Latest Blog posts from BusinessLawfirm.co.uk

Pubs hotels and employment of waitresses under16

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The recent news that a West Yorkshire pub has been forced to sack some young waitresses due to local by-laws prompts a look at the law on employment of children in the trade.

In the case of the Yorkshire pub the Kirklees Council by-laws state that children under school leaving age cannot work after 7pm, cannot work for more than 2 hours on a school day or a Sunday, cannot work for more than 12 hours in a week during a school term, and cannot work in a commercial kitchen.

So what is the law for England and Wales?

Children under 14 are not allowed to work at all except in very limited circumstances which will not apply to the licensed trade.

For children aged 14 and under school leaving age (ends on the last Friday of June in the school year in which they are 16) the local authority by-laws apply, and these may vary between authorities. You need to check with your local authority. In any event a permit will be required from your local authority which will have to be signed by the employer and a parent.

Otherwise the legal requirement is that children (14 until the last Friday of June in the year they are 16) must not work:-

before 7am and after 7pm
during school hours on a school day
for more than 2 hours on a Sunday
for more than 2 hours on a school day
for more than 12 hours in a school week
for more than 8 hours ( 5 hours for 14 year olds) on a non school day
for more than 35 hours (25 for 14 year olds) in non school weeks
for more than 4 hours without a break of one hour

And the children must have at least 2 uninterrupted weeks of holiday from school in any calendar year.

So you will see that it will be very difficult to employ under 16s as waitresses except on a Saturday, for a few hours on perhaps a Sunday lunchtime, or a school holiday lunchtime.

And remember that 16 and 17 year olds must not work for more than 8 hours a day or 40 hours a week, and must have a break of 30 minutes every 4.5 hours, a rest period of 12 hours, and 2 days off work each week.

Nigel Musgrove

Licensing Law Specialist

Consumer Code For Home Builders Comes Into Force in April

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After a long wait, the Consumer Code for Home Builders comes into force on 1 April. It will be mandatory for house builders who are members of a home warranty scheme which has undertaken to enforce the Code. Home warranty bodies such as NHBC, Premier Guarantee and LABCNew Home Warranty have all agreed to require their registered builders to adopt and comply with the Consumer Code.

I set out the main issues covered by the Code in this ezine article in October 2008.

The Code will apply to all plot reservations taken after 1 April. The Code applies to new and newly converted homes. It does not apply to sales of part exchange houses by builders, nor does it apply to sales by registered social landlords, and sales of homes built under an architect’s certificate rather than a new home warranty. The Code requires a builder who, by virtue of the adoption of the Code by its home warranty provider, is affected by it, to itself adopt the Code, to comply with it, to display the Code at its offices and salerooms, and to provide copies to home buyers who make a reservation on a property. The Code is supported by a guidance note (“Builder Guidance”) to assist house builders in complying with the Consumer Code.

For more information on how the Code might affect you and how to ensure compliance contact Steve Petty for further advice.

Steven Petty, Commercial Property Solicitor

Important Note For All Landlords

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A case reported this week should prompt all landlords to take advantage of our free 20 minute lease review and check that the obligations of a tenant’s guarantor can be legally enforced.

This judgement will affect any lease where there has been as assignment from the original tenant and a guarantor was involved.

In short it means the continuing liability of the guarantor under a lease can be challenged. Should the tenant then fail to pay the rent then this could prevent the landlord from recovering the arrears from the guarantor.

In future landlords will need to take a more careful look at the financial strength of the incoming tenant when dealing with an application for consent to assign a lease.

To arrange a free 20 minute lease review please email or fax a copy to Paul Harrison and he will call you back.

New Planning Law Guide

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When you take a car in for its service do you ever get the feeling that you have been taken for a ride quite literally?! I certainly do when given the list of parts the garage recommends be replaced. It would be useful to have some way of getting to the bottom of what really is important. This was the inspiration behind my Planning Law Guide that certainly can be as complex as the average Audi.

Take the following example. The word “Development” in planning terms does not just mean building works but also changing the use of a property. In order to work out whether planning permission is required for a change of use it would be necessary to look at the “Use Classes Order”. Alternatively a change of use may be allowed under the “General Permitted Development Order” without ever needing to make a planning application. It gets more confusing though - a change from estate agent to shop does not require planning consent but if at a later date you wished to revert back to a shop from estate agent this would require the approval of the local authority.

As you can see it is very easy to get tripped up so I hope my A-Z list explaining the main planning terminology will be useful. Check out the Planning Guide and for any questions or further advice contact Paul Harrison, Commercial Property Solicitor.

Investors to benefit from proposed tax cut

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The Government has begun a consultation process to consider granting special stamp duty concessions on the bulk buying of residential property.

At present if a buyer purchases a number of properties at the same time then potentially they will be classed as “linked transactions”. As a result stamp duty would be payable on the total amount paid rather than treating each purchase individually and this can increase the tax bill hugely. For example stamp duty for a one off purchase at £200,000 would be payable at 1%.However in circumstances where 3 properties of that value were acquired at the same time and are linked the stamp duty would be due on the aggregate amount of £600,000 at the higher rate of 4%. In this example the buyer under the new proposals would have a total tax liability of £6,000 instead of £24,000 at present. The change is to encourage investors to become professional landlords.

Until these changes come about please contact Paul Harrison to ensure that stamp duty land tax is kept to a minimum on all property transactions.

Commercial Property market outlook

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The latest inflation figures show another increase and this could persuade investors to start putting their money back into commercial property. We will have to wait and see if this was a blip or a trend that is set to continue over the next few months. The outlook generally is still mixed but the Bank of England belives inflationary pressure is only short term.

Rents have certainly stabilised and most commentators are predicting that they will rise throughout 2010. This is due to the lack of new developments being completed leading to a shortage of supply for quality space. This is all good news for landlords and means that tenants will need to negotiate hard to secure low rent levels and other incentives such as rent free periods

Capital values have risen by at least 5% since August 2009 but the big question is will this continue in 2010? This will depend on a number of risk factors that could send prices downwards and include the possibility that the market may become flooded from anticipated sales by the banks of assets that they have taken control of from distressed borrowers; rising interest rates and further company insolvencies.

It will be interesting to see how 2010 develops for the commercial property market so watch this space over the coming months!

Paul Harrison, Solicitor

Good news for pubs-at last!

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Pubs and other venues which pay licence fees to PPL (Phonographic Performance Limited) for playing music are due a substantial repayment following a High Court ruling last week.

It is estimated that they have been overcharged to the tune of £10 million since 2005, and it should result in savings of over £3 million a year to the industry.

The High Court upheld a ruling by the Copyright Tribunal last November, and it leads the way to pubs being able to claim repayments. Full details of how to claim are due shortly. This will be a welcome boost to the trade at a time when the bottom line will be challenged by the rates increases due in April.

Nigel Musgrove

Licensing law Specialist

New minister for pubs

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Just breaking is news that the government have appointed John Healey MP as minister for pubs, a new role designed to head up a task force to save the traditional british pub which are closing now at the rate of 39 a week (52 a week a year ago) according to the British Beer and Pub Association.

Perhaps the government have woken up to the fact that the agency responsible for the licensed sector, the Department for Culture Media and Sport, and the Licensing Minister Gerry Sutcliffe, have effectively been neutered over the past few years by a relentless onslaught against the industry by the Home Office, who have been responsible for an endless streem of consultations and explosion of red tape.

I suppose that John Healey and his team will be tasked with mediation between the opposing agendas of the DCMS and Home Office, and coming up with initiatives to relieve the relentless burden on pubs. The forthcomimg business rates and tax and national insurance increases will only add more pressure on pubs at a time when disposable income is already at a low level. Rumoured to be on the list of possibilities for beleaguered pubs are tax breaks and a right to buy from landlord when faced with closure.

I am sure the appointment is most welcome, but so close to an election critics may say that it is vote motivated and unlikely to have any impact in what will be very stormy waters ahead whichever party is elected.

Nigel Musgrove

Licensing Law Specialist

New Model Leases for Shared Ownership Properties

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All shared ownership leases, on homes funded by the Homes and Communities Agency (HCA), granted on or after 06 April 2010 must use new model forms of lease. The leases have been revised to clarify and enhance the protection enjoyed by the lender and provide a clearer explanation to the consumer. An explanatory note is also provided along with key information sheets for shared owners which are also found within the leases themselves.

If you are in the process of developing shared ownership properties and want to know how these changes affect you then contact Steven Petty

Steve Petty, Commercial Property Solicitor

Commercial Property Tips for 2010

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To mark my arrival at Cousins Business Law I've put together this list of dos and dont's for businesses to help them avoid the potential pitfalls and capitalise on opportunities during 2010.

Landlords should be proactive on recovering rent arrears to avoid being left high and dry by struggling tenants. Look out for warning signs that might mean a tenant has financial issues, like delays in payment or publicity surrounding the performance of the organisation. If it goes into administration, it becomes much more difficult to take action and recoup arrears.
With the stamp duty threshold going down, there are a number of ways to save tax on both high and low value transactions so ask your commercial property lawyer about how this could save you money.
Anyone thinking of signing personal guarantees to secure liabilities of their company should not rush into it. If the business is unable to pay then a huge liability could then fall at your feet. Take advice before going down this road.
In the current climate, the chances are good for pub tenants to buy the freehold of their pub cheaply or to renegotiate a lower rent with their landlord. Discuss tactics with your commercial property specialist before approaching the brewery
Over the next 12 months, business rates relief is still going to be available for commercial properties. Speak to your legal adviser about how this might benefit you or whether business rates can be avoided altogether.

I've got lots more tips for business premises owners and those about to take or extend a lease. Do get in touch if you need help and advice.

Paul Harrison
Commercial Property Solicitor