Archives for 2010

Introduction

Business leases enjoy the statutory right to a lease renewal at the end of their contractual term if it satisfies various criteria set out in the Landlord and Tenant Act 1954 (‘LTA 1954’). This right is also known as the right to ‘security of tenure’. Security of tenure means that a tenant will be entitled to a new lease at the end of the contractual term, the terms of which are to be agreed between the landlord and the tenant. If the terms of a renewal lease cannot be agreed, it will be for the court to determine the matter.

This advice provides sole traders, partnerships, limited liability partnerships ("LLP") and limited companies with information about what they are required to publicise to the public. The requirements stem from a general principle in UK law that people should know or be able to identify who they are dealing with in order to enforce their rights.

Companies’ Trading Disclosures:

The Companies (Trading Disclosures) Regulations 2008 were introduced in 2008 as a result of the Companies Act 2006. These require limited companies and LLPs (by virtue of The Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009) to make certain displays and disclosures regarding the company or LLP for identification purposes.

Officers of a company, LLP or overseas companies registered in the United Kingdom are required by law to provide an address for service of documents. Under the old Companies Act 1985, this had to be the officer’s home address. Under the new legislation, officers may apply to keep this information off the public record, but, in addition to a “service address” which goes on the public record, they are still required to provide a residential address to the company for whom they act and the Registrar of Companies at Companies House.

 1.       General Legal Position

The common law position is that a contract may only be amended in accordance with its terms and conditions and or/the consent of both parties. 

Not every change however will require consent for example:

• Where the change which an employer is seeking to make does not actually affect the contract of employment.

• Where the contract of employment itself authorises the change which the employer wants to make.

The written contract of employment does not exist in isolation: 

1.     Implied terms

Many terms are not expressed in contracts but are implied into the contract by either common law or statute.  Employers need to be aware of the main implied terms to draft effective contracts, make appropriate management decisions and ensure they do not act in a way which may destroy the working relationship.

There are various categories of implied terms. 

As a preliminary point, it is worth briefly discussing what a contract is. A contract is an agreement which gives rise to legally enforceable obligations for the parties to it.

A contract is formed when an offer containing the basic terms of the agreement is made by one party and in response the other party accepts the exact terms of that offer with no variation. Such acceptance must be final, unqualified and communicated to the offeror.  However, a contract will not be formed unless there is consideration and intention to create legal relations. There will be consideration providing the promisee gives or promises something in exchange.

By virtue of section 1 of the Employment Rights Act 1996 (“ERA”), an employer is obliged to provide an employee with a statement of minimum terms which apply to the employment.  This is often referred to as a “section 1 statement”.  Sometimes, such a statement is used while a more detailed and tailored contract of employment is being drawn up. 

What is Chancel Repair Liability?

Chancel repair liability dates back to medieval times, when every parish had its own rector. The rector enjoyed certain proprietary rights, including a right to profits from parish land and tithes.  Repairs to the chancel (or eastern end of the church) were the rector’s responsibility and the rector would pay for these repairs using the income from parish land and tithes.

 1.            GENERAL INTRODUCTION

Compared with the United States, where there is no requirement for a written or verbal contract of employment and employers and employees can terminate the employment relationship at any time, for any lawful reason, and without notice; the laws governing recruitment and termination of employees in England and Wales may seem onerous.  However, compared with some other countries in Europe, hiring and firing employees in England and Wales is relatively straightforward.  There is no doubt, however, that the laws of the European Community are bringing the countries of Europe ever closer.  This article reviews the different factors to consider when hiring and firing employees in England and Wales.

This note looks at ordinary paternity leave and pay which was originally introduced in April 2003 and are contained in the Paternity and Adoption Leave Regulations. Going forward the Work and Families Act 2006 provides for a new right to additional paternity leave and pay. There has been some delay in this new rights coming into force and much debate over the practicalities of dealing with the right and how employees can prove their entitlement to such. The right to additional paternity leave and pay will affect parents of babies due on or after 3 April 2011 or who are notified of having been matched with a child on or after 3 April 2011.