Employer furlough schemes

There has been a significant amount of press coverage talking about institutional racism within the NHS not only in terms of the treatment of patients but also in terms of the low representation of ethnic minority staff in management positions. Whilst tackling that issue is beyond the brief here, it is important to recognise that sub conscious bias can, regrettably, play a part in decision making processes. An Employment Tribunal will explore a alleged discriminator’s conscious and sub conscious decision making and working in an environment which has not set out sufficient controls to avoid such sub conscious stereotyping places someone at a greater risk of being discriminated against.

In the context of the issues we are addressing here, i.e. risk assessments around BAME staff, as we have stated above, it is essential that BAME staff are represented at all levels in the discussion. Trusts need to be mindful that BAME are underrepresented in management positions.

BAME staff need to be included in the dialogue and need to have a safe place where they can challenge decisions that are being made in relation to them. There needs to be accountability in the processes applied. Meaningful conversations need to happen and concerns should not be dismissed.

On Tuesday 23rd June, partner Emma Digby was in conversation with Steve Hamstead and Mark Smith from AON along with Ward Hadaway commercial lawyer Nathan Bilton in a webinar titled Can trade credit insurance help to keep the supply chain moving?

The insurance market is under untold pressure as a result of the pandemic, and in such times there is a risk that insurers will cancel or reduce credit lines, particularly in certain high risk sectors such as retail. However the Government has stepped in to effectively underwrite the existing trade credit insurance agreements, and to keep trade supplies moving. Will this be enough?

In this webinar, we discussed:

• the Government backed scheme and how it will operate
• the prospects of obtaining insurance going forward, and whether it will become too cost prohibitive
• could the new legislation put your business at risk and jeopardise your insurance cover if you cannot cancel a contract when you are not getting paid for your goods or services
• the Brexit effect, and how this will affect the insurance market
• protecting your business with proper risk assessment processes and paperwork

The golden thread requirements will be retrospective, so will apply to existing buildings as well as new build. This is part of the reason for the Building Safety Regulator’s ‘get to know your building’ guidance referred to in the talk, with the link in the Powerpoint presentation. While the details of the golden thread requirement are still to be confirmed, now is a good time to start to gather as much information as can be obtained about existing buildings as possible in preparation. The Government guidance anticipates that the Principal Accountable Person will be responsible for developing and coordinating the golden thread for existing buildings.

With another lock-down in force in England, it has been confirmed that the courts will remain open. This is different to the first lockdown in March 2020, in which the majority of courts were closed and most face to face hearings did not take place. Hopefully, this new lock-down measure will ensure that cases are still being heard at a steady rate, and there should not be a backlog for your case to be dealt with.

Lord Chancellor Robert Buckland QC MP emphasised the importance of maintaining safety during the new measures: “Our courts & tribunals continue to be an essential public service, served by essential workers and meeting Covid-secure standards endorsed by public health officials. With the use of remote hearings wherever appropriate, this vital work can and should continue.”

A large sum of £110m has been spent in recent months to make courts safe and to ensure that trials should go ahead where necessary. As a result of the expenditure, hearings can now still take place both in person, whilst adhering to the rules, as well as remotely. Your case may be heard in court if it is deemed as being “necessary in the interest of justice”.

Precautionary measures, such as social distancing, will still be in place, with Judges and magistrates ensuring that this happens.

Lord Chief Justice, Lord Burnett of Maldon commented: “The next few weeks will present difficulties in all jurisdictions. But as before judges, magistrates, staff, the legal profession and others involved in the system will meet them and ensure that the administration of justice continues to function in the public interest.”

The first point to note is that it is the position as at 14 February 2022 which is relevant, as whether or not a lease is a ‘qualifying lease’ for the purposes of recovering costs under the Building Safety Act was effectively frozen at that time.

If a leaseholder owned more than three properties in the UK (and the property in question was not their principal home) at that time, then the lease will not be a qualifying lease. The protections under the Act which prevent or restrict the landlord’s ability to recover the cost of remedial works through the service charge will not therefore apply to that lease (save potentially for the provision that costs cannot be recovered where the landlord is responsible for the defects, which does not expressly refer to qualifying leases).

The lack of a searchable database to assess how many properties a leaseholder has in the UK is however one of the difficulties to be resolved in this regard, as there is currently no way of searching the Land Registry to obtain a list of properties owned by one individual. The guidance appears to rely on the leaseholder completing the leaseholder deed of certificate being open and honest in this regard, and that deed of certificate being passed onto subsequent owners. Making false representations or failing to disclose required information in the deed of certificate may be a criminal offence, although reliance on this to discourage mis-reporting is clearly less satisfactory than having a searchable register.