Category: News & Views
Employee vs. Self-Employed: How to Check?
It is not uncommon for a business to sponsor students to advance their training, particularly where there is an expectation (or commitment) that the student will work for the company at the end of the course. An Employment Appeal Tribunal (EAT) decision has confirmed that these type of arrangements are unlikely to be considered to be contracts of employment if the primary purpose of the arrangement is training and education.
In this case, the EAT had to consider whether a contract to sponsor a former apprentice during a university degree was a contract of employment entitling him to claim unfair dismissal, or a contract which would not give him statutory employment rights. The EAT held that there was no dismissal when the sponsor refused him full-time employment following his withdrawal from the degree.
This checklist explains the significance of the distinction between an employee, a worker and a self-employed contractor. It also sets out the factors that will be considered by an employment tribunal when deciding whether an individual is an employee or self-employed.
Discrimination in the work place
An NHS Trust and three senior employees have been ordered to pay £4.5 million in compensation to a female obstetrician.
The obstetrician was subjected to harassment, criticism, false allegations and “a lengthy and wholly unauthorised period of suspension” before disciplinary proceedings began, culminating in her dismissal.
The award was made up of £1.1 million for loss of past and future earnings, £600,000 for loss of pension, damages for injury to feelings and exemplary damages against the Trust. It is thought to be the largest award in a UK discrimination case.
This checklist sets out the different types of discrimination that can occur within the workplace and highlights practical steps businesses can take to help avoid breaching discrimination and harassment law.
Break Clauses in Commercial Leases
A recent High Court decision will have implications for tenants who are considering exercising a break clause in an existing lease. The court held that a tenant owed default interest on late payments under a lease, even though the landlord had not issued any demand for default interest.
This checklist highlights the practical issues a tenant should consider before exercising a break clause.
VAT Returns Online
The government has confirmed that, subject to two exceptions, mandatory online filing of VAT returns will be extended from 1 April 2012. Currently, only businesses with an annual turnover of £100,000 or more must file VAT returns online. All VAT registered businesses will now need to file VAT returns online for VAT accounting periods beginning on or after 1 April 2012.
Effective Restrictive Covenants in Employment Contracts
A High Court decision illustrates the importance to employers of having effective restrictive covenants, appropriately drafted to an employee’s role, to protect their business. The restrictive covenant in this case stated:
“During your employment with Customer Systems (CS) and for a period of one year afterwards you undertake not to be employed directly or indirectly by any present or past customer of CS with which you have been personally involved in the course of your employment by CS.”
This checklist explains what restrictive covenants are, when they are likely to be enforceable and how they can be used in employment contracts to protect your business’ interests.
Online Reviews of Consumer Businesses
Online reviews are now widely used by many businesses and there are concerns that non-genuine reviews, particularly those from competitors, are misleading consumers and can cause damage to businesses.
This checklist sets out how your business can comply with its obligations under consumer protection legislation.
Remedies for Breach of Contract
The Court of Appeal has provided a useful practical illustration of the difference between the rescission of a contract and its discharge by breach, and the impact the distinction can have on the amount of damages that a claimant can recover.
The court held that rescission was unavailable when a seller failed to comply with his contractual obligations to lay new, separately metered, electricity and mains water supplies to a property within six months after completion. However, the buyer was entitled to accept the seller’s repudiatory breach and treat the contract as at an end. The buyer was entitled to recover damages for the losses he had suffered as a result of the seller’s breaches, but was not entitled to be put back in the position he would have been in, had the contract never been entered into.
This checklist sets out the main remedies available to your business for breach of contract.
After The Event (ATE) Insurance
The Senior Courts Costs Office has held that an after the event (ATE) insurance premium of more than £9 million was recoverable in full from the defendants in the Trafigura litigation. The decision establishes that the principles governing the recoverability of ATE premiums apply regardless of the sums involved.
This checklist explains what after the event (ATE) insurance is and highlights its main advantages and disadvantages for your business.
Dismissing an Employee
The Court of Appeal has confirmed that an employer’s unambiguous notice of
termination can rarely be withdrawn. An employee will be able to take the
notice at face value, unless the employer can show that it did not intend to
terminate the contract. The decision highlights the serious consequences for
employers of proceeding on the basis of a misunderstanding with employees.
This briefing provides a timely reminder for employers wishing to dismiss an employee.
Intellectual Property Rights (IPR)
Businesses may be interested in a number of recently-launched intellectual property (IP) initiatives. The government has announced that it will be introducing a new small-claims service for IP cases in the Patents County Court. The new process will limit fixed costs and allow damages of up to £5,000 for each case. The Intellectual Property Office (IPO) estimates that around 150 firms will benefit from the service every year.
This checklist highlights the key IP rights businesses need to be aware of.
Settling Commercial Disputes
A company had appointed a contractor to carry out works to a listed Victorian manor house. The parties could not agree the sum due to the contractor and the parties each commenced proceedings. Following an exchange of written settlement offers between the parties’ solicitors, the parties’ managing directors spoke by telephone to try to settle the dispute. After the conversation, the contractor asserted that the parties had reached a binding settlement, but the company denied this. The court ruled that, as a result of the conversation, the parties had orally agreed that the company would pay the contractor £275,000 in full and final settlement.
This checklist highlights the factors a business should consider when it is thinking of settling a commercial dispute.

