Running your business
Running your business
When you are running your business, you want to be focused on the things that make you money, and not worrying about non-core functions such as legal. That being said having an understanding is key.
This section covers a number of different legal matters that might come up while you are running your business.
Hiring & Managing Employees
Software Development Agreement
What is it?
Freelancer Agreement
Internship Agreement
What is it?
Staff Handbook
What is it?
Job description
What is it?
Job offer letter
Non-executive director letter of appointment
Senior employment contract
Zero hours contract
Consultancy agreement
Employment contract
Change to employment terms letter
What is it?
As an employer sometimes you may have business reasons that means you need to change your employees terms and conditions of employment (eg basic rate, overtime, bonus, working location, duties and responsibilities, hours/days of work, holiday or sick pay entitlement). This is called a “variation” of the contracts of employment.
Why is it important?
You can only do this if (a) you have a provision in the contract that allows the change. This clause is usually called a “flexibility clause” and may be in your contract or Company Handbook. (b) the employees agree the change or (c) the employees representative eg a Trade Union agrees the change.
Risks
You must have sound business reasons for making any change and follow a fair consultation procedure with your employees before you introduce the changes. If the employees do not agree the change and you believe that it is a reasonable change you can force a new contract on your employees. However, this should be used only as a last resort as it could lead to an employee raising a grievance and ultimately a claim to an Employment Tribunal. Once the change has been agreed you should ensure that each employee signs the new contract to confirm the employee has accepted the change and that you keep a copy.
Please contact our employment solicitors if you are thinking of making a change to your employment contracts.
Working time directive opt out letter
What is it?
Probation letter
What is it?
Flexible working request
What is it?
Grievance letter
What is it?
A grievance is a concern, problem or complaint raised by an employee in the workplace about their work, their manager, other staff member or the workplace. It could be about the employee’s pay and benefits, work conditions, workload, bullying or harassment. There is no legally binding process that an employer must follow when handling a grievance at work. However, it is best practice as an employer to have a grievance procedure.
Why is it important?
A grievance procedure is one of the ways to resolve a problem at work. This procedure can be set out in the employment contract, company handbook, HR intranet site or in your Human Resources manual.
Risks
If you do not have a grievance procedure you should ensure that you follow the Acas Code of Practice on Disciplinary and Grievance procedures if an employee comes to you with a grievance.
When an employee raises a workplace grievance you must take them seriously. Whether or not the grievance is valid you must investigate the grievance as it could be having a negative effect on the staff concerned and may lead to disgruntled staff and loss of valuable staff. Having an informal chat when an employee comes to you with an issue may be all that is needed. If the chat does not resolve the problem, you must investigate the problem .An employee should not be dismissed or treated unfairly for raising a genuine grievance.
An employee who is disadvantaged or dismissed for raising a grievance can raise a claim in the Employment Tribunal for unfair dismissal or automatic unfair dismissal. An employee would usually be expected to lodge a grievance before claiming constructive dismissal otherwise any damages awarded the employee at the Employment Tribunal could be reduced.
Avoid grievances in your workplace by contacting Pure Business law, your expert employment lawyers.
Managing licenses
Running an online business
Protecting your IP
Business Relationships
Writing a business plan
HR Policies
At risk of redundancy letter
What is it?
Dismissal for redundancy letter
What is it?
Invitation to a redundancy appeal meeting
What is it?
Redundancy consultation letter
What is it?
Protecting your IP
At risk of redundancy letter
What is it?
Dismissal for redundancy letter
What is it?
Invitation to a redundancy appeal meeting
What is it?
Redundancy consultation letter
What is it?
Business Relationships
Software Development Agreement
What is it?
Freelancer Agreement
Internship Agreement
What is it?
Staff Handbook
What is it?
Job description
What is it?
Job offer letter
Non-executive director letter of appointment
Senior employment contract
Zero hours contract
Consultancy agreement
Employment contract
Change to employment terms letter
What is it?
As an employer sometimes you may have business reasons that means you need to change your employees terms and conditions of employment (eg basic rate, overtime, bonus, working location, duties and responsibilities, hours/days of work, holiday or sick pay entitlement). This is called a “variation” of the contracts of employment.
Why is it important?
You can only do this if (a) you have a provision in the contract that allows the change. This clause is usually called a “flexibility clause” and may be in your contract or Company Handbook. (b) the employees agree the change or (c) the employees representative eg a Trade Union agrees the change.
Risks
You must have sound business reasons for making any change and follow a fair consultation procedure with your employees before you introduce the changes. If the employees do not agree the change and you believe that it is a reasonable change you can force a new contract on your employees. However, this should be used only as a last resort as it could lead to an employee raising a grievance and ultimately a claim to an Employment Tribunal. Once the change has been agreed you should ensure that each employee signs the new contract to confirm the employee has accepted the change and that you keep a copy.
Please contact our employment solicitors if you are thinking of making a change to your employment contracts.
Working time directive opt out letter
What is it?
Probation letter
What is it?
Flexible working request
What is it?
Grievance letter
What is it?
A grievance is a concern, problem or complaint raised by an employee in the workplace about their work, their manager, other staff member or the workplace. It could be about the employee’s pay and benefits, work conditions, workload, bullying or harassment. There is no legally binding process that an employer must follow when handling a grievance at work. However, it is best practice as an employer to have a grievance procedure.
Why is it important?
A grievance procedure is one of the ways to resolve a problem at work. This procedure can be set out in the employment contract, company handbook, HR intranet site or in your Human Resources manual.
Risks
If you do not have a grievance procedure you should ensure that you follow the Acas Code of Practice on Disciplinary and Grievance procedures if an employee comes to you with a grievance.
When an employee raises a workplace grievance you must take them seriously. Whether or not the grievance is valid you must investigate the grievance as it could be having a negative effect on the staff concerned and may lead to disgruntled staff and loss of valuable staff. Having an informal chat when an employee comes to you with an issue may be all that is needed. If the chat does not resolve the problem, you must investigate the problem .An employee should not be dismissed or treated unfairly for raising a genuine grievance.
An employee who is disadvantaged or dismissed for raising a grievance can raise a claim in the Employment Tribunal for unfair dismissal or automatic unfair dismissal. An employee would usually be expected to lodge a grievance before claiming constructive dismissal otherwise any damages awarded the employee at the Employment Tribunal could be reduced.
Avoid grievances in your workplace by contacting Pure Business law, your expert employment lawyers.
Managing licenses
Running an online business
Protecting your IP
Business Relationships
Writing a business plan
Running an online business
Letter ending a contract
- The letter contains a clear description of the reasons for the termination of the contract.
- The date of termination is mentioned.
- The letter thanks the other party for their services.
Our contract solicitors can provide you with a bespoke letter for a reasonable fixed fee that you can use to cancel a contract or agreement.
Letter assigning a contract
What is it?
Transferring a contract from one party to another is known as ‘assigning’ a contract or ‘an assignment’ of the contract. An assignment ends one party’s involvement in the contract and transfers their contractual rights, benefits and interests to a new party.
Risks
Some contracts may contain a clause prohibiting assignment; other contracts may require the other party to consent to the assignment. Unless assignment is prohibited in a contract, a party may assign their rights to third party without the consent of the other party to the agreement. A letter of assignment is used to effect the assignment and will be signed by the outgoing party and the incoming party.
Buying & Selling Goods & Services
Notice of breach of covenants
What is it?
This is popularly called a Section 146 Notice (it is a notice required to be served by section 146 of the Law of Property Act 1925 and relates solely to business tenants) that warns a tenant who is in breach of covenant (other than the covenant to pay rent) of the landlord’s intention to forfeit the lease on ground of the breach of covenant.
Why is it important?
“Forfeiture” is the right of the landlord to re-enter the commercial property and take back possession of the property if a covenant has been breached.
For the notice to be valid and binding the notice must specify the breach of covenant and if the breach is capable of remedy , require the tenant to remedy it and pay monetary compensation to the landlord for the breach.
A landlord can only serve such a notice if the lease contains a right to forfeit the lease (i.e. a right of re-entry). The notice must also contain certain prescribed information. If the tenant does not remedy the breach within a reasonable time the landlord can start forfeiture proceedings in the County Court.
Risks
A landlord who wants to forfeit the lease must avoid “waiving” the breach of covenant. Waiver occurs where a landlord becomes aware of a breach of the lease but does not take action against the tenant within a reasonable period or acknowledges the continuation of the lease by for example demanding rent or service charges or accepting rent payments from the tenant.
Break notice
What is it?
Break Notices are akin to options and are therefore strictly construed by the courts . From the tenant’s perspective, a properly drafted Break Clause gives them the opportunity to avoid being tied into a lease that they can no longer afford. This is a safety-net for a tenant – especially if they are just starting out.
Understandably though, a landlord who is receiving a steady rental income may be reluctant to lose a tenant, particularly in tough economic times.
Risks
Any tenant seeking to exercise the option to break the lease must check the lease carefully and ensure they follow the landlord’s “break clause conditions” to the letter. It is crucial when taking a lease that a tenant understands that the conditions of the Break Clause can easily defeat an option to break unless followed to the letter. If the conditions are not strictly followed the termination is not valid and the tenant remains a lessee until the expiry of the lease, the next break clause date or until the tenant is able to assign the lease with the landlord’s consent if there is such a provision in the lease.
A properly advised tenant should refuse any condition, other than up-to date payment of principal rent and giving up occupation.
Tenant's agreement to exclude security of tenure
What is it?
The Landlord and Tenant Act 1954 provides tenants of business premises with rights of ‘security of tenure’. This means that once a business tenant’s lease expires, the tenant has the right to request a new lease on the same terms as the previous lease (subject to agreement on terms, such as the amount of rent, any legislative updates etc), except where the landlord has a statutory ground to refuse a new lease (for instance, if the tenant has failed to pay rent or the landlord wishes to redevelop the premises).
Why is it important?
When agreeing to enter into a commercial or business lease, one of the things that will be discussed when agreeing Heads of Terms is whether your lease will be ‘protected’ with security of tenure, or ‘contracted out’ i.e. excluded’ from security of tenure. It is quite common for landlords to require that security of tenure rights are excluded from a lease. They do this by asking the prospective tenant to sign a notice in front of an independent solicitor agreeing to the exclusion of security of tenure under the lease.
Risks
This notice means that a tenant of commercial premises will not have the automatic right to request a renewal of their lease at the end of the term of the lease, leaving the landlord free to let the property to another tenant at the end of the term. This is because landlords often wish to retain strict control over the occupation of their property. If security of tenure is excluded, you the tenant, must vacate the property at the end of the lease in accordance with its terms unless you have negotiated a new lease with the landlord separately.
Landlord's notice to exclude security of tenure
Section 25 Notice
What is it?
This is a notice by the landlord under s25 of the Landlord and Tenant Act 1954.
Why is it important?
It allows the landlord to start a procedure which will end either in the tenant being granted a new lease or in the tenant vacating. This notice cannot be given before the last year of the lease terms nor after the tenant has served a request for a new tenancy under s26 of the Act.
Risks
The s25 notice must state the date on which the landlord intends to bring the existing lease to an end.
Section 26 Notice
What is it?
This is a notice given by the tenant requesting a new tenancy upon the termination of the old tenancy.
Why is it important?
The s26 request must specify the date on which the existing lease is to end.
Risks
This notice cannot be served before the last year of the agreed lease term nor can it be served after the landlord has served a s25 notice.
Licence for alterations
What is it?
This is a licence from the landlord to the tenant giving the tenant the right to carry out specific works or alterations to the property that is being let. The alterations may be major or minor.
Why is it important?
The Licence should include provisions as to the manner in which the tenant will carry out the works, timescales, reinstatement and (to the extent applicable) the Construction (Design and Management) Regulations 2015. Drawings and specifications showing the proposed works should be attached to the Licence so that it is clear what the landlord is consenting to.
If the proposed alterations are not substantial (e.g. the erection of demountable partitioning or signage) you can use a simple Letter- Licence to Alter.
Section 27 Notice
What is it?
Managing licenses
Running an online business
Protecting your IP
Business Relationships
Writing a business plan
Managing a company
Software Development Agreement
What is it?
Freelancer Agreement
Internship Agreement
What is it?
Staff Handbook
What is it?
Job description
What is it?
Job offer letter
Non-executive director letter of appointment
Senior employment contract
Zero hours contract
Consultancy agreement
Employment contract
Change to employment terms letter
What is it?
As an employer sometimes you may have business reasons that means you need to change your employees terms and conditions of employment (eg basic rate, overtime, bonus, working location, duties and responsibilities, hours/days of work, holiday or sick pay entitlement). This is called a “variation” of the contracts of employment.
Why is it important?
You can only do this if (a) you have a provision in the contract that allows the change. This clause is usually called a “flexibility clause” and may be in your contract or Company Handbook. (b) the employees agree the change or (c) the employees representative eg a Trade Union agrees the change.
Risks
You must have sound business reasons for making any change and follow a fair consultation procedure with your employees before you introduce the changes. If the employees do not agree the change and you believe that it is a reasonable change you can force a new contract on your employees. However, this should be used only as a last resort as it could lead to an employee raising a grievance and ultimately a claim to an Employment Tribunal. Once the change has been agreed you should ensure that each employee signs the new contract to confirm the employee has accepted the change and that you keep a copy.
Please contact our employment solicitors if you are thinking of making a change to your employment contracts.
Working time directive opt out letter
What is it?
Probation letter
What is it?
Flexible working request
What is it?
Grievance letter
What is it?
A grievance is a concern, problem or complaint raised by an employee in the workplace about their work, their manager, other staff member or the workplace. It could be about the employee’s pay and benefits, work conditions, workload, bullying or harassment. There is no legally binding process that an employer must follow when handling a grievance at work. However, it is best practice as an employer to have a grievance procedure.
Why is it important?
A grievance procedure is one of the ways to resolve a problem at work. This procedure can be set out in the employment contract, company handbook, HR intranet site or in your Human Resources manual.
Risks
If you do not have a grievance procedure you should ensure that you follow the Acas Code of Practice on Disciplinary and Grievance procedures if an employee comes to you with a grievance.
When an employee raises a workplace grievance you must take them seriously. Whether or not the grievance is valid you must investigate the grievance as it could be having a negative effect on the staff concerned and may lead to disgruntled staff and loss of valuable staff. Having an informal chat when an employee comes to you with an issue may be all that is needed. If the chat does not resolve the problem, you must investigate the problem .An employee should not be dismissed or treated unfairly for raising a genuine grievance.
An employee who is disadvantaged or dismissed for raising a grievance can raise a claim in the Employment Tribunal for unfair dismissal or automatic unfair dismissal. An employee would usually be expected to lodge a grievance before claiming constructive dismissal otherwise any damages awarded the employee at the Employment Tribunal could be reduced.
Avoid grievances in your workplace by contacting Pure Business law, your expert employment lawyers.
Managing licenses
Running an online business
Protecting your IP
Business Relationships
Writing a business plan
Settlement agreements & Ref
Settlement agreement
What is it?
A Settlement Agreement is a binding contract between an employer and employee which settles claims that an employee may have against their employer. Whilst such an agreement is usually used in relation to be ending the employment it may also be used to settle a dispute that has arisen between an employer and employee where there is no intention by either party to end the employment.
Why is it important?
The terms of the settlement agreement must be mutually agreed between the employer and employee and must include a waiver of the specific claims which the employee has or could have. The agreement should contain a breakdown of the payments which have been agreed and should also state whether any of the payments are to be paid to the employee free of tax. Payments of up to £30k compensation can often be paid without deduction of tax if the payment is being made on an “ex gratia basis” (i.e. it is a payment you have voluntarily decided to make rather than one that you are legally obliged to make) or as compensation damages for a breach of contract.
Risks?
For a settlement agreement to be legally binding it must meet a number of statutory requirements eg it must be in writing, must specify the particular claims or complaints which the agreement is settling and the employee must have received advice on the terms and effect of the agreement from an independent solicitor or a trade union official whose advice is covered by insurance.
If the settlement agreement does not meet all of the statutory requirements, it will not be binding and the employee can still bring claims against the employer relating to the claims allegedly “settled” by the settlement agreement.It is a good idea to take proper legal advice before you decide to enter into a settlement agreement.
Reference letter
What is it?
A Reference letter is a letter that is usually written to testify to a person’s or (sometimes) a company’s skills, experience, character and or achievements. It is used in various circumstances eg when a candidate applies for a job and needs a reference to support their application, if a job candidate is made a job offer and is asked to provide a reference letter before the contract can be signed, a landlord asks a prospective tenant to provide a reference letter testifying to their character and good financial statues, a student applies for funding and is asked to provide a reference letter or a company applies for a tender and is asked to provide reference letters testifying to their ability to do the job and their trustworthiness.
Why is it important?
A Reference letter is a formal document and should be written in a business-like style. Do not mention any weaknesses that the candidate has or say anything that could be construed as derogatory or libel. If you honestly feel that the applicant has no good qualities or if you have had a dispute with them in the past you should tell them to get a reference letter from someone else. An employer must give a reference if there was a written agreement to do so and they are in a regulated industry such as Financial services.
Risks
You are under no obligation to give a work reference but if you do it must be fair and accurate. Your employee may be able to sue you in court and claim damages if you give a reference, they think is misleading or unfair. To do so the employee must be able to show that (a ) the reference is misleading or inaccurate and (b) they suffered a loss eg a job offer was withdrawn.It is essential that you do not lie in it or you could be sued.
Need some advice? Contact our employment solicitors.
Commercial notices
Settlement agreement
What is it?
A Settlement Agreement is a binding contract between an employer and employee which settles claims that an employee may have against their employer. Whilst such an agreement is usually used in relation to be ending the employment it may also be used to settle a dispute that has arisen between an employer and employee where there is no intention by either party to end the employment.
Why is it important?
The terms of the settlement agreement must be mutually agreed between the employer and employee and must include a waiver of the specific claims which the employee has or could have. The agreement should contain a breakdown of the payments which have been agreed and should also state whether any of the payments are to be paid to the employee free of tax. Payments of up to £30k compensation can often be paid without deduction of tax if the payment is being made on an “ex gratia basis” (i.e. it is a payment you have voluntarily decided to make rather than one that you are legally obliged to make) or as compensation damages for a breach of contract.
Risks?
For a settlement agreement to be legally binding it must meet a number of statutory requirements eg it must be in writing, must specify the particular claims or complaints which the agreement is settling and the employee must have received advice on the terms and effect of the agreement from an independent solicitor or a trade union official whose advice is covered by insurance.
If the settlement agreement does not meet all of the statutory requirements, it will not be binding and the employee can still bring claims against the employer relating to the claims allegedly “settled” by the settlement agreement.It is a good idea to take proper legal advice before you decide to enter into a settlement agreement.
Reference letter
What is it?
A Reference letter is a letter that is usually written to testify to a person’s or (sometimes) a company’s skills, experience, character and or achievements. It is used in various circumstances eg when a candidate applies for a job and needs a reference to support their application, if a job candidate is made a job offer and is asked to provide a reference letter before the contract can be signed, a landlord asks a prospective tenant to provide a reference letter testifying to their character and good financial statues, a student applies for funding and is asked to provide a reference letter or a company applies for a tender and is asked to provide reference letters testifying to their ability to do the job and their trustworthiness.
Why is it important?
A Reference letter is a formal document and should be written in a business-like style. Do not mention any weaknesses that the candidate has or say anything that could be construed as derogatory or libel. If you honestly feel that the applicant has no good qualities or if you have had a dispute with them in the past you should tell them to get a reference letter from someone else. An employer must give a reference if there was a written agreement to do so and they are in a regulated industry such as Financial services.
Risks
You are under no obligation to give a work reference but if you do it must be fair and accurate. Your employee may be able to sue you in court and claim damages if you give a reference, they think is misleading or unfair. To do so the employee must be able to show that (a ) the reference is misleading or inaccurate and (b) they suffered a loss eg a job offer was withdrawn.It is essential that you do not lie in it or you could be sued.
Need some advice? Contact our employment solicitors.
Letting a commercial property
At risk of redundancy letter
What is it?
Dismissal for redundancy letter
What is it?
Invitation to a redundancy appeal meeting
What is it?
Redundancy consultation letter
What is it?
Sale and Purchase of Commerial Property
Letter ending a contract
- The letter contains a clear description of the reasons for the termination of the contract.
- The date of termination is mentioned.
- The letter thanks the other party for their services.
Our contract solicitors can provide you with a bespoke letter for a reasonable fixed fee that you can use to cancel a contract or agreement.
Letter assigning a contract
What is it?
Transferring a contract from one party to another is known as ‘assigning’ a contract or ‘an assignment’ of the contract. An assignment ends one party’s involvement in the contract and transfers their contractual rights, benefits and interests to a new party.
Risks
Some contracts may contain a clause prohibiting assignment; other contracts may require the other party to consent to the assignment. Unless assignment is prohibited in a contract, a party may assign their rights to third party without the consent of the other party to the agreement. A letter of assignment is used to effect the assignment and will be signed by the outgoing party and the incoming party.
Buying & Selling a business
Settlement agreement
What is it?
A Settlement Agreement is a binding contract between an employer and employee which settles claims that an employee may have against their employer. Whilst such an agreement is usually used in relation to be ending the employment it may also be used to settle a dispute that has arisen between an employer and employee where there is no intention by either party to end the employment.
Why is it important?
The terms of the settlement agreement must be mutually agreed between the employer and employee and must include a waiver of the specific claims which the employee has or could have. The agreement should contain a breakdown of the payments which have been agreed and should also state whether any of the payments are to be paid to the employee free of tax. Payments of up to £30k compensation can often be paid without deduction of tax if the payment is being made on an “ex gratia basis” (i.e. it is a payment you have voluntarily decided to make rather than one that you are legally obliged to make) or as compensation damages for a breach of contract.
Risks?
For a settlement agreement to be legally binding it must meet a number of statutory requirements eg it must be in writing, must specify the particular claims or complaints which the agreement is settling and the employee must have received advice on the terms and effect of the agreement from an independent solicitor or a trade union official whose advice is covered by insurance.
If the settlement agreement does not meet all of the statutory requirements, it will not be binding and the employee can still bring claims against the employer relating to the claims allegedly “settled” by the settlement agreement.It is a good idea to take proper legal advice before you decide to enter into a settlement agreement.
Reference letter
What is it?
A Reference letter is a letter that is usually written to testify to a person’s or (sometimes) a company’s skills, experience, character and or achievements. It is used in various circumstances eg when a candidate applies for a job and needs a reference to support their application, if a job candidate is made a job offer and is asked to provide a reference letter before the contract can be signed, a landlord asks a prospective tenant to provide a reference letter testifying to their character and good financial statues, a student applies for funding and is asked to provide a reference letter or a company applies for a tender and is asked to provide reference letters testifying to their ability to do the job and their trustworthiness.
Why is it important?
A Reference letter is a formal document and should be written in a business-like style. Do not mention any weaknesses that the candidate has or say anything that could be construed as derogatory or libel. If you honestly feel that the applicant has no good qualities or if you have had a dispute with them in the past you should tell them to get a reference letter from someone else. An employer must give a reference if there was a written agreement to do so and they are in a regulated industry such as Financial services.
Risks
You are under no obligation to give a work reference but if you do it must be fair and accurate. Your employee may be able to sue you in court and claim damages if you give a reference, they think is misleading or unfair. To do so the employee must be able to show that (a ) the reference is misleading or inaccurate and (b) they suffered a loss eg a job offer was withdrawn.It is essential that you do not lie in it or you could be sued.
Need some advice? Contact our employment solicitors.
Operating as a Sole Trader
Letter ending a contract
- The letter contains a clear description of the reasons for the termination of the contract.
- The date of termination is mentioned.
- The letter thanks the other party for their services.
Our contract solicitors can provide you with a bespoke letter for a reasonable fixed fee that you can use to cancel a contract or agreement.
Letter assigning a contract
What is it?
Transferring a contract from one party to another is known as ‘assigning’ a contract or ‘an assignment’ of the contract. An assignment ends one party’s involvement in the contract and transfers their contractual rights, benefits and interests to a new party.
Risks
Some contracts may contain a clause prohibiting assignment; other contracts may require the other party to consent to the assignment. Unless assignment is prohibited in a contract, a party may assign their rights to third party without the consent of the other party to the agreement. A letter of assignment is used to effect the assignment and will be signed by the outgoing party and the incoming party.
Ending or Assigning an Existing Agreement
Letter ending a contract
- The letter contains a clear description of the reasons for the termination of the contract.
- The date of termination is mentioned.
- The letter thanks the other party for their services.
Our contract solicitors can provide you with a bespoke letter for a reasonable fixed fee that you can use to cancel a contract or agreement.
Letter assigning a contract
What is it?
Transferring a contract from one party to another is known as ‘assigning’ a contract or ‘an assignment’ of the contract. An assignment ends one party’s involvement in the contract and transfers their contractual rights, benefits and interests to a new party.
Risks
Some contracts may contain a clause prohibiting assignment; other contracts may require the other party to consent to the assignment. Unless assignment is prohibited in a contract, a party may assign their rights to third party without the consent of the other party to the agreement. A letter of assignment is used to effect the assignment and will be signed by the outgoing party and the incoming party.
Health & Safety
Settlement agreement
What is it?
A Settlement Agreement is a binding contract between an employer and employee which settles claims that an employee may have against their employer. Whilst such an agreement is usually used in relation to be ending the employment it may also be used to settle a dispute that has arisen between an employer and employee where there is no intention by either party to end the employment.
Why is it important?
The terms of the settlement agreement must be mutually agreed between the employer and employee and must include a waiver of the specific claims which the employee has or could have. The agreement should contain a breakdown of the payments which have been agreed and should also state whether any of the payments are to be paid to the employee free of tax. Payments of up to £30k compensation can often be paid without deduction of tax if the payment is being made on an “ex gratia basis” (i.e. it is a payment you have voluntarily decided to make rather than one that you are legally obliged to make) or as compensation damages for a breach of contract.
Risks?
For a settlement agreement to be legally binding it must meet a number of statutory requirements eg it must be in writing, must specify the particular claims or complaints which the agreement is settling and the employee must have received advice on the terms and effect of the agreement from an independent solicitor or a trade union official whose advice is covered by insurance.
If the settlement agreement does not meet all of the statutory requirements, it will not be binding and the employee can still bring claims against the employer relating to the claims allegedly “settled” by the settlement agreement.It is a good idea to take proper legal advice before you decide to enter into a settlement agreement.
Reference letter
What is it?
A Reference letter is a letter that is usually written to testify to a person’s or (sometimes) a company’s skills, experience, character and or achievements. It is used in various circumstances eg when a candidate applies for a job and needs a reference to support their application, if a job candidate is made a job offer and is asked to provide a reference letter before the contract can be signed, a landlord asks a prospective tenant to provide a reference letter testifying to their character and good financial statues, a student applies for funding and is asked to provide a reference letter or a company applies for a tender and is asked to provide reference letters testifying to their ability to do the job and their trustworthiness.
Why is it important?
A Reference letter is a formal document and should be written in a business-like style. Do not mention any weaknesses that the candidate has or say anything that could be construed as derogatory or libel. If you honestly feel that the applicant has no good qualities or if you have had a dispute with them in the past you should tell them to get a reference letter from someone else. An employer must give a reference if there was a written agreement to do so and they are in a regulated industry such as Financial services.
Risks
You are under no obligation to give a work reference but if you do it must be fair and accurate. Your employee may be able to sue you in court and claim damages if you give a reference, they think is misleading or unfair. To do so the employee must be able to show that (a ) the reference is misleading or inaccurate and (b) they suffered a loss eg a job offer was withdrawn.It is essential that you do not lie in it or you could be sued.
Need some advice? Contact our employment solicitors.
Planning & Highways
Software Development Agreement
What is it?
Freelancer Agreement
Internship Agreement
What is it?
Staff Handbook
What is it?
Job description
What is it?
Job offer letter
Non-executive director letter of appointment
Senior employment contract
Zero hours contract
Consultancy agreement
Employment contract
Change to employment terms letter
What is it?
As an employer sometimes you may have business reasons that means you need to change your employees terms and conditions of employment (eg basic rate, overtime, bonus, working location, duties and responsibilities, hours/days of work, holiday or sick pay entitlement). This is called a “variation” of the contracts of employment.
Why is it important?
You can only do this if (a) you have a provision in the contract that allows the change. This clause is usually called a “flexibility clause” and may be in your contract or Company Handbook. (b) the employees agree the change or (c) the employees representative eg a Trade Union agrees the change.
Risks
You must have sound business reasons for making any change and follow a fair consultation procedure with your employees before you introduce the changes. If the employees do not agree the change and you believe that it is a reasonable change you can force a new contract on your employees. However, this should be used only as a last resort as it could lead to an employee raising a grievance and ultimately a claim to an Employment Tribunal. Once the change has been agreed you should ensure that each employee signs the new contract to confirm the employee has accepted the change and that you keep a copy.
Please contact our employment solicitors if you are thinking of making a change to your employment contracts.
Working time directive opt out letter
What is it?
Probation letter
What is it?
Flexible working request
What is it?
Grievance letter
What is it?
A grievance is a concern, problem or complaint raised by an employee in the workplace about their work, their manager, other staff member or the workplace. It could be about the employee’s pay and benefits, work conditions, workload, bullying or harassment. There is no legally binding process that an employer must follow when handling a grievance at work. However, it is best practice as an employer to have a grievance procedure.
Why is it important?
A grievance procedure is one of the ways to resolve a problem at work. This procedure can be set out in the employment contract, company handbook, HR intranet site or in your Human Resources manual.
Risks
If you do not have a grievance procedure you should ensure that you follow the Acas Code of Practice on Disciplinary and Grievance procedures if an employee comes to you with a grievance.
When an employee raises a workplace grievance you must take them seriously. Whether or not the grievance is valid you must investigate the grievance as it could be having a negative effect on the staff concerned and may lead to disgruntled staff and loss of valuable staff. Having an informal chat when an employee comes to you with an issue may be all that is needed. If the chat does not resolve the problem, you must investigate the problem .An employee should not be dismissed or treated unfairly for raising a genuine grievance.
An employee who is disadvantaged or dismissed for raising a grievance can raise a claim in the Employment Tribunal for unfair dismissal or automatic unfair dismissal. An employee would usually be expected to lodge a grievance before claiming constructive dismissal otherwise any damages awarded the employee at the Employment Tribunal could be reduced.
Avoid grievances in your workplace by contacting Pure Business law, your expert employment lawyers.
Managing licenses
Running an online business
Protecting your IP
Business Relationships
Writing a business plan
Managing employee performance
At risk of redundancy letter
What is it?
Dismissal for redundancy letter
What is it?
Invitation to a redundancy appeal meeting
What is it?
Redundancy consultation letter
What is it?
Reorganisation & Redundancies
At risk of redundancy letter
What is it?
Dismissal for redundancy letter
What is it?
Invitation to a redundancy appeal meeting
What is it?
Redundancy consultation letter
What is it?