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Non-Compete. Get it right to protect against competition

When an employee leaves, and there is a threat of commercially sensitive information about operations and customers being passed to a competitor, the non-compete/restrictive covenants in the employment contract are effectively the safety net in protecting know-how and business relationships.

A recent case heard in the High Court has shown that while the court will enforce non-compete clauses, restrictions must go no further than protecting legitimate business interests. It also highlighted the importance of being clear about any so-called ‘garden leave’ where employees work out their notice period at home.

In Square Global Limited v. Leonard, a broker was required to give six months’ written notice. The employment contract also contained a restriction on him working for a competitor for six months after the end of his employment. When he immediately handed in his notice and left to work for a competitor, his former employer relied on the employment contract. In response, the broker claimed he had been constructively dismissed, arguing that this released him from his obligation to give notice and the non-compete clause.

The High Court upheld the employer’s argument. It said that the six-month non-compete clause was reasonable and went no further than necessary to protect the employer’s legitimate business interests. It was, therefore, enforceable. The court also decided that the broker was required to serve out his six-month notice period on top of the six-month restriction, keeping him out of the market for a total of 12 months.

This compares with a case in 2014, Ashcourt Rowan Financial Planning Limited v Hall, where the High Court held that a restrictive covenant designed to prevent a former employee from working for a competitor for six months was unenforceable because the covenant was too widely drawn, going beyond protecting the legitimate business interests of the employer to be in restraint of trade. The High Court found that the covenant was not confined to what was reasonably necessary and covered indirect involvement without any obvious justification.

The law has always regarded a covenant ‘in restraint of trade’ as being void because an individual should be free to follow his trade and use his skills without undue interference. Such clauses are, therefore, only enforceable if they are strictly limited to what is necessary to protect a business.

Employment partner Karen Cole said:

“This is a reminder that employers need to ensure that non-compete clauses and other restrictive covenants are reasonable and focus on activities which would involve the employee directly competing with their old employer. Trying to do a catch-all is impossible to enforce.

Garden leave and how or when that might be offset should also be tackled. What’s important is that any restrictions are carefully drafted and checked at the outset.”

Contact employment partner Karen Cole today if you have an employment law query.

Note: This is not legal advice; it provides information of general interest about current legal issues.


How TUPE protects when employees transfer

TUPE (The Transfer of Undertakings (Protection of Employment) Regulations 2006) is designed to protect jobs and safeguard contractual terms for employees when a business transfers to new ownership or a contract is placed with a new service provider. While it has been clear that the new employer must not change terms to disadvantage an employee, the Employment Tribunal has ruled that changes made solely for the transfer should not benefit an employee either.

The case involved Lancer Property Asset Management, which provided estate management services to Berkeley Square Estate, who decided to move to a new service provider. As a result, the directors of Lancer were to become employees of the new provider, Astrea Asset Management Ltd, under the TUPE regulations.

In preparing for the transfer, the directors decided to award themselves a salary increase and generous new terms for bonus and termination payments, together with a 24-month notice period. The new employer disputed the terms, sacking two of the directors for gross misconduct and refusing to pay the enhanced benefits to the other directors. The resulting dispute ended up at the Employment Appeal Tribunal (EAT), with the directors arguing that the TUPE regulation regarding pre-transfer variations was for situations where the change was detrimental to the employee.

Employment partner Karen Cole explains:

“TUPE is about ensuring fairness and continuity, so it’s no surprise that anything that makes an employee worse off would not be allowed but being better off hasn’t been tested in this way before.

The EAT said that all contract variations which are connected to a transfer are void, whether they are detrimental to the employee, and the objective of TUPE is to protect, not enhance. The EAT also highlighted that no legitimate commercial purpose could be demonstrated for the changes, meaning they infringed the general abuse principle of EU law and were unenforceable.

Contact Karen Cole today for further advice and information on TUPE, whether you’re an employer or an employee.

Note: This is not legal advice; it provides information of general interest about current legal issues.


How to reduce the chances of a will being contested (Part 1)

Making a will doesn’t guarantee people won’t argue over your assets. Still, it can reduce the chances of your will being contested if it is made correctly and supported by a professional will drafter or, even better, a qualified solicitor.

There are several grounds upon which somebody can challenge a will. The main ones are:

  1. A lack of testamentary capacity
    The person creating the will did not have the mental capacity to create the will.
  2. Lack of due execution
    Either the will or the signatures on the will do not meet the necessary formalities of creating a will.
  3. Undue influence or coercion
    Somebody, typically one of the beneficiaries, had pressurised the writer of the will to create it in the way they have.
  4. Lack of knowledge and approval
    The person creating the will did not know the contents of the will or fully understand what they were signing, and perhaps even signed the document without even knowing they were signing their will.
  5. Fraud or forgery
    A third party could have fraudulently made all or some of the will.
  6. Reasonable financial provision
    Although not a challenge to the validity of a will itself, certain persons can make a claim under the Inheritance (Provision for Family and Dependants) Act 1975 on the basis that the will (or if no will, the Intestacy Rules) does not leave the applicant with “reasonable financial provision”.

Probate disputes are expensive to resolve and stressful. But in recent years, we have seen more and more of them; potentially because of the increasing value of people’s estates (especially considering property prices), A complainant may think it’s worth taking the punt that it’s worth spending £10,000 to contest a will if they could potentially gain £80,000. Before making that decision, however, they should bear in mind that the executors’ costs in defending such a claim are taken from the estate.

There are many benefits to having your will drafted by a qualified solicitor. Each time you meet your solicitor to discuss your will, they will usually record a file note of your instructions and record other factors such as why you wish to distribute your estate in a certain manner, why you chose to exclude certain beneficiaries and, if relevant, notes on your mental capacity at the time of making your will. Should the will be contested, your executors can obtain copies of these notes from the solicitor as evidence of your thoughts, feelings, wishes and beliefs when creating your will. This could prove that any grounds to contest your will are flawed.

Under ‘normal’ circumstances, the will is usually executed under the supervision of the solicitor or will drafter who drafted it, and it is normal practice for at least one of the witnesses of the will to be that solicitor or will drafter. Solicitors, in particular, will ensure that your will complies with the formalities set out in the Wills Act 1837.

Further, if a solicitor drafted the will, the original can usually be stored by the firm in a strong room. This limits any chances of forgery taking place following the testator’s signature to the will. The will is then only released to the person who created it or the executors of the will upon producing a death certificate.

The global pandemic has led to an increase in the number of people creating new wills. Many of these have been DIY wills, which may be satisfactory on most levels but may not put the relevant safeguards in place, as a solicitor would, to prevent your will from being contested.

All our wills are drafted and documented by fully qualified solicitors with expertise in inheritance tax planning. We have onsite storage facilities to store your will until it is needed safely.

If you have any other query regarding your will or estate, please feel free to contact private client solicitor James McMullan who will be happy to help.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Locking down the legalities when planning ahead

The Law Society says that many firms have reported a 30% increase due to worries about the Coronavirus pandemic. However, the lockdown and self-isolation create new challenges in getting new wills drafted and signed while complying with legal requirements.

There has also been a surge in people looking to set up powers of attorney to enable others to act on their behalf in managing their financial, property and other affairs should they lose capacity. However, this is also proving a challenge during the current crisis.

Private client partner, James McMullan, says:

“It’s important to get it right when dealing with vital documents involving your assets. There are issues around demonstrating that someone has the ability to make such decisions if they are older or unwell, as it is likely to be difficult to get a doctor to verify their capacity with the current pressure on the NHS, which may be needed if new wills or powers of attorney are to stand up in court.

In such situations, the ideal is to sit down with the person face to face to get a sense of how they articulate their choices and to be sure the outcomes are what they really want, whether deciding who will inherit through their will, or appointing attorneys to manage their affairs.”

In today’s climate, such discussions are more likely to be by telephone, email or possibly video conferencing, particularly where someone is ill. Still, if an independent professional is involved, there is a greater chance that new wills and powers of attorney will later stand. They will check if you are leaving yourself open to claims on your estate by excluding anyone and advise on the appointment of attorneys to be sure they are fit for the task and understand their responsibilities and how they will be held accountable.

A professional can also help to ensure that new wills and powers of attorney are legally binding, as the actual signing and witnessing of a will remains an exception to the recent shift towards accepting electronic signatures on contracts and many deeds in England and Wales.

While live video witnessing in such situations is under discussion, the current rule is that anyone making a new will must sign in the presence of two witnesses, who must, in turn, sign in the presence of the person making the will. Physical presence is essential but presents a real challenge given the present regulations requiring social distancing, particularly as anyone who is a beneficiary will lose their gift under a will if they witness it. It means that immediate family members, who are most likely to be available, cannot be a witness if they stand to inherit anything.

Even witnessing from the next room or through a window might be challenged as not being formally in the presence of the person making the will, although in a case that went to court almost 250 years ago, it was agreed to be sufficient to have two witnesses who are in the line of sight even though they were not in the same room (Casson v Dade 1781)

Why make a will?

Research shows that half of all adults in the UK do not have a will in place, with the figure rising to almost 60% among parents.

Many avoid making a will because they imagine their assets will go automatically to their partner or their family will be left to decide how to distribute it. But without a will, the intestacy rules come into play, which govern how a person’s estate is distributed if they die ‘intestate’.

The rules have a strict order of distribution and do not provide for any cohabiting partner, irrespective of the length of the relationship. They also allow children under 18 to receive assets without controlling how the money is spent.

Having a will setting out what you wish to happen if you die before your children are 18 is the only legal way to be sure they will be provided for and brought up in the way you wish, with the guardians you choose.

If you drew up your will before getting married, it is automatically invalidated on marriage unless it was drafted in expectation of the ceremony. And if you are getting divorced, any existing will remains valid until the decree absolute is confirmed, even if you have separated or received your decree nisi, meaning the spouse you are divorcing would benefit if those are the terms of your existing will.

Equally, if you do not have a will and something were to happen to you before the divorce is completed, then the intestacy rules would apply and, again, it would be the spouse you are divorcing who would benefit, not your children or a new partner, parents or siblings. This may be the outcome you wish to happen, but if not, the only way to ensure that your wishes are carried out is to make a new will to cover your current situation, and this can be done at any stage of the separation and divorce process.

Call private client partner James McMullan today.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Lockdown family breakdown toolkit

For couples who are struggling in their relationship or as co-parents, anxiety levels are likely to be heightened during lockdown. Meanwhile, it seems there is nowhere to turn, with personal movements restricted and the family courts working remotely and on limited schedules.

Being a family lawyer means being there for all the challenges, not just the day in court. It is more important than ever that family lawyers are available to advise, encourage and support their clients. At RIAA Barker Gillette, we use the latest technology to host face-to-face meetings with our clients, keep the doors open, and support families through this crisis.

In China, which was first into lockdown following the discovery of the virus, there have been reports of a huge surge in divorce petitions as couples emerge from the country’s stringent restrictions, with one city official in Hunan province quoted as saying that what may have seemed trivial in normal life had escalated for many couples struggling to deal with these exceptional circumstances.

For those in the UK who were considering or had already started divorce proceedings, many will still be living together, adding to the pressures of lockdown. For those struggling under the relentless strain of being in each other’s company 24/7, it will be hard to find a way to release the pressure to see clearly whether the relationship has run its course, such as through couples counselling or simply taking a break from each other.

While no-fault divorce is likely to become law once the legislation resumes its progress through Parliament, for now, couples must continue to deal with one party being ‘blamed’ for the breakup or wait for the change in the law.

Under the existing Matrimonial Causes Act 1973, one party must prove that their partner is at fault through either adultery or unreasonable behaviour. Alternatively, and only if both sides agree, they can part after two years of separation. If no fault is given, and one party does not consent to the divorce, then the period of separation is extended to living apart for five years.

For those who feel compelled to act now or as soon as we come out of lockdown, it is likely that we will see unreasonable behaviour cited as the most common ground for such divorces. The most recent ONS statistics (for opposite-sex couples) show 36.8% of all husbands and 51.9% of all wives petitioning for divorce on this ground.

But petitioning is only the start of what may be a long journey, with the process of divorce, negotiating over finances and family arrangements, becoming ever more complex. That is partly because there is more at stake, particularly for middle-aged couples when couples hammer out a fair division after a marriage breakdown. ONS wealth statistics show that by 2014, half of all households had a total wealth of £225,100 or more.

The Children and Families Act 2014 requires a couple who are separating to consider using mediation or other alternative dispute resolution options before they can ask a court to resolve their dispute, so it’s best to approach things with an open attitude. We always encourage couples, where safe, to talk and to try and come to an agreement. This has become even more important in the current situation.

Toolkit: Things to think about, depending on where you are

Deciding whether your relationship has run its course

If you’re going through a bad patch, you may have decided to try and reconcile your differences or else wait until the lockdown ends. Assuming there are no personal safety issues, the decision will likely be dictated by financial circumstances. Funding two homes is daunting when job security is under threat and investments have crashed, and that’s before considering how to identify and move into alternative accommodation under lockdown.

If the result is that you are going to try and live apart while still in the same house, in anticipation of separation later, it’s worth approaching it in a structured way and tackling the bigger issues, such as agreeing on who gets which rooms or areas, how you will share the household expenses and how you will present the situation to any children living with you.

It is a good idea to put such arrangements in writing. You can do this yourself or with the help of a mediator or one of our family lawyers. Involving them early can help avoid the obvious pitfalls while giving you some moral support. Such assistance becomes vital when deciding to start divorce proceedings when legal and financial advice is important from the very beginning.

Regarding administration, the courts have confirmed that online applications will continue, with the divorce petition processed from application through to decree absolute without any need for face-to-face contact.

Similarly, applications for orders relating to children can be made urgently or online (in certain postcodes).

Progressing divorce

The current financial uncertainty is making decision-making difficult. Any financial arrangements made in usual circumstances will have a degree of flex built in, but we are in extraordinary times where both assets and job security will be uncertain.

The starting point for any settlement is to look at assets in the marriage, with shared financial information for bank accounts, investments and other assets. For those who are part of the way through the process, such figures may have been collected some time ago and already form the basis for a settlement figure. The impact of the Coronavirus on all aspects of the economy, the stock market and the likely downturn in the property market make it essential that these are reviewed in the context of any settlement negotiations.

If a court date has already been set, the hearing may be moved and will be held remotely. Where cases are complex, the courts are expected to use video links for hearings, although in-person hearings may still be held subject to individual circumstances and the demands of the case.

It is usual in any divorce settlement to balance risk with absolute value, and we work to ensure no individual ends up with all the riskier or illiquid assets. Still, some may have already reached a settlement that no longer seems fair. It is important to seek legal advice and guidance as soon as possible, as the speed of action is one of the factors considered by the courts. There is no guarantee that orders may be amended, even in the current circumstances. The capital elements of any settlement will be amended only where an unforeseen event invalidates the assumption on which the order was based, and following the 2008 market crash, the Court of Appeal ruled the financial disruption was not an unforeseen event.

Maintenance arrangements

Unlike the capital element, if you earn less money during the crisis or have lost your job, it may be possible to ask the court for a payment variation under a maintenance order. Going back to court can be costly; the best starting point would be to see if you can reach an agreement yourself while exploring other sources of income and benefits.

It’s worth appreciating that a fall in income may not justify a change in arrangements, as maintenance is needs-based, and the needs of both parties and any dependent children will be evaluated.

Suppose you are the one receiving maintenance payments, and you lose other sources of income during the current crisis, such as your job. In that case, you can ask for a variation due to changed circumstances. Still, the court will first expect you to take reasonable steps to secure other sources of income, such as applying for relevant Government Coronavirus schemes. If it’s likely to be just a temporary situation, then try to have a conversation and put everything in writing.

Whether you are paying or receiving, take legal advice and avoid getting into a situation where you breach a court order without trying to resolve the problem.

Co-parenting

Where parents live in different households, the Government has clarified the advice on how to approach co-parenting.

Children under 18 whose parents are living apart can move between the homes of their parents, in an exception to the mandatory stay-at-home rule for us all. But this does not mean children should move around without weighing up what is best – such as the health of all concerned, the risk of infection and how and where any handover occurs. If one parent is a key worker, then it may be sensible for the other parent to look after the children to reduce infection risks.

If, for any reason, a child will not spend their scheduled time with one parent, the courts expect regular contact to be maintained through other means, such as FaceTime or Skype.

Importantly, any variation to current arrangements should be agreed between you and put in writing wherever possible. The guidance says that:

“…the court is likely to look to see whether each parent acted reasonably and sensibly in the light of the official advice and the stay-at-home rules in place at that time, together with any specific evidence relating to the child or family.”

Where there is a disagreement on arrangements, seek legal advice. Whether for enforcement or applying for a change to the contact arrangements, court hearings continue, although the default is via phone or video link.

The most important thing for children is that parents avoid conflict. Movie stars Bruce Willis and Demi Moore may have divorced 20 years ago, but they are exemplary co-parents – even sharing lockdown time together with their adult children in California.

In her recent autobiography, Moore wrote that it wasn’t easy at first, “but we managed to move the heart of our relationship, the heart of what created our family, into something new that gave the girls a loving, supportive environment with both parents. We felt more connected than we did before the divorce.”

That’s a great position to be in. Still, for those who struggle to emulate such an example while going through a relationship breakdown, it’s important that you do all you can to avoid heated disputes and keep arguments away from any children.

For more information, read our article “Co-parenting during COVID-19”.

Domestic abuse

China experienced a surge in reported domestic abuse during the lockdown, a factor, unfortunately, being replicated in the UK according to early reports, so while it may be a hard call to make, in the current situation, it’s more important than ever that you seek legal advice and/or contact the police if abuse is taking place.

For those without physical risk, acting if you need help is still important. Reaching out to a family lawyer and receiving impartial support may be enough to keep things on a more even keel during a lockdown.

If things have gone too far to be resolved, then receiving legal advice on what is feasible and how to approach conflict could make all the difference. If you are in lockdown with your partner, you may not be able to speak on the phone or video conference, but having an email exchange with a lawyer can bridge the gap. Our family lawyers are making themselves available in whatever way they can to help with the current crisis.

Contact family solicitor Pippa Marshall today for more information.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Suspension of rent because of a lockdown

The most common question has been, “Do I have to carry on paying my rent?” or conversely “Must my tenant still pay the rent?” Typically, the answer is yes. The rent is still payable, as nobody in the real estate world foresaw the lockdown.

Such has been its severity that lawyers will be expected to address the possibility of repetition in future lease negotiations.

For many years it has been customary in leases to stipulate that rent will be suspended and not payable if the property is damaged by fire or another insured risk. Note that a precursor to the usual relief application is physical damage or destruction of the bricks and mortar, and the virus has not caused such damage.

Tenants will likely try to negotiate the inclusion of wording which extends the suspension of rent to the period of any lockdown resulting from a future pandemic or similar event. Landlords may or may not resist successfully. The leap in mindset has already been done in respect of what lawyers commonly call ‘uninsured risks’, but this has been relatively easy to concede because of the rarity of its application. Fears regarding the virus have spilt over into fear of a second pandemic once the current one is over. It is likely to be regarded as a clear and present risk.

Landlords may look to offset the risk against insurance cover, as they do with a loss of rent insurance in case of damage by fire (mostly paid for by tenants).

Doubtless, insurers are already reflecting on new products and extensions to business interruption policies due to the pandemic. Press stories on the reliability of claims on such policies for the current virus leave one with the impression that the endeavours of the insurance industry may continue to exploit the fine line which sells policies but does not necessarily pay out on them.

Insurers have to make profits, and the hard truth may be that the effect of the pandemic is so huge that its widest effects are uninsurable. It falls to the government to be an insurer of last resort (a role that it undertook as a reaction and not by design regarding COVID-19). It may not be beyond the limits of the insurance industry to develop a loss of rent policy for the real estate world, which complements a clause for suspension of rent in case of a pandemic lockdown. Time will tell.

What will become normal practice, in respect of the sharing or bearing of risk between landlord and tenants for rent payment for properties that are not useable because of the pandemic lockdown, is uncertain. It will surely be the subject of active discussion in future lease negotiations.

Call John Gillette today if you have a question about the terms of your lease of commercial premises or any future lease.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Make your will the top of your list

This global pandemic may be a major life event for everyone and something we will discuss in years to come. It may change our approach to many aspects of our lives.

The Law Society has reported that many people have used this time to create or update their wills. However, many people in the UK still do not have a will, and with most hospital visitation rights being suspended, should you fall fatally ill, a last-minute will may not be possible.

If you do not have a will, your estate (all the assets you own at the date of your death) are distributed in accordance with the Intestacy Rules. Here you can find a useful flow chart to see where your assets will go under the Intestacy Rules.

If the Intestacy Rules do not distribute your assets as you would like, you must create a will. This will give both you and your loved ones peace of mind. Losing a loved one can be difficult enough. A will helps provide your loved ones with security and assurance that they will be supported even after you are gone.

Beyond distributing your assets, you can appoint guardians for your children or even create a trust fund for minor children or a disabled member of your family to ensure they receive the support they need after you have gone – this can even include your pets! We can ensure that your will is tax-efficient, using all available reliefs and allowances from inheritance tax.

Call private client partner James McMullan today.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Relying on legal advice can provide a defence

In the recent Court of Appeal case David Allen t/a David Allen Chartered Accountants v Dodd & Co Limited, Dodd & Co escaped liability for inducing a breach of contract because they had sought legal advice on their intentions before acting which provided them with a defence. They successfully demonstrated that they had honestly relied upon the legal advice they were given, even though that advice was incorrect.

Facts

Mr Pollock worked at David Allen Chartered Accountants (David Allen). His employment contract contained non-compete and non-solicitation clauses, commonly known as post-termination restrictions or restrictive covenants. Dodd & Co wished to employ Mr Pollock and were aware of his restrictive covenants. Before employing him, Dodd & Co sought legal advice on the enforceability of Mr Pollock’s restrictive covenants and were advised:

“…the restrictive covenant hasn’t got a lot going for it. You could, therefore, act and allow [Mr Pollock] to act on the basis that it isn’t enforceable and contact David Allen’s clients. This is almost certain to provoke a strong reaction. He will probably write to [Mr Pollock] setting out why he believes [Mr Pollock] is in breach…”

As a result of that advice, Dodd & Co employed Mr Pollock, as whilst not entirely without risk, it was more likely than not that the restrictive covenants were unenforceable. In fact, the court held that the covenants were enforceable, and by working for Dodd & Co, Mr Pollock was in breach. Nonetheless, the court rejected the claim against Dodd & Co, brought by David Allen, for inducing the breach by Mr Pollock on the basis that they had relied honestly on the legal advice they had obtained.

The Court of Appeal’s decision

The decision was subject to appeal, and the Court of Appeal upheld the High Court’s decision. It found that Dodd & Co were not ignorant of Mr Pollock’s contractual obligations and had gone to the trouble of obtaining legal advice before offering him employment. The fact that the legal advice turned out to be wrong was not enough for David Allen to be successful in his claim against Dodd & Co. During the appeal, David Allen argued that there should be liability whenever a defendant believes there is a risk that its conduct, in this case employing Mr Pollock, would cause a breach. The court rejected the argument:

“As everyone knows, lawyers rarely give unequivocal advice; and even if they do the client must appreciate that there is always a risk …that the advice will turn out to be wrong.”

Although this case focuses on restrictive covenants in an employment setting, it is important to remember that the tort of inducing a breach of contract applies to all manner of contracts, and it is best practice to seek legal advice early on. Where a party honestly relies on such advice, it may prove to be a defence to the tort of inducing a breach of contract.

The courts accept that a solicitor’s advice is rarely definitive and will inherently attach an element of risk. Generally, the party seeking that advice must weigh up any risks identified within the advice before acting upon it – even if, in some circumstances, it may still provide a suitable defence.

The message is clear; always consult a solicitor before acting!

Call Karen Cole today for advice and information.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Lockdown your data whilst remote working

Staff are likely to be working remotely or in different circumstances, which could make customer and client details more vulnerable to data breaches, and cyber-criminals are ratcheting up their fraudulent scams. It is also worth bearing in mind that data relating to employee health will likely increase given the pandemic, and extra security measures must be given to this special category of personal data.

Businesses are implementing contingency planning, with staff working from home and using domestic internet and possibly personal devices to access cloud-based software and systems, making keeping data safe and secure more important than ever, as fines for data breaches will still apply.

Whilst it’s not quite “Stop all the clocks, cut off the telephone”, the Data Protection Act 2018 (DPA) does provide strict operating boundaries for businesses processing personally identifiable information about individuals with a statutory obligation to notify the regulator of any breach which places an individual’s personally identifiable information at risk. It also gives wide-ranging power to the UK’s data regulator, the Information Commissioner’s Office (ICO), which can impose high penalties for breaches.

Karen Cole, our Deputy Data Protection Leader and Employment Partner, explains:

“Tackling the threat of the Coronavirus is taking businesses into unchartered territory, and while data protection law doesn’t stand in the way of homeworking, or the use of personal devices, it demands even greater attention to security measures, as the ones that you use in the office will need to be tailored to suit these new circumstances.

The human element is often the reason for data breaches and without direct supervision and colleagues to consult, these may be more likely to happen. Certainly, there are reports of a steep rise in attempted cyber fraud, with many more phishing emails, malware and social engineering, where fraudsters dupe staff into revealing information or making money transfers.”

The other major threat to data security during the crisis is handling individual information about staff and visitors who have travelled to high-risk areas, symptoms, test results and when self-isolation has taken place. This is personal data protected by the DPA, but where it concerns health, it may be special category data under the DPA, which requires special security measures.

Such information should be collected and used only as absolutely necessary in managing risk and should not be retained unless essential, such as for an insurance claim.

Karen added:

“Ideally the management and sharing of information is set out in a policy so you know who to tell and what information is shared with whom. So, for example, the ICO has said that it is ok to inform other staff if someone tests positive, or is suspected of having contracted the virus, so as to protect the health and safety of all, but to avoid naming those individuals.

Organisations will be struggling to keep pace in this fast-changing environment, it’s important to make sure you don’t drop the ball when it comes to personal data. If you end up with a breach and compromised data when you come out the other end it will be a serious issue. The ICO has the power to impose fines of up to €20m or 4% of total worldwide turnover and the damage to corporate reputation can be immense.”

While the ICO say they will be pragmatic about matters such as speed of response to information requests during the crisis, there is no suggestion that they will accept reduced data security standards.

Give yourself peace of mind. Call Karen Cole today.

Note: This is not legal advice; it provides information of general interest about current legal issues.


Co-parenting during COVID-19

Our family lawyers are seeing an increase in cases where COVID-19 is used as an illegitimate excuse to defy child arrangements orders or alter previously agreed routines. Whilst additional thought must be given to ensure that both children and parents remain safe, that should not be at the expense of quality time with each parent.

We urge all separated parents to read the helpful Cafcass guidance “Co-parenting and child arrangements in a global pandemic – advice for families” and seize upon these difficult times as a positive opportunity to improve communication with your co-parent.

Home-schooling parents should use this time to understand their children’s educational development and safely harness the advantages of sharing quality family time together. Technology can also greatly assist children with their schooling needs, exercise classes and staying in touch with friends and family. Indeed, social media sites have seen an influx of families coming together to make videos and “shorts” to entertain us all.

Thankfully, in the last two weeks, our lawyers have also seen many cases where these unprecedented times, coupled with the right guidance, have persuaded parents to set aside their differences and really prioritise their children’s needs. We can only hope parents will continue with the same spirit once we’ve overcome the Coronavirus pandemic.

Pippa Marshall is a Resolution member. Resolution is a community of family justice professionals who work with families and individuals to resolve their issues in a considered and constructive way.

If you’re struggling to maintain the status quo, our family team can help and assist you with any disputes over children. Call Pippa today.

Note: This is not legal advice; it provides information of general interest about current legal issues.


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  • Understanding Court of Protection applications in England and Wales
    When someone can no longer make decisions for themselves and has not put a Lasting Power of Attorney in place, the Court of Protection can step in. This article explains what the Court of Protection does, when an application may be needed, and what t


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  • Warranties and indemnities: Key protections in share and asset sales
    An overview of warranties and indemnities in share and asset sales, explaining key differences, common protections, liability limits and risk allocation.


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  • The Employment Rights Act is a call to action for employers 
    A new year, a new employment framework: what employers need to know about the Employment Rights Act passed by parliament in December 2025.


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  • Dilapidations explained: What commercial tenants and landlords need to know
    Dilapidations are a common source of dispute at the end of a commercial lease. They can involve significant sums of money and often come as an unwelcome surprise to tenants who believed they had left a property in reasonable condition. Understanding


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  • The role of due diligence in corporate transactions
    In corporate transactions, due diligence is a key stage that usually follows agreement of Heads of Terms, allowing the Buyer to investigate the target company or its assets before committing to the deal.


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