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Contract Structure to Minimize Risks under the Serious Accidents Punishment Act

D’LIGHT Law Group advised a delivery agency startup on contractual and business structure to minimize the liability under the Serious Accidents Punishment Act (“SAPA”).

SAPA imposes upon the “business manager” of an enterprise the responsibility to ensure the safety and health of a third party’s employees by preventing serious accidents even if the enterprise has subcontracted or outsourced its business but still retained practical oversight, management, and maintenance responsibilities over the enterprise’s facilities, machinery, or site.

To minimize the risks of liability of the client, D’LIGHT reviewed the outsourcing service agreement and clarified the rights and obligations amongst the client enterprise, the delivery rider, and the territory manager.

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