Top Tips: A Legal Health Check

We would like to pass on the following recommendations, which are based on many years of advising many people and their businesses. It's not an exhaustive list of advice, but highlights key areas where we see a lot of (often avoidable) problems arise.

1. Make a will

Not doing so usually causes huge problems and greater expense. A client recently gave approximately £1million to the tax man as a result of not taking some basic steps before his untimely death. Don't let the tax man get what is rightfully your benefactor's.

Contact: Susan Bateson

2. Make sure your business has proper terms and conditions of trading in place.

In particular, seek to retain title to goods sold before payment. It may not always work, but it does in many cases.

Contact: Jonathan Oxley

3. Consult us before, rather than after, taking any serious disciplinary action in respect of employees.

We don’t actually like our clients creating difficult legal positions for themselves – even if we get paid for helping sort them out. Contact: Iain Jenkins.

Contact: Iain Jenkins

4. Actively develop the way you manage your people.

The Eurocrats are going to keep introducing rules in a fairly predictable way. It’s much better to anticipate these developments and introduce them in ways that suit you.

Contact: Iain Jenkins

5. When setting up a business make sure it’s done properly.

Don’t accept vague assurances like “Yes, we’ll issue you some shares once we’re sorted…”. Yes, it does actually happen.

Contact: Morgan Williams

6. Ask your accountant and ourselves to talk to each other about you and your business.

You’ll be surprised how much it can help.

Contact: Jonathan Priestley

7. If a major problem becomes apparent, let us know as soon as possible.

There are usually more options earlier rather than later.

Contact: Jonathan Oxley

8. Talk to us in particular about business finance issues.

There are a lot of options and most of the better ones take time to put in place.

Contact: Jonathan Priestley

9. Protect and enhance your key business relationships.

Ask us to review your relationships with customers, suppliers, lenders, employees and business partners with a view to giving you greater security and protection

Contact: Jonathan Oxley

10. Properly record and formalise the occupation of any real property.

Even if it’s within a family or a group of companies


Contact: Andrew Lawson

11. Incentivise and retain key employees with EMI share options.

Share options granted under the Enterprise Management Scheme are increasingly common. EMI options can be a powerful way to retain and incentivise staff because they give equity participation with favourable tax treatment.

Contact: Jonathan Oxley

12.

Send out a contract of employment with the offer letter.

Why?
To make sure your new employees are contractually bound from the start. 

Benefit?
Both parties are aware of their rights and obligations.  You can ensure your business is protected by an adequate notice period, confidentiality provisions and post termination restrictions.  

13.

In tough times like these, it’s good to protect your business with appropriately drafted restrictive covenants and confidentiality clauses.

Why?
Employees may try to walk off with your business and set up on their own.

Benefit?
Properly drafted restrictive covenants give your business protection and give employees something to think about if they are planning a move.

14.

Ensure you carefully plan any restructuring or redundancy exercise.

Why?
Employee’s are very aware of their employment rights and are likely to challenge the reasons for redundancy, selection criteria and the consultation process.

Benefit?
Careful planning will reduce unfair dismissal claims, awards for failure to consult and possible damage within the market place. 

15.

In these troubled economic times you may be considering redundancies.  Selection and consultation are vital elements in this.  Don’t forget that as part of any consultation you can consider reduced hours or alternative roles with the affected employees.

Why?

This point may be raised by a tribunal, i.e. why weren’t these factors considered? You can also retain staff you might not wish to lose.

Benefit?

Staff retention and maintaining morale are obvious benefits.  You might also reduce your exposure to future recruitment fees when things pick up.