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NEWS
The Ministry of Housing, Communities and Local Government (MHCLG) has published guidance to assist Responsible Entities working with developers who have signed the Developer Remediation Contract (DRC). The guidance sets out the terms of the DRC and developers’ obligations, aiming to ensure all parties clearly understand these responsibilities throughout the remediation process. It also provides advice on adopting collaborative approaches to remediation projects.
NEWS
Commercial analysis: How far is too far before a variation to an agreement becomes a new contract and/or a rescission of the original agreement? This was the question facing the Court of Appeal in the recent case of Cobalt Data Centre 2 LLP and another v Revenue and Customs (LLPs v HMRC). Written by Prudence Walton, solicitor at Hawkswell Kilvington Ltd.
Q&As
The employer on a construction project will not normally make payments directly to the main contractor's sub-contractors—ordinarily the employer pays the contractor for all of the works, who then makes payment down the chain to its sub-contractors. However, the employer might see it as beneficial to have the right to make direct payments to the sub-contractors if the contractor is not paying its sub-contractors quickly enough. If sub-contractors are not paid, they could suspend all or part of their works which will disrupt the project. By including a direct payments clause the employer could avoid such disruption. Some large private companies have previously suggested that
GLOSSARY
A contract that is agreed between an employer and employee for a fixed duration.
Q&As
Redundancy is a potentially fair reason for dismissal under section 98 of the Employment Rights Act 1996 (ERA 1996). For these purposes, an employee is dismissed by reason of redundancy if their dismissal is wholly or mainly attributable to: • the employer ceasing or intending to cease carrying on the business for the purpose of which the employee was employed by the employer • the employer ceasing or intending to cease carrying on that business in the place where the employee was so employed • the requirements of the business for employees to carry out work of
Q&As
Concessions Contracts Regulations 2016 rules on modification of concession contracts during their term The rules regarding modifications to concession contracts under the Concession Contracts Regulations 2016 (CCR 2016), SI 2016/273, are broadly similar to those applicable to public contracts under the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102. For background reading, see Practice Note: Introduction to concession contracts procurement—pre-PA 2023 [Archived]. For related reading on modification and termination of public contracts under PCR 2015, SI 2015/102, see: • Practice Note: Modification and termination of public contracts—pre-PA 2023 [Archived] • Q&A: Can a public contract which has been extended to the fullest extent provided in the contract notice and contract documents be extended further by a modification under regulation 72 of the Public Contracts Regulations 2015? • Guidance: Crown Commercial Service Guidance on Amendments to Contracts During Their Term CCR 2016, SI 2016/273, reg 43 contains rules aimed at clarifying
Q&As
If, before a relevant transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246) (TUPE 2006), the transferee (ie the new employer) envisaged taking any measures, in connection with the transfer, in relation to any affected employees who would become the transferee’s employees after the transfer, the transferee should have provided information about those measures to the transferor, to enable the transferor to comply with its obligation to inform the affected employees. The word ‘measures’ is of wide import and involves any action, step or arrangement. For further information, see Practice Note: Information and consultation in transfers—Measures. For further information on the duty to inform and consult under TUPE 2006, SI 2006/246 generally, see Practice Note: Information and consultation in transfers—The duty to inform and consult, and Precedent: Letter—TUPE (3) letter from
PRACTICE NOTES
This Practice Note is an introduction to the forms of contract in the NEC suites of contracts—NEC3 and NEC4—and looks at the factors that should be considered in deciding which to use. It explains the six NEC3/NEC4 Main Options that the parties can choose between when using the NEC3 or NEC4 Engineering and Construction Contract (ECC). Note that NEC4 uses the term ‘Client’ rather than ‘Employer’ (the term which is used in NEC3): for ease of reference, where this Practice Note discusses both versions of the contracts, the term ‘Client’ is used to refer also to the Employer in the NEC3 contract. For a glossary of NEC terms, see Practice Note: NEC contracts—glossary. In deciding which of the forms of contract in the NEC3 or NEC4 family is most appropriate for the project at hand, the Client must consider the following: • its objectives in undertaking the project • any constraints upon it (eg time, cost or experience) or relating to the project itself • how the project will be funded • what risks are involved in the
GLOSSARY
The contract of employment which governs the employment relationship between the employer and the employee.
NEWS
The Welsh Government has announced the successful conclusion of the 2025–26 tripartite negotiations between the Welsh Government, NHS Wales and Optometry Wales. The agreement includes a contract envelope uplift of approximately £3m, backdated to April 2025, to support the ongoing reform of optometry services. The Cabinet Secretary for Health and Social Care, Jeremy Miles MS, stated that the agreement represents an investment in primary care optometry and reaffirms the Welsh Government’s commitment to improving access to high-quality eye care services across Wales.
Q&As
Generally, it is assumed that the employer and car manufacturer/dealership will enter into a contract for the purchase or hire of the vehicle, on behalf of the employee. The employer will gain title (whether by ownership or rights in the lease/hire agreement with the car provider) to the vehicle. The employer will then permit the employee use of the vehicle in exchange for consideration under the salary sacrifice scheme. Such scheme will either be covered by the employment contract with the employee or a separate agreement. The employee may have the right to purchase the vehicle at the end of a specified term. Before proceeding with any statutory claim relating to faulty goods, it is advisable that the relevant contracts are reviewed as they are likely to contain specific provision as
Q&As
An individual who employs another individual to work under a contract of employment will have the same obligations as any employer. For further information, see Practice Note: Employee status and Employees and workers: checklist of rights. In the employment context, frustration will only be found to have occurred when performing the contract: • becomes impossible, or • would be a thing radically different from that agreed between employer and employee under the terms of the employment contract It will be very rare indeed that this occurs. In addition, for the doctrine of frustration