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Who do you have to inform and consult?

The duty is to inform and consult appropriate representatives of the “affected employees”.

Note that the term “affected employees” means those who may be “affected by the proposed dismissals or who may be affected by measures taken in connection with those dismissals”. The term extends beyond those immediately at risk of dismissal to include those affected by measures associated with the redundancies.

“Appropriate representatives” can be:

  • The Trade Union (if recognised)
  • (For any roles not covered by collective recognition) any existing standing body of elected or appointed employee representatives (if already in place)
  • Employee representatives, who are elected specifically for redundancy consultation

Related FAQs

Will remote court hearings be permitted?

Court hearings have been conducted remotely, with the judgment in Kerry v SSCLG being given via telephone. The Senior President of Tribunals issued emergency Practice Directions which will apply to Property and Lands Chambers’ respectively. This has made provision for remote hearings. Inspections of properties have been suspended with immediate effect, with photographs, videos or external visits permitted where appropriate. Where inspections are essential, the case should be stayed.

Can I apply a Force Majeure clause?

If a contract contains a force majeure clause this may become operative due to the coronavirus pandemic and related emergency legislation. Such clauses exist to ensure that if some unforeseen event prevents a party from being able to perform their obligations under a contract, either on time or at all, they will be excused from their obligations and not be held liable for non-performance.

The clause must actually be written into the contract to have effect – a force majeure clause cannot be implied into a contract. Whether it can be relied on by a party will depend on the wording of the clause itself as it may only be applicable in certain limited circumstances.

You should seek legal advice at an early stage if you think that force majeure is relevant, because a number of potentially complex issues must be addressed, many of which will turn upon the exact wording of the force majeure clause in the contract in question:

  • Has a force majeure event actually arisen?
  • What notification process do you have to follow to rely on the provision?
  • What mitigation steps do you have to take?
  • What is the effect of the force majeure event – is the contract suspended, or can it be terminated (which might not be what you want)?
Can I move house during the coronavirus pandemic?

Yes unless you are self-isolating, infected with Covid-19 or within a vulnerable group.

The Government has issued updated guidance on 13 May providing comprehensive advice to reflect the move to relax lock down restrictions and encourage house sales. The advice can be found here:

https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak

Key points to note

Unless you are self-isolating, infected with covid 19 or vulnerable, the guidance states that you can move house, provided you comply with social distancing measures at every stage, whether visiting a seller’s house or accepting visitors or professional for viewings, surveys and removals.

All businesses such as surveyors, estate agents and removals, linked to the housing market may now operate, provided that social distancing measures are observed and safe working procedures (see link below) are followed.

https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/homes

House viewing should be conducted virtually wherever possible, and open-house viewings should not be conducted. Houses should be cleaned before and after visitors come, and home owners should vacate during viewings and surveys to minimise the chance of contact. Doors and windows should be left open, and sinks made available for hand washing.

Agents can supervise, provided they maintain social distancing.

New homes show houses should be operated on an appointment basis, and cleaned between viewings, with hand washing facilities made available. Staff should adopt safe working procedures. Housebuilder sale-staff, tradespeople, fitters and NHBC inspectors can all attend to facilitate viewings, fit out, commission equipment and inspect completed homes.

Solicitors and Estate Agents remain unable to open their premises to members of the public, for the time being. Government guidance advises that solicitors adopt special covid 19 clauses to permit flexibility on completion dates where parties become unable to move or complete for reasons connected with the pandemic.

The Law Society in conjunction with other trade and professional bodies in the sector, has published links to pan-industry guidance on the re-opening of the housing market:

https://www.lawsociety.org.uk/news/press-releases/industry-issues-guidance-kickstart-housing-market/

Can employees reduce their pension contributions?
  • Remember that employees will also be making contributions on any reduced wage under the Coronavirus Job Retention Scheme. The amount contributed may be less, but the contribution rate will be the same, unless the following applies.
  • Employees may reduce their DC employee contributions if their scheme rules allow them to do so, but no further than the statutory minimum if the scheme qualifies as the employer’s auto-enrolment vehicle.
  • Employees might choose to opt-out or cease active membership of their scheme, which might cause a spike in administration at a time when administrators are likely to be understaffed. It is important that employers remember they must not do anything to encourage or induce employees from leaving an auto-enrolment vehicle as this may constitute an offence.
  • Employees who leave their scheme in this way will have to be re-enrolled in due course as and when required by law.
  • For DB schemes, specific considerations apply (see the last section, below).
What are some other factors?

No one factor will determine status and the outcomes will differ depending on the nature of the work being carried out and the business of the end user client.

When you have carried out an assessment based on the relevant factors you can either get in touch with us to discuss further, check your answers against HMRC’s CEST tool or do both before making a final determination.