Can't hack it anymore? Smaller players can break contracts if renegotiation fails
Under proposed new law to help save jobs and small and micro enterprises hit by Covid-19, there'll be no early-termination penalties
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Janice Heng
Singapore
SMALL and micro enterprises hit by Covid-19 will have a six-week window in which to renegotiate certain contracts, with no penalties for early termination if negotiations fail, under the new Re-Align Framework proposed in a Bill introduced in Parliament on Monday.
Policymakers are perhaps seeing it as "better to give some leeway to small firms to exit contracts under the current economic circumstances rather than drive more small firms - and consequently workers - out of business", said OCBC head of treasury research and strategy Selena Ling.
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