Business Terms

Are the standard terms and conditions you use in your business fair and reasonable? In October, Ryanair agreed to change its contract terms as they were unfair, after action by the Office of Fair Trading. Stuart Nuttall says:

Are the standard terms and conditions you use in your business fair and reasonable? In October, Ryanair agreed to change its contract terms as they were unfair, after action by the Office of Fair Trading. Stuart Nuttall says:

“Terms which are too one-sided can be invalid so it pays to have your terms regularly checked by lawyers, particularly to take account of legal changes. The concerns in the recent case included:

• Ryanair's liability for damage or delay to sporting equipment, infant equipment, medical/mobility equipment and musical instruments - Ryanair's terms excluded liability for damage or delay to the above items and stated that they were carried on a 'limited release basis' - in other words, at the passenger's own risk. Ryanair has now removed these exclusions of liability from its terms and conditions.


• Ryanair's liability for baggage claims - Ryanair required that if an item of baggage was reported as lost and not found within 21 days, consumers would have to make a further claim within a further 21 days, otherwise Ryanair excluded liability for the lost baggage. Ryanair amended the terms so that the consumer is not required to make a further claim within the 21-day period, and also removed the requirement that consumers complete a 'Property Irregularity Report' when making a claim for damaged or delayed baggage.


• Ryanair's liability in the event that flights are delayed or cancelled, or passengers are denied boarding a flight - the OFT was concerned about the options that Ryanair offered to consumers in these situations, and considered that Ryanair's terms did not reflect consumers' full rights under the relevant EU Regulation. Ryanair has now amended these terms and included a copy of the notice setting out these rights on its website.

If you exclude and limit liability to your customers you need to take account of unfair terms law. If you supply to consumers, the Unfair Terms in the Consumer Contracts Regulations 1999 may apply, and unfair terms will be void. The Government is expected to introduce a new unfair terms bill next year so changes in this field are likely. Call Stuart on 023 9286 2424 for further information.

Companies Act 2006

The long awaited Companies Act 2006 has received royal assent. The Act makes major changes to companies law and will be brought into force in phases.

Stuart Nuttall says:

“For the first time ever, the duties of directors of limited liability companies will be set out in one place. The Act provides a full description of those duties. Shareholders have a right to sue directors who breach those duties. It also removes the legal requirement to have a company secretary. Directors have to act in a fair way in relation to a company e.g. not to make private use of corporate jets. A new system of communication with shareholders is set up including via email which should make communication easier. New model Articles of Association are included in the Act which will help private companies and the requirement to have an annual general meeting of shareholders is removed unless a company wishes to hold one. A controversial late amendment is a requirement for public companies to report significant commercial contracts. There is no need to panic as the Act will be brought into force in stages, but now is a good time to obtain some legal advice on the changes the Act has brought about and also to check your own compliance with current company law.

For further information call Stuart Nuttall on 023 9286 2424.

Maternity Pay

Many local businesses are unaware of important changes to the rules on maternity pay which could affect their business.

Andrew Bryan says:

“Employment law can be a complex area. Anyone who has to wrestle with maternity and paternity rights needs to ensure that they are up to date and comply fully with the current law. The Work and Families Act has brought in some increases in maternity pay which is likely to benefit about 400,000 women around the UK each year. One of the changes is 'Keeping in Touch' days. These are not compulsory but they Many local businesses are unaware of important changes to the rules on maternity pay which could affect their business give employers and mothers an opportunity to get the mother back to the office for a few days during maternity leave, to ensure they are up to date with what is happening in the office. Since 1st October, statutory maternity pay, maternity allowance and statutory adoption pay will increase from six months to nine months for babies due on or after 1st April 2007, or adoption placements from that date.

This is the start of the Government’s plan to introduce 12 months paid maternity leave. However, the system still remains that mothers are paid 90% of pay for only six weeks. After that, rates plummet to levels which, for higher paid workers, mean in effect they have to return to work to keep income at previous levels. In addition, the new regulations:

• double the amount of notice required from one to two months for women wanting to change their return to work dates from maternity leave


• introduce up to 10 'Keeping in Touch' days to allow mothers to go into work and stay in touch with developments and training there without bringing their leave to an end or losing out on maternity pay


• simplify the administration of maternity payments and allow employers to adjust them in line with their normal payroll procedures


• extend the eligibility for additional maternity leave to all pregnant employees where births are due on or after 1 April 2007

Call Andrew Bryanon 029 9221 0170 for further information.