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Changing an individual’s working arrangements from employee to consultant may seem attractive; no employer National Insurance contributions to pay and greater flexibility for the individual. A win-win situation surely?
Samira Cakali, employment law expert, explains why this can be a risky course of action for the employer and looks at ways to minimise the risks.
Read MoreMost businesses, will ensure that new employees receive an employment contract or at the very least some form of statement setting out their terms and conditions. Unfortunately not all businesses ensure that employee’s return a signed version of the agreement back.
On dispute, if the company have an unsigned contract in their possession, this begs the question as to whether the clauses contained in the contract/agreement are enforceable against the employee.
This question was examined by the High Court in FW Farnsworth Limited v Lacy. The court was asked to determine whether the employee was bound by the post termination restrictions contained within an unsigned version of his employment contract.
Read MoreRestrictive covenants (“RCs”) are the contractual terms restricting an employee’s activities after termination and are often critical to some employer/employee relationships, particularly where the employee concerned is senior or vital to the employer’s business. Over the last few years the courts have given them a new lease of life, though it remains a complex area of law where mistakes are frequently made both by employers and employees.
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