Applications for Legal Protection for Events and Holiday Tour Contracts under the COVID-19 Temporary Measure Act
Ministry of LawSpeakers
Summary
This question concerns Member of Parliament Melvin Yong Yik Chye’s inquiry regarding legal protection applications for event and tourism contracts under the COVID-19 (Temporary Measures) Act. Minister K Shanmugam reported that 1,056 electronic notifications for relief were served between April 2020 and January 2021, with approximately 60% of cases settled without assessor intervention. Minister K Shanmugam explained the Act provides a simple, inexpensive mechanism to achieve just outcomes and prevent lengthy litigation for parties impacted by the pandemic. Determinations are generally non-appealable to ensure efficiency, though reviews are permitted if a party lacked the opportunity to present evidence or requires payment extensions. This framework prioritizes timely resolution and fair results over strict contractual terms for individuals and companies facing pandemic-related disputes through no fault of their own.
Transcript
10 Mr Melvin Yong Yik Chye asked the Minister for Law (a) how many individuals and companies who have signed contracts for activities such as wedding celebrations, conferences and holiday tours have applied for legal protection under the COVID-19 Temporary Measures Act; (b) what is the percentages of cases where negotiations failed and assessors had to be involved; and (c) whether there is any further recourse for individuals and companies who do not agree to the assessors' assessments.
Mr K Shanmugam: Between 20 April 2020 and 20 January 2021: (a) 1,056 notifications for relief (NFRs) were served through the electronic system for event and tourism-related contracts. We do not track the number of hardcopy NFRs which parties may have served on the contracting parties; (b) 414 applications, excluding rejected or withdrawn applications, for an assessor's determination were filed in relation to such contracts. Cases would be withdrawn if parties eventually managed to come to an agreement themselves. There were also some cases that were rejected as they were not within the scope of the framework.
Based on the statistics outlined above, about 60% of the cases for which NFRs have been served were settled or resolved without the involvement of assessors.
The Act seeks to provide just and fair outcomes through a simple and inexpensive mechanism, rather than abiding strictly with contractual terms. This is to ensure parties that are already impacted by COVID-19 do not stay embroiled in lengthy litigation over issues that arose materially because of the pandemic, through no fault of their own. In line with ensuring efficiency and finality, determinations are not appealable.
However, a review may be conducted in limited situations. For example, an application for a subsequent determination may be made where: (a) one party did not have the opportunity to place all relevant information or evidence before the assessor; or (b) where an extension of time is required to make any payment.