< Previous30 Business Link www.blmforum.net LEGAL SERVICES G iven business law is a complex and nebulous branch of legal services, the quality and effectiveness of the advice and assistance a company receives can directly impact its future trading and endeavours. To put it another way, if a company opts for the cheapest option available, they can be putting themselves in jeopardy. Fortunately, companies can be checked out online to ensure they’re fully compliant, and with online aggregators and review services, it’s easy to see reviews that other companies have left for a firm. Companies can also use the Legal 500 to make more informed decisions. Although having quality and respected solicitors on side will help to safeguard a business, it’s by no means a silver bullet and businesses must ensure they not only have a good understanding of business law and legislation but remain compliant. Here we explore some of the biggest and most pressing legal services offered to businesses. Employment law Employment law is an umbrella term regulating the relationship between employers and employers from recruitment right through to exit. Within that it describes what employers can expect from employees, what they can ask of employees, and employee rights at work – things such as working time, holiday entitlement and pay. Businesses also need to bear in mind what they can and can’t ask about its employees. Diversity in the workplace is to be celebrated, with safeguards in place such as the Equality Act, in which people of all race, genders, ages and sexualities are treated fairly, and job applications asking applicants to supply this information if desired. But employers must be mindful around issues of sexuality and gender, especially with the rise of trans visibility both in society and the workplace. If a The cost of compliance From data protection to intellectual property, there’s a raft of legal services to help assist, inform and guide businesses to operate with knowledge and confidence and react accordingly in the event of litigious action. 30-33.qxp_Layout 1 06/03/2020 11:06 Page 1www.blmforum.net Business Link 31 LEGAL SERVICES © Shutterstock /Sergey Mironov company – or even its employees – ask another worker if they’re trans etc., that employee may well pursue litigious action. Equally as big a topic of late is sexual abuse and misconduct in the workplace which has entered a tipping point in the wake of #MeToo. Although the movement was focused on Hollywood and the behaviour of disgraced movie mogul Harvey Weinstein, it has since spread to many other areas, including workplaces across the UK. As in all aspects of business law, employers must be cognizant of forthcoming changes and legislation so they can prepare and take steps to ensure compliance. Examples include the government’s new immigration policy which functions on a points-based system similar to the model used in Australia. Employers wanting to hire someone from Europe will need to comply with these new policies. Another forthcoming change is the government’s plan to make any part of a termination payment over £30,000 subject to employer NIC. Although it was delayed from April 2018, it becomes law from April 6. Also coming into effect from this date is the Parental Bereavement (Leave and Pay) Act 2018 which became law in September last year. It gives employees who lose a child under the age of eighteen, or who suffer from a stillbirth from the twenty-fourth week of pregnancy, the right to two weeks leave as a ‘day one’ employment right. It will be pay the same statutory rate as other family friendly rights, such as maternity leave. Intellectual property Intellectual property (IP) not only refers to products or services produced by a company, but that company’s identity. IP can be the literal lifeblood of a business, 32 Á 30-33.qxp_Layout 1 06/03/2020 11:06 Page 232 Business Link www.blmforum.net so it pays to go with the best legal services and advice they can afford. Solicitors specialising in IP can offer a range of services, whether that’s IP disputes or strategy, or management and protection for patents, trademarks, domain names and designs etc. There are three steps recommended by government in the event a company needs to defend its IP and take action if it’s being infringed. Firstly, a company is advised to get the other party to stop using their IP or come to an agreement, such as a license. Secondly, a company can use mediation or another type of dispute resolution, or, lastly, take legal action should the other steps fail. Advice can be sought from solicitors at any stage, though they are only legally required for the third. As IP disputes fall under injunction-based law, they must be handled by a specialist IP dispute lawyer supported by commercial litigation colleagues. Disputes are handled in separate courts whose rules and expectations have little in common with those of other courts, and IP disputes often involve associated contractual disputes and specialist applications requiring the input of commercial litigation colleagues into the team. IP infringement covers a wide variety of occurrences such as counterfeiting, to using a similar packaging design, or the appearance of trademarks and symbols that come close to existing branding. Companies should be aware, however, that not everything can or should be trademarked. In 2008, for example, Cadbury attempted to trademark the colour purple, but was thwarted by Nestlé. It could not trademark the Pantone 2865c purple used on its Dairy Milk wrappers because it did not meet the requirements of what could be trademark, and the company are hardly alone in this. Solicitors can be a company’s sword and shield when it comes to IP disputes, in instances when it’s their own IP that has been infringed, or if they are the ones being accused. Data protection and privacy law Data protection issues have an impact on most HR activities from recruitment and employee record keeping, to performance monitoring and references. But it’s also becoming an increasingly hot topic in business with the rapid evolution of digital technology. Consequently, changes in legislation have occurred in order to keep up. In May 2018, General Data Protection Regulation (GDPR) came into force and replaced the previous Data Protection Act 1998. GDPR affects how organisations gather, store and use data and individual rights over access to information. Augmenting this legislation is the forthcoming ePrivacy Regulation which will provide greater regulation of electronic communications within the European Union. Once it comes into law, it will replace the EU’s existing ePrivacy and Electronic Communications Directive 2002 which was implemented in the UK back in 2003. Despite the European focus of the legislation, Brexit is unlikely © Shutterstock Den Rise 30-33.qxp_Layout 1 06/03/2020 11:06 Page 3www.blmforum.net Business Link 33 LEGAL SERVICES to have much of an affect. Experts say this is because UK companies will likely want to continue to do business in EU countries and will therefore adopt these regulations either fully or in part. For now, all adopted EU regulations continue to apply in the UK until the end of the Brexit transition period on Thursday December 31. The moral is that businesses will continue to face even more regulatory burden going forward and so they must be prepared. Solicitors can advise on a range of data protection laws – including preventing breaches and violations – but the onus is on business leaders to ensure they have a working understanding of their responsibilities and liabilities under data protection law and take the appropriate steps to ensure compliance. Solicitors can help to defend against allegations of unlawful data breaches, for example or, if a company has breached data laws, how best to handle and engage with the situation. When it comes to business law, it pays to be cautious. © Shutterstock /EtiAmmos Sills & Betteridge execute corporate deals valuing £96m in 2019 Against a background of Brexit and significant economic uncertainty, Sills & Betteridge’s Corporate and Commercial team transacted corporate deals with a value of £96 million in 2019. Corporate Partner Martin Walsh commented: “Our reputation for providing value added, cost effective, corporate and commercial advice via a team of highly experienced transaction lawyers who pride themselves on their outstanding service, paid huge dividends for us, completing in 2019, some 38 corporate transactions. “We were involved in international transactions involving clients based in Australia and China, and also domestic deals across a wide range of sectors including, engineering, health-care, transport, renewables, bio waste and information technology. “The figure of £96 million does not include the substantial value of property transactions our Commercial Property team were involved in during 2019 which further underlines the quality of the standalone corporate work we carried out.” For more information, visit www.sillslegal.co.uk. 30-33.qxp_Layout 1 06/03/2020 11:06 Page 434 Business Link www.blmforum.net FINANCE Capital Generation With a recent IoD survey suggesting that just one in five businesses said that obtaining finance was easy, while a large number are relying on family, friends and unsecured personal debt such as credit cards to raise cash for their company, it may well be that many fantastic ideas and opportunities go unrealised over the next twelve months. The traditional means of raising finance has ever been the banks, but with the banking crisis of the last few years and more stringent checks and requirements before being granted loans – not to mention a reluctance for the banks to take any risks – has led to people looking for alternative methods of capital generation. Whether it’s a result of popular television programmes such as Dragon’s Den or not, Angel Investors have become common across the business industry – with many companies taking advantage of their support to finance their plans. Peer to peer lending works like a bank loan, except that the investment comes from individuals who are looking to lend their own money. With banks offering incredibly low interest rates for savings at the moment, it is easy to see why so many people are using platforms like this to get a higher return on their investments. For the businesses borrowing, they might have to face rates comparable to the banks – but the money can be accessed much earlier, often within a week. What’s more there is no early repayment fee should the expansion be successful, allowing companies to clear off their debt without having to incur additional charges. What’s more, there is no requirement for a lender to produce and submit management accounts every month and the loans are also unsecured – meaning you won’t have to put your house on the line. Another alternative to this model however is crowd funding, which has seen a lot of success in the recent years. Crowd funding takes place on various sites such as Kickstarter and is more Matters of finance Finance is ever an issue for any business, with cash flow often being the most important figure a company can look at. Coming off the back of a recession and now facing Brexit, it’s imperative that companies take every step at their disposal to maximise the efficiency of their cash flow. 34-37.qxp_Layout 1 06/03/2020 11:07 Page 1www.blmforum.net Business Link 35 FINANCE traditionally used for new start-up ideas to secure finance. However, several medium to large sized companies have also used the platform to secure funding for more recent undertakings. When it comes to crowd-funding a company is often opening the investment to a much wider audience, who might invest as little as £20 at a time in your idea – however multiply this by potentially tens of thousands of individual investors, and suddenly it’s not uncommon see multi-million pound crowd-funding deals taking place. Typically shares in the business are offered as compensation for this, rather than interest on a loan however – so there is the risk of later decisions becoming cumbersome if you need to consult your twenty-thousand shareholders. Late Payments A culture of late payments is causing damage to the cash flow of many businesses. The average time large businesses (across the UK, not just our region) take to pay an invoice is approximately thirty-seven days from the date of receipt. Late payment is considered a problem for 55% of SMEs in the UK that offer trade credit. More than half of SMEs experience late payment waits of a month or more beyond any agreed terms, with 20% waiting more than two months! In total, 24% of UK businesses report that late payments are a threat to their survival, which is the highest reported level among all EU countries. SMEs are hit more forcefully by this culture, especially when late payments can come from larger firms who really ought to © Shutterstock /everything possible 36 Á 34-37.qxp_Layout 1 06/03/2020 11:07 Page 2E: enquiries@aprobinson.biz | www.aprobinson.biz T: 01472 345888 | F: 01472 345777 (Grimsby) T: 01652 660630 | F: 01652 637601 (Barton) 36 Business Link www.blmforum.net FINANCE hit more forcefully by this culture, especially when late payments can come from larger firms who really ought to know better, but whom can exert pressure on SMEs to ensure they cannot complain. The late payment culture stems from many aspects, some unavoidable such as a late payer being held back by his customers doing the same, but there are steps companies can take to try and mitigate the damage. In today’s world of the internet, online banking and transactions, some businesses are finding that their customers are not as averse to immediate payments as they used to be, and while older, larger firms may still demand credit, clearer terms of trade can help prevent any discrepancies further down the line. There are also those who allow politeness – a common problem in our regions, apparently – to hold them back from issuing invoices and warnings but considering that it will take time even from these to get payment, companies are advised to issue invoices promptly and to not hesitate to ask for payment and send payment reminders. Financial efficiency While raising finance and dealing with late payment is important, one aspect that many companies are not putting enough focus on is making the money you already have work harder for the business. This is not in terms of investment, though it could be, but making a business leaner. No matter what industry, what sector and how large a company is, there will always be inefficiencies. This is a part of human nature – and it’s common for A P Robinson & Co is a well-established firm of Chartered Accountants and Business Advisors – providing accountancy, taxation and business advisory services to a wide range of business and private clients. For businesses, the firm offer invaluable help and assistance with business planning and strategic growth. 34-37.qxp_Layout 1 06/03/2020 12:41 Page 3It can be hard and even impossible for those within a business to identify and act on these; they are part of the system and something people have gotten used to. Often, it takes a professional coming in to take an outside look, identify and suggest solutions. This can be a bitter pill for many to swallow. No one likes the idea of relying on an outside influence or being told that their business plans are flawed. Pride and ego are commonplace in the business world and come part and parcel of any success, but outside consultation need not be insulting. In fact, their goal is always to work with a company to improve their efficiency, either be working with strategy, improving team performance or helping to increase engagement with staff, suppliers or customers. Seeking aid from consultants on this is not a weakness. In reality, it can be a strength to both utilise all the knowledge a business and its employees have, then compound on that with further expertise from outside. More than that, consultants outside a company often find it easier to notice areas for improvement because they don’t have any of the biases or distractions that those within the business do. The goal, as ever, is to be efficient and sustainable, and something businesses forget is that when cash flow is poor, it may not be because there is a problem with the product, service or pricing structure. It may be that overheads and variables are high elsewhere, and that once these are trimmed down and made leaner, the company’s cash flow looks far healthier. The warning signs that a business is getting into trouble It’s worrying how easily a company can get into financial difficulties. Whatever the cause of the problems in your business is, it is important you know what to look for when they are about to occur. Forbes Burton, the Grimsby-based business management consultancy, guide you through the warning signs. Cash flow problems Weak cash flow has caused many businesses, even the seemingly sturdy and successful ones, to die. If your outgoings are consistently higher than your incomings, find and address the problem immediately. Trade slowing down If you notice that you aren’t getting as much business as usual, it could be a sign that you’re getting into trouble. Take the time to find out what’s wrong, whether it’s competitors taking your customers or whether your services and products are now obsolete. Customers paying late Simply put, if you aren’t getting paid by your customers on time, it could seriously affect your cash flow. Chase defaulters with strength and persistence, and impose more stringent terms on them the next time you do business. Additional borrowing Looking for additional funding is good for expansion, but it could also serve as a sign that things are not very well with your business. Always check to see why you are sourcing for more funding and find out if you should worry about it or not. How Forbes Burton can help If you are experiencing any of the above, call Forbes Burton on 01472 254914, email advice@forbesburton.com, or visit www.forbesburton.com. www.blmforum.net Business Link 37 FINANCE © Shutterstock /Phongphan 34-37.qxp_Layout 1 06/03/2020 11:07 Page 438 Business Link www.blmforum.net CORPORATE HOSPITALITY I n today’s world it is easy to forget the value of face-to-face meetings. With such strong connectivity available through the internet thanks to emails, social media and video conferencing, keeping relationships with clients completely virtual is an easy trap to fall into. Though much of business to business and client communication is now online, the reality is that “people do business with people.” Coming together in ‘real life’ is key for bonding and building trust - nothing compares to that human touch. Strong and tailored corporate hospitality is one way to realise this and is a vital strategy for many in securing clients. Presenting clients, both potential and current, with a memorable and enjoyable experience that provides a less formal environment for networking and developing relationships, corporate hospitality is perfect for promoting a business while entertaining. Though the expense may cause hesitance, according to research by STH Live, over eight per cent of businesses think corporate Building with sport relationships Corporate hospitality is a key strategy for many businesses looking to build relationships with clients and make a business stand out. Sports hospitality, in particular, provides a great environment for creating an experience to remember. 38-39.qxp_Layout 1 06/03/2020 11:09 Page 1www.blmforum.net Business Link 39 CORPORATE HOSPITALITY hospitality is extremely effective at improving client relations. What experience you choose will of course depend on what you are aiming to achieve - are you seeking face-to-face time, looking to build a rapport, or aiming to make a client feel important and valued? Sports events are a great option for corporate hospitality and are rapidly increasing in popularity. With studies indicating that more than seventy per cent of clients are likely to boost their spending with a company as a result of a memorable day at a sports event, this is not surprising. To make guests feel truly special, secure a box or VIP suite to give them a privileged game experience. Not simply providing the entertainment of a sport, most corporate hospitality packages, such as at football stadiums, also offer delectable meals, complimentary drinks, top-tier service and live entertainment. Some even include meet and greets and stadium tours. This also presents plenty of time for conversation, so that the sport in question can be enjoyed uninterrupted by anything other than commentary on the game. One might even extend the VIP experience for clients with a chauffeur, to make your business stand out in a crowded marketplace. Coaxing the build of personal relationships, sports events, particularly memorable ones like world cups, have been shown to enhance the emotional connection between a client and business. Our region has a reputation for sporting excellence with plenty of events on offer. With well-known football, cricket clubs and boxers as well as horse racing, ice hockey and even the Tour de Yorkshire and World Snooker Championship, the region provides a plethora of hospitality options throughout the year. Cricket is a popular choice, offering a relaxed yet exciting environment, with shorter formats like T20 acting as the perfect length to provide time for relationship building without being interminable. One option this year might see you take on the 3rd IT20 - England v Australia in Leeds for instance. In selecting an event remember why it is needed. Are you building a relationship or rewarding custom, meeting new clients or supporting a long-term objective? Also consider whether the manner of corporate hospitality meets your own company’s values, ethos and image, and of course one cannot forget to think about your audience’s availability - do they mind setting aside time on a weekday or prefer weekends - and interests. Perhaps sport does not intrigue them. They may be more focused on the arts. In this case one might visit the theatre. Then again, while attending a show at the theatre may be the best choice for the interests of a client, it leaves limited time for relationship building, due to the requirement for silence during a production. Thus one should ensure to organise time within your outing to facilitate this pre or post show, not dissimilar to, though perhaps slightly more restrictive than, a sports game. However, remember not to turn corporate hospitality into a business meeting, as this can stunt its relationship building potential. The event should not hold the manner of a formal pitch. Whatever you choose, in utilising corporate hospitality it is important to keep the Bribery Act in mind, with many uncertain about where the line is on this matter. In guidance released for the act in 2011, Kenneth Clarke, Secretary of State for Justice, said: “Combating the risks of bribery is largely about common sense.” He went on to say: “Rest assured – no one wants to stop firms getting to know their clients by taking them to events like Wimbledon or the Grand Prix.” The act is rather to prevent bribery framed as entertainment. For an offence to be made, prosecution has to show that a client has been offered something with the purpose of bringing about improper performance or pushing them to act in a dishonest manner. While hospitality can be used to exercise influence on clients, it is acceptable so long as it is reasonable and proportionate. © Shutterstock /pixfly 38-39.qxp_Layout 1 06/03/2020 11:09 Page 2Next >