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Proposal to reintroduce employment tribunal fees

Posted on: January 10th, 2024 by Natasha Cox

The government has announced a consultation on the proposal to reintroduce fees for bringing employment tribunal claims.

First introduced in 2013, employment tribunal fees saw claimants having to pay separate fees to issue their claims and to have them heard. Fee levels differed according to the nature of the claim.

On 26 July 2017, the Supreme Court declared employment tribunal fees to be an unlawful interference with the common law right of access to justice and the fees were subsequently abolished.  

However, the government has now announced proposals to reintroduce tribunal fees. Under the proposed scheme, tribunal issue fees would be at the flat rate of £55 per claim. In the event of a multi-claimant claim, the fee would be unchanged, with the multiple claimants being treated as a single entity. No separate hearing fee would be payable.

The £55 fee would also apply on lodging an appeal in the Employment Appeal Tribunal (EAT), however the fee would apply per tribunal decision, direction or order being appealed. Therefore, an appellant seeking to appeal more than one tribunal decision or direction could incur multiples of the £55 fee.

A fee exemption would apply in the case of claims in which individuals are seeking a right to payment from the national insurance fund. Further, individuals could apply under the Help with Fees remission scheme where eligible. 

Based on 2022-23 volumes, the government estimates that the proposed fees could generate between £1.3 million and £1.7 million a year from 2025-26 onwards. It is expected that, if the consultation is successful, these new fees will be implemented from November 2024. For now, the status quo remains and claimants may continue to submit claims free of charge. However given the modest level of proposed fees and the cost of administering the employment tribunal, it is arguably not unreasonable to expect that fees will be reintroduced.

James Lyons comments on Tui’s delisting from the London Stock Exchange in Law360

Posted on: January 8th, 2024 by Maverick Freedlander

James Lyons, Director in the Corporate and Commercial team, discusses the wider market implications of travel giant Tui’s plan to delist from the London Stock Exchange, in Law360.

James’ comments were published in Law360, 05 January 2024, and can be found here.

“Whilst some may perceive this as a blow to the appeal of a UK listing, this decision should be viewed within the particular context of TUI, a German company borne out of a legacy merger.  It already has listings in Frankfurt and Hanover, and more than 75 per cent of the trading in its shares occurs in Germany, so this is a decision which appears to be being made for reasons very specific to TUI rather than necessarily reflective of the London market itself.  

“But it is indicative of the global competitive listing environment and another example to demonstrate why the FCA cannot rest on its laurels and should continue to push forward with changes to retain the appeal of the London market for international businesses.”

Round up of 2023 employment law

Posted on: December 18th, 2023 by Natasha Cox

As 2023 draws to an end, the employment team at Lawrence Stephens examines employment law developments of 2023 and what we’re expecting in 2024.

Holiday and holiday pay

Changes have also been made to the Working Time Regulations 1998.

All employees are entitled to 5.6 weeks’ annual leave entitlement per leave year. The 5.6 weeks is split into two ‘pots’: one pot of ordinary leave, which is four weeks, and one pot of 1.6 weeks additional leave.

Ordinary annual leave should be paid at the employee’s ‘normal’ rate of pay. This does not necessarily apply to the additional leave.

The government is amending regulations to set out what elements of pay are to be included as ‘normal’ for the purposes of the first four weeks’ leave entitlement. Unfortunately, the regulations do not list specific payments that should be included, and instead refer to certain categories, including:

  • payments, including commission payments, which are ‘intrinsically linked’ to the performance of tasks that a worker is contractually obliged to carry out;
  • payments for professional or personal status relating to length of service, seniority or professional qualification; and
  • other payments, such as overtime payments, which have been regularly paid to a worker in the 52 weeks preceding the calculation.

As per previous case law, results-based commission, certain overtime payments, allowances, etc., will still be caught, however there is still uncertainty about payments such as annual or semi-annual bonuses, and it remains to be seen whether this amendment changes much.

For irregular hours workers and part-year workers (both now defined in the regulations), the government is also introducing a new method to calculate their holiday entitlement. Essentially, an irregular hour worker or a part-year worker accrues annual leave at the rate of 12.07% of the number of hours worked, subject to a maximum of 28 days per leave year. A worker will be an ‘irregular hours worker’ if the number of paid hours that they work is ‘wholly or mostly variable’. A worker will be a ‘part-year worker’ if they are required to work only part of that year and there are periods of at least a week in which they are not required to work (and for which they are not paid). This change is intended to address the issues caused by the Supreme Court’s decision in Harpur Trust v. Brazel, in which it held that part-year workers were entitled to 5.6 weeks’ leave per year, irrespective of the hours they worked. 

The government is also introducing ‘rolled up holiday pay’ for irregular hours workers and part-year workers. Rolled up holiday pay is a system under which a worker’s holiday pay is included in their basic pay, rather than paying them when their holiday is actually taken. The practice has been unlawful since 2006 but will now be lawful under the updated regulations.

These changes come into force on 1 January 2024 for holiday years commencing on or after 1 April 2024.

TUPE

The government has announced its intention to change the transfer of undertaking consultation obligations so that there can be direct consultation with affected staff for businesses with fewer than 50 employees, or businesses of any size with fewer than 10 transferring employees. This assumes in both cases that no existing employee representatives are already in place. The regulations are expected to come into force on 1 January 2024 and the changes will apply to transfers that take place on or after 1 July 2024.

National Insurance and Minimum Wage

Class 1 employee NICs will be cut from 12% to 10% from 6 January 2024.

The NICs holiday for veterans in their first year of civilian employment will be extended to 5 April 2025.

For the self-employed, Class 2 NICs will be abolished, and the main rate of Class 4 self-employed NICs reduced from 9% to 8%, from 6 April 2024.

New national minimum wage rates to apply from 1 April 2024 have also been announced, along with a change to the threshold for being eligible for the highest rate. Over 21s will now be entitled to £11.44 per hour, with 18- to 20-year-olds being entitled to £8.60 per hour. 16- to 17-year-olds and apprentices will be entitled to £6.40 per hour.

Fire and rehire

The government has issued a draft Code of Practice on dismissal and re-engagement. It is designed to cover situations such those seen recently with P&O, where an employer makes changes to terms and conditions by dismissing employees under their old contracts and offers to re-engage them on new contracts (with less favourable terms and conditions).

The aim of the code is to clarify how employers should behave when seeking to change employees’ terms and conditions of employment. A court or tribunal will be able to take the code into account when considering relevant cases and they will have the power to increase an employee’s compensation by up to 25% if an employer unreasonably fails to comply with the code. They could also decrease any award by up to 25% where an employee has unreasonably failed to comply.

The consultation on the Code closed on 18 April 2023 and it is anticipated that the government’s response will be delivered in Spring 2024. While the code is still in draft form it is not binding, but any proposed fire and rehire processes should be carefully considered in the meantime.

Flexible working

The Flexible Working (Amendment) Regulations 2023 come into force on 6 April 2024. The regulations amend the existing Flexible Working Regulations 2014 so that the right to make a flexible working application becomes a ‘day one right’ on 6 April 2024. Currently employees must have 26 weeks’ continuous service to make a flexible working request under the legislation (however, nothing prevents employers and employees agreeing flexible working arrangements between themselves, whether formally through contractual variations, or informally). 

It is assumed that the other flexible working reforms contained in the Employment Relations (Flexible Working) Act 2023 will also commence on that date, but this has not yet been confirmed. These reforms will:

  • allow employees to make two flexible working applications every 12 months instead of one;
  • remove the requirement for employees to have to explain what effect they think their flexible working request will have on the employer;
  • require employers to consult with the employee before refusing their flexible working application; and
  • require employers to respond to flexible working requests within two months instead of three months.

Carer’s leave

The draft Carers’ Leave Act 2023 (Commencement) Regulations 2023 have been published, bringing the Carers’ Leave Act 2023 into force from 6 April 2024.

The draft regulations set out important detail relating to the Act. They state that the legislation will cover employees in England, Wales and Scotland. To be entitled to the provision, employees need to be providing long term care. Carer’s leave will be able to be taken in half or full days, up to and including taking a block of a whole week of leave at once. In a similar way to other types of leave, the notice an employee needs to give to take the leave is twice the length of time that needs to be taken. Leave requests do not need to be made in writing.

Employees taking carer’s leave will have the same employment protections associated with other forms of family related leave. This includes protection from dismissal or detriment as a result of having taken the leave.

The draft regulations still need to be passed by Parliament and it is also expected that guidance will be made available before 6 April.

Strike action

The Strikes (Minimum Service Levels) Act 2023 was passed in July. The act gives powers to make regulations to set minimum service levels in certain industries during strike action. The government has now made regulations under these powers to set minimum service levels for ambulance, railway and border security staff. Although the regulations are not yet in force, they are expected to be by the end of the year. A draft code of practice has also been laid before Parliament, but no minimum service levels are yet in force.

Lawrence Stephens completes warehouse lease for LT Foods Europe

Posted on: December 6th, 2023 by Maverick Freedlander

We are pleased to announce that Lawrence Stephens’ Commercial Real Estate team have recently completed the new lease of a warehouse site for valued client LT Foods Europe Holdings Limited.

LT Foods, an established global food company, currently manufacture and distribute the leading rice brand in India and are the number one speciality food brand in the U.S.  Located in Harlow, the 90,000 square feet warehouse will be used for the storage and manufacturing of rice and other food products, allowing the company to fully establish its UK business and presence.

Working hard to get this deal across the line, the team from Lawrence Stephens was led by Directors Danny Schwarz and Nisha Saigal, with assistance from trainee solicitor Alex Ruder.

Nisha Saigal commented: “We are delighted to have completed this deal for LT Foods Europe. Through this new lease, the company will be able to substantially expand its offering and establish its UK business – a bright future ahead!”

Chairman, Vijay Arora at LT Food Holdings commented: “As we take the next steps for our company, the new warehouse lease will allow us to grow and strengthen our business in the UK. The assistance and advice from the team at Lawrence Stephens was truly invaluable in securing the swift and effective completion of this deal.”

Asim Arshad and Ricardo Geada discuss crypto’s legitimate use in The Times

Posted on: November 23rd, 2023 by Maverick Freedlander

Senior Associate Asim Arshad and Director Ricardo Geada discuss the importance of crypto and its legitimate use cases, while contextualising the technology’s misuse, in The Times.

Asim and Ricardo’s article was published in The Times, 23 November 2023, and can be found here.

It is critical for regulators, officials and the public at large to differentiate between the technology of cryptoassets and its potential misuse. A broad-brush approach due to the actions of a few is misleading, short-sighted, and indicates a limited understanding of the technology, thus hampering its development as a powerful force for progress and financial inclusion.

Collaboration should be key in any strategy to combat crypto’s misuse, and UK authorities should more actively engage with other regulatory bodies overseas in order to share insights and intelligence to address crypto-related crimes, while fostering the growth of legitimate crypto businesses. The misuse of cryptoassets should not overshadow its broader, legitimate applications.

Contrary to common misconception, it is crucial to understand that most blockchains are inherently pseudonymous, rather than anonymous. Every transaction on public blockchain is recorded on a transparent ledger, making the transaction history traceable. This traceability can serve as a powerful tool for law enforcement. This perpetual audit trail enables authorities to trace illicit activities back to their source.

The UK’s ambition to position itself as a global hub for crypto innovation is commendable, and is one of the main reasons that growth of crypto in the UK has far outpaced the likes of the US, Germany and Japan in recent years. However, striking a balance between robust regulation and fostering innovation is crucial. Overly stringent regulations, arguably like we are seeing with the new cryptoasset financial promotions regime, might stifle the growth of the sector, pushing innovators and investors towards more accommodating jurisdictions instead.

The emergence of crypto-related crimes underscores the need for a comprehensive educational push. Regulatory bodies, in conjunction with the industry itself, need to work towards educating law enforcement agencies, financial institutions, and the general public in what is a nascent and constantly developing technology.

It is also crucial to recognise that the relevance and utility of cryptoassets differ across global contexts. For someone in a developed, politically stable country, the urgency or use case of crypto may not be plainly obvious. However, for individuals in countries with economic instability, hyperinflation, or restrictive financial systems, crypto offers a lifeline and can serve as an alternative financial system, providing financial inclusion and allowing people to preserve their wealth against devaluing local currencies. Dismissing crypto merely based on their irrelevance to certain regions or occasional misuse overlooks their broader potential and global impact.

Understanding and leveraging the technology of cryptoassets and their underlying blockchains require a nuanced approach that recognises their potential use cases as well as the need for adequate regulation to mitigate misuse.

Lawrence Stephens promotes two to joint Heads of Family

Posted on: November 22nd, 2023 by AlexT

Lawrence Stephens is pleased to announce the appointment of Senior Associates Eleanor Wood and Jim Richards to joint Heads of their Family practice.

With the appointment of Eleanor and Jim to joint Heads of practice, Lawrence Stephens reaffirms its commitment to continuing its high level of integrated legal advice to a diverse range of clients including high-net-worth and high-profile individuals, foreign nationals, non-domiciles, UK nationals living abroad, and multinational families.

Commenting on the new appointments, Steven Bernstein, Managing Director and Co-Founder of Lawrence Stephens, said: “We are delighted to announce Eleanor and Jim’s appointment as Heads of our Family department. This appointment marks our continued dedication to providing the very best service for our clients, and to growing our fantastic team.”

Ranked as a ‘Key Lawyer’ in The Legal 500 and an Associate To Watch’ in Chambers & Partners respectively, Eleanor works closely with clients on complex family issues, with a particular interest in Children Act matters, including cross-border relocation, change of residence applications and internal relocations, as well as divorce and matrimonial finance work, including the division of businesses and high-value properties.

Jim, who has over 15 years of extensive experience, specialises in a range of areas of family litigation involving a number of different assets and jurisdictions, particularly financial settlements and children cases. He was also previously a member of the Law Society Children’s Panel, working on complex cases where the children were parties to the litigation.

Working closely with the firm’s other departments on connecting matters such as sale of property, wills and probate issues, inheritance planning, dispute resolution and business restructuring, the Family practice will continue to offer a coherent and broad level of service to the Firm’s existing clients whilst drawing on the strength in depth of expertise across the team.

Eleanor Wood, Head of Family, commented: “I am thrilled to be heading up Lawrence Stephens’ Family practice. Working closely with the other fantastic departments at the firm, Jim and I look forward to continuing to provide first-class service to our loyal clients.”

Jim Richard, Head of Family, commented: “It is a pleasure to be joining Eleanor as Head of Family at Lawrence Stephens. Servicing the changing needs of our clients across a wide range of service, we pride ourselves on our collaborative approach and expertise.”

Lawrence Stephens announces continued partnership with FEBE

Posted on: November 14th, 2023 by AlexT

Lawrence Stephens is once again proud to be partnering with FEBE (For Entrepreneurs, By Entrepreneurs), the company behind the annual Growth 100 list.

Entrepreneurs have contributed £14.3bn to GDP in 2022 and in the face of uncertain economic conditions and a growing list of challenges for businesses and business owners, the Growth 100 list celebrates the successes of the ambitious entrepreneurs and businesses who have defied these hurdles to forge the market and stake their claim as leaders in their respective fields.

Marking the second year of collaboration, the ongoing partnership between Lawrence Stephens and FEBE celebrates the remarkable achievement of the very best-in-class entrepreneurs and some of the fastest growing, founder-led businesses in the UK.

From ground-breaking wellness companies such as Shakeup Cosmetics to trending food products and services including Huel protein, The Skinny Food Co and GoGetters, last year’s list showcased trailblazers who have overcome the odds to defy expectations and show true entrepreneurial spirit in the face of challenging market conditions.

As a business created on the foundation of entrepreneurism, we are delighted to be working once again with FEBE and celebrating the remarkable accomplishments of these companies, as well as fostering strong and lasting relationships with the entrepreneurs and teams behind these inspiring businesses.

Managing Director Steven Bernstein comments: “As a founder of a legal business, I am all too aware of the challenges entrepreneurs face as they look to grow their business, and our ongoing partnership with FEBE allows us to work with these companies at such important and transitional stages of their company growth.

“It is a delight to be partnering with FEBE on such a fantastic project, and we look forward to meeting the unique and inspiring founders and businesses who will be included on this year’s list!”

Steven Bernstein discusses leadership with FEBE founder John Maffioli

Posted on: November 6th, 2023 by AlexT

 

Speaking with the founder of the FEBE Growth 100, John Maffioli, as part of the Founder Stories series, Managing Director, Steven Bernstein, discusses the importance of creating a strong and collaborative company culture and how prioritising your people is the key to leading a successful business.

Prior to founding Lawrence Stephens, Steven and his co-founders were working at a corporate city firm, a highly competitive environment where employees lacked the confidence to make decisions over their fear of failure. As a direct response to this, they set up Lawrence Stephens with the aim of being a ‘people business’ – where employees are valued and a collaborative spirit is not only encouraged, but actively fostered.

Making the step from being a lawyer to becoming a CEO, Managing Director and ultimately a business leader, Steven also describes the balancing act he faced with doing the job he really understood (in being a lawyer) with doing the job he was still learning (in running a business).

However, by not taking themselves too seriously and fostering a people-focused company culture, Steven and his co-founders successfully grew Lawrence Stephens into the firm it is today – with these values remaining a crucial part of the firm’s identity and success. By allowing his team to learn, develop and thrive in a supportive environment, Steven explains the significance of this: “those are the Partners of the future, the owners of the future…”

The role of leadership also goes beyond fostering a powerful company culture, as Steven explains. Successful founders, entrepreneurs and CEOs must be constantly asking themselves as to whether they are making the right decisions, whether they are doing the right thing for their business. In driving a business forward, Steven explains that founders must show careful consideration to the risks and decision making if they are to succeed.

From the small office where Lawrence Stephens first began to the full-service firm it has now become, with the launch of departments such as its new Sports & Entertainment practice, Steven and his co-founders are looking to build on these successes to continue to grow the firm, strengthen existing areas and look at expanding further by bringing in talented teams of lawyers to cover new areas and provide a truly full-service experience to its clients.

Click here to watch Steven’s story in full. 

Lawrence Stephens completes £3.5m loan for family office lender

Posted on: November 2nd, 2023 by AlexT

We are delighted to announce that our Banking & Real Estate Finance team has recently completed a £3.5m loan for a family office lender on land which included a vineyard, within a month of instruction.

A new lender for the firm, the team worked hard to ensure swift competition of this loan.

The team was led by Lawrence Stephens’ Director and Head of Banking, Ajoy Bose-Mallick, with support from Director Paul Marsh, Senior Associates Ashley Wright and Rachel Coulthard and Trainee Solicitor Electra Kallidou.

Ajoy Bose-Mallick commented: “It was a pleasure to work with the lender on this deal, and we were delighted to have facilitated such a quick turnaround for the client and achieve a result which pleased all parties involved.

“The collaborative spirit and hard work of the teams involved was instrumental in getting this deal across the line and we look forward to working with this lender more closely on future loans.”

The lender commented: “We are delighted with the service from the team at Lawrence Stephens and we were particularly impressed by the way in which they handled this deal, were readily available to discuss issues and proactive in driving the deal forward.”

Cryptoassets for businesses

Posted on: November 1st, 2023 by AlexT

The business landscape is continually evolving, with technology being a major catalyst for fostering progress, increasing capabilities, and maintaining a competitive edge.

Among the recent innovations capturing the interest of businesses is the rise of cryptoassets and the blockchain technology that underpins them. Major brands such as Microsoft and Sotheby’s, as well as independent companies from travel agencies to cafés, are increasingly adopting cryptoassets and harnessing their potential, seeking to position themselves to benefit immensely from these distinctive digital assets.

What’s in it for businesses?

One of the main appeals of cryptoassets is the swift and transparent payment transaction mechanism that they provide. In an age where cash payments are on a significant decline, the ability to facilitate fast, transparent and secure payments is appealing to consumers and businesses alike.

Additionally, transactions with crypto often attract fewer charges compared to traditional payment methods. Cryptoassets do not require intermediaries to facilitate transactions and the elimination of these intermediaries like banks and payment gateways in favour of a decentralised verification system (in other words, the blockchain) minimises the costs associated with traditional payment processing. Also, by merit of being exclusively digital, cryptoassets negate the need for physical payment infrastructures such as card machines.

An undeniable upside for businesses adopting cryptocurrency payment is virtually zero risk of chargebacks. With every transaction confirmed and immortalised on the blockchain forming a secure, tamper-proof and transparent record, they cannot be reversed. Consequently, businesses no longer need to wrestle with drawn-out, expensive chargeback processes.

Adopting cryptoassets also offers a broader customer outreach. By bypassing traditional financial institutions, businesses can access the 1.7 billion unbanked population globally, as well as the 1.2 million unbanked individuals in the UK. Allowing for cryptoasset payment also caters to the growing population of cryptoasset enthusiasts,  granting a unique selling proposition amidst a competitive market.

Moreover, due to the borderless nature of cryptoassets, such transactions do not require conventional currency conversions and can be sent to or from anyone in the world with a smart device and internet connection. This makes cryptoassets an ideal form of payment for businesses that wish to expand their operations into new jurisdictions, without the usual friction points involved in optimising cross border payments.

What are the challenges for businesses?

Whilst there are a number of advantages for businesses, integrating cryptoassets as a form of payment is not without its risks. One such risk comes from the fact that cryptoassets are extremely volatile, and it is not unheard of to have massive fluctuations in a cryptoassets value over a relatively small time frame of days and hours. This volatility can present challenges for businesses in being able to predict how much it will generate from cryptoasset payments, and it can also expose the business to losses if the value of its cryptoassets falls. In the same vein, it can also present opportunities for gains if there is an increase in the price action of a cryptoasset.

For example, a retailer may sell an item for 0.035 Bitcoin (BTC), which at the time of writing is around £766. In the days after the sale the value Bitcoin may increase, such that 0.035 BTC is now worth £800. On the flipside, the value of BTC may decrease, such that the 0.035 BTC is now worth £735.

Another challenge is security. Whilst cryptoassets are secured utilising complex cryptographic algorithms, they aren’t invincible against cyberattacks, phishing or fraudulent schemes. Thus, businesses using cryptoassets need to be proactive in establishing robust cybersecurity defences and countermeasure proecdures.

The developing regulatory environment around cryptocurrencies presents another challenge. As the legislative and regulatory landscape is still maturing, businesses adopting cryptoassets as a form of payment may need to comply with unforeseen regulatory requirements and make an effort to stay informed of ongoing developments in this area.

However, with diligent planning and careful strategies, these challenges and risks can be substantially offset and mitigated.

What must businesses consider?

For businesses considering cryptoasset integration, an effective policy and strategy should take into account the specific nature and operation of the business, its goods/services, geographical scope, and clientele. Particular consideration should be given the following points:

  • Choice of cryptoassets: Given the plethora of cryptocurrencies available, it is important to consider which cryptoassets in particular should be allowed to facilitate payment for the business. Important points to consider here would be the cryptoassets stability, liquidity, popularity, and confirmation times.
  • Payment processing: It may be worth trying an external payment processor who can simplify the process of cryptoasset acceptance, albeit at a cost. Alternatively, it is entirely possible to set up your own crypto payment processing system, but will require some technological expertise and knowledge.
  • Formulating guidelines: Businesses adopting cryptoassets should have defined guidelines addressing transaction disputes, and refund mechanisms. There should also be procedures in place for handling price volatility, for example, through stablecoins or immediate fiat conversion upon receipt.
  • Continuous transaction oversight: Businesses allowing cryptoasset payments will need need to be able to track, record, and report transactions for tax compliance. Cryptoassets are taxable, and businesses will need to consider whether they choose to hold cryptoassets on their balance sheet as an asset, or if they would rather liquidate the cryptoassets to fiat upon receipt or at regular intervals.
  • Selecting an appropriate digital wallet: Considering the scale of operations, anticipated crypto holdings, and security requirements is vital when choosing a digital wallet. There are a variety of different wallets including cold wallets, hot wallets, custodial wallets, non-custodial wallets, multi-sig wallets and many other variations. It is important for businesses to choose a wallet which is compatible with their needs, and which they are confident with and able to keep secure.

How Lawrence Stephens can assist with your crypto challenges

While venturing into the world of cryptoassets does bring its set of challenges and intricacies, the potential benefits are substantial. As with any business decision, prudent planning, accompanied by knowledgeable legal consultation, is key to ensure regulatory compliance and adept risk management.

At Lawrence Stephens, our team is adept at assisting diverse businesses in harnessing the potential of cryptoassets. With our bespoke legal insights, we ensure your cryptocurrency adoption journey is seamless, safeguarded, and aligned with the developing digital finance sector.

Lawrence Stephens ranked as a Firm to Watch in The Legal 500

Posted on: October 26th, 2023 by AlexT

We are delighted to share that, less than three months after launching our sports and entertainment team, Lawrence Stephens has already been recognised as a ‘Firm to Watch’ in The Legal 500’s Sport rankings.

The Legal 500 highlights top firms and individuals operating in the legal market across a wide range of practice areas, based on extensive research and analysis.

The team, comprising Director Mohit Pasricha, Senior Associate Jake Cohen, and Associate William Bowyer, looks forward to continuing to grow its practice and provide first-class service to clients from across the world of sports and entertainment.

Mohit commented: “I am extremely proud of the work my team has done – Jake and Will have been invaluable for our success. We are extremely grateful to all of our clients. Their trust in our expertise is a privilege and responsibility that we’re very proud to have earned and we look forward to continuing to support them.”

For more details, view the full rankings here.

Government consultation response: non-compete clauses to be limited to three months

Posted on: October 25th, 2023 by Natasha Cox

The government has announced plans to limit the length of non-compete clauses in employment contracts in its response to a 2020 consultation on their reform.

Non-compete clauses are one of several types of post-termination restrictions that are often found in employment contracts. These restrictions typically restrict an employee’s ability to work for a competitor for a set period following the termination of their employment, but can also restrict their ability to canvass or solicit clients and customers, as well as poaching colleagues.

To be enforceable, restrictions must not be any wider than reasonably necessary to protect legitimate business interests. Examples of legitimate business interests include client, supplier or customers relationships, and confidential information.

Non-compete clauses are the most restrictive option, with employees frequently seeking to argue they prevent them from securing alternative employment during the restricted period. 

In 2020, the Government published a consultation paper exploring options for reform, including mandating that non-compete clauses be unenforceable unless the employer provides compensation for the period of restraint, or making all non-compete clauses unenforceable.

The government has now rejected the possibility of making employers pay employees during a restricted period, citing concerns around substantial costs and supressing growth. Instead, it has proposed to limit the period of non-compete restrictions to just three months.

While these are just proposals, and properly drafted non-compete clauses lasting longer than three months continue to remain effective at present, employers need to carefully consider the impact on their business if the option to have a longer non-compete period is removed. It is worth considering what other protections can be put in place to achieve as near as possible the same level of protection currently afforded by a non-compete restriction.

Contact us for advice on post-termination restrictions and updating your contracts of employment.