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PRACTICE NOTES
Background to the regulated activities of effecting and carrying out contracts of insurance The regulation of carrying on insurance business in the UK dates back to 1870 with the enactment of the Life Assurance Companies Act 1870 (which contained a requirement for any company engaged in life assurance business to make a deposit in court by way of security). A number of enhancements were made by successive pieces of legislation. The original UK system of regulation was rendered somewhat obsolete by the implementation of various pieces of EU legislation dating back to the early 1970s: there followed a directive governing life assurance. These directives included: • the First Non-Life Insurance Directive (Directive 73/239/EEC), which brought in a European Economic Community (EEC) system of solvency margins, as well as a procedure for insurers to follow if they fail to meet such requirements • the First Life Insurance Directive (Directive 79/267/EEC), which contained similar provisions to the first non-life insurance directive • the Second Non-Life Insurance Directive (Directive 88/357/EEC) which enhanced the first non-life insurance directive
PRECEDENTS
1 Any dispute or difference arising under or in connection with this [agreement OR Contract] may be referred to an adjudicator appointed at the request of either party by the [Insert details of
NEWS
Commercial analysis: The High Court has allowed an application to continue an interim injunction. The injunction was aimed at protecting an exclusive licensee's right to distribute and promote the licensor's luxury footwear within specified countries, including the US. The licensor argued that the agreement contained express or implied terms permitting either party to terminate the agreement on reasonable notice. The court rejected this because the agreement included carefully drafted termination provisions which did not permit such a term. As a result, the court granted summary judgment. Written by Helen Hart, senior practice development Lawyer, Lewis Silkin LLP.
PRACTICE NOTES
This playbook provides guidance for drafting and negotiating a consultancy agreement where the consultancy company contracts to provide an individual consultant’s services to the client company (a ‘loan-out’ agreement or arrangement), from a pro-client or hirer position. This playbook includes a preferred position and a fallback position for the most commonly-negotiated clauses. It may not, however, address every issue that may arise in the negotiation of a particular consultancy agreement. This playbook template can be used by lawyers acting for the client or hirer (whether working in-house or in private practice). Users should modify the playbook as necessary to address client-specific issues and ensure the client’s interests are fully protected. The level of risk noted in the playbook may vary depending on the client. Note that this playbook does not include fallback positions for all boilerplate clauses, where confidential information includes personal data or detailed provision for intellectual property rights. For a template agreement, see Precedent: Consultancy agreement—company and company—pro-client. Note that Precedent: Consultancy agreement—company and company—pro-client should be used in conjunction with
NEWS
Employment analysis: If a claimant does not actively advance before the tribunal a claim for an award under section 38 of the Employment Act 2002 (in respect of a failure by the employer to provide a written statement of employment particulars), probably by including it in the ET1 and then by pursuing the issue at the hearing, the employment tribunal is under no obligation to consider and rule on the issue of its own motion, according to the EAT.
Q&As
The usual position on a secondment is that: • the employee transfers temporarily to work for another organisation • the employee remains employed by the original employer, and • agreement is reached between the original employer, the other organisation and the employee as to their respective rights and obligations during the secondment, eg in relation to duties, payment of salary, holidays, disciplinary and grievance issues See, for example, these Precedents: • Secondment agreement (employer—host) and related drafting notes, and • Letter—secondment letter (employer—employee) and related drafting notes Relevance of TUPE 2006 In some circumstances where an employee moves to work for a different organisation, consideration will have to be given to whether there has in fact been a relevant transfer within the meaning of TUPE 2006. For further information, see: • the drafting notes to the Precedent: Secondment agreement (employer—host), under the heading ‘TUPE 2006’ • TUPE and asset purchases—overview, and • Practice Note: TUPE—business
Q&As
The main issues that may arise where an employee proposes to take a second job with another employer are outlined below, and also discussed in News analysis: UK cost of living crisis—are your employees taking second jobs? Working time rights A worker has the right under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833 to: • an average 48-hour maximum working week (unless there is a valid opt-out agreement) • daily rest periods • weekly rest periods • rest breaks • paid annual leave • compensatory rest breaks In relation to young workers, who are subject to maximum working time of eight hours a day and 40 hours a week: • when calculating the hours worked for these purposes, if on any day or during any week the young worker is employed by more than one employer, their working hours are determined by aggregating the hours worked for each employer • an employer must take ‘all reasonable steps’, in keeping with the
PRACTICE NOTES
This Practice Note examines the use of probationary periods (or trial periods) in employment contracts. These are typically used to assess the suitability of newly-appointed employees (sometimes known as probationers), and provide a structured framework for early termination, usually on shorter notice, if the employment relationship is not working. This Practice Note: • explains the legal status of probationary periods • considers the interaction between probationary periods and statutory employment rights, including unfair dismissal • considers the drafting, management, extension and termination of probationary periods, and • provides practical guidance for employment law practitioners For a sample policy, see Precedent: Policy—probationary periods. With effect from 1 January 2027, section 25 of the Employment Rights Act 2025 (ERA 2025) amends the qualifying period for ordinary unfair dismissal set out in section 108 of the Employment Rights Act 1996 (ERA 1996) from two years to six months, and removes the cap on the compensatory award in ERA 1996, s 124. For information on the impact of those changes generally, see Practice Note: ERA 2025—implications of unfair dismissal qualifying period and
PRECEDENTS
Key Information Document This document specifies key information relating to your relationship with us, including details about pay, holiday entitlement and other benefits.[ Further related information may be found in [insert description of where further related information can be found].] The Fair Work Agency (FWA) is the government authority responsible for the enforcement of certain agency worker rights. You can raise a concern with them directly on 0345 161 6000 or through the Acas helpline on 0300 123 1100, Monday to Friday, 8.00 am to 6.00 pm. Dated: [insert date] 1 General information Your name: [insert name] Name of employment business: [insert name] You
PRACTICE NOTES
This Practice Note provides practical guidance on the proper execution of documents by non-Companies Act corporations. Non-Companies Act corporations are those created by statute such as local authorities and building societies. A corporation is a body that has a legal personality separate from those of its members, meaning it can contract, generally hold property, and sue and be sued, in its own name. In this Practice Note, we are concerned with ‘corporations aggregate’, meaning corporations consisting of a body of persons, rather than ‘corporations sole’ (consisting of one person in a particular office). The term ‘body corporate’ or ‘corporation’ is broad and encompasses a variety of bodies including, for example, corporate bodies created by: • statute, such as building societies, co-operative or community benefit societies (previously known as industrial and provident societies), and friendly societies • a general Act of Parliament, such as local government authorities, corporations which control the public services and industries, bodies performing various general administrative and advisory functions, and certain bodies performing special functions of a public nature • a Royal Charter, such as
PRACTICE NOTES
This Practice Note considers contracting authority under the law of England and Wales, which is an essential component of contract formation. It considers general principles of agency and contracting authority in the context of corporations generally, companies registered under the Companies Act 2006 (CA 2006), unregistered companies, overseas companies, limited liability partnerships, general partnerships, limited partnerships, unincorporated associations, incorporated charities (charitable companies and Charitable Incorporated Organisations) and unincorporated charities (charitable unincorporated associations and charitable trusts). Where an entity has separate legal status, it is possible to make a distinction between instruments executed by the entity itself (eg using its common seal where available) or on behalf of the entity (eg by a person acting under its authority). This Practice Note focuses on a person’s contracting authority where they are executing an instrument on behalf of the entity. It does not consider the various alternative methods of execution that may be available (eg using a common seal). For guidance on the separate issue of execution formalities and requirements and protections in respect of due execution, see the Practice Notes