5 May 2020
Introduction
The COVID-19 crisis continues to create significant health, social and economic challenges world-wide. Impacted businesses are facing decrease in demand, financial distress as well as supply chain difficulties.
In Hong Kong, many organisations are moving past their initial response phase as employees begin to return to the workplace and businesses implement cost management measures to ensure their ongoing viability. Preparing for contingencies and the early consideration of a broad range of cost management options will assist businesses navigate the period ahead. Below we outline key considerations for employers. |
For many businesses, mandating employees work from home has been an ad hoc response to the health crisis. It will now be a key pillar of business continuity planning as many organisation adopt split team arrangements and look to reduce office capacity as part of both safety and cost management. As greater numbers of employees work remotely on a more formal and long term basis, employers should consider the following questions:
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As employees return to the workplace, additional measures must be adopted to meet health and safety obligations and minimise business disruption. Employers may consider:
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The International Labour Organisation has estimated that 10.5% of working hours globally will be wiped out in the second quarter of 2020 due to COVID-19. It is not surprising that many businesses are already adopting cost saving measures in respect of their labour force. In Hong Kong, key measures include:
For further information, please contact us or see our COVID-19 hub. |
For further information, please contact:
Gareth Thomas, Partner, Herbert Smith Freehills gareth.thomas@hsf.com |