What are the additional costs for the end user if the contractor is deemed employed?

• Before any agreed reduction in wages, actual changes to earning patterns (loss of overtime, for example) may impact the pensionable salary as defined under the scheme rules, with knock-on effects to a number of benefit calculations, such as death in service benefits.
• Contractual changes to member salaries may adversely impact accrued benefits as the final salary figure may be reduced to a greater or lesser extent depending on the duration of furlough and the severity of any reductions in wage, and hence reductions may be difficult to agree with staff.
• Reducing employer contributions will be subject to a number of the same considerations applicable to a DC scheme listed above. There will also be a need to change the rules and interact with the trustees, although it may be possible to override the rules with a direct contractual agreement with members.
• Reducing employee contributions will also depend on the scheme rules, particularly as to whether there are any discretionary powers to suspend contributions, or pensionable service.
• The rules will need to be considered for any unexpected consequences of furlough: depending on the wording of the rules, furlough may or may not be considered a leave of absence and may or may not have the effect of terminating pensionable service. This could have far-reaching consequences.
• In particular, if the workforce’s pensionable service is inadvertently terminated as opposed to suspended in accordance with any relevant rule, this could trigger a statutory employer debt on an employer participating in a multi-employer scheme, if pensionable service continues for employees of other employers. This sort of issue is unlikely to be spotted until after the event, and therefore difficult to untangle. However, an employer should be able to take advantage of the “period of grace” provisions by notifying the trustees of its intention to re-admit employees to pensionable service within the next 12 months.
• Clearly the impact of the Coronavirus Job Retention Scheme on DB schemes is complex and legal advice should be sought before any changes are considered.

Employees are generally permitted to take holidays during furlough. However, Government guidance has been updated to state that “Employees should not be placed on furlough for a period simply because they are on holiday for that period.” If a period of furlough happens to coincide with an employee’s holiday then you should ensure that there are business grounds to support furlough being used in that instance so that it isn’t just being used as a means to fund holiday utilisation.

Solicitors can be authorised to sign contracts for their clients – a signed letter of authority should be scanned and sent to avoid posting potentially contaminated documents.

Solicitors should exchange supplemental agreements on behalf of their clients to agree to postpone exchange and completion dates if it has been agreed to push these back.

The Law Society advises that electronic signatures be used as much as possible for contracts, to avoid possible contamination. However, the Land Registry confirms that the legal transfer document cannot be validly executed with an electronic signature. Solicitors should agree a completion undertaking that the original transfer document will be sent when received and after the restrictions have been lifted.

The Land Registry’s latest guidance https://www.gov.uk/guidance/coronavirus-covid-19-impact-on-hm-land-registrys-services published on 14 May states:

We accept deeds that have been signed using the ‘Mercury signing approach’.

For land registration purposes, a signature page will need to be signed in pen and witnessed in person (not by a video call). The signature will then need to be captured, with a scanner or a camera, to produce a PDF, JPEG or other suitable copy of the signed signature page. Each party sends a single email to their conveyancer to which is attached the final agreed copy of the document and the copy of the signed signature page.

Solicitors should be willing to adopt this procedure for completing transactions to enable them to be registered by the Land Registry.

The execution of a transfer is a deed and must be witnessed. Members of the family can witness signatures so long as they are not also a party to the document. A witness will be more credible if they are 18 or over, but this is not a legal requirement. The legal requirement is for the witness “to be present” when the document is signed. It would be possible for a witness to be on the other side of the room or the other side of a window, and validly witness the execution of a deed. The witness does need to take precautions to avoid possible contamination from the document.

A statutory declaration does not need to be witnessed but must be administered by a solicitor or commissioner for oaths. There is no legally prescribed process for this, and there is nothing to suggest that this could not be validly done via a video telephone call if the signature on the declaration can clearly be seen by the person commissioning the oath when the oath is made.

The majority of hearings are taking place by video or phone.

Court guidance has been issued on telephone and video hearings during the coronavirus outbreak:

https://www.gov.uk/guidance/hmcts-telephone-and-video-hearings-during-coronavirus-outbreak

Where a Judge orders “teleconferencing”, it will take place using BTMeetMe, or video conferencing using Skype for Business or Cloud Video Platform.

All hearings are subject to the relevant jurisdictional rules and practice directions and usual court etiquette, including wearing appropriate attire and not eating or drinking during a hearing.

Electronic bundles of documents and authorities (if required) need to be prepared, indexed and paginated and sent to the Court well in advance of any hearing.

As with a Will, your solicitor can take instructions by telephone, Skype or a similar tool. Your solicitor can then post or email the documentation to you. As with Wills, your signature and those of your proposed Attorneys will need to be witnessed, but in this case only by one other person. However, there are specific requirements as to who can witness your signature. The witness must be aged 18 or older and cannot be your Attorney but they can be your Certificate Provider.

Your Certificate Provider must either be someone you have known personally for at least two years or an appropriate professional. However, they must not be your Attorney and they must not be a member of your family or the partner, boyfriend or girlfriend of a member of your family or a business partner or employee of yours.

Also, if you are living in a care home, the Certificate Provider cannot be the owner, manager, director or employee of the home you live in.

Given the current restrictions on movement, if you have regular medical checks you could ask your GP or another medical professional to witness your signature and act as your Certificate Provider when you go to see them or they come to you. Alternatively, if someone you have known for two years or more is dropping off essentials, they could act as a witness and Certificate Provider remembering to retain the necessary distance and protective measures.

Concerning your Attorney(s) you cannot act as their witness. Otherwise, anyone aged 18 or older can act as their witness, including the other Attorney. Ideally, a witness to your or your Attorney’s signatures should not be a family member for the sake of impartiality and to avoid disputes. If necessary they can be.