Employee restrictive covenants

An issue which is always contentious is an employer’s ability to impose and enforce restrictions on former employees working in competition after they have moved on. It tends to be a fight between whether the restrictions amount to reasonable measures to protect the employer’s business or unreasonable restrictions preventing the employee from working elsewhere. With the prospect of expensive court action hanging over the parties it can sometimes turn into a game of bluff and counter bluff! I have noticed an interesting recent decision of the High Court in a case called Patsystems Holding Ltd v Neilly.  The Court confirmed that the reasonableness of a restrictive covenant must be judged at the time it was entered into, not at the time when the employer sought to enforce it. A subsequent change of circumstances, such as a promotion, will not turn an invalid covenant into a valid one. This gives a strong warning to employers to review restrictive covenants, particularly when an employee is promoted. Ideally, the employer should seek fresh acceptance of a covenant if circumstances have changed, either by fresh agreement to the covenant or by asking the employee to sign a new contract containing the covenant. The employment team at Tolhurst Fisher is happy to assist with drafting restrictive covenants or advising employees whether they can be avoided. Contact us on www.tolhurstfisher.com.

 

Employers beware – new compulsory pension rules will effect you!

It is strange that at a time when the country’s priority should be to create and retain jobs the burden placed on employers shows no sign of reducing. The latest challenge relates to pension auto-enrolment. The new rules provide that all employers in Great Britain will be obliged to automatically enrol eligible jobholders into a pension scheme. The new duties will be formally implemented over four years, starting on 1 October, with larger employers being affected before smaller employers and new businesses. Whilst the implementation dates have continued to change I would advise all employers to find out more now so that they know in plenty of time what they will required to do and by when. As the old saying goes – forewarned is forearmed and nowhere does this apply more than in employment law. For advice contact me on nholdcroft@tolhurstfisher.com or our employment team on www.tolhurstfisher.com.

 

National Minimum Wage increases

1^st October 2012 sees increases in the national minimum wage rates for workers aged over 21 (which rises from £6.08 to £6.19 per hour) and apprentices (from £2.60 to £2.65) but with no change for young workers where the rate remains at £3.68 per hour. For more details on Minimum Wage rates and how to enforce your right to them contact our employment team. For more details see www.tolhurstfisher.com

 

Employment Law Changes

The Government seems determined to continue to reduce the remedies available to employees on unfair dismissal. Following on from the increase in the period that an employee has to have been employed before they can pursue a claim (increased from 1 year to 2 years) Business Secretary Vince Cable has now announced consultation papers covering proposed new employment tribunal rules, a reduction to the cap on unfair dismissal awards, and measures to encourage the use of compromise agreements (to be called "settlement agreements") to assist the smooth termination of employment. In times of change it is essential that if you have a problem you seek help from an employment specialist. For help for employees or employers feel free to e mail me on nholdcroft@tolhurstfisher.com or to take a look at our website www.tolhurstfisher.com for details of the range of employment support we provide.

Conveyancing Quality Scheme

Tolhurst Fisher's decision to implement the Conveyancing Quality Scheme has been vindicated by the recent decision by Santander to require solicitors acting on it's behalf to be members of the scheme. Senior conveyancing partner Aidan O'Donoghue has taken responsibility for monitoring the scheme and ensuring that all staff operate within it's requirements.We have always prided ourselves on the quality of the conveyancing service provided to our clients and  the scheme provides an excellent form of external quality control.For any advice on buying or selling residential properties contact Aidan on "aodonoghue@tolhurstfisher.com" or Charles Latham on "clatham@tolhurstfisher.com" who will be delighted to deal with your query or refer you to another member of our established team.

120th Anniversary Charity Ball

To mark Tolhurst Fisher's 120th Anniversary we decided to hold a charity ball in aid of HARP (the Homeless Action Resource Project) which is based in Southend, and The Yvonne Jean Steward Charitable Trust which is based in Hatfield Peveral and provides important support to cancer victims. The event took place at Stockbrook Manor last Friday night and was a great evening with significant funds being raised for these 2 important funds. Thanks to all those who supported and here's to the next 120 years!