Sarah O'Sullivan, Author at Tees Law

How an interest-only mortgage is repaid at term through equity release

Posted on 16 July 202429 March 2025 by Sarah O'Sullivan

Sarah’s interest-only mortgage has expired, and she has to repay the capital. In this scenario we see how she’s able to use the equity in her home to manage the repayment.*

Sarah Jones is a 65-year-old retired widow. Her residential interest-only mortgage has reached the end of its term, and she is now required to repay the capital sum of £80,000.

Based on her age and income, she could not qualify for a Retirement Interest Only (ROI) or residential mortgage, and her mortgage company is unwilling to extend the term any further. Also, she does not want to downsize.

By choosing a lifetime mortgage, Sarah is able to release the £80,000 from her home’s equity to pay off her mortgage. Payments are optional, but in the months when she has surplus cash, she may choose to make a payment to help reduce the interest roll-up.

Sarah’s lifetime mortgage allows her to retain home ownership while guaranteeing no negative equity.

Things to consider

Before applying for equity release, weighing alternative options and looking at the possible effects on your finances is important. These include:

Downsizing and other forms of finance
Compound interest roll-up if chosen
Early repayment charges
Long-term care and state benefits considerations
A lifetime mortgage may impact the inheritance you leave

Get in touch

Speak to our Wealth Specialist, Toni Chalmers-Smith or Senior Associate Solicitor Catherine Banks at Tees today.

*Examples of customer scenarios only. Every case will be different.

This material is intended for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Some information quoted was obtained from external sources we consider to be reliable.

Tees is a trading name of Tees Financial Limited, authorised and regulated by the Financial Conduct Authority. Its registered number is 211314.

Tees Financial Limited is registered in England and Wales, registered number 4342506.

Wealthier post-divorce? Protect your assets

Posted on 12 July 202422 March 2025 by Sarah O'Sullivan

Why you need a financial consent order after divorce

Did you know your ex-partner could still claim money from you even after your divorce is finalised? It may seem unfair, but a financial consent order can protect your assets and prevent future claims.

When your divorce or civil partnership dissolution is finalised with a decree absolute, your legal ties are severed, but without a financial consent order, your ex-partner could still make claims against your assets. These claims could arise from any significant change in circumstances, such as:

One partner developing a successful business
Inheriting money or assets
Building pension benefits
Winning the lottery

Without a financial consent order, these claims can be made at any time, leaving you vulnerable. Protect yourself now by securing a financial consent order.

What is a financial consent order?

A financial consent order is a legally binding document that formalises the financial agreement between divorcing couples or those dissolving a civil partnership. It outlines how financial assets, such as property, savings, and pensions, will be divided.

A financial consent order can also prevent future claims from your ex-partner and sever all financial ties (known as a clean break order). The terms of the order will depend on your financial situation and what both parties agree to.

How to obtain a financial consent order

Couples can reach an agreement through direct negotiations, mediation, or solicitor-led discussions. Once an agreement is reached, a solicitor can help draft the consent order and submit it to court for approval.

The court’s role is minimal – it will simply review the financial consent order to ensure it is fair to both parties. Once the judge approves it, the order becomes legally binding after your divorce or civil partnership dissolution is finalised.

Avoid the courtroom

There is no need to attend a court hearing. The court will only review the consent order to ensure fairness. If the judge is satisfied, the order will be approved, providing peace of mind and protecting you from future financial claims.

For more information or a no-obligation consultation, contact Lisa Honey at Tees Solicitors.

Case study: Vince v Wyatt (2015)

The case of Vince v Wyatt highlights the importance of securing a financial consent order, even if you think it’s not necessary at the time of your divorce.

In this case, the couple married in 1981, had one child together, and separated in 1984. Their decree absolute was granted in 1992, but they never entered into a financial agreement (consent order). Ms Wyatt did not request financial support from Mr Vince at the time, and she raised the children alone in difficult financial circumstances.

In 1995, Mr Vince founded a green energy business, Ecoticity, which became highly successful, eventually being valued at £57 million. Meanwhile, Ms Wyatt’s financial situation remained modest.

In 2011, 27 years after their separation, Ms Wyatt applied for a lump sum payment, citing financial hardship. Mr Vince sought to have the claim dismissed due to the long delay since their divorce. However, the case went to the Supreme Court, which ruled that her claim could proceed, despite the lengthy delay.

The case ultimately concluded with Ms Wyatt accepting £300,000 as a full and final settlement. While the couple had no assets when they divorced, a financial consent order could have prevented this prolonged legal battle and the associated costs.

Don’t risk it – protect your financial future and avoid costly disputes by securing a financial consent order today.

Employment law: Labour bring in the ‘right to disconnect and surveillance’

Posted on 9 July 202422 March 2025 by Sarah O'Sullivan

Labour’s proposed manifesto introduces two significant employment policies to address hybrid working challenges: the right to disconnect and protection from employee surveillance. These measures aim to ensure employees have a clear separation between work and personal life and are safeguarded from intrusive monitoring.

Right to disconnect: A solution to blur between work and life

With the widespread adoption of hybrid working, the line between professional and personal life has become increasingly blurred. Many employees feel pressured to respond to emails and attend to tasks outside their regular hours. Labour’s proposed right to disconnect policy seeks to combat this issue by restricting after-hours work communication.

International precedents

France: Introduced a right to disconnect in 2017, following a 2004 court ruling that protected an employee from dismissal for ignoring after-hours calls. Employers in France may face additional remuneration obligations if employees are required to work outside regular hours.
Ireland: Implemented a non-legally binding Code of Practice outlining best practices for employers, with non-compliance serving as evidence in relevant legal claims.

Unclear implementation plans

Labour has not yet specified whether the UK’s version of the right to disconnect would involve statutory restrictions or follow a code of practice. Regardless, businesses can proactively address the issue through clear hybrid working policies, ensuring mutual understanding between employers and employees.

Practical steps for employers

Establish clear communication expectations for hybrid and remote workers.
Respect employee preferences for traditional or flexible working hours.
Use scheduling tools to send emails during designated working hours.
Allow exceptions for critical business needs while maintaining transparency.

Protection from surveillance: Balancing security and privacy

Some employers have responded to hybrid working by increasing employee monitoring. While employers may have legitimate reasons for this, such as protecting sensitive information and ensuring productivity, surveillance raises privacy concerns.

Legal considerations for employee monitoring

Human Rights Act 1998 & Article 8 of the ECHR: Employees have a right to privacy, even in a professional setting. The ruling in Bărbelescu v Romania emphasised that courts must carefully assess employer monitoring.
Data Protection Laws: Monitoring involves the processing of personal data, making compliance with UK GDPR essential. Employers must ensure transparency, necessity, and proportionality when conducting surveillance.

Employer responsibilities

Justify monitoring: Employers should ensure any monitoring is reasonable and necessary.
Inform employees: Clear, transparent policies must explain what is monitored and why.
Data security: Access to monitoring data should be restricted and securely maintained.
DPIAs: Conduct Data Protection Impact Assessments (DPIAs) to evaluate privacy risks before implementing monitoring measures.

Labour’s approach to employee surveillance protections

Labour has committed to introducing protections against excessive employee surveillance. While specific details are lacking, the party has indicated that employers would be required to consult and negotiate surveillance policies with trade unions through collective agreements.

Best practices for employers

Engage employees and representatives in transparent discussions on monitoring policies.
Ensure data protection and privacy policies are comprehensive and up-to-date.
Regularly review monitoring practices to ensure legal compliance.

Preparing for policy changes

Labour’s proposed policies signal a growing emphasis on employee well-being and privacy in hybrid work environments. Employers can stay ahead by fostering transparent communication, implementing fair monitoring practices, and promoting work-life balance.

By proactively reviewing and adjusting their policies, businesses can ensure compliance with potential new laws while maintaining a positive and productive work culture. For tailored advice on adapting to these potential changes, consider consulting legal professionals specializing in employment law.

The end of Zero Hour Contracts: ‘Fire and Rehire’ no more

Posted on 3 July 202422 March 2025 by Sarah O'Sullivan

Labour has outlined significant employment law reforms, including the introduction of a single worker category, extending day-one rights, banning the practice of fire and rehire, and limiting the use of zero-hour contracts. These proposals could reshape employer-employee relationships across the UK.

Fire and rehire: What employers need to know

The controversial practice of “fire and rehire” made headlines in March 2022 when P&O Ferries dismissed around 800 workers. This tactic involves terminating employees and rehiring them on different, often less favorable, terms.

While fire and rehire is currently legal under UK employment law, employers must follow strict guidelines. Dismissals may be deemed fair if employers:

Engage in meaningful consultation: Employers should first consult employees and seek agreement on contract changes.
Demonstrate a sound business reason: Employers must have clear, evidence-backed justifications for the change.

Labour’s stance on fire and rehire

Labour has committed to banning fire and rehire practices. However, before this ban takes effect, employers should be aware of the government’s Statutory Code of Practice on Dismissal and Re-engagement, coming into force in July 2024. While the Code won’t prohibit fire and rehire, it will emphasize that it should be used as a last resort.

Risks of fire and rehire

Employers relying on fire and rehire practices face several risks, including:

Unfair dismissal claims: Employees may bring claims under the Employment Rights Act 1996.
Reputational damage: Poor handling of dismissals can harm brand reputation and employee morale.
Legal costs and disputes: Tribunal claims are costly, time-consuming, and disruptive.

To mitigate these risks, employers should prioritize transparent communication and consultation with employees to build understanding and reduce the likelihood of legal challenges.

Zero-hour contracts: Labour’s proposals

Labour has also promised to restrict the use of zero-hour contracts, which have faced criticism for their potential misuse by employers. Despite their flexibility, zero-hour contracts can leave workers without guaranteed hours or stable income.

What Labour plans to change

Curtailed use: While zero-hour contracts will not be completely banned, stricter regulations will apply.
Standard contracts: Workers with regular hours for 12 weeks or more must be offered a standard contract.
Worker choice: Labour claims workers can choose to remain on zero-hour contracts, but concerns remain that employers may pressure workers to do so.

Upcoming legislation on predictable work patterns

Regardless of Labour’s plans, employers should prepare for the Predictable Work Pattern Rights legislation, expected to take effect in September 2024. This will allow employees and agency workers to:

Request a predictable work pattern after 26 weeks of service.
Submit two applications within a 12-month period.

Best practices for employers

Employers are encouraged to consider alternatives to zero-hour contracts, such as:

Part-time contracts: Provide guaranteed hours for greater stability.
Annualised hours contracts: Offer flexible working patterns based on yearly commitments.
Fixed-term contracts: Suitable for seasonal work with clear end dates.
Overtime and training: Upskill existing staff to cover temporary or additional workloads.

By adopting fair and transparent employment practices, businesses can improve employee satisfaction, enhance their reputation, and reduce legal risks.

For further advice on how these changes may impact your business, contact our employment law team today.

Tees hands out Responsible Employer of the Year award

Posted on 1 July 202429 March 2025 by Sarah O'Sullivan

Tees sponsored a brand-new award for 2024 at the Eastern Echo Awards in Cambridge last week. Now in the third year, the awards took place on Wednesday 26 June to celebrate the East of England’s property industry.

The beautiful weather on the night meant the open space at Homerton College before the awards ceremony was fully utilised, with many people able to network and enjoy a drink. The black-tie event was attended by leaders from across the property sector and country, with our Commercial Property team coming together to present their award.

Partner and head of Commercial Property in Cambridge, Sarah Coates, said:

“It was a hugely enjoyable evening in a beautiful setting. The strength and depth of the projects and people nominated let alone the winners highlights the prowess of the Eastern region.”

The Eastern Echo Awards is targeted at projects, people, and places across the East of England and was judged by a panel with extensive experience and knowledge. The panel covered a range of property sectors, including office, industrial, retail, life science, and residential.

New for 2024, the award for Responsible Employer of the Year was sponsored by Tees, and organisers were asked to hear from a company, consultant, or project team that could demonstrate how successful it has been in delivering a responsible business strategy. Measurables were to include how businesses incorporated innovation, adoption of social responsibility, engagement in the local community, approach to the environment and governance or feedback from clients or a supply chain on the approach taken to do responsible business.

Tees was very pleased to hand the Responsible Employer of the Year award to Saunders Boston Architects.

Understanding the role of an Insolvency Practitioner: Your guide to financial recovery

Posted on 1 July 202420 March 2025 by Sarah O'Sullivan

Are you grappling with financial difficulties and unsure of the next steps? An insolvency practitioner could be the answer. This article delves into the world of insolvency practitioners, shedding light on their crucial role in aiding individuals and businesses navigate insolvency.

Defining an insolvency practitioner

An insolvency practitioner is a certified professional who specialises in advising and supporting individuals and businesses facing financial difficulties. They play a pivotal role in insolvency, managing and resolving financial issues fairly and efficiently.

In the United Kingdom, insolvency practitioners are regulated by recognised professional bodies such as the Insolvency Practitioners Association (IPA) and the Institute of Chartered Accountants in England and Wales (ICAEW). These bodies maintain high standards of professionalism and conduct, ensuring that insolvency practitioners possess the necessary expertise and experience to handle complex financial matters.

Insolvency practitioners are often appointed when individuals or businesses cannot pay their debts. They work closely with all parties involved, including creditors, debtors, and other stakeholders, to find the best possible solution for all parties.

Insolvency practitioners have a range of powers and responsibilities, such as:

Assessing the financial situation and determining the appropriate course of action
Administering formal insolvency procedures such as bankruptcy or liquidation
Investigating the affairs of the insolvent individual or company
Realising assets and distributing funds to creditors
Offering advice and support to debtors, helping them manage their finances and potentially avoid insolvency

Overall, insolvency practitioners play a crucial role in the financial landscape, aiding individuals and businesses in navigating challenging financial circumstances and finding the most suitable solutions for their specific situations.

Roles and responsibilities of an insolvency practitioner

One of the primary roles of an insolvency practitioner is to act as a mediator between debtors and creditors. They facilitate negotiations and find viable solutions to resolve financial difficulties. Whether negotiating payment plans, debt restructuring, or implementing insolvency procedures, their objective is to achieve the best possible outcome for all parties involved.

In addition to their mediation role, insolvency practitioners have specific duties and responsibilities depending on the type of insolvency case. For example, in a corporate insolvency case, they may be appointed as administrators, liquidators, or receivers. Their duties could include assessing the company’s financial situation, selling assets, distributing funds to creditors, and ensuring compliance with relevant laws and regulations.

In personal insolvency cases, such as bankruptcy or Individual Voluntary Arrangements (IVAs), insolvency practitioners assist individuals in managing their debt and finding the most suitable solutions. They assess the debtor’s financial situation, propose repayment plans, negotiate with creditors, and oversee the implementation of agreed-upon arrangements.

Overall, insolvency practitioners guide individuals and businesses through complex financial difficulties. Their expertise, knowledge of insolvency laws, and commitment to finding fair resolutions make them invaluable in helping people regain control of their financial situations.

Choosing the Right Insolvency Practitioner

When facing insolvency, choosing the right practitioner to guide you through the process is crucial. With so many practitioners out there, it can be overwhelming to make the right choice. However, considering certain factors can help you make an informed decision.

One of the most important factors to consider when choosing an insolvency practitioner is their qualifications and experience. Insolvency proceedings are complex, requiring a practitioner with the right expertise to handle your case effectively. Look for practitioners licensed by recognised professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW) or the Insolvency Practitioners Association (IPA).

Experience is equally important when it comes to dealing with insolvency. An experienced insolvency practitioner has likely encountered various scenarios and can provide valuable insights and solutions tailored to your situation. They have a deep understanding of insolvency laws and regulations, ensuring that your case is managed efficiently.

Furthermore, it is recommended that you assess the insolvency practitioner’s reputation and track record. Reading client testimonials, reviews, and case studies can give you an idea of their past successes and how they handle their clients’ needs.

Lastly, consider the practitioner’s communication style and approach. Insolvency proceedings can be stressful, and having a practitioner who communicates clearly and empathetically can make the process smoother. A good practitioner should be transparent about the costs, timelines, and potential outcomes.

Considering these factors, you can choose the right insolvency practitioner to provide you with the necessary support and expertise during this challenging time.

Understanding the cost of hiring an insolvency practitioner

When grappling with financial difficulties, hiring an insolvency practitioner can be crucial to resolving your financial situation. However, it’s important to understand the cost implications associated with their services.

Insolvency practitioners charge fees for their professional services, which are typically based on the complexity and duration of the case. The main types of fees you may encounter include:

Fixed fees are predetermined fees for specific services, such as assisting with Individual Voluntary Arrangements (IVAs) or bankruptcy proceedings. Fixed fees provide transparency and allow you to budget accordingly.
Hourly rates: Some insolvency practitioners charge hourly for the time spent working on your case. Hourly rates can vary depending on the practitioner’s experience and the nature of the insolvency matter.
Percentage fees: In certain cases, insolvency practitioners may charge a percentage of the funds they recover or distribute to creditors. This fee structure is commonly used in liquidation or administration scenarios.

Several factors can influence the cost of hiring an insolvency practitioner. These factors include:

The complexity of the case: The more complex the insolvency matter, the more time and expertise the practitioner requires, which can result in higher fees.
Size of the business or assets involved: The size or the value of the assets can impact the cost of the insolvency proceedings. Larger businesses or higher-value assets may require more extensive work, leading to increased fees.
Level of cooperation from stakeholders: The level of cooperation from creditors, directors, and other stakeholders involved in the insolvency process can affect the overall cost. Delays caused by non-cooperation can prolong the proceedings and increase expenses.

Discussing the fees and charges with your chosen insolvency practitioner upfront is important to ensure transparency and avoid surprises. Additionally, consider obtaining quotes from multiple practitioners to compare costs and services offered.

UK Housing market mid-2024: Recovery amid challenges

Posted on 28 June 202426 March 2025 by Sarah O'Sullivan

Residential property review June 2024 – The UK housing market continues to show modest signs of recovery, according to the latest data from Savills.

Despite some house price growth, a significant upturn is unlikely until mortgage affordability improves.

Buyer activity continues to improve, as the number of sales agreed in May was 10% higher than the 2017-2019 average, according to TwentyCI.

The rental market remains relatively consistent. Data from Zoopla shows that, in April, annual UK rental growth was 6.6% – slightly lower than the 6.7% recorded in the previous month. The region with the strongest annual growth was the North East (9.5%), followed by Scotland (9.3%). Rental growth is accelerating in locations close to large cities, such as North Tyneside and Midlothian – more evidence that the pandemic’s ‘race for space’ appears reversed.

New homes in the capital – demand outstrips supply

Demand for new buildings in the capital is increasing, but supply is limited due to high development costs.

Knight Frank data indicates confidence is picking up among London buyers. In April, the number of offers placed on new homes increased 9% year-on-year, while viewings rose 17%. Similarly, for mid-to-upper markets, the number of prospective buyers interested in purchasing a new build was 15 to 20% higher than the previous year.

Despite this growing demand, building costs in the capital have put off some developers. As a result, new starts fell by 20% over a 12-month period, and about 35,000 new homes are being delivered per year – over 30% lower than the Mayor of London’s target of 52,500.

How will the General Election affect the housing market?

Ahead of the 2024 General Election, new homes are the unanimous focus of the manifestos regarding housing.

If the Conservatives remain in government, Rishi Sunak aims to build 1.6 million new homes over the next five years – slightly more than the Labour Party’s target of 1.5 million and less than the Liberal Democrat’s promise of 380,000 new builds per year. Ed Davey stated that 150,000 will be social housing; Keir Starmer prioritises building new social rented homes.

The Labour, Liberal Democrat and Conservative manifestos pledge to fully abolish Section 21 ‘no fault’ evictions. Davey also pledged to create a national register of licensed landlords and make three-year tenancies the default.

If the Labour Party comes to power, they propose increasing the Stamp Duty rate for non-UK residents. Meanwhile, the Conservatives would abolish Stamp Duty for first-time buyers (FTBs) on homes up to £425,000. To further support FTBs, Sunak promised a new and improved Help-to-Buy scheme. Similarly, the Labour manifesto pledged a permanent mortgage guarantee scheme.

All details are correct at the time of writing (19 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice, and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applied or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced without prior permission.

2024 Lib Dems Manifesto: Protecting carers, strengthening worker rights

Posted on 28 June 202422 March 2025 by Sarah O'Sullivan

General election 2024: Liberal Democrats employment law manifesto

The Liberal Democrats have announced a proposal to add “caring” to the list of protected characteristics under the Equality Act.

Carers already benefit from protection under the Equality Act. Coleman v Attridge Law confirmed the principle of discrimination by association, although a change in the legislation could refine and codify this area of law.

Details about how the Liberal Democrats would achieve this are presently limited, and it remains to be seen how “caring” would be defined for the purposes of the legislation.

Employees (including but not limited to those with caring responsibilities) are also already entitled to make flexible working requests, which can include increasing the time they work from home and seeking to alter their hours. Whilst the right to flexible working is currently limited to employees, amending the Equality Act could provide increased protection for workers with caring responsibilities.

Whatever the Government decides post-election, taking time out to care for a loved one can be emotive and challenging. Good communication between employers and employees can help reach an agreed-upon and workable way forward and reduce the risks of a dispute. Parties who are unclear about their rights or obligations should seek legal advice sooner rather than later.

Individuals with caring responsibilities or who have suddenly found themselves with caring responsibilities should check their employee handbook for any policies on taking time off to care for and attend appointments with their dependents. Similarly, it is good practice for employers to continue reviewing policies to ensure their employees are well supported should they need to care for dependents.

Trans and non-binary rights

The Liberal Democrats are pledging to strengthen the rights of trans and non-binary people. They would remove the need to obtain medical reports and recognise non-binary identities. Whether this would replace the current gender recognition certificates remains to be seen.

The Liberal Democrats would require large employers to monitor and publish data on gender, ethnicity, disability and LGBT+ employment levels, pay gaps and progression. Whilst likely to be anonymised, employers should exercise utmost caution when handling this data, as personal data revealing racial or ethnic origin and sexual orientation is treated as ‘special category data’ under GDPR and subject to special rules and safeguards. This requires data processors (in this case, the employer) to act within the scope of GDPR legislation, amongst other things, in ensuring that the processing of the special category data falls within one of the ten conditions under which processing is allowed (see Article 9 of the UK GDPR). Failure to comply with the GDPR requirements can result in potential claims by the data subjects (in this case, employees) and severe punitive sanctions by the regulator. The ICO and employers should seek advice on ensuring compliance with their various legal obligations and managing any overlaps between legal considerations.

Worker protection enforcement authority

Another area of note is the promise to create a new Worker Protection Enforcement Authority (“WPEA”). Presently, there are three Government bodies tasked with enforcing employment rights:

Gangmasters and Labour Abuse Authority (“GLAA”)
Employment Agency Standards Inspectorate (“EAS”)
HMRC National Minimum Wage and National Living Wage team (“HMRC NMW”)

The GLAA issues licences to agencies supplying workers to the UK fresh produce sector and seeks to protect vulnerable and exploited workers. It also liaises with the police and NCA to prevent worker exploitation and criminal activity.

The EAS is responsible for protecting the rights of agency workers. It works with employment agencies and businesses to ensure compliance with the law and investigates complaints from agency workers.

HMRC enforces the national minimum wage on behalf of the government and encourages compliance with minimum wage legislation.

All three bodies work together alongside other enforcement agencies, and any new authoritative body would likely replace the existing three. Its responsibilities would include enforcing minimum wage legislation, tackling modern slavery, and protecting agency workers.

There are natural advantages to a unified body, including providing a clear source of assistance and information for individuals and businesses alike to approach, greater coordination between the civil and criminal enforcement units and more efficient use of resources.

Dependent contractor

The Liberal Democrats have also indicated that they would seek to introduce a new “dependent contractor” status, which would sit between employment and self-employment, granting the contractor basic rights, including minimum earnings levels, sick pay and holiday entitlement (see also Labour’s proposals on worker/employee distinctions here: Election 2024: What’s in store for employment law?

It is unclear how this new proposed status would interact with the existing status of workers or whether it is intended to replace it entirely.

National Insurance

The Liberal Democrats have said they will review the tax and National Insurance status of employees, dependent contractors, and freelancers to ensure “fair and comparable treatment.” What this will entail is unclear, but it will likely encompass IR35 reforms.

Flexible working

Labour and the Liberal Democrats mention flexible working in their manifestos and give the right to request flexible working to workers and employees alike. Following the reforms made to flexible working that came into existence on 6 April 2024, the right to request flexible working is now a day-one right afforded to all employees. Employers only have limited grounds to reject requests and a dismissal because an employee has made a flexible working request, which is deemed an automatically unfair dismissal.

The Liberal Democrats would also give “every disabled person the right to work from home if they want to unless there are significant business reasons why it is not possible.” However, it is unclear how this will be implemented, as the Equality Act 2010 already requires employers to make “reasonable adjustments” for disabled people (as defined under the legislation).

Family friendly rights

The Liberal Democrats, like Labour, are proposing to extend day-one rights for parental leave and pay.

In their manifesto, the Liberal Democrats say they would double statutory maternity and shared parental pay and increase statutory paternity pay to 90% of earnings during paternity leave. The increase to statutory paternity pay would be subject to a cap on high earners, but this cap has not been disclosed.

It is unclear whether the entitlement to paternity leave and pay would be extended to the new “dependant contractor” status. Currently, eligibility for paternity leave is limited to employees with no less than 26 weeks of service ending with the Qualifying Week (the 15th week before the baby is due) and taking time off to care for the baby or their partner. If the employee satisfies these conditions, they will be able to take up to two weeks paternity leave. However, the Liberal Democrats have indicated a desire to introduce “an extra use-it-or-lose-it month for fathers and partners”.

They pledge to give each parent six weeks of use-it-or-lose-it leave paid at 90% of earnings and 46 weeks of shared parental leave, which will be paid at twice the current statutory rate. The Liberal Democrats seem to accept that the state will fund these ambitions and that they will only be implemented once “the public finances allow.”

In the short term, should the party be elected, employers should consider the potential hurdles of covering an employee for an extended period while paying them 90% of their earnings, subject to any caps that may subsequently be imposed.

The Liberal Democrats have also proposed introducing paid neonatal care leave, but it is unclear how this will affect the incoming Neonatal Care (Leave and Pay) Act 2023. This Act, expected to come into force from April 2025, will create a statutory entitlement to neonatal care leave and pay. It should be noted that much of the details of this Act have yet to be determined, including the levels of pay, duration, and relationship requirements. However, it is likely to dovetail with parental bereavement leave provisions. However, it will be available to employees without a service requirement, providing that their child receives neonatal care (which has yet to be fully defined) within 28 days of birth.

The Liberal Democrats would also mirror Labour in making SSP available on the first day of sickness and aligning the rate with the National Minimum Wage.

2024 Commercial property: Flexibility, sustainability, shifts

Posted on 24 June 202427 March 2025 by Sarah O'Sullivan

Commercial property trends 2024

According to PropertyWire, flexibility, sustainability, and diversification are key trends in the commercial property market so far this year.

Flexible workspaces are increasingly in demand, reflecting the shift to hybrid working since the pandemic. Co-working spaces, quality buildings, and adaptable offices, as well as those in prime locations, are more popular.

Sustainability continues to be a priority, prompting landlords and developers to adopt eco-friendly practices. Eden, a new sustainable office space in Salford, is one of the developments leading the way. The 12-storey, 115,000 sq. ft. building was designed to meet net-zero targets. Features include air-source heat pumps, a rainwater harvesting system, and energy-efficient lifts.

Logistics and distribution centres are in demand due to the upturn in e-commerce. As the online retail market grows, high street units have to diversify their offering to become more than just shops; some are now incorporating experiences, entertainment and restaurants.

London lacking big deals

According to Savills, April was another quiet month for the City investment market.

At the end of April, the year-to-date turnover was £474.3m across 25 deals – 77% down on the previous year and 79% lower than the five-year average. Interestingly, the number of deals was only 18% less than the five-year average, indicating that fewer larger deals bring down the turnover volumes. The City has not had a deal above £100m so far this year.

With a muted market, Savills believes investors could use this opportunity to take advantage of reduced competition, commenting, ‘It seems the time is ripe for investors to act on big-ticket deals in London. By making the most of the market dynamics, unlocking undervalued assets, and harnessing historical insights, investors can position themselves to take advantage of this ever-evolving market landscape.’

Industrial and retail outperforming the office sector

CBRE’s monthly index for April highlights a positive outlook for the retail and industrial sector, while the office market is experiencing some challenges.

The report found that, in April, retail capital values increased by 0.1%; standard shops were a key driver of this, recording 0.2% capital growth. Also, retail warehouse capital values rose by 0.1% and for the first time since April 2023, shopping centre values did not decrease.

As for the industrial sector, capital values were up 0.3% in April, with the South East region performing particularly well compared to the rest of the UK.

The office sector did not fare so well, with total returns at -0.1%. Capital values of Outer London/M25 offices fell by 1.2%, causing a monthly decrease of 0.6% overall. However, office rental values did increase by 0.1%.

Jennet Siebrits, Head of UK Research at CBRE, reflected, “Industrial and retail performance is a source of optimism for UK real estate investors. Both sectors exhibit steady rental growth, particularly industrial and have reported positive total returns every month in 2024.”

All details are correct at the time of writing (19 June 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the investor’s individual circumstances. No part of this document may be reproduced in any manner without prior permission.

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2024 Election: Conservatives’ proposed reforms to anti-discrimination legislation

Posted on 19 June 202422 March 2025 by Sarah O'Sullivan

Whilst not making it explicitly into their manifesto, the Conservatives have expressed a wish to protect the “privacy and dignity of women and girls” by defining sex as biological in the Equality Act 2010.

What does this mean for employers?

Presently, under the Equality Act, sex is not explicitly defined, but the protected characteristic of sex is covered by section 11, which states that:

“(a) a reference to a person who has a particular protected characteristic is a reference to a man or a woman;

(b) a reference to persons who share a protected characteristic is a reference to persons of the same sex.”

Sex is, therefore, under the current legislation, understood to be binary and the same as that recorded on an individual’s birth certificate. However, the legislation does not guide how individuals who have transitioned should be treated.

Whilst primarily focused on those changing gender, the Gender Recognition Act 2004 (“GRA”) attempts to clarify the status of those in possession of a gender recognition certificate (“GRC”). Section 9(1) GRA states that where a GRC is issued to a person, then:

“if the acquired gender is the male gender, the person’s sex becomes that of a man, and if it is the female gender, the person’s sex becomes that of a woman.”

However, section 9(3) adds a proviso that section 9(1) is subject to provisions made in any subordinate legislation. As the Equality Act fails to make clear that it triggers section 9(3), there remains a lack of clarity regarding the treatment of trans men and women.

As a result, there is still a grey area and a discrepancy between those who have a GRC and those who do not. With waiting times for NHS gender identity clinics now reaching more than five years, and combined with the requirement for individuals to provide evidence of living in their affirmed gender for two years, this process is lengthy and means that there are likely many people who never receive a GRC and the additional legal protections it confers.

Amending the act to clarify the definition of sex and to address questions about trans status could provide greater certainty to employers and service providers alike. The Equality and Human Rights Commission has also recommended that the “sex” should be defined as biological sex for the purposes of the Equality Act. In her letter to Ms Badenoch, the Chairwoman of the EHRC identifies 8 areas in which such a definition would provide clarity:

pregnancy and maternity;
freedom of association for lesbians and gay men;
freedom of association for women and men;
positive action;
occupational requirements;
single sex and separate sex services;
sport; and
data collection.

However, such a change would not be a definitive solution. Complexities around discrimination would not necessarily be eradicated by simply adding an explicit definition of sex within the Equality Act.

Both direct and indirect sex discrimination would be affected by the change as it would reverse potential claims, i.e. trans women would no longer be able to bring claims as women, thus transferring the right to bring a claim for sex discrimination.

Whilst sex may be defined as biological, having the effect of preventing individuals from bringing certain claims for discrimination, those who identify as trans are still going to be protected by the Equality Act. The Equality Act presently makes provision for nine protected characteristics, including:

age;
disability;
gender reassignment;
marriage and civil partnership;
pregnancy and maternity;
race;
religion or belief;
sex; and
sexual orientation.

An individual will still be able to bring a claim in relation to any of these characteristics if they can demonstrate that they have been directly or indirectly discriminated against. Section 7 of the Equality Act defines that an individual is eligible for the protected characteristic of gender reassignment if they are “proposing to undergo, [are] undergoing or [have] undergone a process (or part of a process) to reassign the person’s sex by changing physiological or other attributes of sex”.

The employment tribunal in Taylor v Jaguar Land Rover Ltd considered the criteria to satisfy section 7. It was held that there was a broad range of scenarios under which an individual would be covered by the Act. It confirmed that there is no need for an individual to have undergone any surgical procedures and that an individual need only be “actively considering”, “intending to”, or “deciding to undergo gender reassignment” to be protected from discrimination. The case also highlighted that the courts are open to considering those who identify as non-binary or genderfluid as protected under the gender reassignment provisions of the Equality Act.

Whilst we do not know whether any changes will be made, we would recommend that it is best practice for employers to continue to keep their policies under review and updated to ensure that no group are being discriminated against. Employers are under a duty to take all reasonable steps to prevent discrimination. They should, therefore, consider whether there are further steps they could take to ensure that their workplace is fit and welcoming for all employees.

An employer may wish to take a range of actions, including consulting any transitioning individuals to understand their needs and concerns, encouraging sensible and understanding workplace behaviour, and conducting equality impact assessments before implementing new policies and procedures.

Guidance for directors navigating financial distress

Posted on 12 June 202420 March 2025 by Sarah O'Sullivan

At Tees Law, we acknowledge business owners’ difficulties when their company is in financial distress. Our seasoned insolvency advisors are on hand to provide the expertise and support required during such testing times. This article aims to dissect the role of company directors amidst financial distress, the legalities and choices involved in managing insolvency, and preventive actions and recovery strategies that can assist your business in overcoming financial hurdles.

Deciphering the role of company directors amidst financial distress

When a business faces financial distress, the role of company directors is pivotal in steering the company through the impending storm. Directors are obligated to act in the company’s and its stakeholders’ best interests, particularly during periods of financial instability.

Among the key duties of company directors in financial distress is to take swift and suitable actions to mitigate the impact on the company’s operations. They must balance the interests of creditors, employees, and shareholders while meeting legal obligations.

Financial distress can significantly affect a company’s operations, leading to cash flow issues, difficulties meeting financial commitments, and potential insolvency. Directors must meticulously manage the company’s finances, seek professional advice, and consider options for restructuring or refinancing to stabilise the situation.

Early detection of signs of financial distress is vital for directors to take proactive measures. Common indicators include declining sales or revenues, increasing debt levels, delayed supplier payments, and persistent losses. By closely monitoring financial performance, cash flow, and key performance indicators, directors can identify warning signs early and take suitable actions to address the underlying issues.

Managing insolvency: options and legalities for directors

Understanding the concept of insolvency and its legal implications is essential for business owners grappling with financial distress. Insolvency arises when a company cannot pay its debts as they fall due or when its liabilities outstrip its assets. While insolvency is not a crime, it does carry legal implications that directors must be aware of.

When a company experiences insolvency, directors have several options at their disposal. These options aim to either rescue the business or maximise returns for creditors. A common choice is a Company Voluntary Arrangement (CVA), which allows the company to continue trading while repaying its debts over a fixed term. Another option is administration, where an insolvency practitioner assumes control of the company to achieve a better outcome for creditors.

Insolvency advisors play a critical role in assisting directors through financial distress. They are licensed professionals who offer expert advice and guidance throughout the insolvency process. Insolvency advisors can evaluate the company’s financial situation, identify available options, and advise directors on the best action. They can also assist with negotiations with creditors and ensure compliance with relevant insolvency laws and regulations.

Preventive actions and recovery strategies for financial distress

Financial distress can pose challenging circumstances for business owners. However, preventive measures and recovery strategies exist to help alleviate the burden and potentially avoid insolvency. By implementing effective financial management strategies, developing a recovery plan, and seeking professional advice, directors can navigate tough times and work towards a brighter future.

A key strategy to avoid insolvency is to focus on effective financial management. This involves maintaining accurate financial records, regularly reviewing cash flow, and managing debt. By closely monitoring the company’s finances, directors can identify early warning signs of financial distress and take proactive steps to address them.

In the event of financial distress, developing a recovery plan is crucial. This involves assessing the current financial situation, identifying areas for improvement, and setting realistic goals. A recovery plan should include cost-cutting measures, exploring new revenue streams, and negotiating with creditors to restructure debt. By having a well-defined plan, directors can work towards stabilising the company’s financial position.

Seeking professional advice is essential during financial difficulties. Insolvency practitioners and legal experts can provide invaluable guidance and support. They can help directors understand their legal obligations, explore alternative financing options, and navigate the complexities of insolvency procedures if necessary. Professional advice can provide clarity and ensure that directors make informed decisions that are in the company’s best interest.

Election 2024: What’s in store for employment law?

Posted on 7 June 202422 March 2025 by Sarah O'Sullivan

Ahead of the upcoming election on Thursday, 4 July, Alex Haines examines the major parties’ proposals for employment law reforms.

In this first instalment Alex looks at Labour’s proposals to create a single status of worker and the Conservatives’ continuing efforts to reform trade union legislation and what this could mean for businesses and individuals.

Labour – Single Status of Worker

Worker? Employee? Self-employed? In today’s economy, and especially in the gig economy (with temporary, flexible, or freelance jobs), it can be difficult to distinguish an individual’s legal working status.

The current definitions of workers and employees have been criticised in recent years for lacking clarity and not being applicable to the modern gig/platform-based economy.

Labour has proposed creating a system with two employment statuses: worker (inclusive of “employees”) and genuinely self-employed.

Under the Employment Rights Act 1996, an employee is defined (under section 230 of the Employment Rights Act 1996) as an individual who has entered or works under a contract of employment (service or apprenticeship, express or implied, oral or in writing).

Meanwhile, a “worker” is an individual who has entered into or works under either an employment contract or any other contract (our emphasis). The individual undertakes to do or to perform personally any work or services for another party to the contract whose status is not, by virtue of the contract, that of a client or customer of any profession or business undertaking carried on by the individual.

The distinction is potentially confusing but legally important. Workers enjoy some protections, including those under the minimum wage and common law duties of care; employees are afforded additional protections and rights, including:

being covered by the ACAS Code of Practice on Disciplinary and Grievance Procedures;
rights when transferred under TUPE (albeit note that the definition of employee has, confusingly, been wider than under other legislation);
statutory maternity pay (SMP);
statutory paternity pay (SPP);
statutory adoption pay (SAP);
shared parental pay (ShPP);
statutory parental bereavement pay (SPBP);
parental leave;
shared parental leave (SPL);
shared parental bereavement leave (SPBL);
ordinary maternity leave (OML);
additional maternity leave (AML);
right to request flexible working;
statutory sick pay (SSP);
not to be refused employment because of membership or non-membership of a trade union;
various rights to paid and unpaid time off;
statutory minimum notice periods;
protection from unfair dismissal;
statutory redundancy payments, and
the right to collective redundancy consultations.

As with many pre-election policies, the details of Labour’s proposal are scant at present. Labour has promised to simplify the definitions and create a two-tiered system of worker and genuine self-employed. This change might help to reduce the backlogs in the Employment Tribunal by reducing the need for hearings on individuals’ employment status. However, whilst this policy may reduce one layer of litigation, it alone will not reduce such delays.

It appears likely that Labour would plan to afford workers the same rights as employees and protections. This may offer greater certainty to individuals (and businesses) as to the status and rights of those providing services, one way or another.

Labour also says they “will also clamp down on bogus self-employment.” There is care here to avoid penalising those individuals who have actively chosen to be genuinely self-employed. For many, being self-employed may be a conscious choice that offers them freedom and independence from the bounds of a traditional employment contract.

Such a substantial realignment of employment rights will require significant thought, lengthy consultation, and careful implementation. Any changes will unlikely occur within Labour’s first 100 days in office and will be subject to scrutiny and refinement.

Nevertheless, it is good practice for employers to review their current employment contracts and consider whether there are individuals whose status has inadvertently been miscategorised. The documentation should reflect the parties’ intentions and the reality of the working relationship. If not, this will always be susceptible to challenge, as in the leading case of Autoclenz Ltd v Belcher.

Where the documentation does not reflect the party’s intentions or reality, we recommend employers update and correct contracts and working arrangements as appropriate.

It may also be prudent for an employer to undertake a higher-level review of their working arrangements to identify whether new arrangements are needed to provide both parties with greater certainty.

Conservatives – Trade Union Reform

The Conservatives have not been as forthcoming with their employment law proposals for the upcoming election. However, the introduction of the Strikes (Minimum Service Levels) Act 2023 merits mention.

Strikes (Minimum Service Levels) Act 2023 (“Strikes Act”)

This Act attempts to mitigate against the disruption caused by strike action by requiring minimum service levels to be maintained, most notably in the health, transport, education, fire and rescue, and border control services.

The Act has proved controversial, with the Public and Commercial Services Union (“PCS”) being granted permission to initiate a Judicial Review of the Act. The PCS claim that the law is an infringement of Article 11 of the European Convention on Human Rights (“ECHR”), which enshrines the right to freedom of peaceful assembly, association with others, and the right to form and to join trade unions. Any restrictions that are to be imposed on this right must be in the interests of national security or public safety and must be necessary and proportionate.

Other countries, including France, Spain, and Ireland, also have minimum service legislation to ensure that minimum standards are met in certain sectors. However, there are often requirements for employers to enter into agreements with the union following consultations. The Strike Act does not appear to require any specific negotiations between the employer and union to establish a mutually agreed service level. Instead, the Secretary of State can specify the minimum service levels for the sectors, having consulted “such persons as the Secretary of State considers appropriate”. How this will work in practice remains to be seen, but enabling such government intervention may cause concern that unions will not be adequately consulted and that the right to strike will not be respected.

Under the Strikes Act, the employer can, following consultation with the union, serve a “work notice” on the union, detailing which workers are required to work and what they are required to do. If the union fails to take reasonable steps to comply with the notice, it will lose its immunity from tort claims by the employer.

Repeal of Regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003

In addition to legal challenges over the Strike Act, the Conservatives could revive their efforts to repeal regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (“the Regulations”), which prevents employment businesses from introducing or supplying agency workers to cover strike action.

The Conservatives previously repealed regulation 7 in 2022, however this repeal became subject to a judicial review which was heard by the High Court on two grounds.

That the Government failed to comply with their statutory duty to consult before making the 2022 Regulations that repealed regulation 7.
In repealing Regulation 7, the Government breached Article 11 of the ECHR, which prohibits unlawful interference with the rights of trade unions and their members.

The High Court ruled that the Government had failed to consult bodies representative of the interests concerned. Whilst the Government contended that the consultations in 2015 were sufficient, the High Court held that, as circumstances had changed since this consultation and the implementation of the repealing legislation. Moreover, the High Court ruled that the Government had not considered the outcome of the 2015 consultations when considering whether to repeal Regulation 2.

As a result, we may see the Conservatives seek to run a fresh consultation on repealing regulation 2. However, as the second limb of the Judicial Review was not considered, further uncertainty will remain over the enforceability of any repeals in the context of human rights legislation.