Employment Law Changes – Are You Ready?

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From 6th April 2020 all new employees, but also workers/joiners to a company, will have the right to a written statement of terms on or before the first day of employment, whereas it is currently for employees only and within two months of employment starting. This change has been brought about by an amendment to the Employment Rights Act 1996 as a result of the introduction of The Employment Rights (Employment Particulars and Paid Annual Leave)(Amendment) Regulations 2018.

Do you know what needs to be included in a written statement of terms? It does not necessarily have to be a formal contract of employment but there is prescribed information that must be provided, much sooner than previously and now to workers as well as employees.

There is a right for employees and workers to bring Employment Tribunal claims if the organisation engaging them fails to do this.

The Government has said that the intention is to ensure that workers can access fair and decent work, that both employers and workers have clarity on the employment relationship, and that the enforcement system is fair and fit for purpose. Above all, the direction of travel is to protect vulnerable workers and improve workers’ understanding of their rights.

The best way to ensure compliance is to have a properly drafted contract of employment that is ready to pass to a worker or employee at the latest on the day they start work. If you ask us to prepare the contract we can include all the requirements and information that an employer is obliged to give. The new Regulations include additional information that must now be provided. For example, probationary period details and days of the week worked must be provided for those starting work after 6th April.

There is information that the Regulations state the employer can choose whether to put in the main written statement of terms (contract) or in “reasonably accessible document(s)” but the following information must be provided:-

  • Terms for absence due to incapacity and sickness and the position regarding sick pay.
  • The notice periods for termination.
  • Information relating to grievances and disciplinary.
  • Terms relating to pensions and pension schemes.

Even if there is not a legal requirement to contain certain information in the written statement of terms it may be advisable to have additional terms to protect your business, for example post termination restrictions.

Contact us to arrange an appointment with Jenny Carpenter, specialist employment solicitor and partner to discuss your requirements.

Where There’s A Will There’s A Relative!

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Making a Will is a wise and important thing to do. You will have peace of mind knowing that your estate (that is, everything you own) will pass to your chosen beneficiaries.

Without a Will, your estate could pass to relatives you have not seen for years.

However, some people chose not to include a member of family in their Will. This may be a child or sibling and could be for a number of reasons, for example, a falling out or estrangement and even though most people would like to think that the relative would not try to contest the Will, there is always a risk that the relative could claim under the Inheritance (Provision for Family and Dependants) Act 1975 and if this happens then dealing with your estate can be lengthy, complex and expensive.

If you have a reason for leaving a relative out of your Will then we strongly recommend that you leave a personal letter with your Will explaining the reason why you have not included this particular person (or persons). You will not be around to explain why and a personal letter would help against any potential claim.

Warning about new housing estates, management charges and administration fees.

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Buying a property on a new estate? Be wary of the estate management charges and administration fees.

If you are considering purchasing a property on a newly built estate, you should carefully consider the estate management fees being charged by managing agents for maintaining communal facilities and areas on the estate as well as administration fees for providing information to buyer’s when you sell the property. This area of housing is currently unregulated and in many cases disproportionate or unreasonable fees are being charged to property owners.

More frequently, developments are being built where roads, footpaths and communal areas and facilities remain private. This arrangement is agreed between the developer and the local authority and, as all responsibility and costs for maintenance of these areas sit with the developer and not the local authority, this benefits the developer in obtaining the grant of planning permission for their developments. The developer employs a managing agent to carry out the repairs and maintenance to communal areas and facilities on the estate and the costs of this are recouped from all of the property owners.

Whilst the importance of the communal areas and facilities being maintained is acknowledged, the issue appears to be that property owners have little involvement in deciding which contractors undertake the work, the extent of the work undertaken or is required and that there is little incentive for the managing agents to keep the costs of the work to a minimum. Currently, property owners have little or no recourse if they are unhappy with the level of the estate management charge being demanded from them.

Similarly, when a property on an estate which has privately maintained areas is sold, typically the buyer’s solicitor will ask for information about the estate management charges, what areas or functions they cover and for any registration requirements of the managing agents for acknowledging the transfer of property ownership. More often than not, managing agents are charging excessively high administration fees for providing this, often, standard information. As the buyer’s solicitor needs to know this information, sellers are finding themselves feeling forced to pay it.

Below is a list of questions you may wish to ask when looking at properties on a newly built estate so that you can make a better informed decision whether you want to buy there:

  • What communal areas and facilities are on the estate and whether or not these are or will be adopted?
  • Whether a managing agent has been appointed or is intended to be appointed?
  • What will the managing agent be responsible for?
  • What are the likely costs for each property owner?
  • Is it anticipated these costs will rise significantly?
  • What costs do the managing agents charge for providing a ‘sales pack’ when a property on the estate is sold?

The Freehold Properties (Management Charges and Shared Facilities) Bill was proposed to introduce a cap on estate management fees and allow property owners the opportunity to self-manage communal areas as resident groups; however, the bill did not successfully pass through Parliament and so this issue remains unregulated.

What can a landlord do where a former tenant’s belongings are left at the premises?

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It is question that I am often asked and can cause landlords more difficulties and time having already, on some occasions, gone through the difficult procedure in getting a tenant to leave their premises in the first place.

Landlords are often faced with the issue of how to deal with belongings left behind by their former tenants at the end of their tenancies. The risk to the landlord of disposing of items of obvious rubbish may be small, especially where a tenant has vacated voluntarily at the end of the term or surrender their tenancy. There may, however, be a greater risk in either of the following situations:

  • Where larger or more valuable items are left behind.
  • Where the landlord has forfeited a lease or enforced a possession order.

A tenant is generally obliged to remove their goods from the premises at the end of the term. A lease or tenancy agreement will often expressly oblige the tenant to remove any goods at the end of the term. Some leases will also clarify what the landlord can do with any goods that may be left on the premises at the end of the term.

If goods are left on the premises once the lease has come to an end, however it ends, the items remain the former tenant’s property. The exception to this is where the former tenant has abandoned his/her belongings. In the absence of express terms in a lease, the landlord is left with the problem of deciding what to do with these.

If the tenant has moved out and abandoned the goods, the landlord will usually be free to deal with those goods as it sees fit. If the former tenant has not abandoned the goods, however, the retention and sale or disposal of the goods by the landlord may give the tenant grounds for bringing a claim against the landlord.

A useful tool for the landlord to use is to serve a notice under the Torts (Interference with Goods) Act 1977 (“TIGA”). This imposes an obligation to collect the goods on the owner by giving notice and gives the person in possession the right to sell the goods if they are not collected.

The content of a notice would include that the goods are ready to collect, address as to where the goods are held and what amount if any are due to the landlord for storing the goods. If the tenant fails to respond or refuses to collect the goods then the Landlord can give a further notice of their intention to sell the goods under section 12(3) of the TIGA 1977. This notice would set out similar details as the first notice and include the date on or after which the landlord intends to sell the goods.

With both notices the landlord must give a reasonable opportunity to collect the goods. What is reasonable will depend on the circumstances of each case.

For more information and advice on this and how this may affect you please contact Anton Bilinski who is able to guide you through this and act for you when a landlord or tenant dispute arises.

Anton Bilinski
Chartered Legal Executive
Litigation Department

Who To Appoint As Executors Under Your Will.

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When making a Will you should consider carefully the right Executor to appoint as the role of an Executor carries important legal duties and responsibilities.

It is an Executor’s duty to administer the estate in accordance with the terms of the Will and in accordance with the law. Executors are personally liable for their errors or omissions. It is therefore extremely important you appoint somebody that you trust to carry out this role efficiently and responsibly. You can appoint an individual such as your spouse/partner, a family member or even a close friend.

You may however not wish to put this responsibility on an individual. You are therefore able to appoint professional Executors such as solicitors.

Dealing with the death of a loved one is a difficult time at best. Unfortunately it can also release underlying tensions and resentments between friends and even family members. By appointing a professional Executor such as Adams Harrison this would minimise any disputes that can arise.

Sadly, some Wills are challenged, especially where one beneficiary benefits more than others. Allegations of undue influence or lack of capacity can arise in these cases. By appointing Adams Harrison as Executors, your estate has a professional on hand who can rebut such allegations and robustly defend your last wishes.

If you wish to discuss making a Will or you require any further advice on this, please contact our Wills, Estates and Trust Team.

Leanne Mayes   Legal Executive

Early Neutral Evaluation: Another Victory for Alternative Dispute Resolution

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Following the Woolf Reforms in April 1999 with the replacement of the Civil Procedure Rules (CPR) meant that prospective litigants were to make every effort to settle their differences via pre-action protocols with the intention of avoiding Court proceedings.

The most common aspect of ADR was mediation. Whilst CPR required the Court to manage cases actively by encouraging each party to use ADR the rules fell short of making ADR mandatory. However the risks of costs penalties that likely befall those who ignore such offers of ADR were sufficient to bring them into line. Even if you are successful, an unreasonable refusal to mediate would impact upon your cost recovery.

On the 1st October 2015 the CPR concerning the court’s powers of case management were amended to ‘any other step or make any other order for the purpose of managing the case and furthering the overriding objective including hearing an Early Neutral Evaluation (ENE) with the aim of helping the parties settle the case’

Early Neutral Evaluation is an alternative dispute resolution procedure whereby the parties agree to submit their dispute to an independent third-party expert to provide a preliminary view on the merits of the parties’ respective positions.

The evaluation is not binding on the parties unless the parties elect for it to be and is entirely without prejudice. The process is particularly useful where the parties have very differing views of the prospects of success and perhaps an inadequate understanding of the risks of litigation itself.

Until now it has not been clear whether the court could impose ENE on the parties without their consent. In Lomax v Lomax, decided on 20 May 2019, Parker J held that it could not. She held, “on the finest of fine balances”, that she could not order an ENE essentially because the Rules were not clear when one party had not consented to ENE.

The Court of Appeal set aside Parker J’s decision on 6 August 2019. In the leading judgment Moylan LJ’s view on the words “encouraging” and “facilitating” in CPR 1.4(2)(e) did not lead to the implication that consent was required nor was there any limitation on the court’s power to order an ENE hearing to the effect that the agreement or consent of the parties was required.

The decision by the Court of Appeal in Lomax v Lomax has given the court more power in directing ADR no matter how entrenched each party may appear to be.

ENE can be an effective means of dispute resolution to get a practical view of the merits of each parties respective positions without spending large amounts on litigation.

Anton Bilinski
Legal Executive

Wills for Second Marriages

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There are a large number of people who have been married more than once and who have children from previous marriages or relationships.

It is important to understand how the law works if you die without leaving a Will in this situation. A marriage automatically revokes any existing Will unless that Will was made in contemplation of marriage.

If you remarry and do not remake a Will, when you die leaving this second spouse and children from a previous relationship and perhaps children from the current marriage; your estate will be distributed under the Intestacy Rules. Your new spouse will inherit the first £250,000 of your estate. The remaining value of your estate is then split into two. The new spouse will inherit the first share outright and the second share will pass to your children equally.

Depending on the value of your estate, your new spouse could potentially inherit the whole of your estate with nothing passing to your children.

You must review your circumstances and make a Will after re-marriage or in contemplation of that marriage.

You should also consider that if you and your new spouse make mirror image Wills, there is nothing to stop your spouse from changing their Will at any time after your death.

To protect your children you could consider including a trust in your Will. There are various types of trust; in particular, a life interest trust or right of residence. This allows for your new spouse to benefit from the trust assets during their lifetime, but after their death, the assets can pass to your children. This ring fences the assets in the trust from your spouse’s assets so that the trust assets cannot be given away under their Will.

The usual asset to place in such a trust is your share of your property. It is important that if you own the property jointly that you hold as tenants in common. This means that both owners have their own individual share in the property which would pass under the terms of their respective Wills rather than pass automatically by survivorship to the surviving spouse.

Our will writing team can provide guidance, explaining how to ensure that you provide for your loved ones after your death.

Sarah Bruce
Legal Executive Wills Trust & Probate

Discrimination Claims Against Employers.

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It is the Equality Act 2010 that establishes the ability to bring action for unlawful discrimination. It is only in relation to a “protected characteristic” that action can be brought. The reason for the unfavourable treatment/discrimination must be due to a “protected characteristic” for the individual to be afforded protection under the act. So what is a “protected characteristic”? The Act dictates that the following are:-

  • Age
  • Disability
  • Gender reassignment
  • Marriage and Civil partnership
  • Pregnancy and maternity
  • Race
  • Religion or belief
  • Sex
  • Sexual orientation

Each protected characteristic has a statutory definition under the Act and therefore must be looked at carefully before unlawful discrimination can be established. Interpreting the meaning of each protected characteristic gives rise to various case law.

A recent case heard by an Employment Tribunal on 10th September 2019 (Conisbee v Crossley Farms Ltd and others) held that vegetarianism was not a “belief” qualifying for protection under the Act. Mr Conisbee alleged that he had suffered discrimination on the ground of religion or belief, his belief being vegetarianism. The Employment Tribunal held that although his belief was genuinely held and was worthy of respect in democratic society it failed to meet the other legal hurdles for protection under the Act. In their judgement the Tribunal ruled that it did not have a similar status or cogency to religious beliefs.

This decision does not have to be followed by other Tribunals in the future but is an interesting approach to what amounts to a “belief” for the purpose of the Equality Act 2010.

Who is protected? Under the Act there is a wide range of potential claimants for discrimination claims. This includes the following:-

  • Employees
  • Job applicants
  • Contract Workers
  • Agency Workers
  • The police
  • Individuals in a business partnership

If you consider you have suffered unlawful discrimination then please seek our advice. Do not delay. There are strict time limits for bringing a claim to an Employment Tribunal, whereby claims must be brought within three months of the date the discrimination occurred.

Jennifer Carpenter
Employment Specialist solicitor

Prescriptive Easements: What Are They?

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A prescriptive easement is a legal right enjoyed over another’s freehold property and which is obtained through long use. It is similar to adverse possession, but in this case relates to a right to use another person’s property in a particular way rather than claiming ownership of the land. The long use is combined with a belief (often a fallacy) that the right was originally granted in a deed.

More…

Chartered Legal Executive Cathy Buck. Adams Harrison Haverhill office

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    Tenant Fees Act 2019

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    The Tenant Fees Act 2019 came into force on 1st June 2019.

    Its provisions apply with immediate effect to all tenancies created on or after the 1st June 2019 (assured and assured shorthold tenancies including student lettings) and will apply to all other existing assured and assured shorthold tenancies from the 1st June 2020. The prohibitions apply to arrangements with a tenant, the tenant’s guarantor and a person acting on behalf of the tenant

    The Act permits a landlord only to charge the tenant for the following under the terms of an assured/assured shorthold tenancy:

    • Rent;
    • A tenancy deposit which is capped to 5 weeks’ rent if the annual rent is £50,000 per annum or less and up to 6 weeks’ rent of the annual rent exceeds £50,000.
    • Holding deposit (capped at 1 week’s rent) to reserve a property before the grant of a tenancy;
    • Event of a default. Payments for loss of keys or other security devices or failure to pay rent on time or other breach of the tenancy. For failure to pay on time, the sums recoverable are limited to interest on the late payment of rent and the rent has to have been outstanding for 14 days or more for the interest to become due;
    • Payment for the variation, assignment or novation of the tenancy (but this is capped at £50 or reasonable costs);
    • Payment on early termination of the tenancy (eg surrender fee);
    • Council tax (and other utilities);
    • TV licence;
    • Telecoms.

    Landlords and letting agents cannot require tenants to make any payment that is not a permitted payment. Prohibited payments include:

    • Tenancy set up fees;
    • Viewing fees;
    • Credit check fees;
    • Inventory check fees;
    • Check out fees;
    • Fees for professional cleaning services.

    Trading Standards is the enforcement authority for the prohibitions applying to landlords and letting agents and repayment obligations in relation to holding deposits. An enforcement authority can impose a financial penalty and require a landlord or letting agent to repay the tenant or relevant person any outstanding prohibited payment or holding deposit plus interest. The Act also makes provision for the tenant or relevant person to recover unlawfully charged fees from the First-tier Tribunal.

    It is important to note that a section 21 notice cannot be given to recover possession of the property until the landlord has repaid any unlawfully charged fees or unlawfully retained holding deposit.

    If you are unsure or require further advice on these changes and how they can affect you please contact Anton Bilinski who is able to guide you through these changes and act for you when a landlord or tenant dispute arises.

    Anton Bilinski
    Legal Executive
    Litigation Department