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23/09/2024

Why It’s Important for a Lawyer in England and Wales to Review Your Business According to English Law

Running a business in England and Wales can be both rewarding and challenging. Whether you are just starting out or have been operating for some time, it is essential to ensure your business is on solid legal footing. Many business owners focus on growth and operations, but one of the most crucial aspects that often gets overlooked is legal compliance. Having a lawyer review your business regularly in accordance with English law can safeguard your company and help you avoid costly mistakes that could threaten its success.

Here are the key reasons why having a lawyer in England and Wales review your business is essential:

1. Compliance with Company Law

The Companies Act 2006 is the primary legislation governing how businesses operate in England and Wales. It dictates how companies should be incorporated, how directors should act, and how records should be maintained. Compliance with this law is vital for the legal standing of your business. A lawyer can ensure that your company’s formation documents (such as your articles of association), shareholder agreements, and board resolutions comply with the Act.

Moreover, legal obligations for directors are stringent. Directors have duties to act in the best interest of the company, avoid conflicts of interest, and comply with statutory filing requirements with Companies House. A lawyer’s guidance ensures these duties are met and that you avoid penalties for non-compliance.

2. Protection of Intellectual Property

In today’s competitive environment, protecting intellectual property (IP) is vital for the success of your business. Whether it’s a company logo, brand name, invention, or content, IP law in England and Wales grants significant protection to creators and innovators. A lawyer can help you register trademarks, copyrights, and patents to ensure your intellectual property is protected from misuse by competitors.

Failure to safeguard your IP can lead to loss of business value, reputation, or even legal action from other parties. A lawyer can also ensure that your business is not infringing on others' IP rights, thereby preventing lawsuits or claims that could be expensive and time-consuming.

3. Drafting and Reviewing Contracts

Contracts form the backbone of any business relationship, whether with customers, suppliers, or employees. Contract law in England and Wales requires that agreements are clear, enforceable, and legally binding. A lawyer can draft and review contracts to ensure that they are compliant with English law and protect your business’s interests.

Poorly drafted contracts can lead to disputes or unenforceable terms that might not hold up in court. Having a lawyer review your contracts reduces the risk of litigation and ensures that you are fully aware of your rights and obligations under the agreements you enter into.

4. Employment Law Compliance

If your business hires employees or works with contractors, it is essential to stay compliant with employment laws. Employment law in England and Wales covers areas such as employment contracts, health and safety, employee rights, and procedures for hiring and firing staff.

A lawyer who specialises in employment law can help you draft legally sound employment contracts and policies that protect both your business and your employees. They can also guide you on matters such as disciplinary procedures, redundancy, and discrimination claims, ensuring your business remains compliant with the law. Failure to comply with employment laws can lead to costly tribunals or claims against your business.

5. Regulatory and Industry Compliance

Depending on the nature of your business, there may be specific industry regulations you need to comply with. For example, companies in financial services must comply with regulations imposed by the Financial Conduct Authority (FCA), while those in the healthcare or food industries have their own sets of standards.

Failure to comply with these regulations can result in hefty fines, damage to your business reputation, or even closure. A lawyer can help you navigate these complex regulatory landscapes, ensuring that your business operations meet the necessary standards, and advising you on updates to legislation that may affect your industry.

6. Risk Management and Dispute Resolution

Every business faces risks, whether from potential legal disputes, financial issues, or unforeseen crises. A lawyer’s review of your business can help identify potential risks and create strategies for managing or mitigating them. This can include reviewing insurance policies, creating contingency plans, or advising on best practices for handling customer complaints or supplier disagreements.

Additionally, if disputes do arise—whether with a customer, supplier, or partner—a lawyer can provide dispute resolution advice and, if necessary, represent your business in court. Early legal intervention can often prevent disputes from escalating and reduce the risk of costly litigation.

7. Data Protection and Privacy Compliance

With the introduction of the General Data Protection Regulation (GDPR) and the UK’s Data Protection Act 2018, businesses in England and Wales must take data protection seriously. If your company handles personal data (whether from customers, employees, or other individuals), you are required by law to ensure it is collected, stored, and processed correctly.

Non-compliance with data protection laws can result in significant fines and reputational damage. A lawyer can help you implement GDPR-compliant practices, draft data protection policies, and handle subject access requests, ensuring your business is on the right side of the law.

8. Mergers, Acquisitions, and Business Expansion

If you’re planning to expand your business through mergers, acquisitions, or investment, legal advice is essential. Lawyers can assist with due diligence, contract negotiations, and ensuring the transaction is compliant with the law. They can also provide advice on structuring deals to protect your interests and minimise tax liabilities.

Business growth often comes with increased legal complexity, so having a lawyer involved early in the process can save you time and money down the line.

Conclusion

In a legal environment as complex and rapidly changing as England and Wales, it is vital to have a lawyer review your business regularly. From ensuring compliance with company law and safeguarding intellectual property to drafting contracts and managing employment law, a lawyer can help you avoid costly mistakes and protect your business’s long-term success.

By engaging a qualified lawyer to review your business, you are not only ensuring compliance with the law but also gaining peace of mind. It allows you to focus on what you do best—growing and running your business—while leaving the legal details to the experts. In the long run, this proactive approach can help your business thrive in a legally sound and secure manner.

14/06/2024
05/06/2024

On 4 December 2023 the Home Secretary, James Cleverly, announced future changes to visa rules in what he described as a “five-point plan” to reduce immigration. The Home Office released more information on 21 December, including some adjustments to what had initially been announced.

The changes have now come into force, in accordance with two sets of revisions to the Immigration Rules released on 19 February and 14 March.

What are the five changes?
Social care workers are no longer allowed to bring dependants (that is, partners and children) on their visa.
The baseline minimum salary to be sponsored for a Skilled Worker visa has increased from £26,200 to £38,700, while the ‘going rate’ minimum salary specific to each job has also gone up significantly.
A list of jobs for which it is possible to sponsor someone for a Skilled Worker visa at a reduced minimum salary has been made shorter and renamed the Immigration Salary List.
The minimum income normally required to sponsor someone for a spouse/partner visa has risen from £18,600 to to £29,000.
A review of the Graduate visa, a two-year unsponsored work permit for overseas graduates of British universities, to check for possible abuse of the system.
When did the changes happen?
The ban on newly arriving care workers bringing immediate family took effect on 11 March 2024.
The Skilled Worker minimum salary increases took effect on 4 April 2024.
An interim Immigration Salary List, replacing the Shortage Occupation List, also took effect on 4 April 2024; the list will be re-examined later this year.
The spouse/partner visa minimum income rose to £29,000 on 11 April 2024, with plans to increase it to around £34,500 at an unspecified point later in 2024 and finally to around £38,700 by early 2025.
The Migration Advisory Committee published its review of the Graduate visa on 14 May 2024, finding no significant abuse and recommending that the route stay open.
Will MPs be voting to approve, reject or amend the changes?
No. Revision of visa regulations is done through statements of changes to the Immigration Rules. The Government has laid two statements before Parliament to implement these changes, one on 19 February 2024 (care worker dependants) and another on 14 March 2024 (family and work visa income thresholds).

Statements of changes take effect automatically unless either the House of Commons or House of Lords actively votes to annul them within 40 days. Usually there is no vote and the Government is not obliged to make time for one in the Commons even if MPs table motions against the changes (as Alison Thewliss of the Scottish National Party did: Early Day Motions 573 and 574).

There was a Westminster Hall debate on the family visa changes on 23 April, sponsored by Paul Blomfield (Labour). This did not involve a vote.

Why did the Government decide to make these changes?
Ministers believe that immigration is far too high. Net migration (the number of immigrants minus the number of emigrants) was estimated to be 764,000 in 2022.

International students, social care workers and their immediate family members (dependants) were the main contributors to the recent increase in net migration, along with humanitarian visa schemes and people claiming asylum.

The changes announced in December follow restrictions on student dependant rules announced separately in May 2023 and in force since the start of 2024. The Home Office says that 300,000 of the people who moved to the UK last year would not have been able to come had all these changes been in place then.

My constituent needs to extend their spouse/partner visa – does the £29,000 income threshold apply to extensions, or only to first-time visa applicants?
Only to first-time applicants. A Government spokesperson initially said the higher threshold would apply to visa extensions, but the Home Office later announced that it will not. The notes accompanying to the Immigration Rules published on 14 March explain:

There are transitional arrangements for those who, before 11 April, already have a Family visa within the fiancé(e) or proposed civil partner or five-year partner route, or who applied before 11 April and are being granted. Once a minimum income requirement (MIR) has been met, the same MIR must be met through to settlement on the route, provided the applicant is applying to stay with the same partner.

This means that someone whose fiancé(e), partner or spouse applied for a visa before 11 April 2024 will only need to demonstrate a minimum income of £18,600 per year. This transitional exemption will apply to their initial visa application, future visa extension applications, and future applications for settlement (also known as indefinite leave to remain).

Can both the applicant’s and the sponsor’s income be counted towards the £18,600 / £29,000?
When applying for the initial visa from outside the UK, only the sponsor’s income can be counted towards the minimum income threshold. For extensions and permanent residence, both incomes count. People generally need to provide evidence of having earned that income for the past six months (although the exact rules are complicated).

There are also some options for people who do not earn the minimum income, allowing them to qualify for the visa by other means such as by using savings above £16,000 or in exceptional circumstances.

None of this has changed.

Do savings still count towards the minimum income threshold?
Yes. The basic rule is the same as before: only savings above £16,000, divided by 2.5, count towards the threshold.

Usually people will add savings to the sponsor’s income to get to the threshold, although they are also allowed to use only savings. A couple with no relevant earnings who are looking to meet the threshold entirely through savings now need a lump sum of £88,500.

As with the main income rule, people generally need to have had the required amount of savings in their account(s) for six months before applying.

Has the minimum income also increased for members of the armed forces who want to sponsor a spouse/partner visa?
Yes, but only to £23,496, the armed forces minimum wage.

Do any comparable countries apply minimum income rules to spouse visas?
Many countries require proof of sufficient economic resources. The way the requirement is expressed and assessed varies, making exact comparisons difficult.

Where countries do express the requirement as a minimum income, such as in Belgium or Norway, Library research has so far not found any examples of the threshold being set above or close to £38,700 (the level the UK Government ultimately intends to reach). The UK’s rules on what income sources count towards the threshold are also stricter than in other countries, according to the Migration Observatory at Oxford University.

Opponents of the minimum income policy often cite a ranking called the Migrant Integration Policy Index or MIPEX. In 2020, the UK was placed second from bottom among 56 countries for ease of family reunion. The family reunion ranking takes minimum income-style rules into account, along with various other factors, in comparing the various countries.

What about the higher salary thresholds for the Skilled Worker visa – do they apply to people who had their visa already?
No. The Minister for Legal Migration announced in December 2023 that “those already in the Skilled work route, and applications made before the rules change, will not be subject to the new £38,700 salary threshold when they change employment, extend, or settle”.

The revised Immigration Rules confirm that someone who had a Skilled Worker visa before 4 April 2024, and applies to extend it or for settlement before 4 April 2030, does not need to meet the thresholds now in place for first-time applicants. They only need to be paid whichever is the higher of £29,000 (rather than £38,700) and the ‘lower going rate’ for that job (rather than the ‘standard going rate’).

People applying for their first Skilled Worker visa after 4 April 2024 can still be paid less than the new salary thresholds in some circumstances. This includes people at the start of their career, such as those aged under 26 or on a Graduate visa. There are also different salaries for NHS staff and education workers, based on national pay scales. Social care workers are a special case and can be paid £23,200.

17/05/2024
16/05/2024

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