New guidance: Updated guidance clarifies when recruits on trial period are entitled to the national minimum wage

Employers wanting potential recruits to work an unpaid trial period before taking them on will welcome updated government guidance to help them determine whether a new recruit on trial is in fact a ‘worker’, and must be paid at least the living or national minimum wage during the trial period.

Case law: ‘Entire agreement’ clause in a contract did not exclude liability for misrepresentations made before it was signed

Parties negotiating an agreement who wish to exclude liability for any misrepresentations they make during those negotiations should ensure the agreement expressly and clearly excludes liability, rather than rely on a general ‘entire agreement clause’ to exclude that liability, a recent ruling makes clear. This applies to commercial contracts including employment contracts.

Case law: Party to dispute may have to disclose internal emails and other communications, as well as those with third parties, to the other side

Parties in litigation, or in a dispute where litigation is reasonably contemplated, should consider whether internal emails and/or other communications discussing commercial solutions to their dispute, and correspondence with external experts, may have to be disclosed to the other side following two recent rulings.

Case law: Companies cannot say ‘dividends’ paid to directors were in fact salary if the dividends were later found unlawful

Companies and their advisors should be wary of characterising a payment to a director as a dividend without knowing if there are sufficient profits available to lawfully pay dividends, because they cannot later re-classify it as salary if they find there were insufficient profits after all, the Court of Appeal has made clear.

Case law: Employer cannot dismiss employee if the employee then loses benefits under long-term disability benefits plan

Employers should beware dismissing an employee who would then lose their rights under a long-term disability benefits plan on dismissal, following a recent ruling that a dismissal in those circumstances was unfair.

Case law: Court clarifies when seller of land is ‘ready, willing and able’ to complete sale

Sellers of land must understand the steps they need to take to prove they are ready, willing and able to complete the sale on the completion date – including compliance with a requirement to give vacant possession of the site – following a recent ruling.

Case law: Partners must consent before property can be brought into the partnership

All partners in a partnership must consent to property becoming partnership property before it is treated as such, and that there is written, formal evidence of this - or risk a claim that it is not partnership property, following a recent ruling.

Case law: Supreme Court says landlords opposing renewal of business tenancy so they can carry out substantial works must actually do those works

A landlord proposing to oppose a business tenant’s lease renewal on grounds it intends to do substantial works on the premises should ensure its motive for doing the work does not contradict its claim that it genuinely intends to carry out the works, or risk the tenant being entitled to renew.

New guidance: RICS announces new Professional Statement on service charges

The Royal Institution of Chartered Surveyors (RICS) has announced a new edition of Service Charges in Commercial Property, due to take effect from 1 April 2019.

Case law: Will-makers who do not want beneficiary’s children to inherit their parent’s share if the beneficiary dies first must expressly say so in their will

Will-makers who do not want a beneficiary’s children to inherit the beneficiary’s share if the beneficiary pre-deceases the will-maker should expressly say so in their will, or risk them inheriting their parent’s share.