COVID-19: 6 principles of contractual relations in times of crisis

Cigref and Syntec Numérique solemnly call on their members, users and suppliers of digital solutions and services, to demonstrate mutual understanding, professional solidarity and anticipation. They propose six principles to be applied to contractual relations at this time of crisis for COVID-19.

In the extraordinary circumstances in which the French economy has to contend with the COVID-19 pandemic, many companies are facing a drastic loss of business. The consequences of this are becoming apparent more or less rapidly, both for in-house employees, who find themselves massively out of work, and for service providers, many of whose contracts have been reduced, terminated, suspended or postponed.

Digital systems work

The digital sector, both within companies and public administrations using digital solutions and services, and among their suppliers, has demonstrated a commitment and responsiveness that has enabled teleworking to develop to unprecedented proportions in just a few days. Information systems have held up, telecoms networks are carrying the load. Cigref and Syntec Numérique would like to salute all the men and women who keep the digital systems up and running, without which the nation could not continue to function. First and foremost, for the benefit of the healthcare sector, which we can never thank enough for its commitment in the fight against the pandemic. Secondly, to ensure maximum efficiency in the containment of the population. And finally, to prepare for the future and the end of the crisis.

The digital sector is not spared

However, the digital sector has not been spared the economic consequences of the health crisis. Many companies whose business has been significantly reduced or even cancelled in recent weeks have had to resort to short-time working within their digital departments, halting IT projects and postponing fixed-price or time-and-a-half service contracts.

A solemn appeal for solidarity

Cigref, the association representing France’s major public and private contractors, and Syntec Numérique, the trade association for service providers who support their customers in their digital transformation, solemnly call on their members to demonstrate mutual understanding of the difficulties that everyone may encounter in these exceptional circumstances, to show professional solidarity, particularly towards the weakest, and to think ahead.

Six principles of contractual relations in times of crisis

To this end, Cigref and Syntec Numérique are proposing six principles to their respective members, which they will be able to implement with all the discernment they can muster in the context of their contractual relationships, which may be shaken up in the current period:

• Principle of resilience: whenever possible, and as far as necessary, each party takes all the measures at its disposal to honor current contracts, without giving in to the distress caused by the crisis, in order to help maintain the business or prepare the conditions for its resumption.
• Principle of proportionality: postponements, terminations, interruptions or cancellations of service contracts of any kind must be proportionate to the stakes of lost sales linked to the health crisis, avoiding any windfall effects.
• Principle of gradualness: together, principals and service providers are called upon to define, through dialogue, progressive workload reduction plans, preparing as far as possible for the end of the crisis and the resumption of activity.
• Principle of differentiation: postponements, terminations, interruptions or cancellations of service contracts of any kind must be implemented where necessary, giving priority to maintaining the activity of the weakest, most fragile service providers, or those least able to withstand the drop in their sales.
• Principle of responsibility: it is absolutely essential to respect, or even reduce, payment deadlines in these difficult times for the weakest, most fragile service providers, or those least able to withstand the drop in their sales.
• Principle of solidarity: depending on the client’s sector of activity, and in particular when they are particularly involved in the fight against the pandemic, or when the consequences of the pandemic on their activity are paroxysmal, their service providers will be attentive to the conditions for preserving their clients’ ability to emerge from the crisis and return to business as usual.

We, the presidents of Cigref and Syntec Numérique, ask the permanent teams of our two structures to provide all the support and backing our respective members may need to implement the principles we have agreed on.