The COVID-19 Recovery (Fast-track Consenting) Act 2020 (Act) came into effect on 9 July. It is intended to accelerate the beginning of work on a range of projects and support certainty of ongoing employment and investment across New Zealand.
As a result of liquidity and cash-flow problems caused by the Covid-19 pandemic, directors of companies may be facing difficult decisions of whether to continue to trade their companies or place them into voluntary administration or liquidation. Central to these decisions are the obligations imposed by the Companies Act 1993, which confers certain obligations upon directors of companies in New Zealand.
It is becoming increasingly common to see franchisors using a joint venture model for their franchises. Specsavers is a well known example. A joint venture (JV) structure can have distinct benefits for the franchisor but it also comes with its own challenges.
Even when the documentation entered into between parties appears clear and able to be interpreted precisely, when the parties end up in a dispute, it is always quite fascinating to see how the actions or words of one or the other of them can be interpreted differently depending on which side of the dispute you are sitting.
Several well known franchise systems have recently made headlines in Australia in relation to Franchisees who have committed breaches of employment laws by underpaying staff and wage fraud. This has resulted in the Turnbull government introducing the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 ("Aussie Bill"). This Bill provides that Franchisors will be held liable for workplace violations by their Franchisees if they have significant influence or control over the Franchisee; if they knew or should have known of the underpayments; and if they failed to take reasonable steps to prevent the violations. For many commentators, while there is a recognition that some things need to change, this is seen as a step too far and some have even gone as far as to say that this would be the end of franchising in Australia as they know it.
On 1 March 2016, the Food Act 2014 ("Act") came into force. This put in place a new food safety and registration regime for businesses which are involved in food. Gone is the one size fits all approach to food safety; the higher risk the business presents in relation to food the more obligations it will have and all businesses which have an involvement in food now have obligations under the new Act.
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