Commercial Update March 2009

Opening this month’s newsletter with yet more discussion of the economic crisis may give cause to sigh, however this month our focus shifts from finance and banking to recession-related fraud (although the Financial Services Compensation Scheme has claimed worthy mention in our Legal News round-up).

We reported back in August 2008 about what to do if you experience false claims on a CV, and now employers are being warned to be on the lookout for criminals using false career histories which have been cloned from profiles on social networking websites such as Facebook and MySpace. According to research by Experian, up to 63% of networkers include career details in their personal profiles and as many as one in ten take the risk of uploading their entire CV. Further warnings from PricewaterhouseCoopers highlight the threat of data theft from competitors, as well as an increase in unregulated traders that could cause serious problems for businesses. It seems the recession could be affecting businesses in more ways than money…be on your guard and contact us for advice should you have concerns.

Now on to this month's news and reports from the legal world.

Legal News
Significant changes loom in the area of Employment Law. 1 April 2009 sees holiday entitlement increased to 28 days per year pro rata and 5 April marks an increase in Statutory Maternity, Paternity and Adoption Pay. Come 6 April, statutory dispute resolution procedures are replaced by a revised voluntary ACAS Code of Practice to help resolve issues earlier and informally. Also on 6 April, the right to request flexible working extends to employees with parental responsibility for children up to age 16; Statutory Sick Pay rises; employers underpaying workers will face new penalties in accordance with the enforcement of the National Minimum Wage; and in Trade Union Membership Law, unions will have the right to exclude members who belong to political parties like the BNP. If you need help re-drawing policies and implementing changes to stay in line with your obligations under the new legislation then don’t hesitate to contact us.

More regulatory changes arrived on 1 March 2009 in the shape of the new and enforceable Environmental Damage Regulations. Where certain economic activities are carried out and there is an imminent risk of damage to natural habitats, water and land, protected species and sites of special scientific interest, the operator must take steps to prevent future damage and remedy any damage already caused. A breach of the Regulations is punishable by a fine or imprisonment, so business owners are strongly advised to conduct a thorough environmental risk assessment and take appropriate action where necessary.

The Government’s welcome decision to raise its guaranteed deposit amount in the event of bank failure to £50,000 has thrown up some confusion with it being unclear whether the guarantee, set out under the Financial Services Compensation Scheme (FSCS), applies to individuals only, or whether it extends to company deposits. Our article highlights one of the main areas for concern, which is whether deposits held in different members of the same banking group are covered separately.

Funny Bit at the End
OK, so YouTube might have banned UK visitors from watching music videos as they cannot agree a fee with the Performing Rights Society, but at least we can still watch BRILLIANT videos like this one called Validation.

Useful Bit at the End
One of our contacts recently reported this problem. Someone had visited their website and filled in an enquiry form. The phone number the person used in the form was a Premium Rate phone number. When the member of staff called the number they got an answer phone at the other end, with a message saying we are connecting you, the phone then kept ringing but not being answered. Something to keep an eye out for on your site lest you run up a large phone bill hanging on for someone who never comes.