COVID-19: Message from our Managing Partner

Dear readers,

The adoption – almost on a daily basis – of new governmental measures designed to help businesses deal with the immeasurable consequences of the Covid-19 pandemic has led us to take several initiatives to keep you informed as best as possible.

First of all, we have decided to accelerate the pace of publication of our e-newsletters and to release a new issue twice a month, at least for the duration of the lockdown period that has been imposed in France since March 16.

All the articles that we publish here are already available on our site in the "Covid-19 Information Center" that we put on line at the beginning of this month of April. We will update it every day to report on legislative and regulatory developments in all areas: labor & employment, tax, banking, business, customs, etc.

In order to be able to provide you with the most complete information in the shortest possible time, we have teamed up with LightHouse LHLF, a firm specializing in tax and customs, with which we have forged close ties over the last few months.

COVID-19 and business contracts: Suspension and extension of contractual deadlines during the health emergency

Geoffroy Lacroix, Esq.

One of the Ordinances adopted in furtherance of the Emergency Law of March 23, 2020 to deal with the Covid-19 epidemic provides – for a limited period of time – for (i) the suspension of the effects of clauses sanctioning contractual non-performance, and (ii) the extension of contractual deadlines for the termination or renewal of contracts.

How long does the suspension period last? Which contracts are concerned? What happens with periodic penalty payments and clauses aimed at sanctioning non-performance?

COVID-19 and business contracts: What strategy to follow?

Anaëlle Idjeri, Esq.

The current Covid-19 pandemic is affecting many economic operators operating in a variety of industrial sectors and raises questions about their ability to meet their contractual obligations.

While some wonder about the mechanisms that could be invoked to escape or adjust obligations, the performance of which has become difficult, excessively expensive or even impossible, others would like to block the implementation of such mechanisms.

The possibility for an economic operator to evade compliance with any of its obligations, to adapt it and, more generally, to be exposed to the risk of being held liable in the context of the current pandemic must be analyzed in the light of the contractual provisions and the specific features of the relationship.

COVID-19: The main labor and employment measures provided for by the first “COVID-19 Ordinances”

Sara Bellahouel, Esq.

Three Ordinances on labor and employment matters adopted in furtherance of the Emergency Law to deal with the Covid-19 epidemic were published in the Official Gazette on March 26, 2020.

These Ordinances concern in particular (i) derogations regarding paid vacation, working hours, rest days and work on Sundays, (ii) extension of the deadline for payments under mandatory and optional profit-sharing schemes, and (iii) extension of the scope of employees eligible for the supplemental allowance paid by the employer in the event of medical leave.

COVID-19: French rules of civil procedure have been adapted

Pauline Kubat, Esq.

As a result of the Emergency Law to deal with the Covid-19 epidemic which came into force on March 24, 2010, the Government adopted 25 Ordinances on March 25, 2020. In judicial matters, several Ordinances were issued to govern the organization of courts and procedures during this crisis.

Regarding specifically the rules of civil procedure, two Ordinances have been adopted and have a significant impact on (i) applicable time-limits and the conduct of civil proceedings, and (ii) the organization/operation of courts ruling in non-criminal matters.

COVID-19: French rules of criminal procedure have been adapted

Charlotte Desfontaines, Esq.

In order to ensure the continued operation of French criminal courts necessary to maintain public order, the Government adopted on March 25, 2020 Ordinance 2020-303 in furtherance of the Emergency Law of March 23, 2020. The Ordinance adapts the rules applicable to courts ruling on criminal matters, an adaptation made necessary to face the current health crisis in France.

These derogations from the procedural rules usually applicable in criminal matters were taken primarily for obvious health reasons, in order to reduce physical contacts, but also to ensure the continued operation of the French public Justice System, a public service which, in the context of the minimum service due to all citizens, cannot afford to come to a complete standstill.

French Supreme Court says Uber drivers are employees!

Sara Bellahouel, Esq.

More than a year after the Take Eat Easy decision in which the Labor Chamber of the Cour de Cassation (French Supreme Court) had for the first time ruled on the legal classification of the contract between a deliverer and a digital platform and recognized the existence of an employment contract, it recently took position once again on the issue of platform workers, this time in a case concerning the very famous company Uber.

The Labor Chamber reiterated its position in a decision dated March 4, 2020 and upheld the ruling of the Paris Court of Appeals of January 10, 2019: The contract between Uber and its 28,000 drivers in France is to be analyzed as an employment contract!

Experts' Contributions

We are pleased to publish four contributions authored by Renaud Roquebert and Stanislas Roquebert, Partners at LightHouse LHLF - Law Firm, a French law firm specialized in tax and customs law.

Suspension of tax and customs audits: Who, when, how?

Renaud Roquebert and Stanislas Roquebert, Esq.

Extension of procedural deadlines during a state of health emergency: What are the impacts on tax and customs?

Ordinance n°2020-306 of 25 March 2020, published in the Official Gazette on 26 March 2020, provides for the suspension and extension of time limits and measures that have expired or expire between 12 March 2020 and the end of a period of one month from the date of termination of the state of health emergency.

Articles 10 and 11 of the Ordinance provide for a number of measures concerning fiscal and customs matters.

Read the contribution

Tax debt payment facilities: For whom and what procedures?

Renaud Roquebert, Esq.

While the Government announcements, legislation and other regulatory publications in response to the Covid-19 outbreak are proliferating, the actual applicable law and its clarity for taxpayers is suffering. On March 31, 2020, Gérald Darmanin, Minister of Action and Public Accounts, announced a deferral of the 2020 income tax reporting campaign.

In this context, this contribution provides an update on payment facilities and other existing tax measures to relieve taxpayers in these troubled times.

Read the contribution

Exceptional business support measures and payment facilities

Stanislas Roquebert, Esq.

The customs administration provides for exceptional business support measures – payment facilities to help economic operators through the health crisis: a broad scope and a remarkable action plan.

These measures have a very broad scope of application. On the other hand, in order to benefit from these measures, operators must meet certain formal and substantive conditions.

Read the contribution

Opportunities to improve cash flow: Deferral of payment of direct taxes and flexibility in the computation of VAT. Where do we stand on April 8, 2020?

Renaud Roquebert, Esq.

Measures related to COVID-19 are increasing. In this context, while it should be noted the remarkable responsiveness of the Government, it is obvious that the application of the tax rule is becoming more complex in the hurly-burly of all the Government announcements and measures, some of which may seem contradictory.

In this respect, two themes in particular deserve attention because they offer opportunities to improve cash flow for companies: the deferral of the payment of direct taxes due in April and the measures to ease the computation of VAT due during the containment period.

Read the contribution

International Perspective

The Covid-19 pandemic is a human tragedy and a global health crisis that affect billions of people worldwide. It also has an increasingly devastating impact on the global economy. To try and mitigate the adverse economic and financial effects of Covid-19, governments all around the world are taking steps and measures to support jobs and help businesses.

The World Law Group, a network of 59 leading independent law firms with more than 400 offices in major commercial centers worldwide, to which our Firm belongs, has centralized all the articles and insights of its members on the local impact of Covid-19 and the measures to support businesses adopted by the various countries where World Law Group member firms are present.

Browse the WLG Global COVID-19 Resource Center

Awards

We are pleased to announce that our Firm has received the following awards from Mondaq, one of the largest global online advisory content suppliers:

“Most Popular Article In France, March 2020” for the article entitled “Covid-19: What measures to prevent business failures?” authored by Catherine Nommick.

“Contributor Most Read in France, March 2020” Award.

“Contributor Most Read in France, February 2020” Award.

Every month, Mondaq publishes hundreds of articles by contributing firms from over 80 countries around the world and analyses its usage logs to identify which contributors and which articles were most accessed and viewed for that calendar month.