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Swine Flu Pandemic Could Invalidate Contracts, Says Legal Expert

August 4th, 2009

With the widespread outbreak of swine flu, certain legal experts are suggesting companies to look into their contracts regarding invocation of the clause of force majeure with respect to swine flu cases, which could invalidate a contract. This clause means no party is responsible for any circumstances beyond its control, and hence this acts as a defence for companies for the non-performance of their obligations under the contracts.

According to David McIlwaine, Technology law expert at Pinsent Masons, companies in the UK can appeal under force majeure clause in case of a large absence of workforce due to the swine flu pandemic.

McIlwaine also added that the force majeure clause becomes applicable especially in the case of those companies which work around deadlines but due to the absence of a large number of its employees it is not able to meet them. He feels that the situation becomes more complicated when employees of the customer too are working from home or are absent.

According to the legal opinions from Pinsent Masons, a company would qualify to appeal under force majeure clause only if it pleads so in the court of law and it is upon the court to decide whether the present case falls within the purview of the clause or not . He also added that the decision of the court would be based on the facts of each particular case.

McIlwaine further explains that in case of declaration of an emergency in the country or any situation of government not permitting employees to attend their office, could have an effect on the working of the company and hence the force majeure clause could be invoked. He thus suggested companies to re-examine and reassess their contracts. The CIPD Certificate in Employment Relations, Law and Practice provides a firm foundation in all the areas of HR and employment law; click on CIPD training for a course which will help you understand how employment practice works to get-to-grips with the key issues that impact on employment practice.

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