Employees - Fixed-term contracts

From 10th July 2006 any employees on fixed term contracts might become permanent. Not all local businesses are aware of these changes.

Partner, Andrew Bryan says

“The Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (the “Regulations”) provide that an employee who has been employed continuously under a fixed-term contract (or a number of successive fixed-term contracts) for four or more years, starting on 10 July 2002, will become a permanent employee. This has the effect that from 10th July, employees on fixed-term contracts may become permanent members of staff.

Some employers can justify objectively the use of fixed-term contracts at the date the contract was entered into, or last renewal and avoid the permanent status. There is no guidance in the Regulations on what may constitute an ‘objective justification’, but it looks like employers will have to show that there is a very real need to keep employees as fixed term and denying permanent status is appropriate. However, local businesses need not be too concerned as fixed term employees have similar rights to permanent employees under those regulations.

Contact us for Andrew Bryan on 02392 210 170 for advice on how this might affect your business.

Data Protection – Latest Guidance

Most businesses in the UK process personal data even if just about their employees. Many need to be registered under the Data Protection Act 1998. Breach of the Act is a criminal offence.

The Information Commissioner is in charge of the data protection legislation and has issued a number of useful guidance notes on the legislation.Most recently, guidance has been updated on transferring personal data abroad. Not all our local clients know that there are restrictions on taking personal data outside the 25 EU countries such as to have it processed in India. It is possible to achieve this but strict rules, on which we can advise you, must be followed.

In addition, new guidance on outsourcing has been issued.“The [Data Protection] Act requires you to take appropriate technical and organisational measures to protect the personal information you process, whether you process it yourself or whether someone else does it for you," said an ICO statement. Outsourcing data processing to foreign suppliers does not absolve firms from protecting the data once it passes to a third party. In fact new guidance issued by the ICO seems to tighten up rules concerning a company's responsibilities to find an outsourcer who will safeguard the data. "The new guidance clarifies the old guidance which stated that in the case of a data controller to data processor transfer the 'data controller might reasonably conclude that adequacy exists without carrying out a detailed adequacy test'.”

If you need any help in this area call Stuart Nuttall on 02392 862 424.

Re-writing your Will

When did you last revise your will? Do you even have a will? Did you know that if you do not leave a will, then how your money and property on death is divided is decided by rules laid down by law. This could mean your children, spouse and even parents sharing in your assets when you might simply have wanted everything to go to your husband or wife? Now is a good time to consider planning these matters.

Mary Hazlewood says:

“We can prepare a comprehensive will for you and if your estate is valuable enough take full advantage for you of the inheritance tax nil rate band. For example a father could leave the amount of that “band” to his children and his wife receives the balance. That means that when she dies, say, 10 years later there is no inheritance tax to pay on what went to the children free of tax on the father’s death. The budget has tightened up some of the rules relating to trusts and at least 1m existing wills in the UK may need to be revised to take account of the changes. Many wills contain a “trust” clause which might be caught and should be checked. It appears you will still be able to write a life insurance policy into trust and then when you die the proceeds are not subject to inheritance tax so there is scope for some tax planning despite the changes. Also people’s circumstances change, their existing wills are revoked (e.g. on divorce) and a new will can be a good idea."

Contact Mary Hazlewood on 01329 822333 for further information.

Notes

1. The changes to trust law in the Finance Bill have received extensive press coverage.
2. Information on and access to the Bill is at e http://www.hm-treasury.gov.uk/consultations_and_legislation/leg_finance_2006/finance_bill_index2006.cfm