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LinkedIn is a key channel for personal branding, so your LinkedIn profile is the launchpad to building a strong professional network. The channel is also the place to be if you wish to continue relationships of key people you meet at zoom networking events allowing you to easily stay in touch after making the effort to attend the meeting. As well as being the touchstone for nurture and lead generation a well optimised LinkedIn profile is on the same level as making a good first impression when you meet in person. How do you optimise your profile? 1. Make sure you have a current and professional head and shoulders photograph of yourself. You are on the platform to do business so ensure you appear to be there for that reason so a picture with your partner, favourite pet or vehicle doesn’t cut it. It should be a current photograph as it could be embarrassing putting a ten-year-old photo on the platform and when you meet a contact in person you look nothing like your photo so it could end up being a little like a bad first date. Be authentic. 2. Also use Canva.com to create a background image as why miss the opportunity to promote your business. If you have staff on LinkedIn create an image for all of them to use as their background as it’s a little like giving them all a company vehicle with no costs attached. 3. Treat your LinkedIn profile as an online resume and ensure you complete every section – a. The about section – I split this into two sections i. My Background ii. What I Do Now iii. Include an email and phone number at the bottom of this section b. Experience – show at least the last two positions c . Education d. Licences and Certifications e. Skills and Endorsements – You can have 50 of these so put in as many as you can for example if you were a bar person you could include customer service. f. Recommendations – request these from people you know 4. Use keywords in your headline – think of the words you would use if you were looking for your goods or services. 5. Join groups which could be a. Within your industry b. Where your target market is c. Services you have an interest in If you require any help or advise we offer training or talk you through the process via zoom. Blog written by Linda Cloke of We Do Social Media Ltd Contact: Linda@wedosocialmedia.co.uk or call 07769943756
According to the Health & Safety Executive, over 11 million workdays are lost each year due to stress at work! The latest Employment Law Bulletin from our sponsors Parfitt Cresswell Solicitors focuses on the topic of stress in the workplace and the actions that employers can take to defend themselves against claims arising from this. In the Employment Law Bulletin expert Philip Luff covers: • What stress is • The duties of an employer • The potential action that an employee can bring against their employer for work related stress, and offers tips on how employers can best protect themselves against workplace stress claims To read the article and find out more about Stress Related Claims in the workplace click here . If you would like legal advice regarding an Employment Law matter take advantage of Parfitt Cresswell Solicitors’ complimentary initial video/telephone consultation with one of their legal experts. Call 0800 999 4437 or email enquiries@parfittcresswell.com today to arrange your free initial consultation.
This article is brought to you by Parfitt Cresswell Solicitors Extension of the Furlough Scheme (CJRS) On Saturday 31st October the Prime Minister announced a further national lockdown in England to address the increasing rate of Covid-19 infections throughout the UK. This lockdown commenced on 5th November and will remain in place until at least 2nd December 2020. Under the previous tiered ‘local’ lockdown arrangements, the Government had announced two Job Support Schemes which were intended to succeed the Coronavirus Job Retention Scheme (furlough scheme). These schemes were known as the ‘JSS Closed’, aimed at businesses that had been forced to close under the tiered restrictions and the ‘JSS Open’, a scheme for businesses who although affected by Covid-19, were still able to open. These schemes were due to replace the existing furlough scheme when it ended on 31 October 2020, with the Government support significantly reduced when compared with the original CJRS. However, along with the announcement of a national lockdown throughout November, it was also announced that the CJRS would be extended for a further month. A few days after this, the Chancellor announced that this extension of the furlough scheme would now run until the end of March 2021. As such, the JSS is not likely to resurface until at least April 2021 (if at all). How had furlough changed By way of a reminder, the CJRS has been through several changes since its introduction in March 2020, from the Government initially funding 80% of an employee’s salary up to £2,500, with government support reducing in recent months as restrictions eased. In October 2020, the month before the scheme was due to end, the government contributed 60% of unworked hours up to a cap of £2,187.50, with the employer paying the additional 20% along with employer national insurance and pension contributions. How will the extension work? In simple terms, the extension of the Furlough Scheme puts employers back to the same level of government contributions that were available in August 2020, with the Government funding 80% of eligible employees’ salary, but the employer having to contribute both employer national insurance/pension contributions themselves. The current understanding is that the furlough extension will operate largely as it did before, however the following now applies: • The extended scheme will run until 31 March 2021. • The employer or employee are not required to have previously used the CJRS • To be eligible, the employee must have been on the employer’s PAYE payroll by 23.59 on 30 October 2020 and the employer must have made a Real Time Information (RTI) submission for that employee by that date. • The employee can be furloughed either full-time or flexibly (for part of their hours). Employers will need to report and claim for a minimum period of seven consecutive calendar days. • The government will pay 80% of eligible wages for any unworked hours, (up to a cap of £2,500) with the employer paying employer NIC and pension contributions on these unworked hours. Employers will need to pay the employees for any hours worked as per usual. • The employer can choose to top up to 100% if they wish but is not obliged to. • The Job Retention bonus for employers (£1,000 for each employee kept on until the end of January 2021) will no longer be able to be claimed in February as planned, but will possibly be introduced at a later date to help avoid the impact of the furlough scheme ending. • The Government will review the scheme in the New Year, so it is still possible that increased employer contributions could be required prior to the end of March. As with all these announcements, further detail and guidance will follow from the government in due course. If you require further legal assistance regarding the CJRS or and other employment law issue, take advantage of our complimentary initial consultation (available via telephone or video call) today by calling 0800 999 4437 or email enquiries@parfittcresswell.com
This article is brought to you by our sponsors Parfitt Cresswell Last month’s commercial property bulletin focused on retail and the potential shape of the High Street of the future, discussing the way in which the Covid-19 pandemic has necessitated a more flexible approach to real estate usage by landlords, tenants and local authorities. Since our last update, Haywards Heath, a town with a population of approximately 35,000, where Parfitts has two offices operating under its Colemans Solicitors brand, has seen a planning application approved for the demolition of a long-established office block to be replaced by a mixed commercial and residential development. It therefore seems like an appropriate time to take a look at another aspect of commercial property: office space. Last Thursday, 29 October 2020, marked the closure of the Government’s consultation on proposals for reform of the planning system in England, set out in its White Paper: “Planning for the Future”. The focus of “Planning for the Future” is principally residential development: the word “commercial” appears twice in the White Paper whereas there are over 100 instances of “community” or “communities”. Nevertheless, when it does comment on commercial property, the Government continues to emphasise the need for greater flexibility, despite advocating a move away from the current, relatively discretionary, planning regime towards a more rules-based approach. In relation to commercial real estate, “Planning for the Future” emphasises the need for a new planning system to: “help businesses to expand with readier access to the commercial space they need in the places they want and supporting a more physically flexible labour market”. The reference to a more flexible labour market is interesting in the context of the marked shift towards home working that the Covid-19 pandemic has caused. Things may not be changing as fast as some commentators suggest and there will continue to be a need for more traditional office accommodation, particularly while smaller professional businesses are either unwilling or unable to support employees in adopting more agile working practices. However, earlier this month the multi-national professional services company, Deloitte, announced that it was closing offices across four locations, including Gatwick and Southampton, with 500 employees being offered full-time remote working. Earlier in the pandemic, it was reported that up to three quarters of Britain's biggest employers are looking at a permanent shift to flexible working. Banks and the financial services sector look to have been quick to embrace this shift. Against this background, the recent planning decision in Haywards Heath that sees a dedicated office building (that had, in the past, been occupied by Lloyds Bank) being demolished and replaced by a mixture of housing and office space seems a sign of things to come. As well as highlighting the need for flexibility when it comes to commercial space to accommodate a more agile workforce, “Planning for the Future” specifically references the UK’s knowledge-based economy, stating that in the future Local Plans will need to identify: “… land needed to take advantage of local opportunities for economic growth, such as commercial space for spin-out companies near to university research and development facilities, or other high productivity businesses.” Research and Development is an area of particular importance to the South East: the region boasts 21 universities and 36 business incubators and accelerators. The UK Government is looking to the country’s digital and technological businesses to help drive post-Brexit economic growth so it will be intriguing to see whether the spaces created by white-collar workers logging on from home will be filled by more creative scientific or tech start-ups, where collaborative working is better facilitated by working together and being in close proximity to universities or other R&D facilities. Given that the “spin-out companies” cited in “Planning for the Future” will likely be start-ups with little or no trading history, will commercial landlords be willing to take their chances in letting space? What steps would a prudent landlord take to protect his or her position in these circumstances? How will commercial tenants make best use of available office space? How will both parties seek to maximise the benefits of the increased flexibility available to them? Businesspeople and their professional advisers will have to wrestle with these questions throughout 2021 and the years to come but, as we concluded in our last bulletin: creativity, agility and flexibility will surely be key to navigating the ‘new normal’. If you or a loved one is in need of legal advice, take advantage of our complimentary, no obligations consultation where you can meet with one of our Commercial Property Law experts and find out what the next best course of action is. Be proactive and call us today on 0800 999 4437 or email enquiries@parfittcresswell.com and one of our friendly team will be happy to assist you.
This article is brought to you by our sponsors Parfitt Cresswell Job Support Scheme With the Coronavirus Job Retention Scheme (‘CJRS’) due to end on 31 October 2020, the Government has been facing increasing pressure to provide some alternatives or an extension to the scheme in order to support businesses/employees and avoid a wave of redundancies. The Chancellor announced the successor to the CJRS in the form of the Job Support Scheme (‘JSS’) which will be in place for 6 months from 1 November 2020. It is certainly not as generous as the CJRS, with the Government expecting employers to pick up a larger percentage of their employees’ wages, with a scheme intended to cover only ‘viable’ jobs. In doing this, the Government are accepting that not all those employees currently covered by the CJRS are going to be eligible for further support from November. Employers can use this scheme to avoid redundancies by keeping their employees on shorter hours and with the Government supporting employers to help pay their wages during this period. How does the JSS work? The JSS will require employees to work a minimum of 33% of their usual hours. Employers will be required to pay employees for the hours that they work as per usual. For hours that the employee does not work (the remaining 67% in the example above), the government, the employer and the employee will pay one third each. For example, for employees working 33% of their usual hours, the employer will overall contribute 55% of the employee’s usual salary (33% plus 1/3 of 67%) and the government will contribute a further 22%. This will leave an employee working 33% of their usual hours being paid 77% of their usual salary. This 77% represents a minimum amount that an employee should receive (when no cap applies – see below) and will increase as the hours worked increase. The contribution made by the Government will also be capped at £697.92 per month and it will not cover Class 1 employer contributions to National Insurance or Employer Pension Contributions. The scheme will run from 1 November 2020 for 6 months and will be open to all employers (non-sector specific) who have a UK bank account and UK PAYE Scheme. All SMEs (< 250 employees) will be eligible, with larger businesses only eligible if they can show that their business has been adversely affected by COVID-19 and that they will not be making capital distributions (dividends etc). Larger employers are likely to have to pass a ‘financial impact’ test with more details on this to be released in due course. The scheme does not require employees to have previously been furloughed under the CJRS, but to be eligible they will need to have been included on their employers Real Time Information (RTI) submission to HMRC on or before 23 September 2020. Importantly, the JSS states that employees cannot be made redundant during a period on which their employer is claiming a grant under the scheme. However, this does not appear to mean that employees cannot be made redundant at all or be put on notice during the six months that the scheme is running, but rather that employers will be unable to use the scheme to effectively fund part of the employees notice period. Practically speaking, employers will be required to move an employee out of the scheme if they wish to start a redundancy process prior to the scheme ending. Under the CJRS an employer was able to use the scheme to fund all or part of the redundancy notice payment, but this will not be possible under the JSS. Currently the threshold for the minimum hours to be worked by employees is 33%, but the government’s factsheet suggests that this may increase in months 4-6 (from February 2021 onwards). Further guidance is due to be issued on whether employers can use the scheme if they are unable to guarantee 33% of hours each week or whether this can be stretched to cover an average figure over the whole month. We do know that employees do not need to be working the same pattern each month and that employees can be ‘cycled’ on and off the scheme. This scheme has raised questions on whether specific sectors that have yet to get back on their feet will be able to benefit, as in some sectors it may not be possible to provide 33% of an employee’s hours each week. It may therefore be possible that the Government will look to introduce sector specific support as is necessary to stop larger scale redundancies in areas such as hospitality and travel where this scheme may be seen as falling short. If you have a question regarding the Job Support Scheme or require legal assistance with an employment law matter take advantage of our complimentary initial consultation with one of our legal experts by calling 0800 999 4437 or emailing enquiries@parfittcresswell.com today to reserve your place.
This article is brought to you by our sponsors Parfitt Cresswell Whilst the residential property market in the southeast appears to be holding up against the ravages of the recession, there are signs that Covid-19 is starting to take its toll on the commercial real estate market despite the measures brought in by the UK Government to protect commercial tenants. Unsurprisingly, the sectors that have been hardest hit by the pandemic, such as hospitality and the arts, are having difficulties in maintaining premises. A number of household name restaurant chains have announced nationwide closure programmes and, in the arts, theatres and music venues are also struggling to remain afloat. In Haywards Heath, a town with a population of approximately 35,000, where Parfitts has two offices operating under its Colemans Solicitors brand, the only arts venue – Clair Hall – was closed last week by the local council. Although Clair Hall was publicly owned and had been loss-making for some time, its closure points to wider issues in the property market and the decisive “final nail” effect that Covid-19 is having across the country. It seems that the key to making use of these newly vacant spaces is increased flexibility. In other parts of the country, such as Greater Manchester, empty theatres are being repurposed as court rooms to help clear the current backlog of legal cases: so-called “Nightingale” courts. Earlier in the year, we saw the whole of London’s ExCel Centre turned into a hospital (though, thankfully, it never had to admit a patient). The longer term economic and social effects of Covid-19 remain to be seen, but this kind of creative use of space is to be welcomed and perhaps gives an indication to the private sector of things to come. The future of the High Street, and its apparently imminent demise, has long been the subject of debate and we may now be witnessing a definitive shift towards e-commerce as the dominant way that customers choose to shop. But, at the same time, we are seeing a greater emphasis on home-working, meaning that smaller local retailers and food outlets are reporting increased footfall while larger companies are reducing their physical footprints. In the news this week it was reported that sportswear firm Nike “has seen a huge rise in online sales as it bounces back from a coronavirus slump” and the chief executive was quoted as saying: “We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back”. In common with all businesses, commercial landlords and tenants need certainty when it comes to their contractual arrangements, including in relation to their properties. Nevertheless, in response to the significant uncertainty created by the current crisis, the emphasis of advice given to commercial landlords and tenants by both the UK Government and property professionals has, rightly, been on flexibility. To date, this has principally meant flexibility on rent levels, with payment holidays and temporary rent reductions being negotiated. However, given the repurposing seen in the public sector discussed above, it may well be that commercial landlords will also have to embrace even wider flexibility to keep rental incomes flowing, possibly by accepting that their premises will be put to different uses at relatively short notice (particularly in light of the Conservative government’s stated determination to relax UK planning regulations), which could also include accepting greater fluidity through being more open to tenant assignments or subletting. As established retailers retreat from the High Street, should landlords be willing to accept more pop-ups and microbusinesses as tenants? Should landlords accept less certainty when it comes to the length of terms, potentially through greater use of short-term tenancies or licences, in return for higher rates of occupancy? As Marks & Spencer continues to close larger stores, the Co-op has announced that it will be opening 50 smaller convenience shops, having found that 70% of adults have relied on their local convenience store for food and other goods in recent months; so should commercial landlords be looking to divide their larger premises into smaller units? Will smaller, private commercial landlords look to exit the commercial market altogether and convert premises to residential use in readiness for sale? Questions such as these have always been asked by property professionals during recessions and times of economic uncertainty, but they have been brought into even sharper focus due to the way the current crisis is impacting not just the economy, but the whole way we go about our lives. In terms of financial responses to the Covid-19 pandemic creative measures quickly implemented, such as furlough and ‘Eat Out to Help Out’, have proved relatively successful in maintaining economic impetus. These measures, together with the rapid repurposing of vacant public premises, provide valuable guidance to commercial landlords, tenants and their professional advisers as we move forwards: creativity, agility and flexibility will be key to navigating the ‘new normal’. If you or someone you know would like to speak to one of our legal experts regarding a commercial property matter call us today on 0800 999 4437 or email enquiries@parfittcresswell.com to take advantage of our complimentary, no obligations, initial consultation. We look forward to assisting you with your legal needs.
This article is brought to you by our sponsors Parfitt Cresswell Written Statement of Employment Particulars With everything else that has been happening over the last few months, it would be easy to forget the usual raft of employment law changes that come into force each April, with this year being no exception. In this bulletin, we will focus on some additional requirements that will now apply to all employers hiring new employees and workers after 6 April 2020. Also referred to as a ‘ Section 1’ statement , the requirement for a written statement of employment particulars is set out in section 1 of the Employment Rights Act 1996 . This details the key information that employers need to provide to their employees (and now workers) when they start work. These particulars are usually incorporated into a more comprehensive contract of employment that will include these terms as well as many others that will ultimately govern the working relationship. Why is it important to know about the changes? Employers who fail to adhere to the new rules may find that employees and workers are able to bring a claim against them in an employment tribunal, with each employee able to claim between 2 to 4 weeks’ pay, subject to the current statutory cap of £538 per week. Although this type of claim cannot be brought before an Employment Tribunal as a standalone matter, it can be brought as an ‘add on’ to another type of claim. Although at first glance the relatively modest penalties for breaching these rules may not be a great cause for concern to employers, a claim brought by an entire workforce added to some other smaller claim could prove costly. For example, if an employer inadvertently amends a term of the employment contract, changing it from contractual to non-contractual (or vice versa), then this could form the basis of a claim for which failing to provide the statement of employment particulars could be added. Although this hypothetical claim for breach of contract may not be of particularly high value on its own, when the compensation for failing to provide a sufficient written statement of particulars is added on, it could make the total value of the claim significant and encourage employees to take further action. What changed? On 6 April 2020 , the requirement for employers to provide a written statement of employment particulars changed. The key changes were as follows: Written statements will need to be provided to all workers. Previously only employees had this right. The right to a written statement has now become a right from day one. This means that any workers engaged on or after 6 April 2020 are entitled to receive a written statement of employment particulars before or on their start date (only limited information can be provided after this point). Previously the employer had some leeway to provide this information in the month following the start date. Written statements will need to provide more information than previously (set out below) All current workers will also be entitled to request a written statement including the additional information. Employers will need to comply with these requests within one month. What additional clauses now need to be provided after 6 April 2020? Over and above the information that was already required before 6 April 2020 (see below), employers must now also include the following additional information in a ‘principal’ statement of employment, which must be provided on day 1: the days of the week the worker is required to work, whether the days and working hours may be variable and how any variation will be determined. any paid leave to which the worker is entitled. details of any other benefits provided by the employer that are not already included in the statement. any probationary period, including any conditions and its duration. any training entitlement provided by the employer, including whether any part of that training is mandatory and any other mandatory training which the employer will not pay for. Information that was already required in the ‘principal statement’ before April 6 2020 (now required on day 1) the employer’s name the employee’s or worker’s name, job title or a description of work and start date how much and how often an employee or worker will get paid hours of work holiday entitlement (and if that includes public holidays) where an employee or worker will be working and whether they might have to relocate if an employee or worker works in different places, where these will be and what the employer’s address is how long a job is expected to last (and what the end date is if it’s a fixed-term contract) Length of notice required to be given by each to the other Information that can be provided in a separate document (although referred to in the principal statement’) Sick leave and pay Pensions and pension schemes (can be provided within 2 months) Details of any collective agreements directly affecting terms (can be provided within 2 months) Any other training entitlement (can be provided within 2 months) Disciplinary and grievance procedures (can be provided within 2 months) What should employers do to ensure they are complying with these requirements? Ensure template contracts for both employees (and now workers) are amended to include the above points. If contract templates have not been reviewed for some time prior to 6 April 2020, it may be advisable to have a wider review of the terms to ensure they are fully compliant with current legislation and fit for purpose. It is advisable that workers and employees are clearly distinguished, and separate written statements should be prepared for each to avoid any confusion over employment status. It is important that when amending template agreements to include the above additional information that non contractual benefits (discretionary bonus schemes etc) are not inadvertently converted into contractual benefits. If you or someone you know is experiencing legal issues or has a question regarding employment law take advantage of our complimentary initial consultation (via telephone or video call) now by contacting us today on 0800 999 4437 or emailing enquiries@parfittcresswell.com to arrange your complimentary appointment with our friendly, legal experts. We look forward to helping you with your legal needs.
This article is brought to you by our sponsors Parfitt Cresswell Directors Beware An interesting case was decided by the Court of Appeal at the end of July this year that sheds light on individual shareholders rights to inspect a leaseholder-owned management company’s register of members with a view to that shareholder contacting the other shareholders of the company to call a meeting of the members of the company to remove and replace the existing directors and managing agents. Any person may, on payment of the prescribed fees, inspect a company’s register of members if they submit a request which (among other things) states the purpose for which the information is to be used (sections 116 and 117, Companies Act 2006) (CA 2006)). Where a company receives a section 116 request for access, it has five working days from receipt of that request to allow inspection and/or provide a copy of the register, or, if it believes that the request is not made for a proper purpose, to refer the request to the court (section 117, CA 2006). If the court is satisfied that the inspection or copy is not sought for a proper purpose, the court must direct the company not to comply with the request by making a “no access order”, and it may make a further order regarding the company’s costs. Unless a company obtains an order under section 117 of the CA 2006, it must comply with a request for access and non-compliance incurs a criminal penalty (section 118, CA 2006). As the CA 2006 does not define a “proper purpose”, the question of what is a “proper purpose” falls to be decided by the courts. The Chartered Governance Institute has published ICSA Guidance on Access to the Register of Members: Proper Purpose Test which is intended to provide an industry view on the test, and to give non-exhaustive examples of what should constitute a proper purpose and what is likely to be an improper purpose. The Court of Appeal has provided guidance on the application of the “proper purpose”, highlighting that: The expression “proper purpose” in section 117(3) of the CA 2006 ought to be given its ordinary and natural meaning. The purpose should first be identified. This will normally be described in the request, but the court is not restricted to the purpose in the request. The court will determine the purpose of the request on the balance of probabilities on the evidence before it. After the purpose is established, the court will consider whether it is proper. The test whether a purpose is proper is an objective one made by the court on the evidence before it and will often depend on the precise facts and circumstances. The court may have regard to the Chartered Governance Institute guidance. The test for whether a purpose is proper does not depend on whether it is in the interests of shareholders. The person (whether a shareholder or not) making the request may have his or her own interests in making the request. The onus is on the claimant company to satisfy the court on the balance of probabilities that the request is improper. If the court is in any doubt it should not make a no-access order. It is for the person making the request, rather than the court, to consider whether access will be of value to that person. The Court of Appeal: Considered that, for a request by a member, a proper purpose ought generally to relate to the member’s interest in that capacity and/or to the exercise of shareholder’s rights. Explained that the discretion to make a “no access” order should be exercised sparingly because, if members cannot communicate with other members, the board is put in a strong position and “corporate governance is accordingly weakened”. It considered that a strong case was required to prevent access, otherwise the relationship between the board and the shareholders would not operate as it was intended to operate “with the shareholders monitoring the activities of the directors”. Gave as an example of a proper purpose where a member needed the information in the register because he or she wanted to obtain support from fellow members to requisition a general meeting of the company. The facts of the case (Houldsworth Village Management Co Ltd v Barton [2020] EWCA Civ 980 (29 July 2020) B, who was both a leaseholder and a member of the leaseholder-owned management company (responsible for the management of residential apartments), made a request under section 116 of the CA 2006 to inspect the company’s register of members. In his request, B stated that the purpose for which the information was to be used was: ”to contact my fellow members with a view to seeking a general meeting of members and proposing resolutions to remove and replace the existing directors and the managing agent.” In its memorandum, the company’s objects were to acquire, hold, manage and administer the property. The directors of the company had delegated their property management functions to managing agents. The company sought a declaration under section 117 of the CA 2006, objecting to B’s request on the basis that while seeking to remove persons as directors of a company may be a proper purpose, replacing its managing agents was not. The High Court dismissed the company’s claim and refused to make the “no-access” order. The company appealed against the decision on the basis that B’s purpose was not proper as it did not relate to B’s rights as a member of the company, arguing that: It was essential to differentiate between B’s two different capacities as a leaseholder and as a member, as the appointment and removal of managing agents was relevant to the leaseholder capacity but not the capacity as a member. A request which had as its purpose the enforcement of the covenants under the lease was not a proper request. The judge at first instance had made an error by equating management and governance of the company with the discharge of covenants for services under the lease. Section 116 was only concerned with matters relating to corporate governance. B had made an earlier request for inspection of the register of members of another unrelated property management company of which he was a member, and in relation to that company’s section 117 application, the High Court had held that the purpose of B’s request was not a proper one. The court concluded in that case that B’s purpose was to contact other leaseholders to invite them to support him in challenging the service charge and removing the managing agents, and that B’s purpose was to further his interests as a leaseholder and had nothing to do with his interests as a member of the company. The court further concluded that B wished to obtain the information to harass the company or harm its members. Decision The Court of Appeal dismissed the appeal. The Court concluded that: Proper purpose A member who is seeking to communicate with other members to challenge, in good faith, the way the company is being run should normally be regarded as having a proper purpose. Capacity as member or leaseholder and corporate governance While there is a clear distinction between the rights of a leaseholder and the rights of a member, those rights are not necessarily mutually exclusive. Generally, if a person has several rights which afford a remedy, they can choose which right to exercise to achieve their goal. B’s attempt to exercise his rights as a member through a general meeting was not improper, even if the ultimate remedy he sought (removal of the directors and appointment of new managing agents) could be achieved by another route. To argue otherwise, was to draw a sharp dividing line between enforcement of the covenants under the lease and corporate governance, and to give to corporate governance a restricted and artificial meaning: a complaint relating to appointment of agents to carry out the day-to-day management was central to the company’s objects and to how the company was run, and so was a legitimate matter to raise at a general meeting concerning the company’s affairs. It lay within the area of overlap between the rights of shareholder and those of leaseholder; as the company in general meeting could properly pass a resolution, at the instigation of a shareholder, to remove the managing agents, it is difficult, if not impossible, to suggest that B had an improper purpose, whatever his rights may be under his lease or under the landlord and tenant legislation; and in this context, corporate governance is not to be given such a narrow interpretation as suggested by the company. In stating that a proper purpose ought to be relevant in some way to the member’s interests as a member of the company, the court was not seeking to lay down anything in the nature of a rigid requirement which must be satisfied before a request by a member can be proper the courts observation was no more than a reflection of the fact that members are in general likely to be interested, and properly so, in the proper running of the company. In the previous case that B was involved with the Court of Appeal stated that the Judge had erred in treating the guidance of “proper purpose” as a rigid requirement and holding that a request which is not made by a member “as member” is necessarily not made for a proper purpose. Such an interpretation would lead to a different test to members and non-members. It stated that the Judge had lost sight of the requirement to ask whether, on the facts and circumstances of the individual case, the request is a proper one. That requires a focus on the facts and circumstances of the case and cannot be answered simply by reference to the capacity in which the request is made. Once it was accepted that B’s purpose was one which lay properly within his rights as a leaseholder as well as his rights as a shareholder, it is not for the company to determine in which capacity B may choose to challenge the appointment of the managing agents. This decision will be of relevance to leaseholder-owned management companies, in its finding that for the purposes of section 116 of the CA 2006, it is artificial to create a division between corporate governance issues and leasehold matters. It is also likely to have wider implications for companies more generally in concluding that a section 116 request by a member does not need to relate to the interests of the member in their capacity as a member of the company, instead the question to ask is whether, on the facts and circumstances of the individual case, the request is a proper one. If you or someone you know would like to speak to one of our legal experts regarding a commercial property matter call us today on 0800 999 4437 or email enquiries@parfittcresswell.com to take advantage of our complimentary initial telephone/video consultation call. Our no obligations consultation allows you to discuss your matter with a friendly member of our team and find out what your next best step is. We look forward to assisting you with your legal needs.
This article is brought to you by our sponsors Parfitt Cresswell Furlough Bonus Scheme and claiming back home working expenses Furlough Job Retention Bonus In the Chancellor’s summer statement on 8 July he announced that the furlough scheme would not be extended beyond 31 October 2020, with a view to encouraging people to return to work. Although opposition parties have been calling for an extension to the scheme to help avoid any ‘cliff edge’ that forces employers to make redundancies from November onwards, the new Governor of the Bank of England has recently put on record his support for the scheme ending as planned in October. To soften the blow and to further support employers who bring employees back to work, the Chancellor also announced a new scheme that would pay employers £1,000 for each employee they bring back from furlough. This is a scheme intended to support employers and incentivise them for retaining employees once the scheme ends (rather than this being any type of ‘bonus’ for employees). The detail behind this scheme was initially scant, as has been the case for the majority of the ‘support scheme’ announcements made during the pandemic, with further details promised later. On 31 July, more detail was published in a policy paper, with an expectation that the full detail will be published in September, including the practicalities of how to make a claim. What we know so far The bonus will only be payable for employees who were eligible for the furlough scheme, and any fraudulent applications will be investigated, and suspect claims withheld. The employee must have been continuously employed from the date of the most recent claim until at least 31 January 2021. Employers will be able to claim this ‘bonus’ from February 2021. To qualify, employees need to have been earning an average of £520 per month between 1 November 2020 and 31 January 2021. The employee does not need to earn £520 each month, but must have received some earnings each month and these must be recorded through HMRC Real Time Information (RTI) If notice has been served (contractual or statutory), the bonus will not be paid even if the employee is still employed on 31 January 2021. Likewise, employees who submit their resignation prior to this date may prevent their employer from claiming the £1,000 bonus. This payment will be taxable as the employer must include the full amount as income when calculating their taxable profits for either corporation tax or self-assessment. This scheme is more likely to be attractive to employers with employees on lower salaries, but even then it is questionable how much of an incentive £1,000 will provide to bring employees back for three months, when the costs of doing so are likely to far outweigh this. It may ultimately just end up rewarding employers who were already looking to bring their employees back anyway and provide little incentive for those who are not sure if it is financially viable to bring employees back. Claiming expenses for working from home As many employees continue to work from home, possibly for some time into the future, it is useful for employees to be aware of when and how they are able claim expenses for the additional household expenses incurred. Generally, where directors and employees are required to work from home, they can claim a tax deduction for household expenses incurred as a result of this. The HMRC have confirmed that having to work from home as a result of Covid 19 is likely to qualify as ‘a requirement of the job’, with the employee therefore able to claim a tax deduction for any household expenses not already being reimbursed by their employer. Distinguishing between the additional household expenses incurred because of work and any non-work household costs can in reality be quite difficult. However, a simplified system exists where employees can claim a flat rate of £6 per week. If any employees’ additional costs are likely to be significantly higher than this, it may be worth considering the more complex ‘apportionment’ system, but otherwise the £6 per week is a good alternative. This £6 per week can be paid either by the employer directly, or by the employee claiming tax relief of £6 per week, with this amount being deducted from the employee’s taxable income. This simplified payment will not require receipts to be kept or proof to be provided, but if the employee wishes to claim an amount higher than this, then evidence of the additional household expenses as a result of working from home will be required. With many firms facing financial difficulties at present, the employee making the claim themselves may be the preferred option for many employers, How to claim? This can be claimed either through a self-assessment form (if required to complete one) or alternatively by using an P87 form either online via the government gateway or through the post. Many employees will be unaware of this potential way of offsetting some of their additional expenses incurred through working from home, so even if employers are not willing or able to make the £6 per week contribution themselves, it may be worth sharing the details of how employees are able to benefit from this by making their own notification to the HMRC. If you or someone you know is experiencing legal issues or has a question regarding employment law, take advantage of our complimentary initial consultation via telephone or video call now by contacting us today on 0800 999 4437 or emailing enquiries@parfittcresswell.com to arrange your complimentary appointment with a friendly member of our team of legal experts. Places fill up quickly so be sure to reserve your spot now. We look forward to helping you with your legal needs.
In last week’s article we covered the first 3 points to effective time management and how you can begin to get more from your time and ease the stress levels you may be experiencing. In Part 2, we will cover the remaining points that will help you minimise input and maximise output. Let’s continue. Picking up where we left off in Point 3 (Prioritisation), Point 4 is the Pareto Principle and it is one of the most effective tools you can implement in both your professional and personal life. Having used this principle over the past three years I can confirm that it has made me more effective and more valuable in the workplace as well as having eased my stress levels and increased my income significantly. When you understand this principle, you are able to eliminate a lot of the ‘noise’ from your life and that is a liberating feeling. 4. The Pareto’s Principle (80:20 Principle) The 80:20 Principle, also known as the Pareto Principle after Italian economist Vilfredo Pareto found that only 80% of the world’s wealth was owned by 20% of the population – a staggering statistic. The principle also points out that 80% of your outcomes come from only 20% of your inputs. In other words, only 20% of what you do really matters. Just imagine what you could do with that other 80% of the time you that is currently being ‘wasted’ on activities that aren’t necessarily generating you income/profit! However, it is often the 20% that are the uncomfortable things that we put off. These are NOT the endless emails, phone calls and other ‘urgent’ things we feel we must do in order to keep things ‘ticking over’, they require a lot of thought, planning and decisiveness. They are the things that will break the cycle of busyness and when implemented take you and your business to the next level. When applying this principle to your business you are also likely to find that the it applies to your finances as much as it does your time. If you carry out an analysis of your customer base you are likely to discover that 80% of your income in fact comes from approximately 20% of your clients. On the flip side of this, you will likely find that 80% of your ‘headaches’ and the things that cause you stress, anxiety and leave you feeling that you don’t have enough time come from only 20% of your clients. What would happen if you were to simply get rid of the 80%? (Note: The figures do not have to be in an exact ratio of 80:20, it could be 90:10 or 85:15 etc. But generally, as a rule of thumb it will be around the 80% mark.) Think about the following: • Q: What 20% of your business is causing you 80% of your headaches? • Q: What 20% of your business is bringing you 80% of your rewards e.g. income/satisfaction etc. • Q: What would happen if you dropped the 80% and started focusing on the 20% which provide you with 80% of your income and satisfaction? By conducting this analysis of your business you’ll find that what often seems urgent and important simply isn’t. Your time is being stolen by unimportant tasks. Conducting this analysis will assist with your prioritisation and the creation of your ‘today list’ from point 3 above. Be sure to focus on results, they speak for themselves and always ask yourself, ‘am I doing the important things?’ Tip #4: Identify the few critical tasks that make the difference to your business. Remember it is often the uncomfortable things that you keep putting off because you’re too busy to really make the significant difference and will break the cycle freeing you up to do more with your time in the long run. Weed out what is unimportant and buy yourself more time. Side note: If you are currently not willing to cut off your ‘headache’ clients for fear of losing work/income remember that what you want as a business owner is more business not necessarily more customers. By this I mean you want more income and profits. What you probably don’t want is more clients who require more of your time and likely increase your stress levels. Instead focus on the clients that produce the goods for your business. Dedicate your time, effort, energy and focus to them and get them to increase their orders and the frequency – cross-sell and upsell. It is better to have fewer client who pay more than lots of clients on small deals. Look at my previous article on Premium Pricing and Premier Positioning to understand more about this. But if you must insist on having more clients be sure to work in your areas of strength. Identify the common characteristics of your best clients, profile them and then go after more clients that fit that profile. It will be worth your investment of time. 5. You Energy is Finite – THINK! Use Your Energy Wisely – Parkinson’s Law. Despite what we like to believe about ourselves we are not able to do all the things - we simply do not have the energy (or time). Our energy levels are finite and just like a car’s fuel tank they decrease as the day wears on. Therefore, use it wisely and complete the tasks that will provide you with the best returns first (or whenever you function best – some people are night owls. Find your sweet spot and go with that). Also do not waste more time than is necessary on a task. We are often poor at judging the amount of time required to complete things. Often, we underestimate the time it will take which leads to feelings of stress when the deadline is fast approaching. But sometimes, we go the other way and dedicate too much time to a task when it doesn’t merit it and the Law of Parkinson states that we will fill the time allotted to a task whether it is needed or not. Not only can this can lead to perfectionism which often leads to procrastination and stagnation it is important to remember that sometimes the ‘minimal viable product’ is good enough. To avoid this scenario give yourself immediate and imminent deadlines. You may think this would add to your stress and feeling of not having time, however when there is a deadline that is imminent it causes us to focus, prevents procrastination and generally leads to us producing work of at least the same standard, if not higher whilst also removing the task from the list of things to do. This means the task is off your list of things to do and no longer taking up mental space in our mind thus relieving stress and allowing us to focus on other things. I like to give my full focus to tasks in short, sharp bursts of energy e.g. 20-minute increments followed by a 5-minute break to get up and move around before repeating the cycle. Try it for yourself. Dedicate 20 minutes to a task and see what you can get done. You may be pleasantly surprised with what you achieve in these shorter bursts of activity. Sometimes overthinking the task at hand (worrying about it/fear of not having time) is the problem. When we start it and don’t inhibit the mind, we can create some of our best work. Tip #5: Use your energy wisely – ask yourself if I could only do one thing today, what would make me feel that I have moved a step closer to where I want to be/satisfied with my day’s work? 6. Time Block Your Calendar– Avoid Distractions (the ‘Time Vampires’) How and where is your time being sucked from you? Dan Kennedy calls them time vampires, you may call them employees/family/friends/emails and phone calls etc., but whatever they are it is vital that you identify them and eliminate them as much as possible. How much of your time is being taken up by trivial matters? (Interruptions in the office, phone calls, emails etc). You see it isn’t just the interruption itself that is damaging, it is the time that it takes for you to get back into your groove and reengage with what you were doing prior to the interruption. Research estimates this to be approximately 25 minutes on average for each interruption. That is a staggering amount of time to lose especially when you consider how many times you are interrupted across the day, week, month and year. How much time are you ‘losing’? How can you avoid this? Time Blocking. Become more protective of your time, it is extremely valuable. Implement a new calendar system of working whereby you block out mornings/afternoons (or entire days) where you are only available between set times and educate your staff and customers to abide by this. This could be working in your office with the door closed or working off site, whatever allows you to work at peak performance and optimum flow. You’ll find that this frees up a significant amount of time during the day for you to work on the tasks that are important for growing your business. Side Note: An open-door policy with your staff can lead to a fantastic and open/creative working environment with strong working relationships, but it is important that your team know when they can and cannot disturb you. Also try to avoid meetings that don’t have a set agenda and a clear objective as well as a set cut off time. Meetings for meetings sake do not achieve anything other than waste time. To assist in the productivity and efficiency of meetings think about removing the chairs and having a standing only meeting. This can speed up the process and ensure people do not labour on points. It is also worth remembering that meetings should be called to make final decisions, not to discuss new issues (this can be done by phone or email). Finally, a point worth stressing is that email is immediate delivery, n ot immediate response. Don’t feel you have to stop what you’re doing to respond straight away. Check your emails and take phone calls at set times during the day and turn them off when you’re not looking at them. Also, by batching activities like this e.g. checking and responding to emails and phones calls at a set time in one go means you can often get through them quicker as you are focused and in the flow of things rather than jumping from one task to another which requires a different level of focus or input. Tip #6: Turn off all distractions and focus on the task at hand (no phone calls, emails, text messages) 7. Learn to Say No Being successful is not necessarily about doing more, it is about doing less of the wrong things so that you have time to do the right things. Learn to say NO! We often get involved in areas that either do not concern us or are not the best use of our time and skill set. Doing things that we shouldn’t raises our stress levels and leads to further build-up of work that we should be doing, thus resulting in feelings of guilt and anxiety. All this leads to a lack of focus and direction. It may seem alien to you to say no, but it is only by saying no to certain things that you can say yes to the important things. Remember, we can’t do all things. So, delegate effectively to the best person suited for the job at hand. Also provide a clear overview of what the objective of the task is and the purpose it serves. Think about whether you want to hand over full authority to achieve the objective alone and come back to you once it is completed or do you require regular updates and the final say on decision making? By providing clarity and clear boundaries you empower the chosen member of staff to take ownership of the matter whilst also freeing up your time to work on other matters. If more than one member of staff is involved, you are providing them with the platform to develop team work etc. But remember, delegation is not passing something on just to get it off your desk. It has to be done properly for it to be effective. If you delegate poorly you may just find yourself repeating yourself. On a separate note, when an issue arises in your business or amongst your staff, don’t always be so quick to jump in to resolve it. Generally, most problems resolve themselves without your input and again when you are not available your staff are likely to step up, think for themselves and make a decision and 9/10 it is usually the right one. Trust your team. Tip #7: Learn to say no and delegate effectively. 8. Information Overload – Switch it Off Sometimes more is not better. Your mind is already too full. As a business owner, sometimes saying yes can lead to diminishing returns. It is not always about more. Sometimes it is about going deeper not wider, focus on what is important. Keep it front and centre. In today’s social media, 24/7 rolling news age it is easy to get distracted and caught up in things that really don’t matter. To qualify ‘really don’t matter’ we mean anything that does not help you get from where you are now to where you want to be in the quickest and most sustainable way possible e.g. least input for maximum output A.K.A smart working. Do not worry about being uninformed. If it is big enough and important enough, you’ll hear about it. Switch it off, focus on what is important to you and think quality over quantity. Most information is irrelevant and of no help to you achieving your goals. Tip #8: More is not better. Success comes with a sacrifice – you can’t be successful in all areas of life, so don’t try. Pick the areas that are important to you and work on them. Finally - Look After Yourself To make effective use of your time you have to be running at optimum capacity – both mentally and physically. Listen to your body and what it is telling you. Be sure to look after yourself! If your body was a car would it pass its MOT? Don’t run yourself into the ground or burn out. This will not help you function effectively. Ultimately time management is about discovering what is really important to you. Identifying your why. If you know why you are doing something and if it’s important enough to you, you’ll make it happen. However, we often experience stress and lack of time because we feel pressured to meet deadlines for tasks that do not fulfil us and as such, we begin to resent them. When you are doing what you truly love you will make time and find the how, even on the tough days. As Dr. John C Maxwell always states, “it’s only work if you’d rather be doing something else.” What is really important to you? Written by Ashley Burgess-Payne
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