Higgs welcomes six new trainees

Leading Midlands law firm Higgs & Sons has welcomed six new trainees to the firm – one of the largest intakes of graduates in recent years.

Timothy Swallow, Rachel Seaton, Harry Rasmussen, James Osborne, Veronika Ulicna and Adam McGuire all join Higgs at its Brierley Hill headquarters at the Waterfront Business Park.

Ian Shovlin, senior partner, welcomed the new trainees. He said: “As we continue to expand the firm, we need to ensure we are recruiting the very best talent for the future.

“We have a proud history of our trainees remaining with the firm for their entire career, and indeed, I trained with the firm myself. These graduates represent the future of Higgs and on behalf of everyone at the firm, we’re delighted to welcome them on board.”

2011 has been a great year for Higgs & Sons, with the firm named Law Firm of the Year by the Birmingham Law Society and a finalist in the recent national Lawyer Awards as Regional Law Firm of the Year.

The firm employs nearly 200 people, including 90 lawyers.

To find out more about Higgs, including information about its 2012 trainee recruitment programme, visit www.higgsandsons.co.uk.

Mediation the key to resolution in employment tribunals

A leading employment lawyer says that the cost of tribunals for employers could dramatically fall if plans go ahead to reform tribunal procedures.

Tim Jones is head of Higgs & Sons’ employment team and a trained mediator with ADR Group, Talk Mediation and the Association of Midlands Mediators.

He is an experienced advocate and has appeared in Employment Tribunals nationally for clients including Marstons.

He believes that if the proposed changes go ahead, the costs for owners of small to medium sized businesses could fall substantially.

“Tribunal cases have soared in recent years and government proposals are being brought forward to reduce the volume of tribunal hearings by encouraging more workplace-based mediation to resolve disputes.

“The objective is to encourage solutions out of court so that business owners can avoid time-consuming and often expensive court appearances. In addition to this, the Government obviously wants to cut its costs in these difficult financial times as the annual budget for employment tribunals nationally is in the region of £80 million.

“Mediation must be part of the process. For employers, early resolution is good for everyone.

It cuts expensive court time and allows businesses to get on with what they are good at – creating jobs and making money.”

In the Resolving Workplace Disputes consultation paper a number of more business-friendly proposals are put forward. These include:

• Increasing the qualification period for claiming unfair dismissal from one year to two, which should reduce the number of claims by 3,700-4,700 (6.4%-8.2% of last year’s total number?).

• Charging claimants a fee to lodge tribunal claims, and requiring all claims to go to the Advisory, Conciliation and Arbitration Service (Acas) first, before proceeding to the employment tribunal, which could potentially reduce annual claims by another 12,000.

• Introducing a more flexible strike-out power and allow judges to issue a deposit order at any stage of the proceedings.

• Shorter hearings, for example with statements taken as read and more judges sitting alone.

According to Tim, the cost savings for employers could be dramatic: “An average employment tribunal hearing could cost upwards of £20,000. If mediation were brought in at an early stage, matters could be resolved for as little as a few thousand pounds.

“I would encourage employers to welcome these new changes.”

The consultation period for Resolving Workplace Disputes ends on 20 April 2011.

IS SOCIETY READY FOR PRE-NUPS?

On the day there could be a landmark case for divorce law, new research from a leading Midlands law firm suggests that the UK is ready to adopt legally binding pre-nuptial agreements.

Higgs & Sons questioned 200 people for their opinion of pre-nuptial agreements, with some surprising results.

Philip Barnsley, head of Higgs & Sons’ family department and Chair of Resolution West Midlands, said: “All the people we spoke to, a mixture of married, separated, divorced and remarried, said they did not currently have a pre-nuptial agreement in place. Of those who were divorced or separated 60 per cent said they wished that they had had one and 56 per cent of those who were married said they wished they had signed an agreement prior to their marriage.

“When we questioned people on whether pre-nups should now be legally binding in the UK, 92 per cent agreed that they should.

“We also asked everyone if they were to give a significant sum of money to their children, would they encourage them to have a pre-nuptial agreement with their partner. Eighty eight per cent of people said they would encourage this.”

A ruling by the Supreme Court on the case of Radmacher v Granatino is expected this week.

Philip explains: “The Supreme Court are being asked to decide whether the Court of Appeal erred in finding that pre-nuptial contracts ought to be given decisive weight, where entered into freely by both parties. Mr Granatino does not wish to be held to a pre-nuptial contract that was signed prior to their marriage which provides that neither party could make a monetary claim against the other in divorce proceedings.

“Pre-nuptial agreements are enforceable in Germany, where the couple's was signed, but not in the UK where they married. They are also enforceable in Mr Granatino's home country of France.”

“It’s thought that this case may pave the way for pre-nuptial agreements to finally become legally binding in the UK.”

For specialist legal advice or to speak with Philip Barnsley or his team contact him directly on 0845 111 5050.

Directors pay the price for ignorance warns insolvency lawyer

One of the Midlands’ most experienced insolvency lawyers says that directors of companies in the UK are continually failing to fully understand their duties and this is leading in some cases to dire consequences.

David Ellis, a partner at Higgs & Sons, says the firm is increasingly meeting directors of insolvent companies who are surprised to find themselves made personally liable for their company’s debts when the firm fails.

“Many entirely honest directors whose companies have failed through no fault of their own are finding themselves facing personal liability on two counts,” explains David.

“First, liquidators are challenging directors who have taken their remuneration through dividends rather than as salary. This is often recommended by their accountants to save tax however if the company is failing and there are insufficient profits to justify such dividends then these can be clawed back by the liquidator as illegal payments. Secondly, if it is found that a director has permitted the company to trade on longer than a "reasonable" director would have done, the liquidator can ask him or her to personally make good any losses incurred by the creditors in that period.”

“In addition to being personally liable for these debts, many people are also unaware of the Company Directors Disqualification Act, which can disqualify them as directors for up to 15 years.”

David says that for the companies which are struggling, early legal advice is essential: “Once a company has failed it gives us no comfort to know that in many cases if we had been able to advise the director 12 months earlier he or she should have avoided such difficulties.

“With this in mind we have established a team within the firm to protect directors and advise on ways to limit their exposure. There appears to be a great need for advice which is aimed at directors in these circumstances (and their professional advisers) but which is independent of any advice given to the company itself.”

To contact David telephone 0845 111 5050 or email david.ellis@higgsandsons.co.uk.

Higgs celebrates professional services award

Leading Midlands law firm Higgs & Sons is celebrating after winning the prestigious Black Country Chamber Professional Services Firm award 2010.

Senior partner, Ian Shovlin, was presented with the award this week by Mark Prisk, MP and Minister of State for Business and Enterprise at a special gala lunch in Wolverhampton.

Speaking of the accolade, Ian said: “2010 is proving to be an extremely exciting year for the Higgs team. Earlier in the year we moved 155 of our people to some of the best office facilities in the Black Country with a £1.5 million move to the Waterfront Business Park.

“To meet the needs of our clients, we have also recruited 16 lawyers and five support staff this year.

“Now, to be honoured by the Black Country Chamber in its annual awards is the icing on the cake.

“Our aim has always been to provide businesses and individual clients of the Black Country and beyond with the very best legal advice and care and to be recognised for this is great news for everyone at Higgs.

“Higgs has achieved its success due to the loyalty and support of our clients, professional advisors, suppliers and colleagues. We really value our relationships with them and thank them for helping us to win this award.”

Higgs helps Phoenix rise

Leading regional law firm Higgs & Sons has advised a new start up business in Willenhall.

Phoenix Cutting Services, which is a service provider to the UK packaging industry, was advised by Richard Griffiths, a solicitor in Higgs’ corporate department.

Speaking of his work with Phoenix, Richard said: “It’s essential for new businesses to seek proper legal advice from the outset. Early consideration of potential issues and having well drafted agreements in place will provide security and will almost certainly save time and expense later.”

Scott Hilton, a director and shareholder of Phoenix said that Higgs’ advice and guidance had proved invaluable: “Richard supported us across the whole start up including helping with the lease of our premises, advising us on banking arrangements and guiding us on our business structure and shareholdings.

“One important part of Richard’s work was our shareholder agreement document, which provides a clear decision making procedure and an agreed means of resolution should there be a dispute. This should significantly reduce the possibility of a serious fall out which can obviously happen in business!”

Richard said: “For anyone starting a new business, there are many things to consider, from employment contracts to terms and conditions of business and protecting intellectual property.

“We appreciate that money may initially be tight for start up businesses, however we always look to agree fixed costs for any necessary legal work, enabling business owners to budget more effectively.”

If you are considering setting up a new business and wish to discuss the potential legal issues contact Richard Griffiths directly on 0845 111 5050 to arrange a free initial consultation.

Optimo Care Group acquire WarrenCare Ltd

Leading West Midlands law firm Higgs & Sons, has assisted Optimo Care Group to acquire the entire issued share capital of WarrenCare Ltd, the largest provider of homecare and support services in Sefton, Merseyside.

WarrenCare Ltd is a long established homecare provider in the North West, delivering services to around 500 people and employing over 200 highly trained care staff to deliver a wide range of services across a number of locations including Maghull, Formby, Crosby and Sefton.

WarrenCare provides service care for older people, children and families, people with learning disabilities and supported living.

The strategic acquisition firmly establishes Optimo Care Group as a provider of high quality care services in the North West.

Commenting on the acquisition, Richard Walker, Chief Executive of Optimo Care Group said: “This is a great service and we are thrilled that the founders felt we were the right people to take the business forward. The whole team at WarrenCare is passionate about delivering high quality care as are we. As a business we are expected to provide the highest standard of professionalism, service and customer care and we expect the same from our advisers. Higgs & Sons continues to exceed our expectations in these areas. The legal assistance given by partner Nick Taylor and the team at Higgs & Sons was second to none and we look forward to working with them again as we deliver our plans for expansion and further acquisition."

Nick Taylor, head of Higgs & Sons’ corporate department said: “: “Having specialist expertise and experience in the healthcare and domiciliary care sectors meant we could offer specific advice and a tailored but efficient service to Optimo. It was a pleasure working with Richard and we look forward to helping him and his team grow the business in the near future.”

Higgs shortlisted for another award

Following its success earlier this year in being shortlisted for the prestigious Birmingham Law Society Legal Awards 2010, Higgs is celebrating once again after making the list for the Birmingham Post Business Awards.

The leading Midlands law firm, which moved 150 of its team into a new £1.5 million office at the start of this year, is shortlisted for the Legal & Business Advisory Award.

Senior partner, Ian Shovlin, said: “This is fantastic news for the entire Higgs & Sons team. The Birmingham Post is a well respected publication and to be recognised as a leader in our field is brilliant.

“Our philosophy at Higgs is to work together to achieve great things for our clients and this latest recognition demonstrates this commitment to client care.”

The award ceremony takes place on Monday September 20 at Birmingham’s ICC.

Landlords' legal disputes resolved in law firm's seminar series

A Leading West Midlands legal firm has announced two more workshops to help managing agents and commercial property landlords and tenants to protect themselves in these difficult economic times.

Higgs & Sons says the new events – September 22 and November 17 – are being held following a high demand for a recent workshop.

The Tenancies in Troubled Times workshops are designed to assist agents, landlords and tenants through the legal minefield that leasing a property can involve.

Nyree Applegarth, of Higgs & Sons’ dispute resolution team, said the workshops had been organised in response to the issues landlords and tenants face in the current difficult economic climate.

Nyree said: “Landlord and tenant law is a constantly shifting area and we recognised the need to keep people involved in property up to date on the latest practical information, legal judgments and case law. These events are aimed at property managers, developers, leasing agents, landlords and tenants and anyone working within real estate.

“The workshops are addressing a range of common concerns that regularly come to the attention of our dispute resolution team,” she added.

The September 22nd workshop will focus on disclaimers of leases and rent deposits, taking into account who can disclaim a lease and what limits and procedures are necessary, the effect of such action on third parties, how a rent deposit can be held and when a landlord can keep a deposit as a result of the tenant becoming insolvent.

In November, the focus will be on a case study looking at assignments of leases and dilapidations claims when a tenant has become insolvent, and will take into account whether claims can be pursued and whether the landlord has to agree to the assignment of a lease.

Each session runs from 8.15am until 9.45am and is free of charge and includes refreshments.

To reserve a place, email clare.smith@higgsandsons.co.uk or call 01384 327260.

Osborne's red box delivers mixed bag for business owners

A specialist corporate tax lawyer says today’s budget could have been a lot worse for business owners and entrepreneurs in the region.

Susheel Gupta, a partner in Higgs & Sons’ expanding corporate team, says the reduction in corporation tax by one per cent per annum over the next four years and the small companies tax rate falling to 20 per cent next year are welcome changes.

“One positive move by the Chancellor is in entrepreneurs’ relief, which brings down capital gains tax to 10 per cent on the disposal of business assets of up to £5 million is a welcome change. The anticipated capital gains tax increase on non business assets to 28 per cent will only affect higher rate tax payers and coupled with retaining the annual allowance of £10,100 is better than expected news.

“For start up businesses in the Midlands it would also appear that there will be a tax break in employers national insurance contributions of up to £5,000 for the first 10 employees recruited.

“The downsides include the reduction in capital allowances for companies from 2012 and the VAT increase from 4 January 2011 will be of obvious concern to many businesses.

“I anticipate that this will lead to a higher level of activity within the retail sector this year but a tough first quarter in 2011.

“Hidden away in the announcement was a warning that the Government intends to introduce more general anti-avoidance legislation and we will have to wait to see exactly what this will entail.”

Silence on inheritance tax is welcome news says leading private client lawyer

The deathly silence in today’s budget on the inheritance tax threshold is welcome news for people across the region.

Laura Banks, a partner in Higgs & Sons’ growing private client team says the current inheritance tax threshold of £325,000, looks set to remain the same according to early reports on the budget.

“Initial budget reports are not showing any amendments to the inheritance tax system. However, with capital gains tax rates increasing for higher rate tax payers, prudent estate planning is now even more crucial.

“One surprise within the budget is that the annual exempt amount for CGT has not been reduced as was widely anticipated, but remains the same at £10,100.

“Estate planning is a complex area, but essential, if people are to maximise assets which can pass down the generations.

“In the run up to the budget we have been extremely busy and it shows no sign of slowing down. Our clients are taking every prudent step they can.”

World cup fever could be an illness too far for region's employers

One of the region’s leading employment lawyers has set down some advice for employers on the eve of the World Cup.

Damian Kelly, a partner in Higgs & Sons’ employment department says that while most employers in the region will watch the World Cup themselves, some have given little or no thought on how to handle their employees during the tournament.

“Some employers will screen key matches at the workplace but this may not be possible for some businesses, even if they have the facilities. If employers can’t apply this consistently for all employees company-wide they could be exposing themselves to complaints and problems from those that are excluded.”

Alternatives for employers to consider include:

· Allowing employees to listen on the radio or via their computer – no licence required
· Where flexible working is in place, some employees may be able to work around the matches that they want to watch and make up lost time
· Employers may consider introducing flexible working for the duration of the World Cup or for key matches

Sickness Absence or Football Injuries

All employees should be required to report any absence to a trained and specified central person during the World Cup.

Damian said: “It’s vital that employers monitor absence closely during this period. The person to whom employees are required to report can ask more probing and appropriate questions when speaking to employees about their absence and can identify absence patterns on match days. This approach, coupled with advance warning to employees that unauthorised absences without a good reason and sickness absences that are not genuine will be dealt with under the disciplinary procedure, should help to discourage absenteeism during the World Cup period.”

If employees are absent during the World Cup employers should investigate further and question the employee when he or she initially reports the absence and conduct a return-to-work interview.

Damian said: “If you have a reasonable belief that the absence is not genuine, based on your investigations - perhaps because the employee has given evasive or inconsistent answers - you may take the matter further. Where there is evidence that the employee was not sick, for example he or she was seen in the pub watching a match, this will clearly be a disciplinary matter.”

Damian has produced a handy five point plan for employers in the region:

1. Before the tournament starts, remind employees that if they want to take time off work, they must make holiday requests in the usual way, and that it may not be possible to accommodate all requests, but explain the basis on which requests will be granted e.g. on a first come first served basis.

2. Remember to treat all employees equally regardless of nationality. If you allow England supporters time off to watch an England game, you should do the same for non-English nationals who want to watch their national team play. A failure to do this could lead to a discrimination claim.

3. Explain that standard levels of attendance and performance are expected throughout the World Cup.

4. Remind employees of your alcohol policy and re-enforce that any breach will result in disciplinary action.

5. Likewise remind employees of your Equal Opportunities Policy and any Non-Harassment/Bullying Policy and make it clear that offensive behaviour towards employees of other nationalities is unacceptable and will be dealt with under your disciplinary policy.

For one-to-one advice from Damian or a member of the Higgs & Sons’ employment team call 0845 111 5050.

Higgs seminar set to tackle disciplinary and grievance procedures

The latest seminar from one of the region’s leading employment law teams will tackle disciplinary and grievance procedures.

Employers from across the Midlands will come together on Wednesday 2 June 2010 at Higgs & Sons’ new flagship headquarters at the Waterfront Business Park, Brierley Hill, to discuss how to handle disciplinary procedures according to the ACAS Code of Practice.

Louise O’Connor, Higgs & Sons’ HR consultant said: “This is an excellent opportunity for HR professionals and business owners and directors from our region to meet each other and learn about how to minimise future risk.

“If businesses fail to follow the ACAS Code of Practice an employment tribunal may increase an award to an employee by up to 25 per cent. Our seminar is designed to bring employers up to speed and support them.”

Places for the seminar are still available. To book your place email louise.oconnor@higgsandsons.co.uk or telephone 0845 111 5050.