Updates -> Legal -> Nov 2006

Miller Hendry Hotspots Publication - November 2006

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Inheritance Tax Planning

The Chancellor of the Exchequer’s reluctance to increase the Nil Rate Band of Inheritance Tax in line with property prices means that potential Inheritance Tax liability is an issue facing the majority of people today. There are further complications resulting from wide ranging anti-avoidance measures introduced by the Treasury over the past few years.
Action can still be taken, however. All clients should review their Wills periodically and this is a good time to do so. In partnership with Barclays Financial Planning we can provide a comprehensive review to ensure that you plan effectively to maintain your lifestyle and reduce your Inheritance Tax liability.

You can make arrangements to meet Michael Smith from Barclays Financial Planning by contacting us or call him direct on 07775 544948

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Work Related Stress

It is clear following a recent case (Garrod v North Devon NHS Primary Care Trust) that an employee does not need to be working long hours to be successful in a claim for work related stress.  In this case an employee who had previously had a breakdown, of which her employer was aware, worked a maximum of 24 hours per week but suffered stress as a result of an increase in her duties and responsibilities during her normal hours, due to absent colleagues.The employee was successful in claiming for personal injury.

Conversely, (Sayers v Cambridgeshire County Council) an employee who was working more than 48 hours per week was held to have failed to establish that this had caused her stress-related illness despite the employer having breached the Working Time Regulations.

Furthermore, the Court of Appeal in Corr v IBC ruled that an employer may be liable for the suicide of an employee as a result of their negligence in some cases, even where the suicide was not reasonably foreseeable at the time of the negligence.  This was because the psychiatric injury which resulted in the suicide (post-traumatic stress syndrome) was reasonably foreseeable. 

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Licensing of Gangmasters

The Gangmasters Licensing Authority (GLA) protects workers in the agriculture, horticulture, shellfish gathering and associated processing and packaging industries. It is illegal to provide labour to these industries without a Gangmasters Licence.  From April 2007, it will be illegal to provide labour to the shellfish gathering sector without a licence which can be applied for now.   

The GLA can be contacted on www.gla.gov.uk or 0845 6025020 for further advice or information.

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Concealed Recording of Disciplinary Meeting

It has been decided in a recent case that a secret recording of a disciplinary meeting by an employee can be heard and considered by an Employment Tribunal.  The only exception to this is the parts of the recording which are of the private deliberations which took place in the absence of the employee, unless this is indisputable or sole evidence of discrimination.   

Despite this decision, such action is not without risk as further disciplinary proceedings may be taken by an employer against an employee who is caught making such a recording.

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Fire Safety (Scotland) Regulations 2006

These Regulations came into force in Scotland in October 2006 to provide further guidance on the Fire (Scotland) Act 2005.   The Act applies to the majority of premises that are not private homes and focuses on risk assessment.  Non-compliance can result in criminal penalties being imposed. Under the new legislation certain premises will no longer require to have a fire certificate.

The principal duties imposed on employers, the self-employed and those in occupancy or in control of the premises (which duties will be enforced by HSE and Local Authorities) are as follows:

1. Employees must be provided with relevant training and information.
2. There must be provision of means to fight fire and to give warning in the event of a fire and the fire fighting equipment must be easily accessible, easy to operate and indicated by signs.
3. Fire safety measures must be in place and must be regularly reviewed.  If the employer has 5 or more employees then the information from the review must be recorded in writing.
4. There must be adequate means of escape in the event of a fire and emergency exit routes should be kept clear of obstructions.  Doors on the escape route must open in the direction of escape and must not be locked or otherwise secured so as to hinder escape.
5. Fire drills must be held.
6. The facilities and equipment must be maintained and kept in good repair.
7. There are further requirements for those employing any person under the age of 18.
8. There are also duties imposed on employees.