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PRACTICE NOTES
The Companies Act 2006 (CA 2006) requires any provision in a director's service contract under which the guaranteed term of the director's employment is, or may be, longer than two years to be subject to approval by the members of the company. Approval is required as long term service contracts with directors are arrangements which are generally considered to be particularly open to abuse. The relationship between the statutory provisions requiring approval of such a provision and the general duties of a director that are set out in statute is discussed in Practice Note: Directors' duties—fundamentals. The term ‘director’, for the purpose of these statutory provisions, includes any person occupying the position of director, by whatever name called (ie whatever the official title used), and a shadow director. A company must observe various other statutory requirements In relation to directors’ service contracts, see in particular Practice Note: Directors’ service contracts—retention, copying and inspection. Companies with a listing of equity shares in the equity shares (commercial companies) category on the Official List of the London Stock
Q&As
Validity of a clause providing that licence or tenancy will automatically renew for a further fixed term unless the licensee or tenant has served a written notice to terminate the licence or tenancy It is not unusual for a tenancy agreement to contain a break clause (known more formally as an option to determine the tenancy). However, a break clause is an option for one or either party to terminate the tenancy while the tenancy is still in its fixed term. For example, a tenancy with a two-year fixed term may contain a break clause providing that either party can terminate the tenancy at the one year mark. Alternatively, a tenancy agreement
PRACTICE NOTES
This Practice Note is for use when determining applicable law where the contract was entered into between 17 December 2009 and 31 December 2020. This Practice Note considers consumer contracts in Article 6(1) of Regulation (EC) 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I). The Practice Note explains the process by which the applicable law is determined for consumer contracts and the limitations that apply for where the parties wish to make their own choice of law. A consumer contract will be governed by the law of the country in which the consumer has their habitual residence. The Practice Note explains how to determine the habitual residence of the consumer and why the formal validity requirements for other contracts do not apply when dealing with consumer contracts—the law of the country of habitual residence will apply instead. The Practice Note also considers the position in relation to contracts not falling within Article 6(1) as well as the specific exclusions
PRACTICE NOTES
This Practice Note considers the obligations in relation to design in the JCT suite of contracts—primarily the Design and Build Contract (D&B) and the Standard Building Contract (SBC) where a Contractor’s Designed Portion is used (otherwise known as a CDP). It also references the Intermediate and Minor Works contracts. The JCT suite of contracts provides for the Contractor to be responsible for design to varying degrees. The Employer may choose to follow a design and build procurement route by using the D&B form which provides that the Contractor is responsible for completing the whole of the design. Alternatively, where a traditional procurement route is followed, the Contractor can still be responsible for an element of the design by using one of the traditional forms, such as the SBC, but including the optional CDP. This Practice Note describes how responsibility for design is allocated in the D&B and SBC forms, and looks at other key provisions relating to design, including how the contracts deal with discrepancies between various design documents, copyright, and the standard of care to be exercised in relation
Q&As
The Public Contracts Regulations 2015, SI 2015/102 (PCR 2015) apply only to a ‘contracting authority’. The definition of a ‘contracting authority’ includes • central government • local authorities • associations formed by one or more contracting authority, and • bodies governed by public law (such as housing associations) See Practice Note: Introduction to public contracts procurement—pre PA 2023 [Archived] for more information. When a contracting authority reaches its decision on contract award, under PCR 2015, SI 2015/102 it must hold a standstill period. This is a mandatory period between notification of a contract award decision and entering into the contract, allowing unsuccessful tenderers the opportunity to: • seek further information from the contracting authority, and • consider whether their rights have been prejudiced during the procurement process If the unsuccessful bidders believe that their rights have been prejudiced they can apply to have the contract award decision set aside (and/or claim for damages). See Practice Note: The standstill
PRECEDENTS
1 Termination 1.1 This Agreement may be terminated by either party giving a minimum of [enter number] months’ notice in writing to the other party, such notice not to expire prior to the [enter number eg first] anniversary of the date of this Agreement. 1.2 Either party may terminate this Agreement at any time by giving notice in writing to the other party if: 1.2.1 the other party commits a material breach of this Agreement and such breach is not remediable; 1.2.2 the other party commits a material breach of this Agreement which is not remedied within [14] days of receiving written notice of such breach; 1.2.3 the other party has failed to pay any amount due under this Agreement on the due date and such amount remains unpaid within [30] days after the other party has received notification that the payment is overdue; or 1.2.4 any consent, licence or authorisation held by the other party is revoked or modified
PRECEDENTS
Dear [insert name of authorised representative of the counter-party], [insert name of agreement]: [insert client name] and [insert counter-party name] 1 [As you are aware, we OR We act] for [insert client name] (our client). 2 Our client and [insert counter-party name] ([insert short name]) are parties to a [insert agreement name] dated [insert date] (Agreement). 3 We are instructed that [insert counter-party short name] has breached the Agreement by[ failing to] [insert description of breach], contrary to
PRECEDENTS
1 Holiday 1.1 It is important that you take your holiday, or annual leave, entitlement to allow time for rest and relaxation, and we encourage you to take your full holiday entitlement during the year. 1.2 Your holiday entitlement will accrue [monthly] at the rate of [12.07]% of the number of hours you work each [month][, up to a maximum of 28 days per holiday year]. Your holiday year runs from [1 January] to [31 December]. 1.3 [You may be offered work on bank holidays and other public holidays.] 1.4 [ [PART-YEAR WORKER ONLY: ]You are required to work for part of the year only as set out in detail in [clause x above]. You must take your holiday outside these periods of work.] 1.5 You must take your holiday in the holiday year in which it accrues.
PRACTICE NOTES
This Practice Note looks at whether an employee can have two or more employers for the same job at the same time ie joint employment (also known as dual employment or multiple employment). It looks at the general presumption, the question of vicarious liability, and the situation of agency workers, office-holders and teachers. It also considers the context of collective bargaining, the impact of TUPE 2006, and the tax issues that can arise. Finally, it looks at the considerations that apply to written contracts involving multiple employers. Quick view Joint employment is usually discussed in the context of vicarious liability, eg for negligence (see: Vicarious liability, below). In the context of an individual’s employment rights, it seems relatively clear that the general presumption that an employee cannot have more than one employer for the same work at the same time can be displaced in the following situations: • where an employee has two jobs with separate employers and those jobs are compatible, and • where an employee has two or more employers acting together in a partnership or joint venture See:
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note is for use when determining applicable law where the contract was entered into on or after 1 January 2021. For contracts entered into before 1 January 2021, a different applicable law regime will be applied by the UK courts. Which regime is applied will depend on the date on which the contract was entered into. For guidance on the different regimes and their interrelationship, see Practice Note: Applicable law regimes. This Practice Note refers to UK Rome I, Regulation (EC) 593/2008. Originally known as Retained Rome I, since 1 January 2024, it is known as Assimilated Rome I—the change is to the name only and not the provisions within the regulation. Authorities may refer to the regulation using either name and so, for ease of reference, the regulation is referred to as UK Rome I in this Practice Note. For information on assimilated law, see Practice Note: Assimilated law. This Practice Note considers consumer contracts
PRECEDENTS
agreement dated [insert date] parties 1 [Insert name of temporary work agency] [of [insert address] OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address]] ('we' or ‘us’); and 2 [Insert name of agency worker] of [insert address] ('you'). 1 Definitions and interpretation 1.1 In this Agreement the following expressions will, unless the context otherwise requires, have the meanings set opposite them: Assignment • services carried out by the Temporary Worker for a Client, as described in Clause 3.1 and in the related Booking Form for the particular assignment; Assignment Information • the meaning set out in Clause 3.4; AWR 2010 • the Agency Worker Regulations 2010; Booking Form • written confirmation of the details of a particular Assignment to be given to you on acceptance of the Assignment, as set out in Schedule 2; Business Day • a day, other than a Saturday or a Sunday, Christmas Day or Good Friday, or a day which is a bank holiday under or by virtue of the Banking and Financial Dealings Act 1971 in that part of Great Britain; Calendar Week • the meaning in regulation 7(4) of the AWR 2010; Client
PRECEDENTS
Dear [insert name of authorised representative of the counter-party], [insert name of agreement]: [insert client name] and [insert counter-party name] 1 [As you are aware, we OR We act] for [insert client name] (our client). 2 Our client and [insert counter-party name] ([insert short name]) are parties to a [insert agreement name] dated [insert date] (Agreement). 3 We are instructed that [insert counter-party short name] has breached the Agreement by failing to pay £[insert amount] (Debt) to our client by [insert due date] as required by Clause [insert number]. [Clause [insert number] constitutes [an essential OR a fundamental] term by virtue of Clause [insert number]. OR Our client asserts that Clause [insert number] constitutes [an essential OR a fundamental]