Cure - dismissals, negotiations, public announcements and more

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Cure - dismissals, negotiations, public announcements and more. Advice for SME's.
Adams & Remers Solicitors
in partnership with the
Sussex Innovation Centre

Published in: Business, Health & Medicine
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Cure - dismissals, negotiations, public announcements and more

  1. 1. Cure - dismissals, negotiations, public announcements and more Adams & Remers Solicitors in partnership with the Sussex Innovation Centre
  2. 2. Our Speakers Nichola Marven Cathy Hoar
  3. 3. The Prevention session – a reminder <ul><li>Is the employee also a director and/or shareholder? </li></ul><ul><li>Articles of Association </li></ul><ul><li>Shareholder Agreements </li></ul><ul><li>Directors’ Service Agreements </li></ul>
  4. 4. Parting company with a senior executive <ul><li>The shareholders’ agreement </li></ul><ul><li>Removal of director by shareholder resolution </li></ul><ul><li>Current legal position – Companies Act 2006 </li></ul><ul><li>Director’s fiduciary duties </li></ul><ul><li>Director’s service agreement/employment contract </li></ul>
  5. 5. Is the director/shareholder also an employee? <ul><li>Director may be employed or self-employed </li></ul><ul><li>May not become an issue until dismissal </li></ul><ul><li>Control </li></ul><ul><li>Mutual obligations to offer and accept work </li></ul><ul><li>Financial risk </li></ul><ul><li>Employment contract should reflect reality </li></ul>
  6. 6. Parting company with a senior executive <ul><li>Possible employment law claims </li></ul><ul><ul><li>Wrongful dismissal (breach of contract) </li></ul></ul><ul><ul><li>Unfair dismissal </li></ul></ul><ul><ul><li>Redundancy </li></ul></ul><ul><ul><li>Discrimination </li></ul></ul><ul><li>Costly and time-consuming </li></ul>
  7. 7. Dismissing lawfully <ul><li>In accordance with the contract of employment </li></ul><ul><li>What does the service agreement say? </li></ul><ul><ul><li>Notice period </li></ul></ul><ul><ul><li>Payment in lieu </li></ul></ul><ul><ul><li>Garden leave </li></ul></ul><ul><ul><li>Other benefits </li></ul></ul><ul><li>What if you dismiss in breach of contract? </li></ul>
  8. 8. Dismissing fairly <ul><li>Who can claim unfair dismissal? </li></ul><ul><ul><li>Automatically unfair dismissal </li></ul></ul><ul><li>A fair reason </li></ul><ul><li>AND </li></ul><ul><li>A fair procedure </li></ul>
  9. 9. A fair reason <ul><li>Capability </li></ul><ul><li>Conduct </li></ul><ul><li>Redundancy </li></ul><ul><li>Retirement </li></ul><ul><li>Statutory restriction </li></ul><ul><li>Some other substantial reason </li></ul><ul><li>Do not claim dismissal is for another reason </li></ul>
  10. 10. A fair procedure <ul><li>Acting reasonably </li></ul><ul><li>Statutory disciplinary/dismissal procedure </li></ul><ul><ul><li>Step 1: invitation and statement of grounds for action </li></ul></ul><ul><ul><li>Step 2: meeting </li></ul></ul><ul><ul><li>Step 3: right of appeal </li></ul></ul>
  11. 11. Practical tips <ul><li>Address issues as soon as they arise </li></ul><ul><li>Try to resolve problems informally </li></ul><ul><li>Keep records of correspondence or discussions relating to performance or conduct </li></ul><ul><li>Beware of emails </li></ul><ul><li>Make use of appraisals </li></ul><ul><li>Do not sideline individual </li></ul><ul><li>Fully investigate </li></ul><ul><li>Consider stress and disability </li></ul>
  12. 12. Protecting your business interests <ul><li>Restrictive covenants </li></ul><ul><li>Confidentiality </li></ul><ul><li>Garden leave </li></ul><ul><li>Pay in lieu of notice </li></ul><ul><li>Managing the news - announcements </li></ul>
  13. 13. Without prejudice negotiations <ul><li>Is there a dispute? </li></ul><ul><li>Compromise agreements </li></ul>
  14. 14. Summary <ul><li>Consider employment status </li></ul><ul><li>Look at the contracts </li></ul><ul><li>Don’t mix your reasons </li></ul><ul><li>Follow a fair procedure </li></ul><ul><li>Don’t lose sight of your business objective </li></ul>
  15. 15. Thank you for your time. Cathy Hoar Employment Solicitor T: 01273 403285 E: cathy.hoar@adams-remers.co.uk Nichola Marven Corporate/Commercial Solicitor T: 01273 403231 E: nichola.marven@adams-remers.co.uk

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