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Does an employee who is furloughed lose his/her benefits under an EMI share option?

One of the key legislative requirements of EMI is that the employee satisfies the working time requirement, which is that they work at least 25 hours per week in the company or, if less, 75% of the employee’s total working time. If the working time requirement ceases to be met, then there is a “disqualifying event”. That means that the tax benefits of EMI ceases. It may also mean that the option lapses, but that depends on the specific terms of the option.

An employee who has been furloughed is by definition no longer working 25 hours/week and therefore on the face of it, there is a disqualifying event. However, the Government has tabled an amendment to the Finance Bill currently going through Parliament providing in effect that time not worked because an employee has been furloughed counts as working time, both for determining whether the working time requirement is met initially and whether there is a disqualifying event. Provided this amendment is enacted, this should address the issue.

Related FAQs

What are the temporary adjustments to Right To Work checks?

To facilitate social distancing the Home Office has stated that as of 30 March 2020, the following are permitted:

  • The RTW check can now take place over video call.
  • Job applicants no longer have to send original documents but can send scanned copies or photos to the employer.
  • Where the job applicant cannot provide these documents, employers can use the Employer Checking Service and if they have the right to work, then the employer will receive a Positive Verification Notice which will provide the employer with a statutory excuse for 6 months.

These adjustments remain in place until the Home Office confirms otherwise.

 

Are there steps to ensure they will have access to an open register (BSR) & building safety assessments etc?

The Act should make it easier for residents to obtain relevant information. It includes an obligation for the Principal Accountable Person to prepare a strategy for promoting the participation of residents, including the information to be provided to them and consultations about relevant decisions. The strategy must be provided to residents, and there will be provision for residents to be able to request information and copies of documents from the Principal Accountable Person. The type of information and the form in which it is to be provided will be set out in secondary legislation in due course, but the explanatory notes anticipate that it will include:

  • Full current and historical fire risk assessments•Planned maintenance and repair schedules
  • The outcome of building safety inspection checks
  • Information on how assets in the building are managed
  • Details of preventative measures
  • Details of fire protection measures and the fire strategy for the building
  • Information on the maintenance of fire safety systems
  • Structural assessments
  • Planned and historical changes to the building
What are the early warning signs that a contractor may be in financial difficulty?

As the project progresses, it is important to continually monitor the contractor’s performance.  Any one or more of the items below can be early warning signs that the contractor is in financial difficulty, and that further actions may be necessary:

  • Decrease in labour or contractor’s personnel on site, and/or rapid turnover of contractor’s personnel
  • Slowdown in progress on site
  • Plant, equipment or materials suddenly disappearing from site for no apparent reason – unpaid subcontractors may unilaterally decide to remove items from site regardless of their contractual rights to do so
  • An increasing number of defects and reduction in the quality of the contractor’s work
  • The contractor seeking changes in the payment arrangements, and in particular early payments
  • The contractor making spurious claims or contra charges
  • The contractor seeking assignment of its benefit of the building contract
  • Late filing of accounts by the contractor at Companies House
  • Unsatisfied court judgements against the contractor
  • Subcontractors and suppliers not being paid or being paid late
  • Rumours in the press, in the industry, on site or elsewhere regarding the solvency of the contractor
  • Unusual visits to site, for example from the contractor’s senior management or other personnel who had not previously been present or are not expected to be present
  • Increasingly aggressive behaviour by the contractor
  • The contractor’s parent company or another company within the contractor’s group displaying any of the above signs
Should I have a homeworking policy?

If organisations don’t have a formal home working policy, then they should set out, as soon as possible, in clear terms, what is expected of employees from a data protection perspective when working from home. These might include:

  • If someone is using their own device for remote working, ensuring that any devices that hold work-related information have up-to-date anti-virus software and that broadband connections have properly configured firewalls
  • Reminding staff to contact the organisation’s IT department if they encounter any issues with home working, and not to try and resolve any issues themselves
  • Reminding staff that they should notify relevant individuals within the organisation if they consider that there might have been a personal data breach. A breach will still be notifiable even if it does occur at home during the pandemic. These should be logged by the organisation in their data breach log in the normal way
  • Ensuring staff lock their devices whenever they are not using them
  • Where possible, working in a separate part of the home to family members
  • Ensuring confidentiality of information – advising staff not to have phone calls where others are likely to hear the conversation. This might mean moving to a different room, closing the door, or arranging a call for a more convenient time. If employees have smart speakers, you may want to consider advising them to either turn these off, if they are working in the same room as it, or work in a different room
  • Wherever possible, avoid taking hard copy documents home, and, if papers are taken home, never placing those papers in a bin or using a home shredder – any such papers should be shredded back at the office in the usual way
  • Locking any papers in a safe place
  • Not using social media platforms (unless already used and permitted by the organisation) to discuss work matters
  • Advising extra caution with incoming emails as at times such as this there may be an increased risk of fraud, email hacking, spear phishing etc.
  • Avoiding information being sent to personal email accounts (for example, so it can then be printed at home)
  • Reminding staff of your organisation’s Information Security policies, procedures and protocols. These could be emailed to all staff working from home or they could be directed to such documents on the organisation’s intranet, for example

Organisations should also ensure that their remote access systems can cope with increased demand.

Whilst the ICO appreciates the unprecedented nature of this pandemic, it does not mean that organisations can forget about their obligations as controllers of personal data. If a major data security breach were to happen, there is still the possibility of enforcement action where the organisation didn’t put in place good risk mitigation measures.

We have a specialist team of data protection lawyers here at Ward Hadaway, and would be happy to discuss any data protection concerns or issues that you might have.

Is the current pandemic an event which will allow me to argue that the lease has been ‘frustrated’?

This is unlikely. Frustration is a doctrine rarely used as a way of getting out of leases. It operates to bring a lease to an early end because of the effect of a supervening event. It is then not a concept readily applicable to a situation where one party is looking to get out of a lease. To be able to argue the doctrine of frustration, you must be able to demonstrate that something unforeseeable has happened that makes it impossible to fulfil the lease and unjust to hold a party to its obligations.

This is not something that can be demonstrated easily.

There was a case in the High Court last year when the doctrine of frustration was looked at in a case involving the European Medical Agency.

The court found that Brexit did not frustrate EMA’s lease. EMA was granted leave to appeal that decision to the Court of Appeal, but unfortunately, the parties settled out of court so the arguments were not tested in the higher court.

Another reason why frustration is likely to fail is an argument that, whilst the current lockdown may force closures to businesses and whilst such closures maybe for a lengthy period, such closures will only be temporary.