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September 2018
In house lawyers
forum
London
September 2018
In-house lawyers’ forum
Employment law update
Natalie Fuller
Today’s session
1. Employment status
2. IR35
3. Protecting an employer’s reputation
Employment status
Employment status
- Distinction between “employee”, “worker” and
“self-employed” breaking down
- Why does it matter?
- Focus on the “gig” economy
Pimlico Plumbers Limited v Gary Smith 2018
(Supreme Court)
— Supreme Court held that Mr Smith who worked under a
contract describing him as an “independent contractor”
was in fact a worker
— Use of “you” and “your” indicated personal performance
Good Work Plan a Reality?
— The Government published a response to the Taylor
Review in February 2018
— The Government announced recently that reforms have
been put on hold until 2019
— Concerns have been raised that this Good Work Plan has
been put at risk due to IR35…
IR35
IR35 Overview
— Legislation designed to tackle tax avoidance
— Applies to Contractors who provide their services through
the use of Personal Service Companies and relevant
partnerships
IR35 and the Public Sector
— Responsibility for determining deemed employment
status falls to the public sector body
— Relevant tax and National Insurance may be deducted
from source
IR35 and the Private Sector
— Determining employee status is the responsibility of the
contractor
— From 18 May – 10 August 2018 HM Revenue & Customs
consulted on “Off-payroll working in the private sector”
Reducing the risk of IR35 applying
— Align contract and reality
— Use HMRC’s online tool to check employment status for
tax at https://www.tax.service.gov.uk/check-
employment-status-for-tax/setup
Employer’s Reputation
Protecting your Reputation
— “For individuals and organisations alike, a reputation is
far easier to destroy than it is to build.”
— Risks to reputation include data protection, cyber
security, social media posts and employees’ actions
outside of work
Social Media Risk
— Gibbins v British Council ET Case No.2200088/17
– Inappropriate Facebook post leaked to The Sun
Newspaper
– Fair dismissal?
Activities outside of work
— Lawrence v Secretary of State for Justice
– Fair Dismissal
— Molloy v Liverpool Community Health NHS Trust
– Dismissal rendered unfair
What should employers do?
— Make policies effective and clear
— Carefully consider practices and public perception
— Ensure any disciplinary action is reasonable and
justifiable in the circumstances and that a fair procedure
is followed
Any questions?
Advertising & Marketing
7 things to avoid when working with influencers
@AlexWatt & @SamWhittingham
DON’T forget it is a Services Agreement
— Quantity (of posts) and Quality (of images and text)
— Strategic Payments
— Approval process for posts (but bear in mind Stories)
— Clear brief and deliverables
— What is it linked to? A promotion? a shoot? Is it a giveaway? A
competition? A discount code? What else applies?
DON’T take on any old influencer
— Exclusivity?
— Past conduct?
— It is your job to do the due diligence
here.
— Make them aware of your Brand
Guidelines (and make those binding)
— Choose your influencer carefully
– need to understand where they fit
– need to be right
DON’T breach the CAP Code
— Young audience? Outrageous behaviour?
— #Ad or #Spon?
— Paid Promotion?
— ASA Ruling: Mars Chocolate UK Ltd, 7
March 2012
“I pity the fool who doesn’t remember to use #Ad”
- Mr T (probably)
DON’T forget about Intellectual Property
— Did they take the image? If not – who did? Get an Indemnity!
— Usage – what do you want do you want to do with the image? and
for how long?
— Be original!
— Other brands in the shot?
— If you want to own the image – you still need a written assignment!
“So happy with my free products! Thanks #Colgate
…#Spon”
DON’T contract with the wrong party
— Who is the deal actually with?
— Influencer? Agency? Personal
company?
— If Personal Company, can you
get a letter of guarantee?
— Where is the money paid?
(not always the same thing!)
DON’T forget to choose your territory
— Social media: A frontier without
borders
— Jurisdiction?
— Impact on exclusivity?
— Platform? Different terms,
scope, impact, opportunity &
risk.
DON’T leave yourself without an exit
— Include ability to request post/video
take down
— Testing the morality clause
— FILA and Chris Webber example
Thank you
Alex Watt
Partner
t: +44 (0)20 7337 1008
e: alex.watt@brownejacobson.com
Linkedin: https://www.linkedin.com/in/alexwatt/
Sam Whittingham
Solicitor
t: +44 (0) 330 045 2250
e: sam.whittingham@brownejacobson.com
Linkedin: https://www.linkedin.com/in/samwhittingham/
Commercial & Tech law
Richard Nicholas
Commercial & Tech
Today:
1. Contract update – Supreme Court case
2. GDPR – 6 months on – cases and practice
3. Brexit - checklist of issues
4. Skills for in house lawyers
Quick advert…
In house lawyer “checker” Product
- Free second opinion/expert view/check a point
– Approx 20 minutes on the telephone
- Equivalent to seeing a specialist at their desk
- Exclusively for in-house lawyers
Terms and conditions apply ☺
“No variations”
Bluff or not?
Rock Advertising v MWB Business Exchange Centres
16 May 2018 - Supreme Court
GDPR – six months on
Cases/ Practice:
- DPAs – Controller/Processor
- Controller “Notification/registration”
- Data breach notification
- Training – (apps)*
- Liability
GDPR – six months on
Good news for Marketers:
Xerpla
Good news for data controllers:
DB v GMC
Bad news for Cloud providers
NIS Regulations
GDPR – six months on
- DPAs – [Webinar - DATA] Controller/Processor
Who…
- Decides what [else…] the data is used for
- Decides how long kept for
- Keeps it (after use)
- Responds to subject’s rights/Notify
- Is liable for loss/inaccuracy
GDPR – six months on
— Notification/Register of fee payers
— Liability
— Data breach notification
— Training
- App/software
- [ insert shameless plug for October session here]
Hard brexit – 6 months to go?
 Data – Intra Group Agreement?
 Contracts
 Importing/Exporting
 Double Taxation Treaties
 VAT Registration
 Staff
Skills training - November
 Measuring your value
 Coaching your team
 Presentation Skills
 Negotiation Skills
 Business Writing and Legal Drafting
 **Your own area**
Coffee break
Vicarious liability for contractors
James Arrowsmith
Vicarious liability for contractors
This session:
1. What are the risks?
2. Various Claimant’s v Barclays Bank
3. For which workers/contractors might there be liability
4. What acts are caught?
5. Risk mitigation
Recent developments
The risk
- Additional / unexpected liabilities
- Claims
- Adequacy of:
- scrutiny in procurement/contract management
- insurance cover
- Response to incidents
- Ensuring contract terms/price reflect balance of risk
- Reputational risk
The risk
“It is clearly understandable that a “bright line” test, such as is
said to be the status of independent contractor, would make
easier the conduct of business for parties and their insurers…
…However, ease of business cannot displace or circumvent the
principles now established by the Supreme Court”
Various Claimants v Barclays Bank Plc (CA)
- 126 claims for sexual assaults by Dr Bates
- Bates undertook pre-employment examinations for the Bank
- Bates also worked for other clients.
- No finding of fault on the part of the Bank
- Bates was an independent contractor.
- Court of appeal found the bank vicariously liable.
- Vicarious liability can exist in relation to independent contractors.
When might vicarious liability arise?
— Staff engaged via an agency
— Brother of a Christian Order
— Prisoner working in a prison kitchen
— Foster Carer
— Independent contractor
— Volunteers?
What acts are caught
— Abuse and sexual assault
— Some physical assaults
— Harassment
— Rogue employee who perpetrates a data breach
— Not an employee committing fraud as part of a ‘recognisably
independent business’
Risk Mitigation
- Awareness: outsourcing a service to an independent
contractor may not always outsource risk
Risk Mitigation
- Contractual:
- Assess risk before procurement/tendering
- Requirements/terms may impact on liability
- Indemnities provide some protection
- Insurance requirements provide greater security
- All of the above may impact on price
Risk Mitigation
- Insurance:
- Own insurance and that of contractors
- Compliance with ‘fair presentation of risk’ requirement
- Scope of the insuring clause
- Relevant exclusions/endorsements
- ‘Claims made’ or ‘Claims occurring’
- Notification
Summary
- Vicarious liability is expanding in terms of
- The worker/contractor relationships covered
- The acts for which an employer can be liable
- Speculative claims are an increasing risk
- Early consideration of risk allows for mitigation including:
- Contract arrangements
- Insurance
- Aa appropriate response to incidents.
Engaging with the Public Sector
Alex Kynoch
Engaging with the Public Sector
1. Report on industry engagement with the public sector
through procurement: “Partnering for Prosperity”
2. The impact of public procurement
3. What can the sectors do to overcome the challenges?
Partnering for Prosperity
— Joint report prepared by the CBI (Confederation of British
Industry) and Browne Jacobson
— Reports on new evidence drawn from a national survey of
suppliers to the public sector
— 3 Key recommendations…
Key Findings
Key Findings
Key Findings
Recommendations for Government and
Industry
1. Work together to address short-termism in the public
marketplace by boosting industry engagement and shifting
approaches to cost and risk
2. Drive greater adoption of good commercial guidance in the
public sector
3. Capitalize on opportunities created by Brexit (eventually…)
Addressing short-termism
1. Managing risk appropriately
2. Focusing on long-term value for money (no races to the
bottom)
3. Supporting innovation
4. Bidding responsibly
Good commercial practice
— Streamlining processes:
– 20 ministerial departments, 400 public agencies and 353
local authorities
– Standardised T&Cs
– Standardised procurement documents
Good commercial practice
— Boosting transparency and industry engagement:
– Framework Agreements
– Industry Engagement (general and specific)
– Publishing on Contracts Finder
What can you do?
— Public sector:
– Spend time to save time
– Avoid encouraging a ‘race to the bottom’
– Avoid unacceptable risk transfers
— Private sector:
— Raise clarifications as they arise
— Resolve issues with customer before using Cabinet Office
‘mystery shopper’ or challenging
— Avoid post-tender renegotiation
Thank you
Richard Nicholas
Partner
t: 0121 237 3992
e: richard.nicholas@brownejacobson.com
Alex Watt
Partner
t: 020 7337 1008
e: alex.watt@brownejacobson.com
Alex Kynoch
Associate
t: 0115 976 6511
e: alex.kynoch@brownejacobson.com
Natalie Fuller
Solicitor
t: 020 7871 8508
e: natalie.fuller@brownejacobson.com
James Arrowsmith
Partner
t: 0121 237 3981
e: james.arrowsmith@brownejacobson.com
Sam Whittingham
Solicitor
t: 0330 045 2250
e: sam.whittingham@brownejacobson.com
All information correct at time of production.
The information and opinions expressed within this document are no
substitute for full legal advice. It is for guidance only and illustrates
the law as at the published date. If in doubt, please telephone us on
0370 270 6000.
© Browne Jacobson LLP 2018– The information contained within this
document is and shall remain the property of Browne Jacobson. This
document may not be reproduced without the prior consent of Browne
Jacobson.

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In house lawyers forum, September 2018, London

  • 1. September 2018 In house lawyers forum London
  • 4. Today’s session 1. Employment status 2. IR35 3. Protecting an employer’s reputation
  • 6. Employment status - Distinction between “employee”, “worker” and “self-employed” breaking down - Why does it matter? - Focus on the “gig” economy
  • 7. Pimlico Plumbers Limited v Gary Smith 2018 (Supreme Court) — Supreme Court held that Mr Smith who worked under a contract describing him as an “independent contractor” was in fact a worker — Use of “you” and “your” indicated personal performance
  • 8. Good Work Plan a Reality? — The Government published a response to the Taylor Review in February 2018 — The Government announced recently that reforms have been put on hold until 2019 — Concerns have been raised that this Good Work Plan has been put at risk due to IR35…
  • 10. IR35 Overview — Legislation designed to tackle tax avoidance — Applies to Contractors who provide their services through the use of Personal Service Companies and relevant partnerships
  • 11. IR35 and the Public Sector — Responsibility for determining deemed employment status falls to the public sector body — Relevant tax and National Insurance may be deducted from source
  • 12. IR35 and the Private Sector — Determining employee status is the responsibility of the contractor — From 18 May – 10 August 2018 HM Revenue & Customs consulted on “Off-payroll working in the private sector”
  • 13. Reducing the risk of IR35 applying — Align contract and reality — Use HMRC’s online tool to check employment status for tax at https://www.tax.service.gov.uk/check- employment-status-for-tax/setup
  • 15. Protecting your Reputation — “For individuals and organisations alike, a reputation is far easier to destroy than it is to build.” — Risks to reputation include data protection, cyber security, social media posts and employees’ actions outside of work
  • 16. Social Media Risk — Gibbins v British Council ET Case No.2200088/17 – Inappropriate Facebook post leaked to The Sun Newspaper – Fair dismissal?
  • 17. Activities outside of work — Lawrence v Secretary of State for Justice – Fair Dismissal — Molloy v Liverpool Community Health NHS Trust – Dismissal rendered unfair
  • 18. What should employers do? — Make policies effective and clear — Carefully consider practices and public perception — Ensure any disciplinary action is reasonable and justifiable in the circumstances and that a fair procedure is followed
  • 20. Advertising & Marketing 7 things to avoid when working with influencers @AlexWatt & @SamWhittingham
  • 21.
  • 22. DON’T forget it is a Services Agreement — Quantity (of posts) and Quality (of images and text) — Strategic Payments — Approval process for posts (but bear in mind Stories) — Clear brief and deliverables — What is it linked to? A promotion? a shoot? Is it a giveaway? A competition? A discount code? What else applies?
  • 23. DON’T take on any old influencer — Exclusivity? — Past conduct? — It is your job to do the due diligence here. — Make them aware of your Brand Guidelines (and make those binding) — Choose your influencer carefully – need to understand where they fit – need to be right
  • 24. DON’T breach the CAP Code — Young audience? Outrageous behaviour? — #Ad or #Spon? — Paid Promotion? — ASA Ruling: Mars Chocolate UK Ltd, 7 March 2012 “I pity the fool who doesn’t remember to use #Ad” - Mr T (probably)
  • 25. DON’T forget about Intellectual Property — Did they take the image? If not – who did? Get an Indemnity! — Usage – what do you want do you want to do with the image? and for how long? — Be original! — Other brands in the shot? — If you want to own the image – you still need a written assignment!
  • 26. “So happy with my free products! Thanks #Colgate …#Spon”
  • 27. DON’T contract with the wrong party — Who is the deal actually with? — Influencer? Agency? Personal company? — If Personal Company, can you get a letter of guarantee? — Where is the money paid? (not always the same thing!)
  • 28. DON’T forget to choose your territory — Social media: A frontier without borders — Jurisdiction? — Impact on exclusivity? — Platform? Different terms, scope, impact, opportunity & risk.
  • 29. DON’T leave yourself without an exit — Include ability to request post/video take down — Testing the morality clause — FILA and Chris Webber example
  • 30. Thank you Alex Watt Partner t: +44 (0)20 7337 1008 e: alex.watt@brownejacobson.com Linkedin: https://www.linkedin.com/in/alexwatt/ Sam Whittingham Solicitor t: +44 (0) 330 045 2250 e: sam.whittingham@brownejacobson.com Linkedin: https://www.linkedin.com/in/samwhittingham/
  • 31. Commercial & Tech law Richard Nicholas
  • 32. Commercial & Tech Today: 1. Contract update – Supreme Court case 2. GDPR – 6 months on – cases and practice 3. Brexit - checklist of issues 4. Skills for in house lawyers
  • 33. Quick advert… In house lawyer “checker” Product - Free second opinion/expert view/check a point – Approx 20 minutes on the telephone - Equivalent to seeing a specialist at their desk - Exclusively for in-house lawyers Terms and conditions apply ☺
  • 34. “No variations” Bluff or not? Rock Advertising v MWB Business Exchange Centres 16 May 2018 - Supreme Court
  • 35. GDPR – six months on Cases/ Practice: - DPAs – Controller/Processor - Controller “Notification/registration” - Data breach notification - Training – (apps)* - Liability
  • 36. GDPR – six months on Good news for Marketers: Xerpla Good news for data controllers: DB v GMC Bad news for Cloud providers NIS Regulations
  • 37. GDPR – six months on - DPAs – [Webinar - DATA] Controller/Processor Who… - Decides what [else…] the data is used for - Decides how long kept for - Keeps it (after use) - Responds to subject’s rights/Notify - Is liable for loss/inaccuracy
  • 38. GDPR – six months on — Notification/Register of fee payers — Liability — Data breach notification — Training - App/software - [ insert shameless plug for October session here]
  • 39. Hard brexit – 6 months to go?  Data – Intra Group Agreement?  Contracts  Importing/Exporting  Double Taxation Treaties  VAT Registration  Staff
  • 40. Skills training - November  Measuring your value  Coaching your team  Presentation Skills  Negotiation Skills  Business Writing and Legal Drafting  **Your own area**
  • 42. Vicarious liability for contractors James Arrowsmith
  • 43. Vicarious liability for contractors This session: 1. What are the risks? 2. Various Claimant’s v Barclays Bank 3. For which workers/contractors might there be liability 4. What acts are caught? 5. Risk mitigation
  • 45. The risk - Additional / unexpected liabilities - Claims - Adequacy of: - scrutiny in procurement/contract management - insurance cover - Response to incidents - Ensuring contract terms/price reflect balance of risk - Reputational risk
  • 46. The risk “It is clearly understandable that a “bright line” test, such as is said to be the status of independent contractor, would make easier the conduct of business for parties and their insurers… …However, ease of business cannot displace or circumvent the principles now established by the Supreme Court”
  • 47. Various Claimants v Barclays Bank Plc (CA) - 126 claims for sexual assaults by Dr Bates - Bates undertook pre-employment examinations for the Bank - Bates also worked for other clients. - No finding of fault on the part of the Bank - Bates was an independent contractor. - Court of appeal found the bank vicariously liable. - Vicarious liability can exist in relation to independent contractors.
  • 48. When might vicarious liability arise? — Staff engaged via an agency — Brother of a Christian Order — Prisoner working in a prison kitchen — Foster Carer — Independent contractor — Volunteers?
  • 49. What acts are caught — Abuse and sexual assault — Some physical assaults — Harassment — Rogue employee who perpetrates a data breach — Not an employee committing fraud as part of a ‘recognisably independent business’
  • 50. Risk Mitigation - Awareness: outsourcing a service to an independent contractor may not always outsource risk
  • 51. Risk Mitigation - Contractual: - Assess risk before procurement/tendering - Requirements/terms may impact on liability - Indemnities provide some protection - Insurance requirements provide greater security - All of the above may impact on price
  • 52. Risk Mitigation - Insurance: - Own insurance and that of contractors - Compliance with ‘fair presentation of risk’ requirement - Scope of the insuring clause - Relevant exclusions/endorsements - ‘Claims made’ or ‘Claims occurring’ - Notification
  • 53. Summary - Vicarious liability is expanding in terms of - The worker/contractor relationships covered - The acts for which an employer can be liable - Speculative claims are an increasing risk - Early consideration of risk allows for mitigation including: - Contract arrangements - Insurance - Aa appropriate response to incidents.
  • 54. Engaging with the Public Sector Alex Kynoch
  • 55. Engaging with the Public Sector 1. Report on industry engagement with the public sector through procurement: “Partnering for Prosperity” 2. The impact of public procurement 3. What can the sectors do to overcome the challenges?
  • 56. Partnering for Prosperity — Joint report prepared by the CBI (Confederation of British Industry) and Browne Jacobson — Reports on new evidence drawn from a national survey of suppliers to the public sector — 3 Key recommendations…
  • 60. Recommendations for Government and Industry 1. Work together to address short-termism in the public marketplace by boosting industry engagement and shifting approaches to cost and risk 2. Drive greater adoption of good commercial guidance in the public sector 3. Capitalize on opportunities created by Brexit (eventually…)
  • 61. Addressing short-termism 1. Managing risk appropriately 2. Focusing on long-term value for money (no races to the bottom) 3. Supporting innovation 4. Bidding responsibly
  • 62. Good commercial practice — Streamlining processes: – 20 ministerial departments, 400 public agencies and 353 local authorities – Standardised T&Cs – Standardised procurement documents
  • 63. Good commercial practice — Boosting transparency and industry engagement: – Framework Agreements – Industry Engagement (general and specific) – Publishing on Contracts Finder
  • 64. What can you do? — Public sector: – Spend time to save time – Avoid encouraging a ‘race to the bottom’ – Avoid unacceptable risk transfers — Private sector: — Raise clarifications as they arise — Resolve issues with customer before using Cabinet Office ‘mystery shopper’ or challenging — Avoid post-tender renegotiation
  • 65. Thank you Richard Nicholas Partner t: 0121 237 3992 e: richard.nicholas@brownejacobson.com Alex Watt Partner t: 020 7337 1008 e: alex.watt@brownejacobson.com Alex Kynoch Associate t: 0115 976 6511 e: alex.kynoch@brownejacobson.com Natalie Fuller Solicitor t: 020 7871 8508 e: natalie.fuller@brownejacobson.com James Arrowsmith Partner t: 0121 237 3981 e: james.arrowsmith@brownejacobson.com Sam Whittingham Solicitor t: 0330 045 2250 e: sam.whittingham@brownejacobson.com
  • 66. All information correct at time of production. The information and opinions expressed within this document are no substitute for full legal advice. It is for guidance only and illustrates the law as at the published date. If in doubt, please telephone us on 0370 270 6000. © Browne Jacobson LLP 2018– The information contained within this document is and shall remain the property of Browne Jacobson. This document may not be reproduced without the prior consent of Browne Jacobson.