Government measures in key jurisdictions 3rd edition final - Flipbook - Page 84
Stephen Alexander | stephen.alexander@mourant.com | +44 1534 676172
Edward Devenport | edward.devenport@mourant.com | +44 1534 676366
Fred Milner | fred.milner@mourant.com | +44 1534 676 915
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
•
Jersey has introduced a GBP 50 million business disruption loan guarantee scheme. The Jersey
government will guarantee 80% of loans granted under the scheme. Businesses can borrow
between GBP 5,000 and GBP 500,000.
•
Certain eligibility criteria must be satisfied. This includes the business meeting the viability test,
the business engaging in a commercial activity in Jersey which will be the subject of the loan,
normal lending must not be available to the business and the business’s annual turnover must not
be more than GBP 10 million.
•
Certain business sectors are excluded from the scheme. These include financial or professional
services, real estate, property development, utility companies, agriculture and fishing.
•
More detailed information on the scheme is available here.
•
The Government of Jersey has launched the Government Co-Funded Payroll Scheme, which will
refund businesses adversely impacted by the Covid-19 pandemic a proportion of their wage bill.
This will cover weekly wages up to the value of GBP 200 per employee. A business must show they
have suffered at least 30% loss in turnover to be eligible.
•
Mourant has outlined some key questions for employers to consider during the Covid-19 pandemic
•
Employment update as at 23 March 2020
•
A Covid Related Emergency Support Scheme has been set up for workers who have lost their
jobs due to Covid-19. This scheme is targeted at workers who have not gained their five year
residency, as this group would ordinarily not be able to access the pre-existing government
income support scheme. The scheme provides weekly payments of between GBP 70 to GBP 150
per person and an additional GBP 50 per child. It is in place until 30 June2020.
•
The Government of Jersey has also made various sickness and short-term incapacity benefit
provisions for employees who are either sick or isolating due toCovid-19.
•
The Jersey government has worked with the Viscount (who is the executive officer of
the court) and the Jersey Law Society to provide guidance and assistance for directors
of Jersey companies in understanding wrongful trading and what directors should
be considering when determining whether and how to carry on trading during these
financially challenging times.
•
Jersey’s existing wrongful trading rules (which are more relaxed than the UK)
provide that once a director concludes (or should have concluded) that there was
no reasonable prospect of the company avoiding a declaration of bankruptcy or an
insolvent winding up, the director has a duty to take reasonable steps with a view to minimising
the potential loss to the company’s creditors (failing which the director may be made personally
liable for the company’s debts). In the UK the equivalent test is that the director must take every
step with a view to minimising the potential loss to the company’s creditors.
Employment
What financial
support is the
government
providing to
businesses and to
individuals on
employment
issues?
Insolvency
Has the
government made
any changes
to insolvency
legislation?
84
Government measures in key jurisdictions