A settlement agreement is a legally binding, confidential agreement between an employer and an employee to resolve an employment dispute. Often, these agreements involve a financial settlement in exchange for the employee waiving future legal claims. They offer a way to end employment amicably and without the need for lengthy tribunal proceedings.

A Smart Solution for Employers

Kerry Hudson, Employment Solicitors says: “Settlement agreements are a valuable resource for employers seeking to avoid the expense and risks of employment tribunal claims. The focus is now on resolving issues before they escalate, and settlement agreements can save businesses tens of thousands of pounds in legal fees, compensation, and reputational damage.”

Settlement agreements are particularly effective in situations such as redundancy, long-term sickness, personality clashes, or potential misconduct. In these cases, formal processes can be costly, time-consuming, and often end in lengthy litigation. A well-handled settlement agreement can offer a quicker, less stressful alternative.

Employment Tribunals Encourage Early Resolution

Employment tribunals increasingly encourage employers to resolve disputes before they escalate into formal claims. Tribunals may recommend that parties engage in settlement discussions before a hearing begins. Employers who fail to engage in these discussions may be seen as unreasonable, potentially affecting the tribunal’s judgment on costs and outcomes.

Kerry says: “The tribunal system is under significant pressure, and the message from the courts is clear: resolve issues early and amicably whenever possible. A well-managed settlement agreement not only protects your business but also demonstrates fairness and a pragmatic approach to resolving disputes.”

Why Employers Should Consider Settlement Agreements:

• Financial Prudence – Avoid costly legal fees, potential tribunal awards, and reputational damage.
• Certainty & Closure – Settle disputes and close off future legal risks.
• Confidentiality – Protect sensitive business information and preserve brand integrity.
• Efficiency – Resolve disputes quickly and avoid lengthy legal battles.

Legal Guidance Is Essential

It is crucial that settlement agreements are carefully drafted and legally compliant. Employees are entitled to independent legal advice before signing, and it is important that the process is transparent and conducted in good faith. Kerry advises employers to be open to settlement discussions and to approach these conversations professionally, with a clear policy and legal framework in place.

With offices in Coventry, Warwick, Balsall Common and Southam, we offer expert, business-minded legal advice on settlement agreements, employment disputes, and risk management. Our Employment Law team works closely with employers to draft tailored settlement agreements, negotiate terms, and mitigate long-term risk.

Contact us to see how we can assist with your legal employment matters.

The post Urging employers to embrace settlement agreements to resolve workplace disputes appeared first on Brindley Twist Tafft & James.

Should you find yourself in a position in the future where you lack mental capacity for any reason (such as dementia or Alzheimer’s Disease, or you are involved an accident), and you do not have a Lasting Power of Attorney (sometimes known as an LPA) in place, then no one can act on your behalf and make decisions for you.

Unless you have a Lasting Power of Attorney in place, then no one has the legal right to assist you, unless a Court order is applied for and obtained. This is known as a Deputyship Order.

A Deputyship Order is an Order issued by the Court of Protection to appoint someone to act as your Deputy.  The process to obtain such Order is both extremely lengthy and costly and can easily be avoided should you have a Lasting Power of Attorney in place.

Please do not hesitate to contact our friendly Private Client team who will happily talk you through the importance of a Lasting Power of Attorney and assist you (or a loved one) with obtaining the same, if required.

The post What happens if you do not have a Power of Attorney? appeared first on Brindley Twist Tafft & James.

The Covid-19 pandemic still remains somewhat at the forefront of the new legislation, there are a number of key changes, ranging from increases to the national living wage to the enforcement of gender pay gap reporting, that both employers and employees should be aware of, according to Employment Solicitor Kerry Hudson.

Here’s what you need to know.

The main development in the incoming legislation will come in the form of the Employment Bill, which comes into force on the 1^st April introducing a plethora of new workers’ rights, as well as further obligations for employers.

Minimum wage is also set to rise along with other statutory rates, with the national living wage in particular increasing from £8.91 to £9.50. Statutory sick pay is also set to change from next month, rising from £96.35 per week to £99.35 per week. 

From April, organisations with 250 or more employees will also be obligated to publish an annual report containing their gender pay gap data. For public sector employers, the deadline for this will be 30^th March 2022, with a snapshot date of 31^st March 2021, and for private sector employers the deadline is 4^th April 2022, with the subsequent snapshot date being 5^th April 2022.

Also from 5^th April, the Home Office’s adjusted right-to-work checks regime is due to come to an end, meaning that employers will return to conducting full right-to-work checks using original documentation after that date.

Perhaps one of the most crucial forms of legislation that will pass is from 1^st April the current guidance on voluntary Covid-status certification in domestic settings will be removed, meaning there will no longer be a requirement for every employer to explicitly consider Covid-19 in their risk assessments. Free universal symptomatic and asymptomatic testing for the general public will also no longer be provided.

Further regulations set to come into force next month will see vaccinations becoming a legal requirement for health and social care workers in a face-to-face role unless they are exempt on medical grounds.

Further changes in legislation are also set to be put into motion later on this year which will have implications for both employers and employees.

For instance, with flexible working now very much a modus operandi of business life, a recent government consultation has considered making flexible working a default option for employees from day one of employment.

Reforms to the Modern Slavery Act which could force organisations to review their anti-slavery statements and legislation regarding ethnicity and disability equal pay gap reporting and data protection will also come into force over the forthcoming year.

Finally, as employers are under no proactive duty to prevent sexual harassment in the workplace, more onus is set to be placed on employers to avert such occurrences of wrongdoing.

With a host of new employment laws coming into force in the coming weeks it is vital that both employers and employees alike gain a full understanding of the forthcoming legislative changes as they could well bring substantial implications to both entities.

Whilst many of the incoming changes are clear cut, those such as making vaccinations a mandatory requirement for employees in some sectors, bring uncertainty for employees, especially with regards to those who are under employment yet wish to opt out of being vaccinated. A key issue that could potentially arise will be the risk of potential unfair dismissal and discrimination claims against employees who refuse to be vaccinated.

Therefore, if employees or organisations do have any concerns regarding the upcoming legislative changes next month, or those that are set to be put in motion over the coming year, then it is vital that you seek the advice of a professional in order to gain a full understanding of how it might affect you either as an employer or an employee.

Contact us if you require Employment Law advice

The post Employment Law changes from 1st April appeared first on Brindley Twist Tafft & James.

In the case, the Claimant had brought an action against the Defendant as they had a camera on their shed and a doorbell system from a well-established company which links to their smart phone.

It was revealed that the doorbell system showed not only the defendant’s own driveway but also the Claimant’s house and garden whilst the camera placed on the Defendant’s shed was capable of displaying images of the Claimant moving around their property.

It was decided by the Judge that the audio data collected by the devices had been processed unlawfully (although it was not possible to turn off the audio recording facility of the camera until an update for the software became available later).

The Judge stated that “Personal Data may have been captured from people who are not even aware that the device is there, or that it records and processes audio and personal data” and therefore it was a breach of UK data laws.

Although measures may have been taken to try to ensure privacy, the court stated that “If an activation zone is disabled so that the camera does not activate to film by movement in that area, activation by movement in one of the other non-disabled activation zones will cause the camera to film across the whole field of view”.

This decision has made the position very clear, if you are using CCTV then you must take into account and respect the privacy wishes regarding your neighbours and take measures to minimise any surveillance that might affect them.

If you have any concerns or are involved in a dispute with a neighbour over their use of cameras and other recording devices, do not hesitate to contact BTTJ today, our Litigation Team will be happy to help.

The post Development in Data protection law: Is your Neighbour’s doorbell and camera compliant? appeared first on Brindley Twist Tafft & James.

Business

It is important to note that there is a common misconception that a business is a company. A business is the physical trade that is carried out. For example, the supermarket you go for your weekly shop in may be owned and ran by a large company, but the actual business is the selling of items to the public. A business can be owned and ran in a number of different ways Below is a simple guide to some of the options.

Sole trader

A sole trader is simply the businessperson working on their own behalf without any other entity, all of the debts and liabilities for the business will be in their name. meaning that they would have to pay 100% of the monies owed to their creditors potentially putting any assets in their name at risk if they cannot afford to pay the debts that their business incurs including sums owed to any of their employees.

Private company limited by shares

Perhaps the most common and well-known entity in the UK business world. A private company limited by shares (commonly referred to as a limited company), is a structure used by many to limit their liabilities for the debts of their business. The debts, contracts and other potential liabilities would be entered into as the company. The company is treated as a separate legal entity to the people (shareholders) who own the company through its shares. A shareholder is only liable for the face value of their shares, if there is the unfortunate scenario where a company becomes insolvent and wound up, unless a shareholder has personally guaranteed the repayment of a debt or performance of an obligation, they can only be liable for the face value of their shares.

You can own and run a company either on your own or with other people, to see how you can manage your relationship with the other shareholders in your company and their rights please see our article on shareholder agreements here.

Public Companies

Public Listed Companies (or PLC’s) are companies that are listed on the stock market and their shares would be available for sale to the public on those stock markets. The holders of those shares are again only liable for the face value of their shares (even though they may have paid much more to buy their shares). There are specific criteria for a company to be a PLC and it is not likely that a new business would begin as a PLC.

Partnerships

The Partnership Act 1890 governs partnerships, partnerships are formed of more than one person (please note that companies are also considered persons therefore it is possible for companies to be in a partnership) who would share the profits of the business amongst them equally (unless defined in a agreement between them as otherwise), the liability for a partnership is joint and several between the partners meaning that a creditor could begin proceedings against any partner or multiple partners for the sums owed.

If there is no written partnership agreement that specifies otherwise, a partnership may end if a partner dies or becomes unable to manage their own affairs. Partnerships can also be ended by agreement.

 Partners have rights and the relationship between business partners can sometimes be difficult for more information on this and how you can seek to regulate that relationship please read our article on partnership disputes here

Limited Liability Partnerships

The Limited Liability Partnership (“LLP”) is a concept created in 2000 in the “Limited Liability Partnership Act” to answer a call to encourage entrepreneurism and new ideas. The LLP model is very popular amongst law firms (both domestic and international) and accountancy practices.

A limited liability partnership is separate to the law of partnerships, it is governed by its act of parliament. The partnership will not be dissolved if a member (commonly known as partner) dies or is deemed insane and incapable of managing their own affairs.

Each LLP is effectively unique, the relationship between the members and how they operate is set out in an agreement which is private to each LLP and is not required to be published at Companies House. The members of an LLP are required to contribute to the assets of an LLP if it should be wound up, but they are not liable for the debts of the LLP should it not be able to pay all of its debts.

For further Commercial advice, whether a new business or established, please contact our experienced Corporate Team

* this guide concerns only the legal side of potential ways a person may structure and control the risks of going into business. There are, of course, tax ramifications for each of the options above which you are strongly advised to seek professional advice on before choosing.

The post Going into business for yourself? How do you structure your step forward into the world of business? appeared first on Brindley Twist Tafft & James.

What is a shareholder?

A shareholder is someone who has purchased and owns a share (or shares) in a company (this can be either a Private Limited Company or a Public Listed Company). This is a type of investment with a value which may go up or down dependant on multiple factors, the issue of shares in a company can be for numerous reasons one of these is to raise money for the company to use.

What are their rights?

Share ownership can (but not always) involve the following rights:

1. right to vote (on matters at general meetings or written resolutions)
2. rights to dividends (paid out of profits the company makes)
3. rights to distributions (if the assets of the company are divided up amongst the shareholders when the company is wound up, this allows the shareholder to receive something)
4. right to be redeemed. (This is where the company can repurchase the shares from the holder on a specified date or after an event

Are these rights always applicable?

No, a company may issue numerous classes of share with differing rights. In some cases, as part of using the shares to raise funds, companies choose to issue shares with no right to vote (or limited rights to vote) and in some cases without the right to a dividend. rights to redeeming shares are also used in specific circumstances.

Next time you are looking at your shares in a company, take a few minutes to look into what your shares allow you to do. And if you are wanting to issue shares with different rights for your company, please contact our Corporate Department to discuss. We love to help businesses grow!

The post Shares and shareholders. What are your rights? appeared first on Brindley Twist Tafft & James.

Both family relationships and finances have become more complicated in our society, and end-of-life plans can seem overwhelming as a result, even for younger people.

But a few simple steps can ensure all your wishes are respected and disruption to your family and friends is minimised at an incredibly difficult time.

We explain below why end-of-life planning is not just preparing a will.

A will is an incredibly important and prudent step for peace of mind, but it is only one aspect of end-of-life planning.

Establishing a lasting power of attorney (LPA), life insurances, pensions, care plans, and funeral arrangements are often overlooked but are vital considerations.”

Will

Simply put, a will is a legal document that tells everyone what you want to happen to your ‘estate’ – a term that encompasses your money, possessions, and property – after you die.

A will prevents your family or friends from suffering unnecessary stress and upheaval during a difficult period, especially if you have children or other family who depend on you financially.

Wills are becoming more complex as people make money younger than in the past, have more assets, and more complicated family structures.

If you do not have a will when you die, your money, property, and possessions will be shared out according to UK law instead of your express wishes. This means your estate could go to someone you did not want it to, while a loved one you wanted to benefit ends up with nothing.

And remember – home-made, free or cheap wills do not always ensure your wishes are protected and could result in unnecessary legal challenges.

Lasting Power of Attorney (LPA)

A LPA is a legal document that lets you appoint one or more people (known as an ‘attorney’) to help make decisions on your behalf, if you cannot make those decisions yourself.

It will help your loved ones substantially if you were to suffer an accident or illness and cannot make your own decisions – a situation where you either ‘lack mental capacity’ or are physically unwell.

A LPA lasts for the rest of your life, so once it has been arranged you can enjoy peace of mind. BTTJ stores clients’ LPAs for free of charge until the moment they are needed.

There are two common types of LPA. The first is a Health and Welfare LPA which gives your attorneys the power to make decisions such as where you live, the type of care you receive and the care provider. You can also give them the power to consent or refuse medical treatment on your behalf.

The second is a Property and Financial Affairs LPA which gives your attorneys the power to manage your finances for you, such as overseeing your bank account, paying bills, managing your investments, or dealing with any property you own.

Protect your home against care fees

Our Private Client department is seeing more and more queries from clients who are asking how they can protect their assets from care home fees and ensure they leave their hard-earned money for their family.

Fortunately, there are steps that you can take to help protect some of your assets from care home fees.

Most simple wills will leave everything to your spouse or civil partner and then everything to your children (or other beneficiaries) when they die. There is nothing wrong with this in practice, but what happens if your surviving spouse or civil partner has to go into care a few years later and their assets need to be used towards care home fees?

However, there is a way of structuring your wills using a trust to protect at least half of your property, which has no impact on you during your lifetime and only takes effect on the death of the first spouse or civil partner. 

Instead of leaving all your assets outright to your surviving spouse or civil partner on the first death, you can each place your half share of your home into a trust for the benefit of your surviving spouse or civil partner to enjoy but not be able to spend.

This is a popular way of safeguarding half of your property from care home fees. It leaves the surviving spouse or civil partner with peace of mind that they can benefit and enjoy the full use of the property during their lifetime, while knowing that half of the property will be protected for the people they ultimately want to benefit from their will.

If you would like any further information, advice, or assistance, please contact our friendly Private Client team on 02476 531532 or enquiries@bttj.com 

The post FINAL CONSIDERATIONS: Modern life means end-of-life planning requires careful thought appeared first on Brindley Twist Tafft & James.

Kerry Hudson, Employment Solicitor, issues the warning in light of the end of the government’s furlough scheme this month.

With the scheme offering a lifeline to companies such as in leisure that have been forced to temporarily shut down in times of less demand, there is now a lot of uncertainty about what might happen in the future once it comes to an end.

Often in industries where there is a high turnover and employees are hired very quickly, it might be all too easy to overlook a contract of employment, and sometimes employers might think it’s ‘a bit much’, but when things go wrong having a contract of employment goes a long way to resolving disputes.

From the first day of your employment employees are entitled to a written statement of employment which covers key elements of the agreement, such as pay, start date and hours of work.

However, a contract of employment provides that much needed security for both parties so neither party is left wondering what has been agreed or what they are entitled to, particularly if the employers has stated they are entitled to extra benefits over the statutory legal minimum.

Factories in particular are known for laying employees off to accommodate peaks and troughs, but furlough changed that as it brought about an alternative.  However now it is due to end employers need to be more disciplined in their approach to avoid difficulties in the future if situations like the pandemic happened again and there was no furlough scheme so clauses such a lay off or short time working need to be covered

A contract of employment – particularly for people in industries such as those most hit by the pandemic – would clearly set out the employer’s position and give both parties more clarity.

While a written statement of employment is a legal requirement, contracts of employment are not. But they could offer an added layer of protection should companies come up against legal action from a disgruntled employee.

In some circumstances an offer letter may appear to suffice, but I would always go one step further – particularly with the events of the past year and resulting changes in legislation.

A contract of employment goes into much more detail. Each party knows where they are and what is expected of them and with more and more people working flexible hours in the wake of the pandemic, a contract of employment gives employers the opportunity to outline such finer details – including the days an employee may be expected in work and the days they can work from home.

Also, don’t forget the crucial importance of a restrictive covenant that can be added to an employment contract to protect your business and the more senior your employee, the more crucial it is to have a contract of employment.

An employer investing in a proper contract of employment will reap its rewards when you need it most. Employees expect Contracts, when they don’t receive one it starts to raise concerns, so get it sorted from the outset.

For more advice on Employment Law both for employees & employers, contact our team of experts on 02476 531532

The post Legally required Terms Of Employment may not offer enough protection in cases of tribunal appeared first on Brindley Twist Tafft & James.

Employees/workers should therefore be mindful before embarking on the process questioning whether they are able to invest the time, emotional investment, and if instructing a solicitor, the finances before pursuing a matter to a final hearing.

Many employees believe tribunals are a quick fix when reality shows they can be a long, drawn out process with employees often having unrealistic expectations of potential compensation if their claim succeeds, according to our experts.

Kerry Hudson, Solicitor in our Employment team, said: “Many people come to us ‘wanting their day in court’ believing the final hearing may be for a day when in actual fact they can be listed for several days, if not on occasions, weeks.

So, the questions you need to ask yourself are, are you able to take time out of your new job? Can you rely on witnesses who more likely than not are your former colleagues to take time out of their work? Can you rely on your witnesses to speak out against their employer on your behalf? Are you prepared to represent yourself or cover the legal fees? What are your actual factual losses?”

Kerry states that many people opt to represent themselves in court to save on legal fees. But even at the end of the hearing, the pay-out may not seem worth the money, time and emotion spent over the past year.  Also, a person representing themselves is still expected to meet the same requirements necessary to bring a claim before the Tribunal as a solicitor would – proving their claim and completing the documentation.

“They’re quite often up against a solicitor which can also really stressful for some people,”

“The trouble is there are too many headlines out there with people being paid something in the region of £250,000. While this does on rare occasions happen, the average pay out, for example, in a sex discrimination case is actually £8,000. It is not often the tens of thousands of pounds that people think.”

Kerry advises people to think about how much actual financial loss they have suffered before pursuing any employment tribunal.

“Whilst we encourage employees who have suffered a detriment because of a wrongdoing to bring a claim, which is precisely what the Employment Tribunal was set up to address, it will not be a quick process.  Therefore, in my view ACAS¹ early conciliation is more important than ever.

“This can result in no admission or no liability offers from employers, as employers will also need weigh up the cost of the business both financially and time in defending a claim and making a financial offer may be a way to bring a dispute to a swifter conclusion.

“As an employer you may have a strong belief you’ve done nothing wrong, and want to defend the claim outright, but consider do you really want five members of your staff taking time out of the office to sit in a tribunal for two weeks? A financial settlement, as unpalatable as it may seem, may make more business sense.  This is where ACAS can help.”

Kerry recommends that getting legal advice at the outset to gauge realistic prospects of success and value of the claim, will be a far better investment than waiting until you are weeks away from a final hearing.  By taking advantage of ACAS conciliation and be open to mediation throughout could open a forum for a swifter resolution which is where legal advice could be invaluable.”

For further details visit our Employment Law pages.

¹ACAS – the conciliation service for employers and employees – helps parties where possible to reach a settlement.

The post Employment Tribunals appeared first on Brindley Twist Tafft & James.