My UK-based company has overseas subsidiaries. One recently went bust .The subsidiary was involved in a case and was ordered to pay compensation to a former employee. As it went bust the compensation wasn’t paid. The former employee is now looking to take action against us in the UK stating that we are responsible for the subsidiary. Can he do this? There are two separate business entities in the UK and abroad Each company has its own distinct legal personality. This means that each is solely responsible for its own actions. Therefore, any liability incurred is limited to that company.…
There are several different types of retention of title clauses. Each type is designed to cover a different situation or set of circumstances. Here are the main types : Basic – The seller retains ownership of the goods until the buyer has paid for them in full All monies – The seller retains ownership of the goods until the buyer has paid for them in full and fulfilled any obligations surrounding their sale that have been previously agreed with the seller Proceeds of sale – This clause gives the seller rights over the proceeds of the sale of their goods…
If one of your employees resigns, you need to establish the actual date of resignation as well as the effective termination date. Request that your employee confirms their decision to resign in writing and includes both dates in their letter of resignation. You should then acknowledge that letter and ensure that the notice period is clearly set out in your reply. You also need to understand why your employee is resigning. Doing so will help you to improve and refine your company’s procedures and policies. It is important to be professional when handling a resignation because this enhances a company’s…
Many employers do not realise that making someone redundant is a form of dismissal. If you are making someone redundant, you must bear this in mind – it is very important to be fair and follow the proper procedures. Doing so will ensure that you avoid being taken to any tribunal claims. An employee is considered dismissed because of redundancy if they lose their job for one of the following reasons: The fact the employer is changing where they do business Because the employer intends to cease or has ceased to continue trading in the business for which the employee…
When dealing with part-time workers it is important to be aware of your legal obligations. Our Your Responsibilities guide will tell you the basics and reading the following page will help too. It is vital that you treat your part time workers fairly. By law, you have to treat them the same way you do your full-time workers. Part time workers rights include the following: A pay rate that is equal to your other employees Full access to maternity and sick pay The right to join the occupational pension scheme The right to be selected for redundancy The right to…
The term ‘distance selling’ covers selling goods and services by mail order, online, via the phone or on digital TV. For this kind of business, two types of consumer laws need to be adhered to: Regular consumer protection laws that apply to those who sell goods to private consumers rather than just to other businesses. These laws have to be adhered to no matter what method is used to sell and deliver the goods and services. For more guidance about this set of laws, see our Sale of Goods and Services section. Consumer protection laws that only apply to goods…
It is important to understand the basics of what a contract is and how to create one if you want to: Avoid unintentionally creating a contract that is not legally binding Create contracts that are legally binding In order for a contract to be legally binding there must be: An offer made by one of the parties Consideration of the offer Acceptance of that offer by the other party The intention to create a legal relationship There is a more detailed explanation of the key elements of a contract available in our Commercial Contracts – essential elements, section. Reading the…
Practical guidance on submitting applications to the European Court of Human Rights. Bringing an application to Strasbourg is not an easy one to navigate, and you may need help. Often procedural mistakes are made which will prevent the court from even considering an application. However, even where this is not the case, a poorly presented application will not do justice to an applicant’s complaints and a failure to follow the correct procedures will result in increased delay. To apply, or not to apply This means answering the following questions: A •Is the applicant a victim of the alleged violation? B…
This article first appeared in the solicitors Journal on 5th November 2013 and is reproduced with their kind permission Magnus Hassett looks at the forthcoming changes to the rules on recovery of commercial rent arrears, the introduction of a period of temporary rates relief for empty new build commercial property, and HMRC’s recent clarification of last year’s VAT changes, affecting landlords who let out property for storage purposes The common law remedy of distraint for arrears of rent will finally be abolished on 6 April 2014, when the commercial rent arrears recovery procedure, originally proposed by the Tribunal Courts and…
Any business that trades overseas has to take account of international rules and regulations. They also have to deal with many practical and financial issues that are unique to those specific countries. The following two types of trade are categorised as international trading: The situation where the supplier and customer are located in different countries Where goods or services are exchanged or traded across one or more international borders To find out more about trading internationally read our Basic Considerations – International Trading guide. You can also get more tailored advice by speaking to a Hylton Potts legal advisor on…
