Notification of Relief Under COVID-19 (Temporary Measures) Act 2020 in Singapore
Business Who Struggle to Meet Their Contractual Obligations Can Now Seek Relief
Business who require relief must submit a formal Notification of Relief in Singapore. This requirement is set under the COVID-19 (Temporary Measures) Act 2020. The livelihoods of many living in Singapore have been deeply affected by the impact of the COVID-19. Once such impact is businesses who have been struggling to make their rental payments. Given the current situation, the Government is focusing on justice and the right thing to do. This article provides information on How to Send Notification for Relief to Landlord Banker Supplier under COVID-19 (Temporary Measures) Act 2020.
Who Can Apply?
Any business struggling to meet their rental contractual obligations during the COVID-19 period may seek relief under the Act. This applies to any rental payments due after 1 February 2020 and any leases signed before 25 March 2020.
The purpose of the Act is to prevent landlords from evicting their tenants if they fail to make the payments. Reliefs may cover financial, monetary, operational or other commitments a tenant may be required to abide by under their lease. However, this is not a permanent solution that fixes the issue at hand as the economy struggles to recover. Landlords and tenants must come to an agreement and work out the terms of negotiation.
The Act covers contracts under the following categories:
- Construction and supply contracts
- Event contracts
- Tourism-related contracts
- Secured loan agreements to SMEs
- Leases and licences of non-residential property
- Hire-purchase and conditional sales agreements
- Options to purchase and sale and purchase agreements with housing developers
To check if you are eligible for relief, you may use the Government’s Online Self-Assessment Tool.
How to Submit a Notification of Relief?
It is recommended that both parties hold a discussion to better understand the position of the other. An amicable compromised should be negotiated based on the frameworks set in the Act.
If both parties fail to come to an agreeable solution, the tenant may issue the landlord with a Section 9 Notice under the COVID-19 Act. This is the next step. If after this notice an agreement still cannot be reached, either the tenant or landlord may apply for a third-party Assessor.
All the contents of your notification must be correct. Once submitted, you will not be able to change the details. If you have made any mistakes in your form, you will need to submit a new Notification for Relief and serve a Withdrawal of Notification for Relief in respect of the previous Notification for Relief.
If you require relief, you must serve notice to the following recipients if applicable:
- Other parties involved in the contract
- Guarantors of the contract
- Performance bond issuer or equivalent
Serving a Notification of Relief does not mean you are filing with the Registrar.
How to Serve the Notification?
Notifications can be served using the following methods:
If there are pending arbitral or court proceedings during your notification period, this guide here will provide the information you need on getting a stay or dismissal for those proceedings.