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Coronadvice 6 - First Aid for Our Business: What Can We Do Today?
In a situation where many companies are virtually paralysed, it is advisable to stop and think about what small and medium enterprises should do now.
Document the damage
We don't know when, but the current situation will end at some point. Until that time, the damage will continue to add up, so it's advisable for companies to be ready. Companies should try to obtain documents that can help prove the damage that has been suffered. All damages claimed by a company will need to be quantified, and it is smart business sense to be prepared for this eventuality. In addition to the general possibilities, Section 36 of the Crisis Act also allows certain claims for damages. In addition, good documentation can help a company to apply for support. At present, businesses affected by the coronavirus can apply for an interest-free loan from the Czech-Moravian Guarantee and Development Bank. More information about the COVID loan can be found here.
Minimize further damage
Keep track of your current and future commitments. Use the present time of relative calm to try to negotiate with your business partners to terminate contracts, defer repayment, or change terms if you are unsure of your ability to meet your obligations. In any case, act immediately, you may not have time for it later. Settlement agreements and amendments can, in most cases, be negotiated over email.
Look for synergies with other entrepreneurs
Society has been divided into those who have nothing to do at all, and those who are extremely busy. Whichever group you belong to, try to contact people in the other group and join forces with them. If you have employees for whom you do not have work, try to figure out who is currently short on workforce. The current situation is an excellent opportunity for new opportunities that will undoubtedly arise, for both business and non-profit projects. Pursuant to Section 41 of the Labour Code, an employer may, without his consent, transfer the employee to job other than that agreed for the necessary period of time, if it is necessary to avert an emergency, natural disaster, or other threatening accident, or to mitigate its immediate consequences.
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Stewarts
'No one has done as much for me as you,' Eva said.
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."
Livingstone, Tour Operator
Thank you again for your valuable advice. I breathe better when I know who to turn to.
Livingstone, Tour Operator
"Thank you again for your valuable advice. I breathe better when I know who to turn to."
Anders Thorsen Advokatanpartsselskab
It has been an absolute pleasure to work with you.
Anders Thorsen Advokatanpartsselskab
"It has been an absolute pleasure to work with you and your colleagues. Your advice and way of handling the matter and our communication has been of the highest quality and we are very happy with the outcome.
If any of my clients need assistance in matters in the Czech Republic in the future, I know who to recommend."