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Employment
Law
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Employment law is a complex subject. There are constant changes to the law, often driven by
Europe. It seems that not a week goes by without some change to some aspect of employment
legislation in the UK. There nearly always seems to be a draft Employment Bill making its way
through parliament introducing changes which will significantly affect both employers and employees.
Every employer is required to provide a written statement of certain particulars of employment
to every employee. Nevertheless, in many of the cases which come before the Employment
Tribunals, no such written statement, less still a formal contract of employment, has been
provided by the employer. The contract of employment governs the relationship between the
employer and the employee. It should be for the benefit of both to enter into such an
agreement so that each party understands where he or she stands.
From an employers perspective, we would suggest that it is essential to have in place properly
drafted contracts of employment. Employers can be putting their businesses at risk if they do
not have contracts.
Just to give an example from our own experience, we were involved in a case where a company
did not have any contracts of employment. The company was very profitable. The owner was
negotiating a management buy-out with two senior employees, who in effect ran much of the
business of the company and dealt with its customers on a day to day basis. The company's
accountants had valued the company at a large figure. The two employees were not willing or
able to pay the figure demanded by the owner. Negotiations therefore broke down but as there
were no contracts of employment containing provisions restricting former employees from
soliciting business from customers of the company, the employees were free to leave, set up in
business on their own and solicit business from the company's customers.
This is exactly what they did. The value of the business of the company was reduced
significantly. Based on the company's own accountants valuation the failure of the company to
protect its interests, cost it approximately £1 million.
In addition to helping with employment contracts and documentation, we can also help with
advice upon employment problems as they arise, and, if it becomes necessary, we can represent
clients in the Employment Tribunals (formerly Industrial Tribunals) or the courts.
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To keep up-to-date with the impact of these changes contact us by
email or by telephoning 0161 906 0789
or visit our Online Document Store at www.millarlaw.co.uk
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Barlow House