Asia-Pacific: Getting Back to Business in the COVID-19 Era

Malaysia

Content provided by Christopher & Lee Ong

Contact:
Ooi Ju Lien
Partner
+603 2267 2716
ju.lien.ooi@christopherleeong.com

Current national guidance or requirements regarding returning to work

The Malaysian Government implemented a nationwide movement control order (“MCO”) on 18 March 2020, which restricted the movement of persons and required business premises to be closed unless it fell within the category of providing an “essential service”. Following the MCO, a conditional MCO ("CMCO") with more relaxed restrictions was in place from 4 May 2020 to 9 June 2020. On 7 June 2020, the Malaysian Government announced that the MCO will be entering a "recovery phase" with the implementation of the recovery MCO ("RMCO") for the period of 10 June 2020 to 31 August 2020.

The restrictions under the MCO, CMCO and RMCO are imposed pursuant to the Prevention and Control of Infectious Diseases Act 1988 and its subsidiary legislation. The Prevention and Control of Infectious Diseases (Measures within Infected Local Areas) (No. 7) Regulations 2020 (“Regulations”) are the latest regulations applicable for the RMCO.

Save for prohibited activities under the Regulations, most businesses are now allowed to operate at full capacity, subject to compliance with the standard operating procedures (“SOPs”) issued by the National Security Council (“NSC”), the Ministry of Health (“MOH”) and other regulatory bodies from time to time.

Logistical limits regarding social distancing and size of meetings

Depending on which sector, the applicable SOPs prescribe varying standards and restrictions, such as:

• restriction on operational hours (e.g. hair salons, beauty salons, bazaar, night markets, and fishery sector);
• the hours at which customers are allowed at the premises, which are usually shorter than the operational hours;
• the number of customers allowed at the premises at any one time (e.g. by appointment only)
• social distancing of one meter, including the marking of such distance on the floor, tables and chairs;
• the distance between tables (e.g. 2 meters in restaurants) and the number of customers at the same table (e.g. maximum of 4 persons);
• the implementation of lunch break by stages and by turn in accordance with the suitability of the company;
• the recording of the personal details of persons entering the premises, such as name and telephone number, either manually or through the MySejahtera application; and
• the method of payment (e.g. contactless).
  

• provide soap, hand sanitisers and surgical masks;
• implement a "no handshaking" policy;
• monitor employees for symptoms and encouraging regular temperature checks;
• obtain travel declaration and travel history; and
• keep a record of sick leave including reasons for leave, duration of leave and current status.
  

• to sanitise the premises, especially common spaces such as the lobby, lift, cafeteria, and toilet, at least 2 to 3 times a day;
• to use detergent containing sodium hypochlorite in sanitising the premises; and
• to sanitise vehicles used to transport workers after each use.
  

New Zealand

• All businesses are permitted to be open to the public, including those services which are provided in customers' premises (provided they are meeting public health guidance as set out below).
• Alternative ways of working are encouraged if at all possible, for example “work from home” or shift-based working and flexible leave arrangements.
• Use of mass transport and public transport permitted (subject to physical distancing).

• 1 metre social distancing from others.
• Maximum of 10 people permitted at any meeting (the social distancing requirements are subject to change by the Government as we move closer to Level 3 or Level 1).
• "Close contact services" (such as beauty services) may operate if keeping robust record keeping, good hygiene practices and minimising contact to the extent possible.
  

• No mandatory requirements for businesses to test employees or customers.
• All businesses encouraged to maintain registers for contact tracing – businesses required to effectively trace who has been in contact with employees and workplace. Recommendations include:
  • Full name;
  • Residential address;
  • Effective means for communication (eg active phone number or email); and
  • Date and time of arrival and leaving.
• Employees must stay home if feeling unwell, or have contact with someone feeling unwell.  Further, they must contact HealthLine if they are experiencing cold or flu symptoms.

• Encourage regular handwashing and provide sanitisers in contact areas of business premises if possible.
• Regularly disinfect shared surfaces with antiviral disinfectant, allowing it to sit for at least 10 seconds.
  

• Employers are not permitted during any level, to decrease employee salaries, or reduce employees' hours, except by agreement with employees.
• Employers wishing to dismiss employees may only do so on the same basis that they could before COVID-19 (ie appropriate processes must be followed and any applicable redundancy provisions will still apply).  COVID-19 has not given rise to a 'special' ability for employers to dismiss employees.
• Government wage subsidy available to support employers, including sole traders, impacted by COVID-19, that face laying off staff or reducing hours.

Data Collection and Privacy – The Privacy Act 1993
Collection: Ensure customers and staff are aware you are collecting their information in a register, why you are doing this, and what will happen to their information. Suggested wording and more information is available here.

Use of the information: Only use the information for the same purpose of collection eg if you intend to use the information for mailing purposes, this must be made expressly clear at the time of collection.

Retention and disposal: Only keep the information for as long as is reasonably necessary for the purposes of collection. Public guidelines recommend 4 weeks. 

FUTURE EXPECTED SITUATION IN NEW ZEALAND (Level 1)
https://covid19.govt.nz/assets/resources/tables/COVID-19-alert-levels-detailed.pdf

The following is a summary of what is known thus far of the measures that will be implemented when New Zealand moves to Level 1 (Prepare).

Returning to work

• All individuals permitted to return to work.

Requirements at work

• Social distancing encouraged, but not required.
• No restrictions on gatherings.
  

Testing
Recommendations by the Ministry of Health:

• No mandatory requirements for businesses to test employees or customers.
• Contract tracing encouraged.
  
• Employees must stay home if feeling unwell, or have contact with someone feeling unwell.  Further, they must contact HealthLine if they are experiencing cold or flu symptoms.
  

• All "essential businesses", including pharmacies, supermarkets, petrol stations and banks could remain open to the public.
• Retail stores and hospitality businesses, such as restaurants and cafes could operate, but customers could not enter the premises; instead, delivery, drive-through or contactless pick up was permitted.
• Businesses were encouraged to continue operating on a “work from home” basis.
• Provision of PPE for workers was encouraged.
  

• 1 metre social distancing.
• Maximum of 10 people permitted any meeting.
  

• No mandatory requirements for businesses to test employees or customers.
• All businesses encouraged to maintain registers for contact tracing – businesses required to effectively trace who has been in contact with employees and workplace. Recommendations include:
  
  • Full name;
  • Residential address;
  • Effective means for communication (eg active phone number or email); and
  • Date and time of arrival and leaving.
    
• Employees were required to stay home if feeling unwell, or had contact with someone feeling unwell. Further, they were required to contact HealthLine if they were experiencing cold or flu symptoms.
  

Cleaning
Recommendations by the Ministry of Health:

• General cleaning guidelines
  
• Encourage regular handwashing and provide sanitiser in contact areas of business premises if possible.
• Regularly disinfect shared surfaces with antiviral disinfectant, allowing it to sit for at least 10 seconds.
  

• Only "essential businesses" (including pharmacies, supermarkets, petrol stations and banks) are permitted to be open.
• Other businesses must operate on a “work from home” basis.
  

• Essential businesses must enforce 1 metre physical distancing, use of personal protective equipment (PPE) and putting up physical barriers where possible. If essential businesses cannot meet these requirements, they cannot operate.
• All other businesses must operate meetings by distance. 
  

• No mandatory requirements for businesses to test employees or customers.
• Employees were required to stay home if feeling unwell, or had contact with someone feeling unwell.  Further, they were required to contact HealthLine if they were experiencing cold or flu symptoms.
  

Cleaning
Recommendations by the Ministry of Health:

• General cleaning guidelines
  
• Encourage regular handwashing and provide sanitiser in business premises if possible.
• Regularly disinfect shared surfaces with antiviral disinfectant, allowing it to sit for at least 10 seconds.
  

Philippines

South Korea

• Employees showing symptoms such as fever, cough, etc. must get tested.  Even if the employee tests negative, he/she must be quarantined for 14 days after contact with the confirmed individual.
• Employees showing no symptoms are not required to get tested but must be quarantined for 14 days from the initial contact before returning to work.
• Employees showing no symptoms but living together with a medical professional/student or a confirmed individual must test negative 13 days after his/her last contact with the cohabitant before they can return to work. 
  

• Employers should make hand sanitizers/soaps available at the workplace and post notices relating to personal hygiene, such as the need to hand wash, and tips on how to cough in public.
• Employers should keep the windows open at all times if natural ventilation is possible.  If this is difficult, employers should use air conditioners or other similar methods to ventilate the work place at least twice a day.  In addition, employers should disinfect common areas/objects at least once a day.
• Employers should provide disinfecting materials for employees (CDSCHQ Social Distancing Guideline (May 3, 2020)).
  

• Under Article 18 of the Infectious Disease Control and Prevention Act (the “IDCP Act”), health authorities must conduct an epidemiological investigation if there is a risk that the pandemic will spread. In order to conduct such investigation, health authorities may obtain such information as the personal information and medical records of patients, place of outbreak, and cause of outbreak (Article 12(1) of the IDCP Act). The recent whereabouts of infected individuals are normally identified through an interview with the individual.  However, if needed, health authorities may check the individual’s GPS, credit card payments, and other items of information (Article 76-2(1) of the IDCP Act and Article 32(2) of the enforcement decree of the same Act). An individual may be punished by a fine of up to KRW 20 million or imprisonment of up to two years if he/she interferes with, avoids, or intentionally omits facts during an epidemiological investigation (Article 79, Item 1 of the IDCP Act).

• The Minister of the Ministry of Health and Welfare must disclose to the public certain information necessary to prevent the spread of the pandemic, such as the infected individual’s method of transportation and individuals who he/she have come in contact with (Article 34(2) of the IDCP Act).
  

• If a suspected patient is found in the place of business:
  
  • According to the latest definition announced by the Korea Centers for Disease Control & Prevention ("KCDC"), a "suspected patient" means any of the following: (i) a person who experiences fever (37.5℃ or above) or respiratory conditions (coughing, sore throat) within 14 days of returning from China, (ii) a person who experiences the aforementioned symptoms within 14 days of coming into close contact with a diagnosed patient while the diagnosed patient was experiencing symptoms, or (iii) a person suspected of being infected with nCoV, pursuant to a physician's medical opinion (e.g. a person who experiences symptoms within 14 days of returning from a country with widespread nCoV infections or a person with pneumonia from unidentified causes).
    
  • Check whether the suspected patient displays symptoms, require the suspected patient to wear a mask, and immediately notify the public health center with jurisdiction over the company's place of business (or contact the KCDC at 1339).
    
  • Ensure that the suspected patient and any employees who have come into contact with the suspected patient wait for public health center workers to arrive in a quarantine location within the workplace while wearing protective gear (i.e. masks, disposable sanitary gloves) and not leave the workplace until the public health center's inspection is completed.
    
  • After the suspected patient is transferred to the public health center, the quarantine location in which the suspected patient was placed should be disinfected using disinfectants such as rubbing alcohol or bleach by individuals wearing protective gear (i.e. masks, disposable sanitary gloves).
    
  • Employees who have been issued quarantine orders by the health authorities or employees who have come into contact with suspected patients should first notify their supervisor over the phone without going to the office, then go to a hospital or place themselves in self-quarantine.
    
• If a confirmed patient is found in the place of business (including among any worker working at the same place of business or any customer who visited the place of business):
  
  • Immediately notify the fact to all employees in the place of business (including dispatched or subcontracted workers).
  • Cooperate fully with the KCDC's investigation and must also cooperate fully with measures prescribed by the public health center, such as disinfecting the locations visited by the confirmed patient.
  • Comply with the public health center's instructions regarding active monitoring of any employees who were working in a location and time clearly separate from those in the path of movement of the confirmed patient.
    
• If an employee has recently visited the greater China region (including Hong Kong and Macao):
  
  • Even if an employee has recently visited the greater China area, the employee is not a suspected patient nor a case that should be reported unless the employee experiences fever or respiratory symptoms (e.g. coughing, sore throat).
    
  • However, the MOEL recommends workers who have recently visited China to refrain from contacting others or engaging in public activity for 14 days after returning from China, and to use vacation days, work from home, or temporarily close the business if possible in order to prevent the spread of infection (The Korean health authorities do not currently recommend individuals who have returned from countries other than China to work from home or use vacation days, but an employee who experiences fever or respiratory symptoms after returning from abroad should be advised to visit a medical institution or designated medical facility and disclose their travel history when receiving treatment). 
    
  • If the employee has already come in to work, send the employee home, and ensure the employee reports over the phone his/her physical condition and whether the employee is experiencing symptoms. During this process, the employee should be kept apart from other employees, and the employee's path of movement as well as persons the employee has come into contact with must be identified. • Designate an employee to handle nCoV related matters and have this responsible person confirm with the employee their physical condition and whether the employee is experiencing symptoms.  If the employee is determined as a suspected patient or as a case that should be reported, the responsible person must report the employee to the KCDC's nCoV hotline (1339, 02-120) or the public health center with jurisdiction over the company's place of business. 
    
• If an employee has recently visited Southeast Asia:
  
  • The KCDC is advising, as of February 11, 2020, Koreans not to travel to Singapore, Japan, Thailand, Malaysia, Vietnam, or Taiwan, pursuant to an announcement by the World Health Organization.
  • Even if an employee has recently visited Southeast Asia, the employee is not a suspected patient nor a case that should be reported, unless the employee is suspected by a doctor to have contracted nCoV due to experiencing fever or respiratory symptoms (e.g. coughing, sore throat) or pneumonia of an unknown cause.
  • However, on February 7, 2020, the KCDC recommended that individuals who have recently returned from Southeast Asia refrain from unnecessary public activity for 2 weeks, monitor themselves for fever or respiratory symptoms, and receive treatment in designated medical facilities such as public health centers upon experiencing such symptoms.
    
  • Recommend that employees not travel to the above countries, in addition to the greater China region, either for business or for personal reasons.
  • If an employee has returned from any one of these countries in the past 14 days, recommend that the employee wear a mask, and ensure that the employee is treated at a designated medical facility such as a public health center as soon as they experience symptoms.
    

Article 41-2 of the Infectious Disease Act requires businesses that receive subsidies from the government to grant paid leave to employees for the duration of their hospitalization or quarantine.  The government plans to provide businesses that have granted paid leave to quarantined employees according to the Infectious Disease Act with subsidies, in the amount calculated on the basis of the daily wage per person (maximum KRW 130,000 per day).  Businesses can apply for this subsidy through branches of the National Pension Service starting February 17, 2020.  If the company receives a subsidy for paid leave from the government, the company is obligated to grant paid leave to the relevant employee.

Employers do not have a legal obligation to grant paid leaves to employees who are unable to work due to illness, unless the company's rules of employment or collective bargaining agreement (with the labor union) provides for such requirement.  However, as mentioned above, the MOEL Guideline does recommend that companies grant paid sick leaves even in the absence of such requirement under other rules.  

The MOEL Guideline states that a company must pay employees who are temporary suspended from coming to work if the suspension is based on the business owner's own discretion, but a company is not obligated to do so if suspension is unavoidable, such as due to the government's quarantine order.  However, there is uncertainty regarding the former.  As such, the company should review on a case-by-case basis taking into account the relevant circumstances.

We hope the above is helpful. New developments in the outbreak or changes in the government's guidance may necessitate other measures on the part of companies, so it is important to continue monitoring for related developments.

1. Support Subsidy for Maintaining Employment: Under the Employment Insurance Act, the Ministry of Employment and Labor ("MOEL") provides support for companies meeting certain criteria if they reduce employee work hours or suspend their operations due to unavoidable circumstances such as sudden drops in revenue.  The purpose of the support is to encourage companies to reduce work hours or suspend work rather than lay off workers as they may need to do otherwise.  After the COVID-19 outbreak, the eligibility requirements have been gradually relaxed to make the subsidy available to more companies, regardless of industry.
   
   As of March 25, 2020, a company is eligible for support if (i) it reduces work hours or its work force by 20% or more in one month or orders its employees to suspend their work for more than one month due to COVID-19, and (ii) pays its employees the necessary business suspension allowance or paid leave allowance.
   
   These allowances must be paid to employees under the Labor Standard Act in case of business suspension for reasons attributable to the employer.  The Act requires the employer to pay at least 70% of the employee's average wage as business suspension or paid leave allowance. 
   
   If granted, the support subsidy will be up to 3/4 (for small and medium enterprises ("SME") and certain other companies designated as requiring priority support) or 2/3 (for large companies) of the business suspension allowance or paid leave allowance, as applicable, that the company has paid to a given employee, which amount is capped at KRW 66,000 per day per employee.  The support is available for the period February 1 to July 30, 2020, when the suspension allowance or paid leave allowance was paid. (In case of companies subject to priority support, the government further increased the ceiling to up to 90% for between April to June 2020.)
   
   
2. Support Subsidy for Paid Leave: Under the Infectious Disease Control and Prevention Act, the Ministry of Health and Welfare ("MOHW") provides a support subsidy for paid leave to an employer that provides paid leave to an employee who is hospitalized or in isolation due to COVID-19.  The amount of the daily subsidy, computed according to a formula based on the monthly salary, is capped at KRW 130,000 per day.  However, this subsidy is not available if the affected employee has applied for and receives the living support expenses that the government has made available to employees under the same law who are hospitalized or in isolation due to COVID-19.
   
   
3. General Subsidy for Corporations: The Ministry of Economy and Finance announced on March 24 that it would increase the emergency corporate subsidy fund from KRW 50 trillion to KRW 100 trillion, which will be utilized to provide guarantees or loans for corporations in need of financial support and to stabilize the bond market.  The government will use this fund for various corporate relief measures, as part of the government's "public welfare and financial stabilization package."
   
   The government has instructed various financial institutions to provide financial support for corporations in various sectors including tourism, air carrier, restaurant and shipping industries as well as other corporations which export/import products.  The government will also expand its support for SMEs by providing government-funded loans and guarantees, while financial institutions will provide extensions of maturity and grace period on interest payments to corporations starting from April 1, 2020.  The government will also purchase corporate bonds and support companies in issuing their P-CBO (primary collateralized bond obligation). 
   
   

1. Tax Relief for Taxpayers Impacted by COVID-19: Korea's National Tax Services announced on February 7, 2020, that it would provide national tax relief/support for taxpayers who suffered damages due to COVID-19.  Such relief/support is available to corporate and individual taxpayers engaging in the tourism and hospitality sectors (food and lodging), transportation, concert/performances, medical services (hospitals/medical clinics), and wholesale and retail sales.
   
   For example, the following taxpayers engaging in one of the business sectors above would be eligible for tax relief/support: an individual who is a confirmed patient or is subject to quarantine, a business with a confirmed case or a workplace where a confirmed case has visited, a business with a workplace located near facilities occupied by Korean returnees from Hubei Province, in China, and an SME transacting with China.
   
   The national tax relief/support includes an extension on the deadline for filing tax returns, a similar extension on payment of corporate taxes, a postponement on issuing notices to pay delinquency fines and on collecting such fines, the prepayment of tax refunds, and suspension of tax audits.
   
   In addition to this national tax relief, on February 5, 2020, the Ministry of Interior and Safety requested all municipal governments in Korea to implement local tax relief measures (similar to the above) for taxpayers who suffered damages due to COVID-19.
   
   
2. Compensation of Damages Due to Government Measures: Any person or business that has been adversely affected by government measures implemented to prevent the spread of COVID-19 may file a claim for compensation with the MOHW or the municipal government.  MOHW and the municipal government will compensate the loss in accordance with the decision by the Loss Compensation Review Committee.  Examples of government measures include a mandatory order to close a workplace due to COVID-19 that results in the inability to use relevant facilities, equipment or personnel, and workplace disinfection in accordance with the Infectious Disease Control and Prevention Act.  The MOHW is expected to provide more detailed guidelines on compensation criteria. 
   
   
3. Customs Support: The Customs Service will operate a 24-hour customs support system to expedite the import/export process for companies that experienced import/export delays due to COVID-19.  The Customs Service will also (i) conduct minimum inspection and review of imported/exported goods to expedite customs clearance, (ii) allow extensions on payment of customs duties and payment of customs duties in installments, and (iii) suspend customs audits to support companies during the COVID-19 outbreak. 
   

Sri Lanka

Taiwan

• to avoid participating to any events in which persons would come into close contact with others, such as exhibitions, sporting competitions, and concerts, as well as entertainment venues; and
• to keep physical distance from others of at least 1.5 meters indoors and 1 meter outdoors, provided persons properly wear face masks. 
  

Vietnam

Content provided by Russin & Vecchi

Contact:
Mai Thi Minh Hang
Partner
+84 24 3825 1700
MTMHang@russinvecchi.com.vn

Current national guidance or requirements regarding returning to work

On April 22, 2020, the Vietnamese Government has suspended its social distancing order allowing most businesses to return to normal operation. On April 24, 2020, the Prime Minister issued Order No. 19/CT-TTg on the continuation of COVID-19 preventions and precautions in the new circumstances (“Order 19/CT-TTg”). Further guidance was issued on May 8, 2020 in Notice No. 177/TB-VPCP by Prime Minister Nguyen Xuan Phuc following a meeting of the government on COVID-19 precautions and prevention (“Notice 177”). As a result, the following precautions will apply to all cities, unless the local authority determines otherwise (Article 1 of Order 19/CT-TTg and Article 4 of Notice 177):

• Festivals, religious rituals and non-essential events will continue to be suspended. Sport events and events in which people will gather in a public space are allowed, provided that strict precautions are implemented, including mandatory facemasks and handwashing;
• Non-essential businesses, except for karaoke and clubs (such as entertainment centers, beauty centers, massage parlors, bars, etc.) may reopen from May 8, 2020, provided that appropriate precautions are implemented, including facemasks and handwashing;
  
• Other businesses (such as wholesalers, retailers, lotteries, accommodation services, restaurants, etc.), sports training facilities, heritage and scenery sites may open for business but precautionary measures are required, including but not limited to equipping employees with appropriate equipment, taking body temperatures of all guests, mandatory handwashing and sanitary equipment provided for the guests;
• Distancing on domestic transportations is no longer strictly required.
  
• Students have been allowed to return to school from May 8, 2020. Schools must continue to implement precautionary measures, including disinfection of classrooms and restrooms, strict hand-washing requirements. 
  

• An employee who has his/her employment contract suspended or has to take unpaid leave for at least one month because his/her employer does not have adequate funds to pay wages due to COVID-19 will receive VND 1,800,000 (approximately US$ 80 (US$ 1 = VND 23.335)) per month for up to three months from April 1, 2020.
• An employer who is facing financial difficulties and has paid at least 50% of the mandated suspension allowance for their employees from April to June 2020 may apply for an unsecured loan for up to 50% of total region-based minimum wages of suspended employees over the suspension period (but not exceeding three months) at an interest rate of 0% with a term of up to twelve months. The loan must be used to pay the unpaid wage and must be disbursed monthly to pay the suspended employees.
  
• A household business that earns an annual revenue of under VND 100 million (approximately US$ 4,300) per year and has to suspend operations from April 1, 2020 will receive VND 1 million (approximately US$ 45) per month for up to three months depending on the pandemic situation.
  
• An employee who has his/her employment contract terminated but is not eligible for unemployment benefit; an employee who does not have an employment contract and is laid off will receive VND 1 million (approximately US$ 45) per month for up to 3 months according to the pandemic situation.
• A person with meritorious service to the revolution (as defined in Ordinance 26/2005/PL-UBTVQH11 dated June 29, 2005) who is receiving monthly benefits will receive an additional amount of VND 500,000 (approximately US$ 22) per month for three months from April to June 2020.
• A beneficiary of social protection policies who is receiving monthly benefits will receive an additional amount of VND 500,000 per month for three months from April to June 2020.
• A poor or near-poor household (as defined in Decision 59/2015/QD-TTg of the Prime Minister dated November 19, 2015) according to the national poverty standards by December 31, 2019 will receive VND 500,000 per person per month for three months from April to June 2020.