible when predictable; ● must be unrelated to the debtor; ● the act must be a present fact; ● must occur after the creation of the obligation; and ● the impediment in the fulfillment of the obligation must be physically or legally impossible to be overcome by the debtor. This last standard is crucial as the fact that performance may become more difficult or costly due to the COVID-19’s emergency regulations does not allow such party to invoke force majeure. According to the authors’ opinion and relevant case law, sovereign acts or acts performed by public officers may constitute an event of force majeure when creating difficulties impossible to surmount in order to comply with contractual obligations; these acts do not necessarily imply a regular exercise of power; even abusive acts constitute an event of force majeure if they prevent compliance with obligations, which is all too natural, since, from the point of view of the debtor, who sees his intent to fulfil thwarted, it does not make any difference whether the event so thwarting such
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