2. The payment of rent and outgoings during the relevant lockdown period has not previously been the subject of an agreement or arbitral award between the parties to the dispute.
The party Eligibility Criteria requirements for the subsidy are:
1. The business is New Zealand based;
2. The business has 20 or fewer full-time equivalent staff:
a. in the case of the lessee, per lease site;
b. in the case of the lessor, in total.
What is a full-time equivalent employee?
The Ministry of Justice defines this as:
A full-time equivalent employee must work 30 hours or more.
• One full time employee is equal to two part-time employees.
• A part-time employee works less than 30 hours per week. If an employee works variable hours, calculate the average hours worked each week over the last 12 months, or if less than 12 months, the average hours worked since employment
When does the subsidy expire?
The commercial lease arbitration and mediation scheme will be open to new applications until 31 March 2021. New participants will not be able to apply for the scheme after this date.
If the contract is silent on this, NZDRC offers non-eligible parties a low cost and fixed fee arbitration or mediation service for rent relief disputes under the special COVID-19 service launched by NZDRC at the start of New Zealand’s first COVID-19 lockdown.
For any parties who do not meet the eligibility requirements, parties may still mediate or arbitrate their rent relief dispute (by agreement) but will need to meet the cost of doing that.
NZDRC also provides comprehensive commercial arbitration and mediation services for parties to commercial lease disputes including, for example: disputes over rent renewals, reinstatement of premises, and repair, replacement and maintenance of the property, premises, fixtures and fittings.
ReSolution | Dec 2020
33 www.nzdrc.co.nz
ABOUT THE AUTHORS
Maria Cole
Knowledge Manager NZDRC
Jesika Sabo
Registrar NZDRC