Restrictions of economic activity

What anti-epidemic restrictions are obligatory for my business after the quarantine restrictions are lifted?
Business owners are recommended to constantly monitor amendments to the Resolution of the Cabinet of Ministers of Ukraine№ 211 dated March 03 2020. It establishes general anti-epidemic restrictions which are valid on the whole territory of the state.



It is also important to consider local quarantine-related regulations which are usually established either by the local authorities or by the heads of emergency response. For example, in Kyiv the following acts are relevant:

  • minutes of the meetings of the Permanent Committee on TES and ES regarding the coronavirus
  • orders of the head of emergency response

Regulation in other cities can usually be found on the websites of local councils.

In addition, business entities may use the recommendations of the Chief State Sanitary Doctor of Ukraine, in particular those regarding:

  • the reception of visitors at office premises
  • selling food and non-food products
  • activity of the public catering establishments
  • activity of beauty and hair salons

Resolution of the Cabinet of Ministers of Ukraine № 392 dated 20 May 2020 established the adaptive quarantine. In case of a favorable epidemic situation in the region, the ease of the quarantine may be established if the incidence rates meet certain criteria. The decision to ease the quarantine has to be made by the regional commission on TES and ES. In addition, the above-mentioned resolution regulates permissible lifts of restrictions at a particular moment. Therefore, business owners can already predict and prepare for the future ease of the quarantine, if there are prerequisites for this.
Can I be fined after the quarantine restrictions are lifted?
Yes. The ease of quarantine restrictions implies additional anti-epidemic obligations for business (for example, regarding the maximum number of people in the premises, microclimate indicators, etc.). The risk of violating sanitary and hygienic rules in these circumstances is much higher. Therefore, the risk of administrative and even criminal liability after the ease of the quarantine still remains.
How to collect the debt after the quarantine?
Although the quarantine established by the Cabinet of Ministers of Ukraine has been recognized as a force majeure circumstance, it does not necessarily prevent the debt collection. The creditor has to answer to the following questions:

  • Did the quarantine restrictions directly affect the business and its possibility to carry out obligations?
  • Did the debtor have the possibility to carry out the obligation in a different way?
  • Could the debtor predict these circumstances and their consequences?
  • Are there any special laws that have been in force during the quarantine period and apply specifically to this situation? For example, property lease for business whose activity has been strictly prohibited
  • Do the contracts provide special conditions in case of a force majeure? (For example, notification of another party within a certain period of time)

With answers to these questions and a professional legal team, the creditor can assess the prospects of a successful debt collection, its terms, the possibility to collect the debt out of court, the issues of securing a claim, and also to prepare the relevant claims in the form of procedural documents.
Is it possible to use remote work or flexible work schedule after the quarantine?
Yes, it is. The quarantine laws introduced amendments to the Labor Code of Ukraine which will remain in force after the lifting of quarantine restrictions. Thus, employees and employers can use the mechanism of remote work or flexible work schedule after the quarantine.
Is it necessary to capture changes in the work schedule in the employment record books during the quarantine?
The legislation amendments did not change the regulations related to the employment record books. It is still required to fill them in with the information about hires, transfers to another jobs and dismissals. There is no need to record any changes in the conditions of a work schedule.
What should be taken into account when calculating the procedural periods after the ease of the quarantine?
Lifted quarantine regulations do not mean its cancellation. As the Government extended the quarantine until June 22, 2020, at least until that date most procedural periods are suspended.
Has the work mode of courts changed after the ease of the quarantine?
The court system did not suspend its work during the quarantine period. However, courts still follow the recommendation to limit the number of persons during court hearings, to adjourn court hearings, or to conduct them by videoconference outside the courtroom.
What is to be considered with regards to the public procurement procedure during the ease of the quarantine?
The adaptive quarantine established by the Cabinet of Ministers of Ukraine can significantly change the activities of both regional (in case of restrictions in the region) and interregional businesses (if the supply of the subject of procurement takes place outside one region). The adaptive quarantine allows establishing various anti-epidemic restrictions within regions. In this case, potential bidders are recommended to monitor changes in the quarantine regulations in a particular region, based on the current epidemiological situation.

As mentioned, lifted quarantine rules do not mean its cancellation. Bearing in mind the uncertainty regarding the duration of quarantine restrictions, suppliers who are partially dependent on public procurement should develop protocols of preparation for tenders and bidding, as well as the protocols of performing the contracts based on the specifics of particular industries.
Domestic Litigation team at INTEGRITES is ready to provide clients with full legal support on the newly introduced quarantine-related changes.
Contacts:
Oleksandr Onishchenko, Partner
+38 044 391 38 53, Oleksandr.Onishchenko@integrites.com
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