The debilitating market conditions following the outbreak of COVID-19 is a cause for concern to many. The Pandemic has transmuted into an economic and labour market shock, causing disruptions to production and impacting all businesses, regardless of size. Most companies are now facing serious challenges with a real threat of significant decline in revenue, insolvency and job losses. Sustaining business operations will be particularly difficult for Small and Medium Enterprises (SMEs). Following travel bans, border closures and quarantine measures, many workers cannot move to their places of work or carry out their jobs, which has knock-on effects on incomes, particularly for informal and casually employed workers.
As the virus continues to spread, fear and trepidation among employers around the world who are deeply concerned about the sustainability of their businesses and their ability to pay their employees, equally rises. Employers may contemplate rendering their employees redundant given the impact of COVID-19 on their revenue. As we understand it, the International Labour Organisation (ILO) assessments, point to a significant rise in unemployment and underemployment in the wake of the outbreak of the virus.