It is vital to get the balance right when trying to protect your business by subjecting employees to restrictive covenants. If the conditions are not strict enough, they may not prevent the employee setting up a rival enterprise or helping a rival firm; if they are too strict, they may not be enforceable, as in
The growing problem of late payment is threatening the survival of many SMEs, according to new research. The credit reference agency Graydon UK, working in conjunction with the Forum of Private Business, surveyed 500 small firms across the UK. The responses showed that 16% had almost been put out of business as a result of
Businesses need to take great care when taking over a lease on commercial property from another firm. They may find that they don’t automatically inherit all the entitlements that were granted to the original leaseholder. The issue arose recently in a case involving a company called Gemini Press Ltd. It took over a lease which
Handing over a family business to the next generation may seem straightforward but it can create unforeseen problems. In fact, succession plans involving family members may contain more risks than handovers involving complete strangers. With strangers, people tend to be cautious and get legal advice; with family they often rely on goodwill and a muddle
Landlords risk losing hundreds of thousands of pounds if they fail to consult tenants properly over service charges. In a recent case, Daejan Investments Ltd had to forfeit £270,000. Now Stenau Properties Ltd have fallen into the same trap. The Landlord and Tenant Act 1985 requires that landlords go through a thorough consultation process before
Changes to employment tribunals designed to save businesses £50m a year and make it easier for them to take on staff have now come into effect. The Government says it has streamlined the system to reduce some of the burden on employers and reduce the number of vexatious claims. The main changes are: The qualifying
The Supreme Court has ruled that an employer can operate a compulsory retirement age if it is “founded on legitimate social policy aims”. The case involved solicitor Leslie Seldon who was a partner at a law firm. In 2006, he was obliged to retire at the age of 65 under provisions contained in the firm’s
People declared bankrupt may have to use some of their untaken pensions to pay their debts, following a High Court ruling. When a person is declared bankrupt, the courts will assess their income and decide how much they can afford to pay their creditors each month, usually for a period of three years until the
It is not unusual for people to sign agreements without being fully aware of how legally binding the document actually is and how much protection it gives them. This can prove costly, as shown in a recent case before the High Court. It involved two businessmen, Karim Dhanani and Serge Crasnianski, who discussed setting up
A director and a shareholder were held to be in contempt of court after selling company assets. The case involved an agency that sold car breakdown policies on behalf of an insurance company. The insurers came to believe that the agency had not accounted fully to it for its premiums and had provided false information.