COVID-19 declared 'notifiable' disease after operators raise fears over losses
These will allow businesses to seek compensation if they are affected by the outbreak.
Trade body UKHospitality welcomed the government’s decision to register COVID-19 as a "notifiable" disease, allowing businesses to seek compensation if they are affected by the outbreak.
The news comes after businesses voiced concerns that losses would not be covered by insurance policies.
“Tourism and hospitality is likely to be hit as people cancel holidays and our members are already reporting a reduction in hotel bookings,” UKHospitality Chief Executive Kate Nicholls said in a statement.
“Businesses will need to check the terms and conditions of their insurance and make sure their insurance provider has updated their policy to include COVID-19. This is not going to be a remedy for all businesses, but it should help some of those who are already feeling the strain.”
UK Prime Minister Boris Johnson also announced that statutory sick pay will be available from the first day of illness under emergency legislation to tackle the the virus.
Asked by QSR Media for a comment on this, UKHospitality said the following: “Today’s announcement on sick pay gives businesses some clarity. The workforce is, obviously, hugely important to the sector, so keeping them – and our customers - safe is a priority. We urge the Government to follow this with support for businesses to ensure that the system is not exploited and businesses are not unduly hit.”
Towards a “longer-term” response to COVID-19 impact
Winckworth Sherwood partner Blair Adams, meanwhile, warned that employers may need to consider a “longer-term approach” to a number of people-related issues.
He said this in response to predictions that up to a fifth of UK workers could be off sick at the peak of the coronavirus outbreak.
“Technology has a big part to play for businesses that can impose remote working or foreign travel bans but for many organisations, remote working is impossible or only marginally significant,” he said.
“Businesses could potentially have to deal with mass sickness absences, potentially unsafe workplaces and employees who need time off because of school closures or who are unwilling to travel to work for fear of infection. These novel circumstances will bring to the fore legal issues that do not arise in business as usual operations.”
For CGA, the real impact of COVID-19 on business sentiment is “yet to be gauged.”
Its latest Business Leaders' Survey with Fourth, conducted prior to the outbreak and government’s “point-based” immigration rules, revealed that over 60% of senior executives in the out-of-home eating and drinking sector were optimistic about future prospects for the sector.
This number represented 16 point increase since the last confidence survey in November, and the highest level of confidence for four years.
“Cost pressures are squeezing margins from all directions, and the new immigration proposals are a reminder that the next big challenge for this sector is never far away, be it policy, or indeed volatile consumer confidence in the face of coronavirus or changeable weather,” Karl Chessell, Business Unit Director for Food and Retail at CGA, said.
“Hospitality is a dynamic industry that makes a massive contribution to the UK’s economy, but our leaders need better support from the government on big issues like recruitment, pay, rates and trade to realise their full potential.”
