Businesses May Seek Assistance Under Re-Align Framework from 15 January 2021

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15 Jan 2021

Ref No: 150121 (3)
UEN: S97SS0046G

Small and micro businesses that have been significantly impacted by COVID-19 and wish to renegotiate selected types of contracts (e.g. dormitory tenancy agreement) with their counter-parties can do so under the Re-Align Framework from 15 January 2021. For more details on which contracts are covered by / excluded from the framework, please refer to Annex A.

Under the framework, counter-parties will have to enter into negotiations over contracts that have been impacted by COVID-19. The framework will be available for six weeks from 15 January 2021, i.e. until and including 26 February 2021. For details on the process of negotiations, please refer to Annex B.

If negotiations are unsuccessful and parties are unable to come to a mutual agreement, the contract will be terminated on just and fair terms in accordance with the Re-Align Framework. For details on terms of contract termination, please refer to Annex C.

A business will be eligible for the framework if:

  1. Its annual revenue for the Financial Year 2019 does not exceed S$30 million on a global group basis; and
  2. It has experienced at least a 70% fall in monthly average gross income for July to December 2020, compared to July to December 2019.

For more details on eligibility, please refer to Annex D.

Important Note: Businesses that wish to renegotiate their contracts must serve a Notice of Negotiation, accompanied by relevant documents proving their eligibility, on the other party or parties to the contract, by 26 February 2021.

In addition, the Ministry of Law (MinLaw) would also like to seek your feedback on the Re-Align Framework, and invite you to fill in a short survey here. The findings will help MinLaw understand your needs better. Please be assured that all responses will be kept confidential.
 
Should you have any further questions regarding the Re-Align Framework, please reach out to MinLaw using this online form.

Supporting Documents

For more information, please refer to the following documents:

  1. Press Release
  2. Annex A – Types of Contracts covered/excluded from Re-Align Framework
  3. Annex B – Process of Renegotiation
  4. Annex C – Terms of Contract Termination
  5. Annex D – Eligible Businesses & Contracts
  6. Summary of Re-Align Framework

To view the infographics in Chinese, Malay or Tamil, please click here.

Additionally, you may also refer to the Ministry of Law’s website.

Our Warmest Regards,

ASPRI Secretariat
admin@aspri.com.sg

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