What should I do if contractor insolvency occurs?
In the event that the worst happens and contractor insolvency occurs, there are a number of steps which the employer should take immediately:
- Confirm that insolvency has actually occurred and the type of insolvency (for example liquidation or adjudication) – actions taken based on rumours can have adverse consequences
- Secure the site and carry out an audit of the plant, equipment and materials present – this may extend to changing the locks on site in order to prevent overzealous contractors and sub-contractors seeking to return and take what they see as their possessions. The building contract may contain a provision that these are the employer’s property, but they can be difficult to recover if they are not within the employer’s possession – possession is 9/10ths of the law!
- Ensure that there are adequate insurance and health and safety arrangements in place for the site – these would usually be dealt with by the contractor and therefore may no longer be in place, so alternative arrangements may be required
- Ensure that any further payments to the contractor are stopped pending a more detailed review
- Consider whether any off-site materials have already been paid for and can be secured. This can however be difficult in practice where the materials are not physically within the employer’s possession
In addition, there are also a number of further actions which the employer should consider in the slightly longer term:
- Investigate the options available and ascertain the cost of completing the works to assist in deciding how best to proceed
- Consider whether termination of the contractor’s employment under the building contract is required, and if so take the necessary steps in accordance with the building contract
- Consider whether there are any bonds or guarantees in place upon which the employer can rely, and if so assess their terms as to whether and how to make a claim
- Make arrangements to complete the works – as a general rule of thumb the cost of completing the works may increase by around 30% if it is necessary to get a replacement contractor
- Consider whether direct payment to subcontractors is possible or desirable
- Although we would say this(!) we would strongly recommend taking legal advice, as insolvency and its implications are complex and it is easy to inadvertently fall foul of the various different requirements
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- On admission to hospital, all adults should be assessed for frailty, irrespective of their age and Covid-19 status. Regard should be had to any comorbidities and underlying health conditions.
- If a patient is identified as potentially having Covid-19, the UK Government guidance on infection prevention and control measures should be followed.
- If Covid-19 is then diagnosed in someone who is not isolated from admission or presentation, the UK Government guidance on actions required when a case was not diagnosed on admission should be followed.
Residents will be obliged to:
- Not act in a way that creates a significant risk of a building safety risk materialising
- Not interfere with building safety equipment in the common parts
- Comply with an Accountable Person’s request for information in relation to the assessment and management of building safety risks.
The Accountable Person then has powers in relation to these duties, including:
- Issuing a contravention notice, requiring a resident to pay for replacement or repair of safety equipment which they have interfered with
- Applying for court orders in certain situations
- Requesting access at a reasonable time (in writing with at least 48 hours’ notice) to a resident’s property for the purposes of assessing or managing building safety risks, or checking compliance with the resident’s duties as above.
Secondary legislation is still awaited to bring these provisions into force, so the timing is unknown, but it will likely be within the next 12 months in line with the anticipated timetable for the remainder of the Act.
Ordinarily, no but during the pandemic, yes.
You can start employing a Tier 2 or 5 worker who is in the UK before their visa application has been decided if the following conditions have been met.
- You have assigned the worker a Certificate of Sponsorship
- They have made an in time visa application (i.e. they made their new visa application before their current leave expired) and they have provided you with evidence of this
- The job you employ them in is the same as the one stated on their Certificate of Sponsorship.
Sponsors should be aware that they should carry out right to work checks before the individual starts undertaking work for them and if their visa application is eventually rejected, they must stop employing them.
Although sponsors will not be able to record migrant activity on the SMS about these workers, the Home Office has confirmed that any necessary reports should still be made on the sponsor’s internal systems.
If the worker is outside the UK, they may be able to start work for you remotely subject to the relevant employment, tax and immigration requirements in that country.
The Town and Country Planning (Use Classes) (Amendment) (England Regulations) 2020 were laid before Parliament and come into force on 1 September 2020. They apply in England only.
The changes include the revocation of the following Use Classes;
- A1 – shops
- A2 – financial and professional services
- A3 – restaurants and cafes
- A4 – drinking establishments
- A5 – hot food takeaways
- B1 – business. Also revoked are the sub parts of B1;
- B1(a) – offices
- B1(b) – research and development of products and processes
- B1(c ) – industrial process
- D1 – non residential institutions
- D2 – assembly and leisure
The changes include the amendment of the following Use Class;
- B2 (industry)
The changes include the introduction of the following Use Classes;
- E – commercial, business and service
- F.1 – learning and non-residential institutions
- F.2 – Local community
There are no changes to the following Use Classes;
- C1 – hotels, boarding and guest houses
- C2 – residential institutions
- C3 – dwellinghouses
- C4 – small HMO
From 1 September 2020;
- Small retail shops (not more than 280 sq metres net sales area) selling essential goods including food and at least 1 kilometre from another shop will cease being an A1 use and will become a F.2 (local community) use;
- Other A1 shops will become an E (commercial, business and service) use;
- A2 uses will become an E (commercial, business and service) use;
- A3 uses will become an E (commercial, business and service) use;
- A4 uses will not be in a Use Class, they will be sui generis, ie not in any use class;
- A5 uses will not be in a Use Class, they will be sui generis, ie not in any use class;
- B1 uses (included B1(a), B1 (b) and B1 (c) will become an E (commercial, business and service) use;
- B2 uses will either be B2 uses or will be Class E uses.
- Clinics, health centres, creches, day nurseries and day centres (previously D1 uses) will become an E (commercial, business and service) use;
- Schools, non residential education and training centres, museums, public libraries, public halls, exhibition halls, places of worship, law courts (previously D1 uses) will become an F.1 ( learning and non-residential institutions) use;
- Cinemas, concert halls, live music performance venues, bingo halls and dance halls (previously D2 uses) and will be sui generis, ie not in any use class;
- Gyms, indoor sport, recreation or fitness not involving motorised vehicles or firearms principally to visiting members of the public (previously D2 uses) will become an E (commercial, business and service) use;
- Hall or meeting place for the principal use of the local community (previously D2 uses) will become an F.2 (local community) use;
- Indoor or outdoor swimming baths, skating rinks, outdoor sports or recreation grounds (not involving motorised vehicles or firearms) (previously D2 uses) will become an F.2 (local community) use.
Changes of use within a Use Class do not constitute development. That being the case, provided the Order is applicable, its operation not having been restricted by planning condition, Agreement or Article 4 (1) Direction for example, planning permission would not be required, development as defined not happening. If legally binding confirmation is required that planning permission is not required this can only be obtained by way of a successful application for a Certificate of Lawfulness. In the absence of such, there is some risk.
It remains the case that planning permission may be required for operational works to buildings. It also remains the case that other consents and permissions may be necessary for example licenses. Furthermore amendments to leases may be required if the property is rented.
The Regulations additionally include transitional arrangements because of permitted development rights for changes of use in the Town and Country Planning (General Permitted Development) (England) Order amongst others. To respond to this Regulations introduce a ‘material period’ which is defined as meaning the period beginning 1 September 2020 and ending 31 July 2021. It is expected during the material period the Orders giving permitted development rights for changes for use which do constitute development will be amended / updated to reflect the new use classes.
Click here to view the Regulations.
The above is based on our understanding of the new Regulations at the time of issue and in advance of planning practice guidance being issued.
An employee on Flexible Furlough can take part in volunteer work during hours which you record your employee as being on Flexible Furlough as long as it is for another employer or organisation.
To be clear, if on Flexible Furlough and you’re claiming the grant for them, then they cannot work for you.
As people work part-time and ease back into the business, this is likely going to be a key risk area. You need very clear lines as to working time and non-working time. No replying to emails on days off.