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IR35 – what is changing and what you need to do
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 24 July 2019

The government is committed to cracking down on disguised employment. In order to achieve this, the IR35 rules will change from April 2020. The IR35 rules apply where contractors personally provide services via an intermediary. However, if the contractor is directly engaged, they would be considered an employee or office holder for tax purposes. The changes will also apply to more complex labour chains, so an early understanding of the labour supply chain is critical.

The art of the (settlement) deal
RPC
  • Litigation
  • United Kingdom
  • 23 July 2019

According to the Court of Appeal, giving up a right which a debtor does not even know it has is sufficient consideration for settling a debt. However, the vexed question of what amounts to 'good' consideration remains uncertain enough for those entering into a contract to always consider whether good consideration has been given. Among other things, parties should consider whether good consideration has been provided and, if there is any doubt, pay the contractual counterparty a nominal amount.

Voluntary overtime must be included in holiday pay if sufficiently regular and settled
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 17 July 2019

The Court of Appeal recently confirmed that the EU Working Time Directive requires voluntary overtime to be included in holiday pay if it is sufficiently regular and settled to amount to normal remuneration. This ruling is in line with other recent cases which have covered what should be considered when calculating holiday pay. It provides clear authority that employers should include sufficiently regular and settled voluntary overtime in their holiday pay calculations.

Agent's failure to disclose relevant information: a 'Gauguin-tuan' error?
RPC
  • Litigation
  • United Kingdom
  • 16 July 2019

In a recent decision concerning the sale of a Gauguin painting, the Court of Appeal confirmed that if an agent sells a principal's property and fails to disclose to the principal that it received a higher offer for the property, it will not lose its commission unless it acted dishonestly or in bad faith. As such, agents should be careful to pass relevant information to their principal, particularly if they are under a contractual obligation to do so.

Failing to enhance pay for shared parental leave is not sex discrimination
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 10 July 2019

In an emphatic judgment, the Court of Appeal has ruled that it is not direct discrimination, indirect discrimination or a breach of equal pay rights to provide enhanced pay for maternity leave and statutory pay only for shared parental leave (SPL). This judgment is good news for employers, as it sends a clear message that it is lawful to enhance maternity pay but provide statutory pay only for SPL.

Collision of legal duties, family loyalties and unreliable truth
RPC
  • Litigation
  • United Kingdom
  • 09 July 2019

In a case which has attracted public, press and legal attention, the High Court recently found that the directors of a family-run business should have ensured that the company's interests took precedence over any personal and private loyalties felt towards their family members where those competing interests came into conflict. The court's findings offer a number of helpful reminders of crucial considerations for both businesspeople and legal professionals.

Judge rules that parties cannot be forced to engage in ADR procedures
Forsters LLP
  • Private Client & Offshore Services
  • United Kingdom
  • 04 July 2019

The High Court recently ruled that parties cannot be ordered to engage in early neutral evaluation or financial dispute resolution procedures where one party objects to doing so. The case in question centred on a claim brought by a widow under the Inheritance (Provision for Family and Dependants) Act against her late husband's estate and two lifetime trusts. The claimant sought variation of the trusts in order to meet her reasonable needs, but her stepson strongly resisted her claim.

Employee ordered to pay more than £500,000 in legal costs in breach of restrictive covenants and data privacy case
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 03 July 2019

Following a trial in the High Court where an employer was awarded final injunctions to prohibit a former employee from breaching post-termination restrictions, the losing employee was ordered to pay 90% of his former employer's legal bill. This is a useful decision for employers, as it demonstrates that a reasonable and proportionate email trawl need not infringe an employee's privacy rights.

Serving up the truth, the whole truth and nothing but the truth?
RPC
  • Litigation
  • United Kingdom
  • 02 July 2019

The High Court has issued a reminder that the duty of full and frank disclosure applies to any application made without notice to the other party. Although this is most typically an issue in applications for injunctions, permission to serve a claim out of the jurisdiction was recently set aside on the grounds of the claimant's failure to disclose to the court a potential limitation defence to the claim.

Inheritance in the 21st century
Forsters LLP
  • Private Client & Offshore Services
  • United Kingdom
  • 27 June 2019

When planning for the transfer of wealth to the next generation, families and their advisers must consider the context in which it will take place. On current trends, planning for changes of domicile and to counter both electronic security risks and bouts of mental illness are likely only to increase in future importance.

What expenditure falls within 'ordinary and proper course of business' exception in freezing orders?
RPC
  • Litigation
  • United Kingdom
  • 25 June 2019

The costs of pursuing related arbitration proceedings and fighting extradition proceedings could be costs incurred in the 'ordinary and proper course of business' according to a recent Court of Appeal decision. In terms of arbitration expenditure, the decision illustrates that where the proposed expenditure or transaction is complex, the court may not be in a position to make the factual findings necessary for it to authorise the expenditure in advance.

International aspects to a nuptial agreement
Forsters LLP
  • Private Client & Offshore Services
  • United Kingdom
  • 20 June 2019

When one or both parties to a marriage have a connection with another country in addition to England and Wales, there are international considerations and implications to take into account when considering a nuptial agreement. This could be because of where they live, their domicile or nationality or where their assets are based. Among other things, couples should consider where an agreement should be drawn up and whether an English nuptial agreement will be upheld abroad.

Court of Appeal rules on liability of overseas co-workers for whistleblowing
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 19 June 2019

In an unusual case of whistleblowing detriment brought by an overseas employee against two co-workers (also based overseas), the Court of Appeal has ruled that the employment tribunal in question had no jurisdiction to hear the claim in relation to personal liability of the co-workers because they were outside the scope of UK employment law. The decision may have implications for other types of claim brought by employees posted overseas where similar personal liability provisions apply.

Court of Appeal makes rare order for rectification, with interesting consequences…
RPC
  • Litigation
  • United Kingdom
  • 18 June 2019

The Court of Appeal has ordered rectification resulting in one party being in breach of warranty and liable to pay damages. It is rare for the court to order rectification as it is often difficult to satisfy the test to do so. This case serves as a welcome reminder that the court is willing to order rectification to prevent one party from seeking to take advantage of a situation when a mistake is discovered.

Worldwide freezing orders upheld in multinational shipping fraud case
Wikborg Rein
  • Shipping & Transport
  • United Kingdom
  • 12 June 2019

The High Court recently upheld two worldwide freezing orders in a multinational shipping fraud case were upheld, rejecting the defendant's allegations of breaches of full and frank disclosure. Among other things, the judgment is a useful confirmation and strengthening of the standing of intermediary charterers to sue for the full value of the hire in circumstances where the claimant's ultimate loss may be substantially lower.

Managing supply chain risk in franchise systems – proposed changes to insolvency regime
Fieldfisher LLP
  • Franchising
  • United Kingdom
  • 11 June 2019

Against the backdrop of a number of high-profile business failures in the UK retail sector, the government has issued a report on the insolvency regime, which will affect the operation of termination rights in supply agreements. This article considers the proposals and provides a best practice recommendation for recovering goods in the possession of a franchisee once they have entered some form of insolvency protection.

Court of Appeal upholds decision on importance of industry standard documents in conflicting jurisdiction clauses
RPC
  • Litigation
  • United Kingdom
  • 11 June 2019

The Court of Appeal recently upheld a High Court decision highlighting the risk that English and Italian courts may reach different decisions on the underlying factual background of related disputes even where the disputes could be said to fall under different agreements. The decision clarifies that the English courts put the certainty of industry standard documentation first when determining the applicable jurisdiction.

Good Work Plan – first steps down the path
Lewis Silkin
  • Employment & Benefits
  • United Kingdom
  • 05 June 2019

In December 2018, following Matthew Taylor's extensive review of modern employment practices, the government unveiled its Good Work Plan, which set out a long list of proposals. The employment law reforms mapped out by the government are still in their infancy, but this is a good moment to reflect on where things stand and what lies ahead.

How are foreign states' decisions on EU directives recognised in English courts?
RPC
  • Litigation
  • United Kingdom
  • 04 June 2019

The High Court recently struck out a claim by the beneficial owner of certain notes that had sought a declaration that an event of default had occurred. The case illustrates how administrative decisions in a foreign state in relation to EU directives are recognised in the English courts and the reluctance of courts to make decisions based on the anticipated outcome of foreign proceedings.

Court grants third party access to confidential arbitration documents for disciplinary proceedings against arbitrator
Clifford Chance
  • Arbitration & ADR
  • United Kingdom
  • 30 May 2019

A recent High Court decision concerning access to confidential documents illustrates the limits to the implied duty of confidentiality arising out of arbitration proceedings in English law. While the court was supportive of the general principle that arbitration proceedings are to be treated as confidential, it also demonstrated its willingness to depart from this general principle should one of the identified exceptions apply.

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