Re-Align Framework: How to file Notice of Objection & Notice for Compensation

Re-Align Framework: How to file Notice of Objection & Notice for Compensation

Step-by-step guides and useful tips to file Notice of Objection, Notice for Compensation and Notice for Revision under Re-Align Framework by Ministry of Law (MinLaw) Singapore.

What is Re-Align Framework

Re-Align Framework was introduced by Ministry of Law on 10 Dec 2020 for small and micro businesses that have been severely affected by COVID-19 to renegotiate contracts or to terminate contracts between.

Re-Align Framework will commence on 15 Jan 2021 and last day of filing will be on 26 February 2021

Business-to-business contracts that are eligible for Re-Align Framework must:

  • Be entered into contract before 25 March 2020
  • Fall under one of the categories below:
    • Lease or licenses for non-residential immovable property
    • Hire-purchase and conditional sales agreements for commercial
      equipment or commercial vehicles (not applicable for contracts with banks regulated by MAS)
    • Rental agreements for commercial equipment or commercial
      vehicles
    • Contracts for sale and purchase of goods and services
  • Be governed by Singapore Law and at least one of the parties must be based in Singapore

To qualify for filing under Re-Align Framework, businesses must fulfill the following criteria:

  • Annual revenue at the group level does not exceed S$30 million
  • Experienced at least a 70% drop in monthly average gross income for 1-Jul-2020 to 31-Dec-2020 vs 1-Jul-2019 to 31-Dec-2019

How to file Notice of Negotiation

  1. Prepare all the supporting documents listed here. You will need to prepare the financial statements for 12-month ended Dec 2019, 6-month ended Dec 2019, 6-month ended Dec 2020 and fill in the Excel templates (Annual Revenue Table and Monthly Income Table) provided by the Ministry of Law. 
  2. If you are a party to the contract, log in with your SingPass to submit this form. If you are acting on behalf of an entity or a company, log in with your CorpPass to submit this form.
  3. Once you have successfully submitted the form, both you and the other contract party will receive an automated email with the submission details and supporting documents.
  4. Both you and the other contract party will enter into a 4-week negotiation period where you can renegotiate the contract details such as rental rates, commitment periods, etc. If you wish to just terminate the contracts, you may also discuss the termination terms. 

How to file Notice of Objection under Re-Align Framework

If no mutual agreement is reached during the 4-week negotiation period, there will be a 2-week objection period for the party that is served the Notice of Negotiation to file Notice of Objection or/and Notice for Compensation. 

If the party does not file either Notice of Objection or/and Notice for Compensation, the contract will automatically end 2 days after the objection period.

The party may only file a Notice of Objection under the following basis:

  • The contract in question is not a specified contract.
    • The specified contract is the business-to-business contracts listed above.
    • Examples of contracts excluded include consumer contracts, employment contract, insurance contract, lease/license with terms more than 5 years, financial transactions, construction and supply contracts, contracts for the carriage of goods for freight by sea, land or air. Full list here.
  • The contract is a Contract of National Interest.
  • The Affected Business does not satisfy the eligibility criteria for relief.
  • The Notice of Negotiation was not served in accordance with section 45 of the Act. (e.g. the Notice was not served between 15 January 2021 and 26 February 2021)

Steps to file the Notice of Objection:

  1. Prepare a copy of the Notice of Negotiation and any relevant supporting documents
  2. If you are a party to the contract, log in with your SingPass to submit this form. If you are acting on behalf of an entity or a company, log in with your CorpPass to submit this form.
  3. The Registrar will review the submission and if the Registrar is satisfied, an acknowledgement will be sent to all the parties. 

How to file Notice for Compensation under Re-Align Framework

  1. Prepare all the supporting listed here
  2. If you are a party to the contract, log in with your SingPass to submit this form. If you are acting on behalf of an entity or a company, log in with your CorpPass to submit this form.
  3. The Registrar will review the submission and if the Registrar is satisfied, an acknowledgement will be sent to all the parties. 

How to lodge and serve Notice for Adjustment

Both the affected business and the party served with Notice of Negotiation may lodge Notice for Adjustment within 2 weeks after the 2-week objection period to adjust the contract termination terms.

if no Notice for Adjustment is filed, the contract termination terms will follow the default terms stipulated under the Re-Align Framework.

  1. Prepare a copy of the Notice of Negotiation and any relevant supporting documents
  2. Submission links will be updated soon. 

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Will T
A frequent traveler who loves to act like a local, dress like a local and eat like a local wherever he travels. Loves food. Loves to write about everything in Singapore.