Re-Align Framework to Renegotiate Contracts for Businesses Significantly Impacted by COVID-19

“The framework will provide a quick and fair way for businesses to realign and move forward by allowing selected contracts to be renegotiated by way of mutual agreement with the counterparties. If they are unable to agree, the contract may be terminated within the provided parameters. Businesses will remain liable for outstanding obligations but will not need to pay early termination penalties.”

The COVID-19 pandemic has significantly impacted the viability of some businesses and changed the assumptions upon which businesses entered into contracts before COVID-19. While the Government has allowed the calibrated resumption of economic and social activities, safe distancing and travel restrictions will continue to impact many sectors.

Small Businesses and individuals who have been significantly impacted by COVID-19 and need to review their business models and contractual obligations will benefit from the Re-Align Framework, which commenced on 15 January 2021.

Please note that:
(a)	the last day for serving the Notice of Negotiation and Notice for Revision was 26 February 2021. If you did not serve the Notice of Negotiation or Notice of Revision by 26 February 2021, you are not eligible for relief under the Framework.
(b)	the last day of the latest possible Objection Period was 9 April 2021. If you did not serve and lodge the Notice of Objection during the Objection Period, you will not be able to object to the Notice of Negotiation and/or Notice of Revision. Similarly, if you are a landlord and did not serve and lodge the Notice for Compensation during the Objection Period, you will not be able to seek compensation from your tenant for the termination of the contract under the Framework.
(c)	the last day for serving and lodging the Notice for Adjustment was 23 April 2021 (i.e. 2 weeks after the last day of the latest possible Objection Period). If you did not serve and lodge the Notice for Adjustment by 23 April 2021, you will not be able to seek an adjustment of rights and obligations under the Framework for a contract which has been terminated.

The Framework will provide a quick and fair way for businesses to realign their contracts with current business conditions by allowing selected contracts to be renegotiated by way of mutual agreement with the counterparties. If they are unable to agree, the contract may be terminated within the provided parameters. Businesses will remain liable for outstanding obligations but will not need to pay early termination penalties.

I am / have / want:

1. I want to know what the Re-Align Framework is about – does it apply to me and am I eligible?

Please refer to (1) Key Features of Re-Align Framework for an overview.

2. I am eligible, and I want to renegotiate my contract. What should I do next?

Please refer to (2) Process for renegotiation of contract terms and termination of contract for the steps to renegotiate your contract.

3. I have received a Notice of Negotiation. I disagree with it. What should I do?

Please refer to (2) Process for renegotiation of contract terms and termination of contract for the steps on negotiating with the other party and how to object to the Notice of Negotiation.

4. I am a hirer/renter of commercial equipment/vehicles. I need more time to pay my arrears. What should I do?

Please refer to (3) Process for repayment scheme for hire-purchase and equipment rental contracts for the steps to take to seek a repayment scheme for your arrears.

5. I am a financing company/leasing company. I have received a Notice of Revision and I disagree with it. What should I do?

Please refer to (3) Process for repayment scheme for hire-purchase and equipment rental contracts for the steps on negotiating with the other party and how to object to the Notice of Revision.

6. I am a party to a contract which, if terminated, is likely to affect the provision of an essential service or the ability of the Government to carry out its functions. I want to reprice my contract. What should I do?

Please refer to (4) Process relating to contracts affecting Essential Services and National Interest for more information.

7. I want to know how to serve Notices on the other party using other modes of service other than the electronic system.

Please refer to (5) Other Modes of Service for more information.

8. I have received an assessor’s determination. What can I do if I disagree or the other party is not complying with the determination?

You cannot appeal against an Assessor’s determination. Please refer to (6) Assessor’s Determinations to find out what you can do.

9. I have pending Court or arbitration proceedings against me for issues related to my Notice of Negotiation/Notice of Revision. What should I do?

Please refer to (7) Pending Court or Arbitration Proceedings for more information.