Businesses can expect to face major financial difficulties over the coming year, according to research by the insolvency specialists, Begbies Traynor. The company’s Red Flag Alert, which monitors the financial health of UK companies, found that 268,898 businesses ended the final quarter of 2015 suffering significant financial distress. That was a 17% increase on the
Ministers have urged employers to start preparing now for the National Living Wage (NLW), which comes into effect on 1 April this year. Research carried out on behalf of the government suggests that 93% of businesses support the move but many haven’t yet started to prepare. They’re being urged to follow four simple steps. •
The government decision to end the special arrangement that helped to fund insolvency litigation has met with widespread criticism from business and legal professionals. The trade body R3 said it would amount to a “half-billion-pound pay day for rogue directors”. The controversy arose when the government confirmed that from April this year, insolvency litigation will
A company director has been disqualified for eight years after failing to account for missing assets and funds at a time when his business was struggling to stay afloat. The company went into liquidation owing nearly £600,000. An investigation by the Insolvency Service found that when the debts started to mount up, the director had
The government has begun a review to find ways to reduce the regulation burden on construction firms. It’s part of a move to meet the growing demand for new houses. Ministers say they want to hear the views of all those involved in building homes, including developers, planners and trade associations. The aim is to
An 83-year-old shop assistant who was sacked for leaving his till open while he dealt with a customer has won his claim of unfair dismissal. Ivor Smith had worked for B&Q in Glasgow for 12 years. In August 2014, a customer asked him for change of £200 in coins. He left his till open for
There were several important developments in employment law in 2015. These are some of the most significant. Travel time can be ‘work time’ The European Court of Justice (ECJ) ruled that if employees don’t have a fixed place of work then the time they spend travelling from home to their first job of the day
An employer has defended an age discrimination claim brought by a 73-year-old woman who had been widely regarded as outstanding in her field. The case involved a woman who had specialised in the area of medical underwriting in the insurance business since 1968, becoming Chief Medical Officer for her company. Her main employment ended in
A security firm found itself in an unusual situation recently when it was judged to have discriminated against an employee on grounds of race even though he had made up his claim as a smokescreen during disciplinary proceedings. The case involved a security guard of Indian origin who faced an allegation by his manager that
A trader has been disqualified from being a company director for six years after he employed illegal workers. An investigation by the Insolvency Service found that he had employed three people at his supermarket even though they were not entitled to work in the UK. The supermarket went into liquidation on 12 November 2014, owing