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NEWS
Dispute Resolution analysis: Russia’s invasion of Ukraine has led to the US, the EU and the UK imposing wide-ranging sanctions and to significant retaliatory measures by Russia. The immediate priority for those who have operations, or contracts, with a Ukrainian or Russian nexus has been to support affected employees and to comply with the sanctions. Commercial parties are also having to work out what impact these events and the wider disruption caused by the invasion have on their contractual rights and obligations. The route to answers is legally complex and highly fact dependent. Jason Rix, senior professional support lawyer at Allen & Overy, sets out a framework to help commercial parties understand the impact of the Russian invasion and sanctions on English contract law.
Q&As
Looking at the position where A is the landlord, B is the tenant and C takes a subtenancy from B, the basic rules are that: • B can create no better right to occupy the premises than it has as a matter of property law, but can make a contract binding between itself and C on any terms—it is simply that B will be powerless to perform the contract if the subtenancy claims to give rights greater than B has under its own tenancy.
Q&As
An agreement for early termination of a fixed term tenancy is an agreement to surrender. An agreement to surrender a tenancy is a contract for the disposition of land within the meaning of section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989), under which the contract will be void unless it complies with LP(MP)A 1989, s 2. It must: • be in writing • contain or incorporate all of the terms expressly agreed by the parties (in one document or, where contracts are exchanged, in each document), and • be signed by or
Q&As
Section 1 of the Law Reform (Miscellaneous Provisions) Act 1970 (LR(MP)A 1970) deals with the legal consequences of termination of a contract to marry, and provides that engagements to marry are not enforceable at law, at LR(MP)A 1970, s 1(1) which provides that: ‘An agreement between two persons to marry one another shall not under the law of England and Wales have effect as a contract giving rise to legal rights and no action shall lie in England and Wales for breach of such an agreement, whatever
Q&As
Applicable law—general principles The applicable law is the law that governs a dispute. In the EU, the parties have the right to choose the applicable law. Any law may be chosen, even one that may have no apparent connection with the underlying contract. This might happen in an international contract, where neither party wants to accept the other’s national law, but both agree to accept a neutral third party law. However, problems of litigating in one country’s courts, on the basis of another country’s laws, can be avoided by choosing the applicable law of the country having jurisdiction to determine any dispute. The
Q&As
It would be relatively unusual for a zero hours worker to have a right to contractual sick pay so the information below concentrates on Statutory Sick Pay (SSP) rights. However, while zero-hour contracts often do not provide for contractual sick pay beyond SSP, the terms of the zero-hour contract should be reviewed to determine whether any additional sick pay entitlements are stipulated. If payable, the contract will usually specify the rate at which sick pay will be paid. A zero hours worker may be entitled to SSP if they: • are an employee as defined in the relevant legislation
Q&As
If a worker has not been paid the national minimum wage: • the worker can enforce their entitlement by way of their contract by making a claim for breach of contract or a claim for unlawful deduction from wages • HM Revenue and Customs can enforce the worker's entitlement by issuing a notice of underpayment or suing on the worker's behalf • the employer may be guilty of a criminal offence, if it has refused or wilfully neglected to pay the worker their entitlement If a worker is concerned that they
Q&As
Section 40(1)(b) of the Family Law Act 1996, (FLA 1996) provides the power for the court to: ‘order a party occupying the dwelling-house or any part of it (including a party who is entitled to do so by virtue of a beneficial estate or interest or contract or by virtue of any enactment giving him the right to remain in occupation) to make periodical payments to the other party in respect of the accommodation, if the other party would (but for the order) be entitled to occupy the dwelling-house by virtue of a beneficial estate or interest or contract or by virtue of any such enactment.’ Although
Q&As
In summary, a valid salary sacrifice arrangement (also sometimes known as an optional remuneration arrangement) involves: • a legally-effective variation to an employee’s employment contract under which, on the true construction of the revised contract: ◦ the employee is entitled to less cash remuneration ◦ in exchange for a non-cash benefit, and ◦ the exchange was legally effective prior to the employee being entitled to payment • a clear understanding between the parties as to the terms of the arrangements, in particular the employee, must fully understand the implications of what they are entering into, and • the employee not being entitled to reinstate the original (higher) cash remuneration (ie the
PRACTICE NOTES
The term ‘ground rent’ is generally used to refer to a low or nominal rent that is paid under a long lease which has been granted at a premium. Ground rent is payable (most frequently annually or bi-annually) by the tenant to its landlord. Ground rent is different to a service charge and is not intended to reimburse the landlord for costs expended. Premises that may be subject to a ground rent include both flats and houses, as well as commercial land and buildings. From 30 June 2022, the Leasehold Reform (Ground Rent) Act 2022 (LR(GR)A 2022) restricts the level of ground rent that a landlord of an individual dwelling can lawfully charge its tenant under a ‘regulated lease’ (as defined by LR(GR)A 2022, s 1) (a Regulated Lease)—see: What is a ‘regulated lease’? In a Regulated Lease, ground rent is deemed to be capped at the specified lawful ‘permitted rent’ (whether or not the lease purports to reserve a higher rent). In most Regulated Leases, the lawful ‘permitted
PRECEDENTS
Schedule of services—Structural Engineer (design and build procurement) The Consultant shall: General responsibilities (Stages 0–7) • [act as Lead Consultant in relation to the Project, which shall include: — advising in relation to the scopes of services for other members of the Design Team — advising on the need for other specialist consultants that may be required to complete the Project (and their scopes of services) — directing other consultants forming the Design Team — co-ordinating and integrating the design of the Project as a whole — arranging and chairing regular design meetings to facilitate the conduct of the Project and ensure that minutes are taken and circulated afterwards — facilitating communication between the Client and the Design Team — co-ordinate and collate end of stage reports] • [ [prior to execution of the Building Contract ]perform services as Principal Designer for the purposes of the Construction (Design and Management) Regulations 2015 and Building Regulations 2010 to ensure best practice at all times in respect of safety in design OR interact and liaise as required with the Principal Designer and ensure best practice at all times in respect of safety in design] • receive
NEWS
This edition of Employment weekly highlights includes: (1) HMRC updates to the National Minimum Wage Manual to reflect Employment Rights Act 2025 (ERA 2025) changes, (2) government guidance on transitional statutory sick pay provisions, (3) the government’s strategic steer to the Fair Work Agency (FWA) alongside extensive new and updated guidance and an FWA enforcement policy statement, (4) a new Code of Practice on Labour Market Enforcement undertakings and orders, (5) updated guidance on creating an equality action plan to reduce the gender pay gap and provide menopause support, (6) an EAT judgment holding that a conditional job offer created a binding employment contract requiring reasonable notice, (7) new government guidance for prescribed persons on handling whistleblowing disclosures, (8) a Health & Safety Executive (HSE) consultation on proposed reforms to RIDDOR 2013 workplace incident reporting requirements, (9) Information Commissioner’s Office (ICO) updates to UK GDPR lawful basis guidance, including ‘recognised legitimate interest’, (10) a Call for Evidence on TUPE 2006, (11) a new suite of Precedent Lists of issues and ERA 2025-related updates, (12) dates for your diary, and (13) other updates and resources of interest to employment practitioners.